Should Foreigners open the SME Business in Thailand?

SME Business in Thailand is the wonderful land for all foreigners because there are many supports for SMEs investment

SME Business in Thailand

 

SME Business in Thailand id the wonderful dream for all foreigners because there are many supports for SMEs investment in Thailand. Thailand is the well-known country in Asia and around the World with the good reputation of the tourist destination, the friendly people, and the culture. However, Thailand is also the interesting destination for Foreign Investment. From many years of the investment ranking, Thailand is the 1 of the top 20 countries of the best investment, which can be proved that Thailand is the best destination for foreign investors in both SMEs or BOI businesses

Main Advantages for Foreigner Business Specially for SME in Thailand

1. The location

Thailand is located in the heart of South East Asia, which is the strategic location to connect to other countries nearby; Myanmar, Laos, Cambodia, Vietnam, and Malaysia. This makes Thailand to be the hub of South East Asia, the connecting point to other countries around Thailand. Especially, Bangkok, the capital city of Thailand is one of the most popular destinations for foreigners, which most international airlines are heading to Bangkok destination.

Further than the strategic location, Thailand has the good reputation to other countries around the world long time ago. Thailand has had the good relationship with foreign countries especially the monarchies in Europe and Asia with International Relations strategy by Thai Monarchy since Ayutthaya Period up until now. With this reputation, Thailand is one of the best selections for the foreign investors.

With best location and good reputation, Thailand became a good destination for foreigners to get most benefits from investment in Thailand

2. The work force

Thailand has many skilled work force, which they are willing to work in foreign companies according to the welfare and based salary provided. According to the best location of South East Asia, people from many nationalities in the region flow into Thailand especially, in Bangkok, the capital city. Therefore, recruiting staff is quite easy for every company because there are many choices with various skills that the investors will feel comfortable to choose the most suitable person for their businesses.

– Thai Manpower

Foreign investors aim to hire local manpower according to the language and communication with other companies in Thailand. However, Thai skilled manpower can also communicate in English and many other languages also, which are the best advantage for foreign investors. From the well education of Thai people from both international and local universities, foreign investors can be assured that they will get the good quality of work from Thai skilled manpower.

– Foreign Manpower

As Thailand is the hub of the region, many foreign labors and skilled manpower around the region and the world flow in this popular country to search for the best job for their life. Therefore, it is the good opportunity for foreign investors in Thailand to consider and choose the most suitable staff from various nationalities and various skills

3. The Facilities

With the development of every part of living in Thailand, foreigners can stay in Thailand without any obstructions in living in Thailand. Many foreigners decided to live in Thailand for the rest of their lives because of easy living with good standard of facilities.

– Food and Restaurants

Thailand is the land of food. There are many kinds of food in various nationalities for people’s choices; Thai, Indian, European, American, or Asian food. Therefore, anyone can choose the food of their own taste and their own style easily. Also, there are many restaurants, which open all the time, so people will not get starving living in Thailand.

With this easygoing in food and lifestyle, foreigners prefer to live in Thailand and spend the rest of their lives in Thailand.

– Transportation

With the development in public transportation in Thailand by the government, it will make Thailand to be the center of transportation and logistics in South East Asia from the projects of highway and motorway connected between each country in boundaries; Laos, Myanmar, and Cambodia. With AEC association, which Thailand is the pillar of the association, Thailand has many projects to increase the good relationship with other countries in the association, and the good transportation is a project to make every country connected to one another easily and increase the strength of the association.

Furthermore, the metropolitan system in Thailand is being developed by the government to support people in Bangkok and surroundings area to have the better standard of living and support the businesses to be expanded to surrounding areas, which increase the opportunities to many SMEs and foreign investors to start the business in Bangkok and surroundings. Also, the spread of the investment area can increase the growth rate of income in Thailand as well.

– Information and Technology

Thailand is one of the leaders of Information and Technology (IT). With the good education curriculum of IT and the investments of IT businesses in Thailand, there are many knowledge resources and the educated manpower in Thailand. These make foreign investors cut the worries about the connectivity and digital communication in Thailand out from their concerned issues.

Furthermore, the digital marketing and communication in Thailand now are most common to Thai people. Therefore, the social media have a lot more power to influence Thai people. This make people in Thailand have the worldwide communication, which will be the good advantage for all businesses to connect to people in Thailand.

4. The cost

The cost of living in Thailand is not so much high comparing with Singapore and other developed countries while the standard of people efficiency are quite the same. Therefore, this is the big factor for foreign investors to consider and choose Thailand as the best destination for their businesses. According to the cost of living is not quite high, the other expenses related to the cost of living will not be very high also.

– Wages and Salary

The minimum wage for Thai people is THB 310 per day or around USD 10 per day. And, the minimum salary for bachelor degree staff is guaranteed at THB 15,000 per month or around USD 470 per month, which make the foreign investors save more cost than investing in the developed countries with higher cost of living.

– Personal Tax

The personal tax rate in Thailand is quite low, only 20% of the income in general, which is the second of the lowest tax rate in ASEAN, which increase the business activities and investments in Thailand a lot. Therefore, Thailand can be competitive with other developed countries nearby and around the world.

5. The Government Policy and Promotion

In order to increase the rate of foreign investors in Thailand, the government tries to support foreign investors especially SMEs with many promotions and policies, which make more advantages to all foreign investors.

– Promotions for new investors

Thai government issues many investment policies to encourage the investment from foreigners such as the promotions for investment in southern provinces of Thailand, the promotions to support the investments in innovation, alternative energy, and sustainable development. Also, the government creates the special economic areas in boundaries between Thailand and neighbor countries and provides more benefits to the investors who invest in these special economic areas.

– Tax Benefits

The Revenue Department supports the new SMEs including foreign SMEs with 

1) The exception of corporate tax for the first 8 years of business startup

2) The 50% reduction of income tax in Enterprise Zone for 5 years

3) The exception of the customs tax for importing machine and raw materials.

With these supports, SMEs can start the businesses in Thailand with less cost and less worries in the corporate expenses for the first years. And, these encourage foreign investors to choose Thailand as the 1 st priority to start their new businesses because of lower expenses than other countries.

– Non-Tax Benefits

The government also provides many allowances for foreign investors such as the allowance of 100% foreign business owners in some businesses, the allowance for recruiting the professional employees to work in Thailand. Further, there are many privileges provided to SME business in Thailand such as the privilege for SMEs who has 51% of Thai nationality shareholders, the privilege for the specific location of the business, or the privilege according to each type of business.

All these factors support foreign investors to start up the SME business in Thailand, which will be win-win benefits to both Thailand and foreigners. The increase of investment rate in Thailand directly affects to the growth of income for Thailand. At the same time, the foreign investors investing in Thailand will earn the most benefits with the valuable cost of expenses for company establishment in Thailand. With these valuable factors, Thailand is always in the top rank of the best destination of investment and forever be. Anyway, to be successful in the investment in Thailand, foreign investors need to know the trends of Thai market and the natures of Thai people as well.

And, what SMEBAAS is the best resources for you are we provide full range of excellence Accounting and Business consulting services from beginning to the end

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