Investment in Thailand Pays Off

Investing in Thailand offers investors benefits that investors in other countries can only be envious of. The economic and political environment of this country in the heart of Asia is stable and characterized by thousands of modern manufacturers and suppliers in the electrical and automotive industries. Government incentives are generous, based on sound legal regulations and have been providing support for many years.

A labor market with technically outstanding engineers and skilled workers awaits investors. And an infrastructure with highways throughout the country, three deep-sea ports, punctual elevated express trains, whose network is growing rapidly every year, eases economic activity. An excellent healthcare system and a high quality of leisure time also make life worth living for investors in Thailand.

In addition, the Sanet Group has been offering a full service for investors in Thailand for 20 years, from strategy consultancy to legal implementation, the entire project organization with site evaluation and tendering, right through to applications for incentives or recruitment. But first, let’s look at the benefits of investing in Thailand. These can be broken down into three groups:

THE ECONOMIC AND POLITICAL ENVIRONMENT

With a population of over 70 million, Thailand is the industrial heart of the AEC (ASEAN Economic Union). Per capita income has increased almost fivefold since the turn of the millennium, creating a stable middle class for consumer goods. The corporate landscape is characterized by SMEs, which are responsible for almost 40% of production despite numerous large international corporations.

The automotive industry, with around 2 million cars and trucks produced and over 1400 suppliers, represents the most important part of industrial production. Almost all well-known brands, including Ford, BMW, Toyota, Honda, and Mercedes, are represented.

This year, BYD is investing USD 1 billion in an EV plant in Thailand. BYD EV vehicles with top equipment already cost around 30% less than in Europe. The state grants a purchase premium of around USD 6,000 directly via the dealer as a price reduction without even filling out a form. That’s how things work here, even without excessive bureaucracy. But the electrical industry, packaging industry and food processing also ensure a deep, highly qualified supply market and a broadly diversified vendor base.

In addition, missing components can even be procured by land from Vietnam or China, for example, at low freight costs and without customs duties. Uprisings, which used to be as certain as the annual rainy season, have been a thing of the past for 13 years. People are steadily enjoying a better life and there are no demonstrations beyond the usual level in other countries. The legal system is based on the German Civil Code. However, the often-lengthy duration of proceedings and the Thai mentality, which is capable of compromise, usually lead to trade-offs.

In short: investing in Thailand is future-proof!