SME Business in Thailand is a wonderful dream for all foreigners because Thailand offers numerous incentives for SMEs to invest. Thailand is a well-known country in Asia and throughout the world for its excellent tourist attractions, friendly people, and culture. On the other hand, Thailand is an intriguing destination for foreign investment. Thailand has consistently ranked among the top 20 best investment countries for many years. This demonstrates that Thailand is the best destination for foreign investors in both SMEs and BOI businesses.
SME Business in Thailand: Advantages for Foreigners
Strategic Location
Thailand is strategically located in the heart of Southeast Asia. This allows the Kingdom to connect to neighboring countries such as Myanmar, Laos, Cambodia, Vietnam, and Malaysia. As a result, Thailand has become the hub of Southeast Asia. The nation serves as a connecting point to other Southeast Asian countries. Bangkok, Thailand’s capital, is one of the most popular tourist destinations in the world.
Thailand has a long history of good relations with other countries around the world, in addition to its strategic location. Since the Ayutthaya Period until now, Thailand has had good relations with foreign countries. The relationships are more close with monarchies in Europe and Asia, as part of its international relations strategy. Thailand is one of the best choices for foreign investors because of its reputation.
Thailand has become a good destination for foreigners who want to get the most out of their investment in Thailand because of its favorable location and good reputation.
Availability of Manpower
Thailand has a large population of skilled workforce. This manpower is willing to work in foreign companies in exchange for better benefits and a higher salary. People from all over the world flock to Thailand, particularly Bangkok, because of its strategic location in Southeast Asia. Therefore, it is easy to find employees for any business due to these options. This makes investors feel confident in selecting the best person for their needs.
Thai Workforce
Foreign investors want to hire local workers who can communicate with other Thai businesses and speak the language. Moreover, Thai skilled manpower can communicate in English and other languages, which is a huge plus for foreign investors. Foreign investors can be confident that Thai skilled manpower will provide them with high-quality work. This is possible due to their education from both international and local universities.
Foreign Workforce
As the region’s hub, Thailand attracts a large influx of foreign labor and skilled manpower. Professionals from all over the world flocks here looking for the best job opportunities. As a result, foreign investors in Thailand have a good opportunity to consider. This also gives them the option to select the best personnel from a variety of nationalities and skill sets.
Standard Facilities
Foreigners can stay in Thailand without any restrictions due to the development of every aspect of life in Thailand. Many foreigners choose live in Thailand for the rest of their lives. It is due to the ease of life and high standard of living.
Food and Restaurants
Thailand is a foodie’s paradise. People can choose from Thai, Indian, European, American, or Asian cuisines. As a result, anyone can easily select food that suits their taste and style. Furthermore, there are numerous restaurants open 24 hours a day, ensuring that residents of Thailand do not go hungry.
Foreigners prefer to live in Thailand because of the easygoing food and lifestyle.
Transportation
Thailand will become the center of transportation and logistics in South East Asia. It is due to the government’s development of public transportation. This development includes highway and motorway projects connecting each country’s borders, including Laos, Myanmar, and Cambodia. Thailand has many projects to improve the good relationship with other countries in the AEC association. Thailand is the pillar these collaborations. Good transportation is one of such projects to make every country easily connected to one another.
Furthermore, the government of Thailand is developing a metropolitan system. This is to help people in Bangkok and the surrounding area have a better standard of living. Additionally, it will help businesses expand to new areas. It will also increasing the opportunities for many SMEs and foreign investors in Thailand. Furthermore, the expansion of the investment area has the potential to boost Thailand’s income growth rate.
Information and Technology
Thailand is a leader in the field of information and communication technology (ICT). Thailand has many knowledge resources and educated manpower thanks to its good IT education curriculum and investments in IT businesses. These factors cause foreign investors to disregard concerns about Thailand’s connectivity and digital communication.
Furthermore, digital marketing and communication are now the most widely used in Thailand. Therefore, social media has a lot more power to influence Thai people. This allows Thais to communicate with people all over the world. This is a great benefit for all businesses looking to connect with Thais.
Affordable Cost
In comparison to Singapore and other developed countries, Thailand’s cost of living is not as high. However, the standard of living is similar or comparable. As a result, this is a major factor in attracting foreign investors to Thailand. Because the cost of living isn’t too high, the cost of living-related expenses won’t be too high either.
Wages & Salaries
Thais are paid a daily minimum wage of THB 310 (approximately USD 10). Furthermore, the minimum salary for bachelor degree staff is guaranteed at THB 15,000 or around USD 470 per month. This allows foreign investors to save more money than if they invested in developed countries with higher living costs.
Personal Tax
Thailand’s personal tax rate is quite low. It is at only 20% of income in general. This makes it the second-lowest tax rate in ASEAN. This results in a significant increase in business activities and investments in Thailand. Therefore, Thailand can be competitive with other developed countries nearby and around the world.
Investor-friendly Government Policies
To boost the number of foreign investors in Thailand, the government offers a variety of incentives and policies to help foreign investors, particularly SMEs.
Promotions for First-Time Investors
The Thai government has a number of investment policies in place to encourage foreign investment. This includes incentives for investment in Thailand’s southern provinces. Additionally, there are incentives to support investments in innovation, alternative energy, and sustainable development. Moreover, the government establishes special economic zones along Thailand’s borders with neighboring countries. This provides additional benefits to investors who invest in these zones.
Tax Benefits
New SMEs, including foreign SMEs, are supported by the Revenue Department.
1) A corporate tax exemption for the first eight years of a business’s existence.
2) A five-year 50% income tax reduction in Enterprise Zones.
3) Importing machines and raw materials are exempt from customs duty.
With these resources, SMEs can start businesses in Thailand at a lower cost. Moreover, there will be fewer concerns about corporate expenses in the early years. Furthermore, because of lower costs than other countries, these factors encourage foreign investors to prioritize Thailand as their first choice for starting a new business.
Non-Tax Advantages
The government also offers a variety of incentives to foreign investors, including 100% foreign ownership of some businesses and incentives for hiring professional employees to work in Thailand. Furthermore, many privileges are available for a SME business in Thailand, such as the privilege for SMEs with 51% Thai nationality shareholders, the privilege for a specific business location, or the privilege for each type of business.
All of these factors encourage foreign investors to start a SME Business in Thailand, resulting in a win-win situation for both Thailand and foreigners. The increase in Thailand’s investment rate has a direct impact on the country’s income growth. At the same time, foreign investors who invest in Thailand will reap the greatest benefits from the low cost of doing business in Thailand.
With these important factors, Thailand has always been and will continue to be the best investment destination. In any case, foreign investors must understand the trends in the Thai market as well as the natures of Thai people in order to be successful in their investment in Thailand.
For any and all types of support to start SME Business in Thailand, feel free to avail our free session of consultation. You may also email us your requirement in details to [email protected].
