Thailand offers several commercial prospects for foreign investors due to its industrialized and rising economy. With a fast rising population and exports, the country is experiencing solid growth, fueled by state investment, foreign demand, and local consumption. Thailand’s economy is also the second-largest in Southeast Asia, after Indonesia, in terms of GDP. Post-COVID, there is a great leap in the multitude of avenues of investment opportunity in Thailand for both local and foreign businessmen. To recover rapidly from the economical vacuum created due to the pandemic, Thailand is emphasizing on attracting foreign direct investment to the country. 2022 is going to be a great time for foreign investors to start their business in Thailand and multiply their investment with an assured RoI.
Because of its competent workforce, flexible economic policies, and strategic location as an entrance gateway to the broader Mekong region, the country is one of the greatest possibilities for investment. Thailand provides a solid legislative framework for foreign investment, as well as government financial aid. The country is presently one of the most appealing destinations in the ASEAN Region, thanks to new and investor-friendly economic regulations and political stability.
Is it a good time to invest in Thailand Post-COVID?
According to research by the Global COVID-19 Index, Thailand holds the second place in the world, after Australia, and first in Asia, among countries with the greatest COVID-19 recovery rate (GCI). This was only achievable because of the nation’s collective discipline and endurance.
The second half of the year is likely to experience moderate growth in many industries, assuming COVID-19 is already under control and recovering from the lockdown stagnation. However, with fresh incentives on the horizon from the Thai government, the country could see a comeback as early as the first quarter of 2021, with new businesses flooding in and Thailand beginning to recover.
Why look for Investment Opportunity in Thailand?
In the Southeast Asian region, Thailand is currently a popular destination for foreign investment. The government’s proactive policies are forward-thinking and inventive, actively encouraging socioeconomic advancement and development. The Thai government vigorously encourages international investment in both the financial and local manufacturing sectors. Additionally, its open-door policies have welcomed foreign organizations and corporations in recent years.
The Thai government’s business-friendly policies are now providing several incentives to attract foreign companies. Tax exemptions and large concessions to import tariff exemptions, as well as authorization to own land, are examples of such incentives. Foreigners can still own land, but it is a complicated process.
Industries creating Investment Opportunity in Thailand in 2022
Foreign investors are encouraged to invest in order to maintain economic growth under the new rules. The new framework includes a mix of merit and non-tax incentives, as well as the removal of zoning restrictions that apply to foreign investors and other perks. The implementation of these new investment policies will have a positive impact on foreigners’ investment decisions. All of these new policies are aims in encouraging investment and reorganizing Thailand’s economy.
Opening a business in Thailand is the ideal method to get professional respect and experience the Kingdom’s high-end business lifestyle. Rice, lumber, and precious and semi-precious stones are among Thailand’s enormous agricultural and natural resources. Manufacturing, jewelry, textiles, and processed foods are some of the fastest-growing business categories that contribute significantly to GDP.
Real Estate Investment
The majority of foreigners who visit Thailand and stay for a period of time acquire an interest in owning a property, whether it is a condominium, an apartment, or a landed house. Furthermore, due to the prevalence of home ownership in these nations, foreigners from the United States, the United Kingdom, and Europe gather interest in purchasing a landed home in Thailand. As a result, investing in property markets or real estate is thought to be a good choice. There are numerous reasons to invest in Thai real estate:
- In comparison to most other nations, property prices are relatively attractive, and property owners can expect higher rental incomes.
- There are no taxes on property or inheritance. Furthermore, there are no confiscatory taxes on assets in the country.
- An investor can expect a minimum return on investment of 6% to 8%, as well as annual capital appreciation of 5% to 10%.
- The process of purchasing a home in Thailand is simple and hassle-free.
Foreign citizens cannot buy land in the country, however they can possess a freehold apartment. A foreign national may also invest in a leasehold property, which normally has a 30-year term and is renewable.
Investment in Financial Market
Thailand’s stock market has done relatively well during the last decade. Thailand is currently a major export center, with strong growth and changing market conditions.
Blue Chip Thai stocks have a good track record of stability and development. The infrastructure, healthcare, and industrial sectors account for the majority of the good SET (Stock Exchange of Thailand) recommendations. Because of their historically below-average performance, Thai stocks and bonds have been good investment opportunities. This theory is based on the fact that Thai stocks and bonds have significant growth potential.
Investment in Thailand 4.0 based Industries
Thailand is strongly promoting new investments to-under Thailand 4.0 – Innovation-driven economy with focus on business initiatives on field like –
- Next-generation automotive
- Robotics and automation
- Smart electronics
- Advanced agriculture and biotechnology
- Bio-fuels and biochemical
- Aviation and logistics
There is a transformation in current Thai government operations into digital platforms such as Single Window for Visa and Work Permit, e-Government, and living solutions, mostly to satisfy the consumer side of demand. No wonder Thailand climbed to 21st place out of over 190 nations evaluated in the World Bank’s annual ‘Ease of Doing Business’ rankings, with plans to climb further in the years ahead.
The Bottomline
However, irrespective of your mode or type of investment, we recommend you to get in association with an investment consultant or startup specialist in Thailand. Most people never try to register a Thai company on their own because of the rules and paperwork involved. Because all government documents are in Thai script, translations are necessary for many aspects of this process that require completion of earlier phases before their implementation. If you aren’t familiar with it, it might be very difficult to comprehend. Association with the Board of Investment of Thailand is also very mandatory to get tax benefits. For this you will always need local Thai support.
Without thoroughly assessing your current programmes and operational demands, you will not be able to reach your startup goals. We understand the areas that need examination as well as those that have proven to be effective using proven methodologies. This allows us to design a plan of action that incorporates best practices from a variety of clients and industries.
We are a dependable professional team that collaborates with business owners to advise on and execute difficult and time-sensitive projects. We provide a variety of engagement options for you to select from, according to your project’s needs. Such consulting projects can range from one-time engagements to long-term assignments, and we take full control of them. Book your session of free consultation with us today. Alternatively, you may email us at [email protected].
