2023 has been a great year for business owners and international investors in Thailand. The reverse is also true! Thailand too received a great volume of foreign direct investment in 2023. 2024 is going to bring around greater deals for and from foreign investors in Thailand. This article intends to demonstrate the complete idea of what can be the best business to start in Thailand in 2024 for foreign investors.
Although we will give you an idea of the best business possibilities and opportunities in Thailand in 2024, all that is based on various events and announcements made in 2023 by pinnacle Thai organizations. Let us go through them briefly before you start your business in Thailand in 2024!
BOI Announcements made in 2023 that will be useful in 2024
BOI Thailand announced additional incentive schemes in 2023 that target the following activities:
All businesses set with the vision to cater to the segments above are eligible for the general BOI Promotions. But, after the announcement of the additional privileges in these target activities, businesses can now enjoy the following advantages:
- Additional Limit of 200% Corporate Income Tax Exemption on Investments and/or Expenditures
- Additional Period of exemption ranges from 1 to 5 years
- For Investments or Expenditures in R&D projects, the corporate income tax exemption has no cap and will be applicable for 13 years from the date of incorporation of the business.
Therefore, if your 2024 business plan aims towards R&D projects, Human Resource Development Ventures, or trades that can strengthen the local Thai supply vendors, you can easily avail the said promotions and benefits.
Prime Minister & BOI Thailand inviting Foreign Direct Investment
The Board of Investment of Thailand also announced various tax and non-tax benefits for certain other industries. Ever since the joining of the new Prime Minister, Srettha Thavisin, a great deal of focus has been placed on the Creative, Digital, and Bio-circular-green economy. Additionally, the electronics and electric vehicle industry also attracts PM and BOI attention. Click the image below to know the most recent updates:
What do other Agencies have to say?
If you are aspiring to try your hold in the Thai Industrial or Manufacturing Industry, then you must listen to the Industrial Estate Authority of Thailand (IEAT). IEAT is focusing greatly on the following parameters:
- Smart Industries
- Zero-emission or carbon-neutral production facilities
- Investor collaboration in establishing their Smart Park Industrial Estate
- Driving Sustainability with ESG (Environmental, Social and Governance)
To achieve these targets, IEAT has organized roadshows, seminars, and conferences throughout 2023. Additionally, the organization also conducted online surveys and focused greatly on online awareness campaigns and promotions to achieve their new goals. The most interesting part of the game is that a major focus point behind all these activities was to “attract investors – preferably foreign investors” with advanced and clean technology to set up their production facilities in the IEAT trade zones.
What Business Should You Start in 2024 in Thailand?
This is the conclusion that you might have been looking for. If we take into consideration all the announcements and initiatives taken by the pinnacle policymakers of Thailand, we suggest that the following businesses will surely be beneficial for foreign investors in Thailand:
Innovative Projects primarily relating to Research and Development
To involve your investment and venture in this segment, you can take the following initiatives:
Check Thai Government Agencies and Institutions’ Announcements
Check the websites of government agencies and institutions involved in science, technology, and innovation in Thailand. Examples include the National Science and Technology Development Agency (NSTDA) and the Thailand Research Fund (TRF).
Seek Industry Associations
Look into industry associations related to your field of interest. These organizations may provide information on R&D projects and collaborations. For example, the Thailand Board of Investment (BOI) promotes investment in various industries.
Loop into International Collaboration Platforms
Check international collaboration platforms and programs that involve Thailand and include partnerships between Thai institutions and foreign entities. Keep an eye on announcements from organizations like the Thailand Research Fund and the Ministry of Higher Education, Science, Research and Innovation (MHESI).
Contact Embassies and Consulates
Contact your country’s embassy or consulate in Thailand. They may have information on collaborative projects or initiatives that involve foreign researchers.
Attend Networking Events and Conferences
Attend industry-specific conferences, seminars, and networking events. These gatherings often showcase current projects and provide opportunities to connect with researchers and professionals.
Human Resource Development Projects
These projects can target Thai employers and employees and skill enhancement for foreign employees as well. To check if your business idea fits well in the Thai business landscape, scan through the following options:
Look for Government Initiatives
Check with the Ministry of Labor or related government agencies in Thailand for information on programs or projects aimed at supporting the development of foreign workers in the country.
Check with International Organizations
Look into initiatives by international organizations, like the International Labour Organization (ILO) or the United Nations Development Programme (UNDP) to collaborate with Thailand on projects related to human resource development.
Consult Chambers of Commerce and Business Associations
Connect with local chambers of commerce or business associations, both Thai and international with initiatives to facilitate the professional development of foreign workers.
Connect with Educational Institutions
Explore partnerships between Thai educational institutions and foreign organizations for training and development programs as they offer courses or projects in collaboration with businesses.
Look for Private Sector Programs
Various private and multinational corporations have their initiatives for human resource development and talent management in Thailand and your specific industry.
Smart Electronics and Smart Industrial Hub
This field is packed with opportunities as the focus on Thailand 4.0 has deepened greatly and as this field directly links to industrial development, in addition to benefits from the BOI, investors can grab attractive privileges from IEAT as well. Following are a few ways of exploring avenues related to the same:
Government Agencies and Initiatives
Check with government agencies in Thailand that are involved in promoting technology and innovation like the BOI or the Ministry of Science and Technology.
Technology Incubators and Accelerators
Explore technology incubators and accelerators in Thailand like True Digital Park, dtac Accelerate, and other startup incubators.
Universities and Research Institutions
Thai universities and research institutions may be involved in smart electronics projects. Look for collaborative opportunities or projects initiated by these educational institutions.
Industry Associations
Connect with industry associations related to electronics and technology in Thailand. They may have information on ongoing projects and can provide insights into the local industry.
Tech Events and Conferences
Attend tech events and conferences in Thailand. These gatherings often showcase the latest developments and provide networking opportunities. Events like Techsauce Global Summit or Digital Thailand Big Bang may be good starting points.
Online Platforms and Forums
Explore online platforms and forums where the local tech community discusses projects and collaborations. Websites like Techsauce, Thai Tech, or LinkedIn groups related to technology in Thailand could be valuable.
Projects in the Digital and Creative Economy
The digital and creative industry in Thailand has witnessed exponential growth ever since 2020. This includes various facets like the development and initiation of e-commerce platforms, cloud services, and digital hubs creating great opportunities for creative and digital communication projects. Till June 2023, the digital industry applied for 60.85 billion baht worth of BOI privileges, mostly in data centers, cloud services, and digital ecosystems. Click the link to learn about the new announcement of BOI benefits for Digital and Software Businesses in Thailand. The creative industry applied for 52.81 billion baht worth of BOI privileges, mostly in film, games, animation, gems, and jewelry. Learn about the benefits of starting a gems and jewelry business in Thailand.
The Bottomline
Your project in any of these industries ensures the following:
- Assured tax and non-tax benefits from the Board of Investment of Thailand
- High chances of obtaining 100% foreign ownership
- Special Permissions from IEAT to own land and property in Thailand
- Unlimited scope of bringing in foreign workers in Thailand
- Reductions in import and export duties for goods necessary to initiate or generated from target or promoted activities
To start your business in any of these industries in 2024 in Thailand, your first step will be to register your company in Thailand. Henceforth, you have to proceed with your obtaining of work permit (for foreign employees), and tax and SSO registrations. To achieve all these it is always recommended that foreign investors must consult with a local corporate law and accounting firm in Thailand.
