The second-largest business-to-consumer e-commerce industry in the area after Indonesia, Thailand boasts one of the fastest-expanding economies in Southeast Asia. 2023 is the year to start a business in Thailand and forge key contacts. This is because of the advantageous location, stable economy, business-friendly environment, and affordable labor in Thailand. Go through this article of ours and check the top business opportunities in Thailand in 2023.
Tourism Industry in Thailand
Many international business owners and industries prefer to invest in the Thai tourism sector. It is worth mentioning that this industry accounts for over 20% of Thailand’s GDP, due to its:
- Easiness of application procedure (21st easiest place in the world)
- Open and welcoming economy
- Reasonable taxation (from 10%-30%)
- Affordable business cost
- Skilled and well-educated workforce
- Convenient regional transportation
- Sufficient infrastructure (most importantly in digital)
- Ease of Internet connectivity
In this article, we’ll examine Thailand’s strategies for maintaining its top position to start a business and invest.
The Eastern Economic Corridor (EEC)
The Eastern Economic Corridor (EEC) of Thailand is one of the region’s most visible megaprojects. It is the primary economic zone for infrastructure, urban growth, and industrial development in the ASEAN region.
The Thai government has embraced a new economic model called Thailand 4.0. This model focuses on changing Thailand into a value-based economy. Additionally, science, technology, innovation, and creativity build the base of this model. Furthermore, it ensures that Thailand’s economy continues to thrive over the next 20 years.
The 12 target S-curve industries for the EEC, in the three Eastern provinces of Rayong, Chonburi, and Chachoengsao, are:
- Automobiles & Automotives;
- Smart Electronics;
- Affluent, Medical, and Wellness Tourism;
- Agriculture and Biotechnology;
- Food;
- Robotics for Industry;
- Logistics and Aviation;
- Biofuels and Biochemicals;
- Digital Infrastructure;
- Medical Services;
- Defense;
- Education Development.
The Board of Investment and the EEC Office are planning to expedite the revision of promotional rights for those sectors. Note that, this is to make five new S-curve industries more appealing to foreign investment.
Please note that, from January to May 2022, FDI applications in the target EEC industries were worth 27.1 million baht. This value is 37% of the total foreign direct investment in Thailand during the same period. However, this excludes defense and education development, for which data are not yet available.
They present a good possibility for E&E investors seeking stable returns over the long term. Foreign businesses planning to enter the ASEAN market must start in this region due to the following iconic reasons:
- Robust connectivity to regional and international markets,
- Modernized infrastructure,
- Significant tax and non-tax incentives from the Board of Investment of Thailand, and,
- Highly industrial ecosystem
Thailand Transforming to Become a Digital Hub
The Covid outbreak has expedited the digitalization of commerce and services. Additionally, it has forced many businesses to use digital technologies. Evidently, this is to adapt to the new normal era’s changing economic climate and satisfy consumer expectations.
It is crucial to have a distinct digital brand identity. Nevertheless, there are so many companies operating in the same digital environment. Therefore, businesses are understanding the value of having a strong online presence to increase sales and lead the competition. So, digital marketing companies providing efficient SEO techniques, display advertising, and other digital promotions are the need of the hour.
Bio-Circular-Green (BCG) Economy of Thailand
By promoting Thai bio, circular, and green (BCG) economic development, the Industry Ministry hopes to increase Thailand’s post-pandemic GDP. Additionally, it expects to transform the nation into an ASEAN bio-hub by 2027.
The government is putting in place tax privilege schemes to make them more appealing to investors. Nonetheless, this is to encourage firms to create and add value to products with no or minimal environmental impact.
Thailand currently satisfies the requirements to become the subsequent Asian bio hub with:
- An abundance of Bio-based Materials (like cassava, sugar cane, and palm oil)
- Existing Infrastructure (Thailand hosts several facilities that are instrumental in developing the Thai bio-economy)
- Strategic Location (like in Chonburi with Palm Bio-complex)
Thailand also has a comprehensive Plastic Waste Management Roadmap. This model aims to remove at least 50% of Thailand’s marine debris from plastic by 2027. Doing so is one of the plans to contribute to the Circular Economy of Thailand. Therefore, foreign investments in projects promoting this initiative in Thailand will surely attract great earning potential.
Import-Export or Trading Business in Thailand
One of Asia’s major transportation hubs, Thailand has excellent transit connections to neighboring nations. The country is a fantastic market for foreign firms to import items. This is because of its big ex-pat population, especially those that are challenging to find, such as particular food brands. Foreigners and locals alike are willing to pay more for Western products.
Another excellent business possibility is to export Thai products like jewelry, apparel, and handicrafts. Western nations frequently seek Thai quality at a lower cost than what they can find in their own countries.
Medical Industry in Thailand
The third-largest medical tourism destination in the world is Thailand. Each year, Thailand welcomes 350,000, serious medical tourists. The tourists spend an average of $1,700 at hospitals and clinics in Thailand.
Thailand is famous for its skilled medical professionals and surgeons, particularly for plastic surgery procedures.
Growing Covid-19 concerns had a favorable impact on the growth of health-related companies. The Board of Investment (BoI) promoted initiatives to speed up investment in the medical sector.
Logistics or Delivery Business in Thailand
According to Statista, the delivery business market volume will reach US$6.58 billion by 2027. Additionally, a 13.45% CAGR is very certain from 2023 to 2027. Nonetheless, due to the pandemic lockdown, there is a three times growth in the food delivery industry.
The main players in Thailand are Food Panda, Lineman, and Grab Food. The food delivery industry has expanded beyond merely restaurant takeaways. It is now serving the traditional retail industry as the new normal since the epidemic.
Get Food, the newest operator in the Thai food delivery industry claims that only 30% of their orders originate from well-known eateries. Whereas, 70% come from independent shops or food carts. This implies that food delivery is becoming a crucial component of the revenue for even street food vendors.
Wrapping Up
These were the top business opportunities in Thailand in 2023. If you are already in any of these lines of business, then 2023 is the time to develop them further. If not, try to link your existing business with any of these industries for assured RoI and profit.
However, if you are planning to make a new start, choose any of the said industries in Thailand. It will take relatively less time to grow and prosper when compared to other lines of trade. For all types of legal, accounting, and/or payroll support in Thailand, feel free to email us at [email protected].
