As an Indian citizen, if you are planning to start your business in Thailand, there are plentiful options. For instance, the digital economy of Thailand is growing rapidly. This single section holds a multitude of business options for Indian business owners, entrepreneurs, or startups. Apart from this, the manufacturing and tourism industry also extends loads of opportunities for business aspirants from the Indian subcontinent. In this article, we will discuss primarily the best business options in Thailand for Indians who are interested in penetrating the digital and/or production or manufacturing industry of Thailand.
Business for Indians in the Thai Digital Economy
Business for Indians in the Thai Industrial Sector
Other Production or Manufacturing Businesses
Best Business in the Thai Digital Economy for Indians
According to the Bangkok Post, Thailand’s gross domestic product (GDP) benefited 2.1 billion baht from the digital economy in 2022, a rise of 1.9% from 2.04 billion baht the year before. The true expansion rate of the Thai digital economy in the last two years is around 12.1%. The Royal Thai Government expects that the digital economy is going to contribute 30% to the GDP by 2027.
Therefore, to boost this growth, the Board of Investment of Thailand in association with the government and other pinnacle agencies is bringing forth various policies. These policies are the schemes and privileges that foreign investors in Thailand receive as support for their business in the kingdom. Normally, these schemes involve tax and non-tax benefits.
Go through our article to know all about the BOI benefits for Diigital Agency Startups in Thailand.
With a growing digital economy backed up by a robust digital infrastructure and facilities, Thailand has the following business options for Indians:
E-commerce Business (preferably Grocery, Food and Jewelry)
Starting an e-commerce business in Thailand is a great option to penetrate the digital economy of Thailand. Ever since the announcement of the COVID-19 lockdowns, Thai citizens have started to rely on digital platforms for shopping for their daily essentials. Many times, they also order luxury goods like gems and jewelry via online shopping platforms.
As this is the beginning of the expansion period of the Thai digital economy, there is a lot of space for the co-existence of multiple similar businesses in the kingdom. The kingdom has a population of approx. 72 million till January 2023, out of which 53% of the population are familiar with online shopping. Isn’t that a huge market to tap into?
Digital Marketing Agencies
Digital marketing agencies in Thailand are one of the most sought-after businesses. It is because of the rapid adaptation of Thai citizens to digital platforms. To meet this requirement, Thai companies are in need of digitalization of their marketing and communication processes.
Although digitalization in Thailand started in 2016, yet, it became a practice in India much earlier than that. Therefore, the understanding of the concept is much clearer to Indian citizens which can facilitate their process of identifying the proper digital requirements and providing the necessary solutions.
Digital Platforms
This business section comprises various types of fintech, online teaching and learning, and travel booking services. Although the avenue and scope are not restricted to this much. Investors can come up with new ideas to develop digital platforms in Thailand that can add value to the Thai digital economy.
Any type of project holding innovation, uniqueness, and inclusiveness in their idea can be eligible for tax and non-tax incentives from BOI Thailand. Such benefits often comprise tax holidays, ease in obtaining work permits, no restrictions on recruitment of foreign employers, and chances to hold 100% foreign ownership of the Thai business.
Best Business in the Thai Industrial Sector for Indians
Growing at the rate of 4% CAGR, the industrial or manufacturing sector of Thailand holds a lot of potential for Indian investors. Spread across different verticals of the automotive industry, food processing, textile industry, chemicals, and petroleum, Thailand has a vast expanse for Indian investors to explore. Following are the brief insights of some of the preferred or best business verticals in Thailand for Indians:
Automobile Industry
The vehicle production rate in Thailand is projected to grow by 2.1% YoY. This is a good volume to explore and this growth is evident for the following reasons:
- Thailand is one of the top 10 nations in the world in terms of automobile manufacturing.
- The kingdom is the 4th largest auto assembly and export hub in Asia.
- The volume of vehicle exports in July 2023 went up by 30% YoY.
Competing with global giants like Japan, China, and Germany, Thailand has a great impact on the global automobile industry. Additionally, many automobile production giants like Toyota, Nissan, Honda, and Mitsubishi have shifted their production units to Thailand from other SE Asian nations.
Food Industry
For your information, the agriculture industry of Thailand contributes greatly to the Thai GDP. Being rich in agricultural resources, the kingdom can give you a wide range of opportunities in the food industry. This industry is especially beneficial for Indians because of the following reasons:
- Being an agro-centric economy, Indians have a better understanding related to agricultural products and their processing.
- The Thai food industry has not reached stagnation and is growing year after year due to the increase in the influx of foreigners in the kingdom with different food tastes and preferences.
Apart from food processing, this industry also offers foreign investors the option of starting eateries and restaurants in Thailand. If this interests you, read our article to start a restaurant in Thailand.
Other Production or Manufacturing Businesses
Thailand is rapidly developing itself as the manufacturing hub of Southeast Asia. This is due to its growth in terms of industrial infrastructure and the various government schemes that are promoting manufacturing as one of the target activities for the development of the Thai economy. This is one of the reasons that production or manufacturing is the best business option in Thailand for Indians.
In one of the recent announcements, BOI Thailand declared biotechnology, nanotechnology, and clinical technology as activities of interest for the growth of the Thai economy. Therefore, if your production or manufacturing business focuses on any of these activities, in addition to the government benefits, you will receive great business exposure as well. Let us help you with the ideas of some similar businesses.
- Production of eco-friendly chemicals or polymers
- Manufacture products from eco-friendly chemicals or polymers
- Manufacture of raw materials and/or essential materials for molecular biological research
- Production of fuels from agricultural products, scraps, wastes, or garbage
- Manufacturing of modern agricultural products like fertilizers, irrigation systems, or tracking devices
Any of the above-mentioned business activities will readily attract benefits of up to 13 years of tax holiday along with various other benefits from BOI Thailand.
The Bottomline
Have you read till here? Then, by now you must have got the idea of the type of business that is going to be suitable for you. After deciding the type of business you will do in Thailand, it is essential to have local Thai support by your side. It is because of the mandate of having a Thai partner for foreign investors and decoding the complex Thai regulations.
As an Indian investor, it is very likely that you will have your legal and accounting professionals on board. But, contrarily, it is very unlikely that they will have a competent understanding of Thai legal norms and regulations. For that, you will need a competent and reliable Thai corporate law and accounting firm.
However, in addition to educating you on the Thai business landscape, we can help you incorporate your business in Thailand with our elegant corporate law and accounting services. Email us your business idea at [email protected] and our team of professionals will get back to you within one business day.
