Foreign investors put their money to work overseas for several reasons. Diversification, after all, is the mark of a successful investor. However, one pressing concern is safety for the investor. Is Thailand truly a safe and stable country for businessmen to invest in? The answer is: Yes, absolutely
Ongoing Infrastructure Development
Thailand’s economy is one of the most stable in the Asia-Pacific region. It is rapidly developing. In fact, the current government has already started a major infrastructure upgrade particularly in the rail networks that the country uses as a main form of inter-city transportation. Within the next eight years, Thailand will step up its role as a major ASEAN hub with international railways connecting the country to China, Myanmar and Singapore.
This means that investment in Thailand is going to flow in. With an international railway system in place, this will also open up several new opportunities for businessmen who are already operating a venture in the country as demand will increase for products and services in the hospitality and tourism sectors of the nation.
Treaty Agreements with Multiple Countries
As we have mentioned in our previous article, Thailand has economic agreements with the United States, Japan and Australia, among others. Nationals of these countries who decide to invest in the Thai economy get to enjoy benefits that businessmen from other non-treaty nations don’t have.
For instance, American, Japanese and Australian business entities are treated as Thai nationals as far as the law for businesses are concerned. They enjoy majority ownership of their own businesses, whose board members can comprise of a lesser number of Thai nationals than in companies whose countries don’t have economic agreements with Thailand.
Another benefit brought about by these agreements is the reduction of tariffs and import duties on specific imports between Thailand and these three countries. By the end of these agreements, imports between Thailand, and the three signatory countries will be reduced to a bare minimum or will even become duty free.
Government Support for Foreign Investment
The Thai government itself lends its support to foreign investors. In fact, businesses whose majority stockholders are foreigners can get incentives like tax breaks and import duty exemptions from the Board of Investment. One of the sectors that provide incentives to foreign businesses is the manufacturing sector, but the number of sectors in which foreign investors can invest in and enjoy incentives is numerous. It would be a good idea to check with the Board of Investment on the list of specific businesses where foreigners can enjoy tax incentives and exemptions.
Competitive Labor
The quality and the cost of labor in Thailand is highly competitive especially in the manufacturing sector, which has become the major contributor to the local economy. In other words, it is less expensive for foreigners to invest in and maintain a business in Thailand as early as now.
Thailand is rapidly growing, and its economy becoming more stable every year. Combined with ongoing infrastructure developments and competitive labor, Thailand is one of the best places for foreigners to make an investment in.
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