By Mia Biajid
Are you a foreign entrepreneur ready to take part in the flourishing economy of Thailand by starting a business in this country? Best wishes for your endeavor to open a company in Thailand! This country offers numerous opportunities and should be a great strategic hub for foreign entrepreneurs like you for many key reasons.
Thailand has a booming economy, a great location, business-friendly policies, and more. Thailand is the second-largest economy in Southeast Asia, after Indonesia. With a per capita GDP of over $7,000 in 2023, it ranked fourth in Southeast Asian per capita GDP, after Singapore, Brunei, and Malaysia. It reached a trade growth of 5.89% in 2024.
Have a more detailed look at why Thailand is a compelling destination for foreign entrepreneurs like yours.
8 Big Reasons Why Thailand Is the Right Destination for Foreign Entrepreneurs
You can choose Thailand as your next business destination for many reasons. Here we discuss 8 big ones that a foreign entrepreneur should know before setting up a company in Thailand. Let’s dive in.
1. A Strategic Location
Thailand is located at the heart of Southeast Asia as it is positioned between India and China. So, it acts as a key gateway for you to enter the flourishing Asian market.
Its location allows you to easily connect with neighboring countries such as Malaysia, Vietnam, Cambodia, and Myanmar, as well as larger economies like China and India.
Also, look at its extensive seaport network that strengthens its position as a logistics hub. The Laem Chabang Port, one of the largest in Southeast Asia, handles over 8 million TEUs of cargo per year. This facility helps efficient import and export operations for your business.
2. A Very Strong and Stable Economy with Lower Inflation
Thailand has been enjoying a strong and stable economy for a long time to offer you a secure investment environment. This economy is supported by many booming industries such as tourism, manufacturing, and technology. As a result, its GDP reached 514.8 billion in 2023, and this number is rising. Also, it has a lower inflation rate than other Asian countries.
Moreover, we know about strong Foreign direct investment (FDI) in Thailand. It reached over $13 billion in recent years. All these progresses reflect the country’s economic stability and encourages investors to invest more in Thailand.
3. Friendly Government Policies and Incentives
You will get various incentives, tax benefits, and more from the Thai government. You can get tax exemptions, reduced import duties, and easier work permits from the Board of Investment (BOI). You can enjoy up to 8 years of corporate income tax exemption as a BOI-registered company. They do it to encourage and support investors like you.
Besides, you will find company registration in Thailand for foreigners very simple. The whole process has been digitized to help you easily start a business in Thailand. You should love these pro-business policies that reflect the government’s commitment to attracting foreign investors.
4. Diversified Business Sectors
You know that Thailand is home to a wide range of industries to give you various opportunities to invest. As a top tourist destination, it welcomed about 40 million visitors annually before the COVID-19 pandemic. Also, you can choose other promising industries like e-commerce, renewable energy, fintech, and manufacturing.
We recommend you choose Thailand to start your Tech startup as it is a regional leader in digital transformation. FYI, national initiatives like the Thailand 4.0 policy by the Royal Thai government focus on and encourage technology-driven businesses. So, grab the best available opportunity!
5. Highly Skilled Workforce
You can hire qualified employees from a large, highly skilled workforce. The literacy rate in Thailand is over 94%. You will get numerous graduates to work in fields like engineering, finance, and technology each year.
Additionally, labor costs in Thailand are lower compared to many other countries with high productivity levels. You can get many professionals who are proficient in English to help you reduce language barriers too.
6. Low Operational Costs
If you worry about the cost of business operations, have a smile now, as one of the biggest advantages of doing business in Thailand is the low cost of operations. You can rent office space, manage utilities, and hire labor at a significantly cheaper cost. In Bangkok, you can rent high-quality office space for as low as $25 per square meter per month.
You can also benefit from affordable business services such as legal assistance, accounting, and marketing. That’s why company formation in Thailand is a cost-effective process.
7. Well-Developed Infrastructure and Transportation
You will get world-class infrastructure, including well-developed roads, airports, railways, and ports in Thailand. That’s why Thailand ranks high in the Global Logistics Performance Index, and it is one of the best places in Southeast Asia for your business transportation and smooth commuting.
8. High Return on Investment (ROI) Potential
You have high profit potential due to Thailand’s strong market demand and cost-efficient business environment. You can achieve significant returns and benefit from the country’s favorable business environment.
Final Words
We can undoubtedly say that Thailand is a great investment destination for any foreign entrepreneurs looking to enter the Asian market. Its excellent location, strong economy, diversified business options, and most importantly, its government support make it an ideal place to invest. Also, from low operational costs to a skilled workforce and world-class infrastructure, you will get everything needed for your business success.
FAQs
1. Are There Tax Incentives for Foreign Entrepreneurs in Thailand?
Yes, Thailand offers tax incentives for foreign entrepreneurs like you. The Thailand Board of Investment (BOI) offers tax incentives to attract foreign investment, including several tax exemptions.
2. Can a Foreign Entrepreneur Own 100% of a Business in Thailand?
Yes, as a foreign entrepreneur, you can own 100% of a business in Thailand. It depends on the type of your business. Also, you have to obtain the necessary licenses or approvals.
3. What is the Company Registration Cost in Thailand?
Actually Company registration cost may vary on many things for better understanding. We recommend you read this guideline for Company registration fee in thailand.
