4. Doing Business in Thailand

Abstract

Today's ever-changing global economic environment poses increasing challenges to both developed and developing countries. Increases in world trade protection, changes in economic structure of many countries, fluctuation in major currencies, tighter market conditions and depletion of natural resources, have combined to affect the competitiveness among different trade blocks. To survive in this competitive world, nations have to either diversify their economic operations or concentrate on the areas of industry where their strengths lie. Over the years, there has been dramatically increasing foreign investment in Thailand and trade between Thailand and other countries. Thailand has recently received considerable attention in international business circles as one of the countries with a favourable business climate. Two strong internal driving forces behind these scenarios are economic performance and government investment promotion policies. Although the opportunities are present, it is important for foreign business people to have detailed information about Thailand. Normally, the available information concerning doing business in Thailand, issued by Thai government institutions, have been focused on incentives provided by the government. There are many other important aspects which are hardly ever mentioned, particularly the problems faced by investors in conducting business in Thailand. In order to provide a more comprehensive picture of the business environment in Thailand, this research report tries to put together the scattered data from different sources of information, as well as adding other important information on doing business in Thailand. Further, special focus is on business incentives and barriers for foreign business in Thailand. The report begins with a background study of Thailand from the perspectives of economics, politics, government policy, culture, demographic trend, infrastructure and so on. This is followed by detailed analysis of these factors and others to identify incentives/advantages and problems/barriers facing foreign businesses. Business areas which have good potential in Thailand are pin-pointed. Finally, interested investors may consider some of the recommendations presented and hopefully they may be useful for possible business ventures in Thailand.