Do you intend to set up a business in Thailand? Thailand, the land of huge smiles, provides several benefits when you choose to establish a business there. Due to the support and incentives provided by the government, strong infrastructure, availability of skilled and cheap labor, foreign investors are moving to Thailand to establish different businesses.
Well-defined government policies that fast track liberalization and cost-free trade, social and political stability, as well as the country’s ideal location also attract foreigners in conducting business in Thailand.
While using comparative evaluation of benefits of doing business in Asian countries, the cost-effectiveness while making an investment and a much better life which comes along is the vital factor driving the will of the investors to do business in Thailand.
Gradually, Thailand has now become one of the most profitable investment destinations in the world.
With that said and done, below are some of the benefits of doing business in Thailand:
Availability of Eligible and Cost-Efficient Workforce
Thailand has a huge and flexible workforce. Based on Country’s Investment report, literacy rates reach 94% in men while in women it stands at 90% hence foreign investors find a brilliant workforce with the possibility of further development.
The country’s workforce is not only adaptive and well-informed but also among the most affordable in the region when it comes to pay with the standard day-to-day wage of about US$6.
Inexpensive Business Cost.
Thailand is considered as one of the countries in the world with the most affordable cost of business operation. This consists of production facilities, offices, management systems and information technology as well as factories. In short, the cost of operating a business in Thailand is relatively affordable as compared to western countries. The cost of electrical power and water is also reasonably priced and that is good as far as business is concerned.
Availability of Convenient Regional Transport
The availability of good transport network not only in Thailand but also in the Southeast Asian countries such as Bangkok is believed to be the key for convenient transportation. The improved transport network facilitates easy movement of goods in and out of Thailand thus attracting a good number of foreign investors into Thailand.
Favorable Government Policies
As a benefit of starting a business in Thailand, The Thailand government is a holistic and revolutionary body, which positively promotes almost anything associated with the development and socio-economic progression. Foreign investment, both economical and in the regional labor force, is highly inspired by the Thailand government bodies and the government’s policies throughout the last decades has created an enabling business environment for foreign organizations and businesses.
The government offers numerous tax incentives including investment approval by Board of Investment. The government also offers zero corporation tax to foreign investors who invest in industrial sectors such as healthcare, tourism services, fashion, agriculture and agro-industry, alternative energy production, automotive industry, electronic and information communication technology as well as building construction technology.
Export products usually do not suffer customs or value-added tax. Import duty charged on imported materials meant for production of goods for export can be refunded by the customs department.
In addition to that, customs duties are exempted on imported goods when they pass through free zones. Investors who integrate into Thailand’s free trade zones appreciate benefits such as no export/import duties, value added tax, permission to own land, and tax holiday up to 8 years for promoted activities.
Easy Application Procedures
That is referred to as the 17th easiest place in the whole world to do business. Conducting business in Thailand is a good decision you can ever make as the application procedures and costs are very easy to go through. The easiness range from the bureaucratic procedures involved in registering businesses, duration of processing the application documents, to the cost of application involved.
Growing Tourism Industry
When it comes to tourism, Thailand has received a big reputation among lots of tourists and expatriates. This is beneficial to business people as they get several potential foreign customers.
Thailand is a favorable, welcoming and rapidly growing nation where there is plenty of opportunities to establish long-term and robust commercial and financial ties. Thailand citizens are scrupulous and have an earnest wish to succeed hence working to the last minute to ensure no stone is left unturned. Thailand being a regional center for business and production has turned out to be an attractive region for foreign investments.
However, for your business to succeed in Thailand, you may be forced to take some cultural training such as Communities Doing Business in Thailand Program. By completing these intercultural courses, your business and its staff members will be able to apply good strategies to help conquer any cultural stumbling blocks or challenges when conducting business in the country.