The Thai government has always maintained a balance of power in its local economy while on the other hand it has also opened gates for foreign investments. Starting a business in Thailand in spite of being a non-Thai is surely rewarding as in 2020, Thailand entered the top 25 positions in the FDI confidence. Even after two-years of absence from the AT Kearney FDI Confidence Index, this year it ranked 21st.
The COVID-19 outbreak not only affected the FDI, but it also had a negative influence in the economic nationalism. For this reason, developing countries, which have always depended upon development and industrialization strategies to attract FDI, is getting a setback. But conversely, it is also true that the policy shifts in the international production strategies and transformations in the investment patterns. It is also creating opportunities for promoting resilience-seeking investments.
Amidst a wide gamut of versatile business opportunities available in Thailand, Sustainable Development Goals (SDG) is somewhat attracting the attention of the Royal Thai Government. This sector of business can be related to different sustainable verticals of financial services, food and beverage, consumer goods, climate, healthcare, transportation, energy and natural resources.
Sustainable Development Goals (SDG) sector is having the potential of attracting FDI. Strategies of implementation of investment roadmaps in sustainability-themed projects are ongoing in Thailand. To boost the FDI factors, various reforms and amendments can be witnessed in the international business regulations of Thailand. The following few active norms and regulations declared by the Royal Thai Government makes starting a business in Thailand easier –
- The business setting-up process is now taking 6 days, which was initially a mandate for 29 days.
- It is offering more incentives on investment in advanced technologies, innovative approaches and initiatives including research and development.
- The Investment Promotion Act and the Eastern Economic Corridor Act is providing benefits to investors in form of tax subsidies, right to land ownership along with the issuance of visas.
- The regulatory bodies have strengthened the borrowing and crediting facilities and the system of land administration.
- Shareholder’s Power Index has risen to 8.0 assuring a higher level of investor protection.
If a consolidation of all the above points is done in a business governance perspective, all of them are indicating towards an open-door GDI invitation. Recently in August 2020, Thailand received a grant worth $5 million from World Bank for the purpose of reducing the import and consumption of HCFCs by 60% within 2023. This initiative is targeted towards the protection of the ozone layer and prevents its depletion.
Hence, starting a business in Thailand SDG initiatives revolving around this aspect can help in generating good returns for the FDI investors. As it is related to environment, business ideas focused on the use of nature-friendly alternatives of HCFCs can be highly accepted and promoted by the Royal Thai Government and its concerned foreign trade bodies.
