Month: October 2020

Is it worth investing in Thailand in 2021?

Thailand is regularly cited as an example of how countries should have reacted to containing the coronavirus outbreak. It managed the coronavirus outbreak at the early stage ensuring the safety of its citizens. But Thailand did pray a heavy price for it too.  20% of Thailand’s GDP is accounted for by the tourism industry. With the pandemic hitting really bad at the global level, the Thai economy was majorly hit. But Thailand is all set to recover for its earlier losses. Thailand is also the hub of business in Asia. Hence, its not long before Thailand gets its foothold back again.

Thailand is the second largest growing economic market, located in the heart of South East Asia. It serves as a gateway connecting SEA to the rest of the world. It regularly attracts huge sums of investment from countries such as China, Japan and Korea. Thailand is also one of the major countries drawing foreign investments.

Thailand Economy Overview

Keeping Covid-19 aside, Thailand has rapidly developed economically over the last few decades. The nation houses most of the modernized citizens and profitable businesses. Exports account for more than two-thirds of Thailand’s GDP. According to the World Bank, Thailand has become the eighth largest economy in Asia. Nearly 40% of the country’s GDP is accounted for by the industrial and service sectors.  The 2019 GDP of Thailand is equal to $520 billion.  The World Bank has also recognized Thailand as one of the most improving nations in terms of social and developmental factors. Thailand also records one of the lowest unemployment rates in the world. The inflation rate in Thailand is nearly at 1% which is expected to decrease in the coming year of 2021. Thailand has a low level of public debt and has been a developing economy, owing to it monetary policy being vested to The Bank of Thailand which has remained stable for the last few years.

Industry and Trade

The country’s economy is primarily dependent on exports. Thailand owes utmost importance to agriculture in terms of GDP investor. Nearly one-third of the country’s population is involved in it.  The main agricultural output consists of rice, rubber, corn, sugarcane, coconuts, palm oil, pineapple, cassava, and fish products. The country also has strong manufacturing and service sectors.  Thailand is an active member of ASEAN, and its main export partners are United States, ChinaJapanVietnam, and Hong Kong. Its principle exports are manufactured goods, mainly electronics, vehicles, machinery, and food.

Surveys and Rankings

In the latest Global Competitiveness Report, Thailand has finished in the 40th rank. The World Bank’s Ease of Doing Business Report the country has moved up six places to being the 21st out of 190 countries. Thailand also boasts of experiencing improved scores in government integrity and property rights during the most recent reporting period.

Real Estate Market

The steady growth in the property market of Thailand has been majorly pushed by foreign investments. Better economic outlook, higher take-ups, and increased occupancy rates have also contributed to the real estate market’s success. Real estate prices are expected to see a sharp rise in 2021.

Thailand & Bangladesh Trade Target In 2021

Thailand and Bangladesh are in advantageous geographical proximity for mutual trade and extension of their trade across the region. Thailand is central to Southeast Asia. The country has infrastructure and policy terms in a calculated manner to support investment in the form of development projects. One such example is the Eastern Economic Corridor. This will enable Bangladesh to distribute its goods across the region and to East Asia.  On the other hand, Bangladesh on the Indian Ocean has the modern infrastructure to facilitate Thai products and services in South Asia, the Middle East and Africa.

The value of Thai-Bangladesh trade has been targeted to reach US$2 billion (Bt60 billion) by 2021. The two countries benefit each other particularly by their economic ties. Thailand regards Bangladesh as an important strategic partner in terms of trade, investment and transportation. Bangladesh is Thailand’s third-largest trading partner in South Asia since 2018. In 2019, Thai imports from Bangladesh rose by 38.3 %. Bangladeshi direct investment in Thailand in the same period was worth $1.12 million.

Investment in Thailand in 2021

Thailand provides not one but many avenues where investments can be made for lucrative returns. Startup consulting services in Thailand help recognize market avenues where investments can be made to reap huge returns. One of the most lucrative businesses in Thailand is the tourism sector. Thailand has always been one of the most popular spots for holidaymakers. Its capacity to attract tourists is not limited to its stunning beaches, vibrant lifestyle, and unlimited shopping choices. Thailand houses some of beautiful tourist destinations like Bangkok, Phuket, Chiang Mai, Pattaya and other beautiful cities, tropical destinations. Tourism industry is a well thriving sector.

Last year, Thailand welcomed a record-breaking number of more than 35 million visitors from all over the world, maintaining its position as Asia’s most visited tourist destination. With the expanding tourism industry, there is a tremendous growth in demand for short-term rental contracts and holiday homes. All business startup consulting firms advise to invest in this sector in 2021, owing to the growing demand for tourism after the worldwide lockdown ends in the end of 2020.

Real estate is a beneficial market in Thailand. The country is a significantly beneficial investor hotspot to sell and rent real estate in Thailand. The Thailand real estate market is expected to grow by 6 to 8 percent in 2021. This is in time with the recent increase in the influx of foreign investors entering Bangkok and Pattaya, especially from China. Thailand’s property market ranks as one of Asia’s most popular amongst Chinese investors. Bangkok is positioned for huge growth in its property sector, attracting overseas investments and regional headquarters keen to tap into the city’s economic potential. As a result of high property demand, prices on islands such as Pattaya, Phuket or Hua Hin have gone up too. According to CBRE Thailand, properties close to mass rapid transport will continue to surge in price due to the high demand from local and foreign home buyers. Thailand also gives a big opportunity to foreigners to invest in real estate. Hence, companies looking to set up offices for the Asia region looks forward to investment in Thailand in 2021.

Thailand is friendly towards foreign investments, unlike most countries where foreigners may be required to pay additional property tax. Recent contracts are written in both Thai and English. Besides the attractive tax structure for foreign buyers, it is relatively easy for property owners to sell their Thai home. This competitive tax structure coupled with the comparatively low entry price point makes it attractive for foreigners to enter the Thai property market. Hence this makes Thailand become one of the top choices amongst real estate investors worldwide.

With all the above factors playing important roles in pulling up the economy of Thailand to one of growth whereas the world economy will still be reeling under side effects of the Coronavirus outbreak, it can be safely concluded that investment in Thailand in 2021 would reap profits larger than can be projected anywhere else in the world.

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Interesting Reads: 

The post Is it worth investing in Thailand in 2021? appeared first on StartUp in Thailand.

Source: Asian Correspondent

Every Business Idea is Good, if Executed Properly

Every business starts with a small idea. It is always conceived as a simple solution to the existing market problems. But on the contrary, it is always assumed that the success behind a startup is a big, bright idea. But there are chances of a startup a small simple idea startup achieving success more than any complicated business idea. The only difference between a successful business and a failed one is the process of execution.

It is also important to acknowledge the significance of a great idea. On the other hand, without proper execution, an excellent idea will wither away. The founding stone of a successful business startup is to have an idea that can be polished and grown. The next stage is the execution of the idea. Only with implementation of an idea one can distinguish if it is good or bad.  One can gauge two types of success factors. One is having the right ideas and the other is execution of the right ideas.

Just having a great idea is never enough. The most important factor is execution. One of the major examples, is that of the Wright Brothers. There have been innumerable people who had the idea of building a flying machine. But it was the Wright Brothers who along with having the idea of building a flying machine also executed the same successfully. This is the reason; the Wright Brothers are credited with the invention of flying machine.

Ideas & Market

When ideas are valued from a market point of view, the right market for every idea is always to be found. Finding the right market fit for an idea comes under the purview of proper execution. Timing is the only other most important thing than a startup idea or it’s execution or finding the market. The old saying: “being early is the same as being wrong” fits apt in this situation. Executing the right business idea perfectly in a potential market quite ahead of its demand time leads to failure too. In such cases, the customer base isn’t ready to accept or integrate changes in the existing way of life. If the right startup idea is properly executed in a new or growing market, the startup business is sure to see success. Hence, timing also plays in the success story of a business startup and its innovative idea.

Most people incorrectly assume that a company or an entrepreneur achieves success only because of a big, bright business idea. In reality, the majority of successful startups have the quite a few things in common. Not all successful businesses have a brighter idea than their competitors. In very few instances, is the idea newly innovated. It is a combination of pre-conceived failed ideas tweaked a bit and pushed into the market at the right time. It is not always right to owe all credit to execution. The existing market conditions is one of the pre-emptive that needs to be taken into consideration.

Unexecuted ideas are not worth anything.

Some of the most successful movies of last couple of years justify the conclusions reached above. The 5 top movies from the last few years are:

  1. Marvel‘s The Avengers (Marvel comics started in 1961)
  2. The Dark Knight Rises (Batman first appeared in 1939)
  3. The Hunger Games (based on a trilogy released in 2008)
  4. Skyfall (James Bond originally created in 1953)
  5. The Hobbit: An Unexpected Journey (based on JRR Tolkien’s fantasy, was first published 1937)

These are some of the examples from the film industry. It is an industry that people can relate to easily. The ideas are all pre-conceived and with a little tweak, proper execution at the right timing have become nation wide blockbusters. The same happens to business ideas too. All business startups kick in with simple ideas. But those are either renditions of existing ideas or versions of different failed ideas with a chance of making it right at the present market scenario.

Startups & Thailand

Thailand is the gateway to Asia’s business hub. It is one of the most lucrative spots in the world to start business. Opening a business in Thailand is the first idea that hits one’s mind when looking for initiating startups. Business opportunity in Thailand is extensive and more lucrative when compared to other parts of the world. Startup consulting services and consulting firms in Thailand help individuals skim through the relevant business ideas, develop it more, register the viability of the idea in the existing market and help set up the business to make it more profitable and gain a strong hold.

Processed Food Market

If the case of processed food market of Thailand, is considered, it gives one relevant information and helps establish the fact that every business idea is good, only if it is executed properly at the right time.
Till about a few years back, all the startups that had thought about setting up factories on processed food market was not able to achieve any foothold in the market. This was due to many factors. For one, the market was still not developed enough to integrate processed food into the lifestyle of people. There was only a niche demand for the same & one in which the market already had a chosen few. Unless more demand was being created, all startups with new ideas on processed food were not able to establish their market hold.

With the changing times, the demand in the market for processed food items percolated from the niche to almost being a necessity. It created demand and space for new startups to invest and revive huge returns. This in turn also created a space for companies to invent or recreate a new demand on existing line of products. These new business ideas were all taken from existing ideas but were new in the market. Proper execution of these nascent ideas, helped create a market demand and thus at the right time, revive great returns.

Conclusion

In all these years of demand and supply in the market, new business ideas are created, rejected or accepted with a boom, make companies successful and thriving and others with poor execution lose their stand and make its way for the next business idea. Every business idea has the probability to shine and make its own mark. With the help of startup consultants, business and marketing consultants, one can always have the right mix of a team to help flesh out a budding idea to a powerful startup idea.
Startup consultants, do not negate or accept a business idea on its face value. Each and every idea is given equal importance, is fleshed out with extreme dexterity and is given a value proposition that makes the idea lucrative. One needs a good insight at the prevailing market conditions to broaden the simple business idea or solution one has thought of. This weighing out of options should be done to minimize the chance of losing out on investment and make a complete failure of one’s business idea.

A business always gets a strong foothold with the right mix of innovation (idea), planning and marketing (execution) at the right market condition (timing).

Consult the Startup Specialists for any assistance to Startup in Thailand.

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A hand holding a red marker writing a text 'Trust yourself' with caption 'Focusing on Right direction is more important than anything else'

The post Every Business Idea is Good, if Executed Properly appeared first on StartUp in Thailand.

Source: Asian Correspondent

Business Relations between India and Thailand

In the era of Globalization when economics is the primary deciding factor on the basis of which the status and power equation in Global politics is decided of any country, it is but inevitable that the success of bilateral terms between countries would also be gauged by the quantum of trade they engage in. The Indo- Thai relationship is no exception to this fact.

India adopted the liberalization model of trade from the 1990s. Thai business from day 1 has turned out to be a cooperative partner to this effect. India and Thailand, located in each other’s extended neighborhood, share a maritime boundary in the Andaman Sea at the Bay of Bengal.

India and Thailand have been culturally linked for centuries and India has had a deep influence on Thai culture. Even economically, Indo-Thai relations have hit an upward curve. Recent legal and economic developments have increased the appeal of Thailand as an investment jurisdiction for Indian companies. Trade relations between India and Thailand, the second-largest economy in the Southeast Asian economic group, in ASEAN, has grown by leaps in recent times.

Thailand’s exports to India was US$7.06 Billion during 2019, according to the United Nations COMTRADE database on international trade, whereas, India’s exports to Thailand market economy was US$4.36 Billion during 2019. The balance of trade is positively tilted towards Thailand by nearly 40% as it is a manufacturing base of various products, and technologically, and logistically much better placed than India.

Indo-Thai Trade Over the Years

  1. Thailand owes its close trade and diplomatic ties with India to historic, cultural and social reasons. The primary religion in Thailand, Buddhism as well as the script used for its language, has Indian roots. In addition to fostering strong economic, commercial and cultural links, are also regular, people to people contact and also-complementary economic ideology – India’s Government over years has had various diplomatic policies directed at the region- “Look East” and “Act East” policy and Thailand its own “Look West”, “Act West” philosophy.
  2. In ASEAN, Thailand ranks as India’s fifth-largest trading partner after Singapore, Vietnam, Indonesia and Malaysia. Fourth-place Malaysia’s bilateral trade with India stands at USD 15 billion in 2018 and is expected to be a touch lower in 2019. India’s trade with Thailand is expected to overtake Malaysia in the next two to three years if it continues at the current growth trajectory.
  3. Foreign direct investments (FDI) from Thailand board of investment into India has also grown significantly from just USD 11.55 million in 2012 to USD 92.22 million in 2018 (CAGR 34.6 per cent), and with about USD 90 million already committed in the first six months of this year, this is expected to continue to grow strongly. These investments have been mostly in infrastructure, real estate, food processing, chemicals and hospitality. However, FDI from Thailand to India has been on a steady decline over the years. It was USD 63.45 million in 2014 and USD 13.34 million in 2018.
  4. What is going to boost investment and business opportunities in the coming years is the ASEAN Economic Community (AEC) blueprint 2025. The ultimate aim of the AEC blueprint is to achieve the ASEAN common market with intermediate steps taken to gradually bring greater integration among member countries.The benefits of this blueprint to countries doing business with ASEAN will be in the form of seamless movement of goods, tariff rationalization and a more open and predictable investment regime in all ASEAN countries. This makes it possible for Indian companies to access the USD 2.8 trillion ASEAN markets through Thailand. An ASEAN common market has huge potential for anyone trading with it. Economists predict it to become the fourth-largest economy in the world by 2030 surpassed only by the US, China and the EU.
  5. It is with this in mind that an MOU between the Indian port of Krishnapatnam located in Nellore District of Andhra Pradesh and Ranong Port in the South Western part of Thailand was signed in recent times. Under the MOU, a new maritime route will be promoted in the Andaman Sea which will reduce travel time between India and Thailand from 10-15 days to seven. Currently, cargo from Krishnapatnam Port has to travel to Laem Chabang Port in Chon Burior Bangkok Port in Bangkok via Malaysia.The development of Ranong Port is part of the Thai government’s Southern Economic Corridor (SEC) infrastructure development plan where about USD 3.5 billion will be spent over 4 years.
  6. Major exports from Thailand to India include exports of machinery, nuclear reactors, boilers which was worth US$1.23 Billion during 2019. This is closely followed by Plastics worth $837.36 million, electrical, electronic equipment worth $783.03 million, Pearls and precious stones worth $628.09 million. Other exports include organic chemicals, vehicles, rubber, copper, articles of Iron and Steel, and clocks and watches.
  7. Imports from India include pearls, precious stones and metals worth $918.98 million, followed by machinery, nuclear reactors, and boilers worth $ 688.82 million. Among others crude oil, chemicals, machinery, coffee, tea , spices, iron and steel products, fish, and pharmaceutical goods.
  8. Indian managed Thai business: Thailand’s legal system allows foreigners to set-up a limited company, taking into consideration the country’s foreigner legislation. Depending on the type and scope of business activities, such a venture needs a business license. Manufacturing in Thailand opens the doors to a customs-free distribution within the whole ASEAN region under the protection of the ASEAN Economic Community which had been implemented in 2015. Also, under the ASEAN-China Free Trade Agreement, it is possible to source semi-finished products and raw materials customs-free as well. Traditional target industries for Indian investments in Thailand are auto parts, agro and food processing, IT and software, textile and pharmaceutical.
  9. Thailand Board of Investment: Thailand offers a generous investment promotion for Indian investments. With effect from January 1, 2015, Thailand re-invented its investment promotion legislation as a substantial part of its overall national industrial policy, political control and economic governance.
  10. Acquisition of Thai companies: In Thailand, there are several production facilities which base on German and European technology and product engineering and might be a rewarding target for Indian company buyers. They could even consider moving the trademarks, technologies and production facilities to India.
  11. Property investments in Thailand: The land of smile is a preferred investment market for real estate. Although there are some limitations for foreign buyers, the acquisition can be structured in a way to circumvent the restriction to assure a sustainable investment.
  12. Energy and infrastructure: Compared with other Southeast Asian countries, Thailand has the highest electricity demand, with plans for increased imports from neighboring countries. Investment in renewable energy is one of the country’s priorities, given its goal to reduce its energy imports. This invites Indian alternative energy companies to invest in Thailand’s energy sector for a handsome reward. The India-Thailand Asian superhighway is part of AH 1 (Asian Highway No. 1) and runs from Moreh in India to Thailand’s Maesot via Myanmar’s Tamu, Mandalay, and Myawaddy.
  13. Blockchain and digital assets: While India bans nearly all types of blockchain ventures, cryptocurrency and digital asset businesses, Indian Bitcoin entrepreneurs, Blockchain engineers, and the whole digital asset industry needs a new playground and crypto-friendly environment. Thailand is under various aspects of perfect safe haven jurisdiction.

Thailand & India Trade in light of Covid 19

UNCTAD estimates that the COVID-19 pandemic will lead to a drastic contraction in FDI globally by almost 40 percent in 2020. Post 2005, the pandemic will cause global FDI to fall under the $1 trillion mark for the first time. Projections indicate that FDI in developing Asia will decrease up to 45 percent.

Both Thailand and India have been touted as beneficiaries of the protracted trade war between the US and China. With no sign of this abating any time soon, many businesses are planning to or are already in the process of re-siting their manufacturing facilities to other locations including India, Thailand and Vietnam (which is an ASEAN country).

As this happens, the movement of goods will increase between ASEAN and India and port pairs like Krishnapatnam and Ranong will almost certainly become busier. China’s manufacturing accounts for 12 percent of the world’s GDP growth. The strained economic diplomacy due to the allegations against China over its handling of the COVID-19 crisis, and counter arguments of China refuting the same have divided the globe on economic and trade lines, resultantly also having caused foreign investors to consider shifting their manufacturing activities from China to other South and Southeast Asian countries.

However, India though is promoting its ‘Make In India’ campaign with all fervor, it is unable to generate much interest amongst the investors Rather Thailand has been quite successful in projecting itself as a suitable replacement for the coveted post of becoming the globe’s manufacturing hub.

Read More aboutIndia & Thailand – Economic and Commercial

Contact the Startup Specialists for doing business in Thailand.

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Source: Asian Correspondent

How effective is Cloud Computing in Business

Cloud computing is the third wave of the digital revolution. Cloud computing refers to the provision of IT infrastructure, operating software, middleware, and applications hosted within a data center and accessed by the end user via the Internet, it is referred as a democracy. The process where data is stored, managed and processed on a network of servers hosted remotely on the internet is termed as Cloud Computing.

Cloud Computing offers considerable savings together with high security, enormous capacity and a host of managed services that is why this process is mostly common with all type of businesses.

Cloud hosting provides businesses and startup consulting services with many advantages. Cloud computing is typically sold using three service models:

ADVANTAGES

Cloud hosting is budget friendly

It has good return on investment and value for money which is lucrative for any business development. The primary benefit is there’s no need for own hardware as everything is hosted on your provider’s servers. Ensures savings and no need to pay for space, power, physical security, insurance and air-conditioning or need to cover the costs of ongoing maintenance.

Instant Mountable Resources and Pay As You Go Pricing

Saves cost of expensive new server. It requires the capacity to cover a short-term demand, it leaves with two problems. Firstly, you’re buying something that may lay redundant for most of the time and, secondly, if that demand comes unexpectedly, you might not get the server up and running in time to deal with it.

Cloud computing, ensures in built scalability. Increase and decrease of scale can be managed as per demand. And, it is charged on a pay as you go basis. There is no need to upgrade permanently to a bigger package or hire a new server. In this way, cloud provides increased agility and cost-effective resourcing.

Strategic Viable Advantage

It ensures strategic competitive advantage by deployment of time in cloud computing which is virtually zero and applications that are critical for growth and success can be online almost instantly, giving an edge over competitors who are lagging behind.

High Availability

As businesses and business start-up consulting depend on technology the promptness has to be there, losses can be significant. Cloud hosting, however, removes the possibility of server failure causing downtime. 100% uptime is guaranteed with the cloud environment and is engineered to deliver predictable and consistent performance. The cloud’s hyper-converged design guards against everything from hard disk failure to an entire server failure, enabling mission-critical applications to be available all the time.

Lightning Speed Performance

Cloud service providers need to continually update their technology to meet the demands of their customers and to stay competitive, cloud computing offers high-performance servers with technology such as powerful CPUs and superfast SSD drives. Client requests on maximizing speed and capacity utilization through load balancing. So the servers are busy, the load is distributed so that no single server suffers from performance problems. Also ensures smooth functioning of new apps.

Increased security

With cloud hosting, the business is protected against hacking, infection and internal data theft.

No Geographical limitations

Perhaps the biggest take away of Cloud Computing is its advantage of having overcome the restriction of Geographical Barriers. In the Globalization era which is economically one myriad intermingling of commitments and networks, and of demand and supply cloud computing has waived of the need to have or host servers in the given place. A true businessman may use it to his full advantage whereby it may host its data in a server at a place where the business considers it safest. Data is currency today. Each country has its own policy on servers and data management. Therefore Cloud computing gives the owner the option of resting its data in any server at any part of the world without fearing espionage or legal interruptions.

More flexible working

Many business and startup consulting give this to employees for flexibility. As it is internet based, staff can access files both in and out of the workplace, enabling them to work remotely or in the office.

Many businesses now have a ‘bring your own device (BYOD)’ policy which is backed up by the use of a logical access authentication protocol to ensure security. The next phase of the Cloud could see the emergence of a host of ‘Cloud native’ companies. These businesses could base their software in the Cloud specifically for Cloud delivery

Eco friendly and future enabled

Moving your system to the cloud means that you won’t need your own data Centre and can reduce your own carbon footprint significantly.

Once migrated to the cloud, the economies of scale mean that the provider can use energy in a much more efficient way and that the energy needed to run the systems is much less than it would be on-site. With the growth of the Internet of Things Cloud computing is by far the most cost-effective option for storing and processing enormous quantities of data.

In the chapter of the Cloud lifecycle, industries are past the early adopter phase and have entered the mainstream adoption phase. Cloud has now gained some traction even in the most conservative industries such as financial services

DISADVANTAGES

IT services threatened

Many traditional IT services companies face a serious threat as many business house and startup consultant favor renting IT infrastructure, platforms and software from the Cloud

Cybersecurity

The shift to Cloud computing increases high risk of cyber-attack. As such it is expected to increase the demand for all types of cybersecurity services.

Moving down the Cloud stack

This makes it difficult for customers to easily transfer between IaaS providers. In addition, economies of scale and high capital expenditure requirements create high barriers to entry to the IaaS market. At the top of the stack, SaaS services are more interchangeable, making it easy for customers to swap from one app to another.

Conclusion

The history of computing, shows it started as mainframes or terminals. As PCs or work stations became prevalent, computing moved to the edge, and had applications that took advantage of edge computing and the CPU and processing power at the edge. Cloud computing brought things back to the center.

Businesses benefit from cheaper, faster, more scalable IT resources in the Cloud and users get a better experience. A virtuous circle exists between software users and software developers in SaaS Clouds. The developers can improve the software faster because they can see usage and performance data in real time. Meanwhile, users get the latest software upgrades as soon as they are released, without having to pay more or having to fiddle with clumsy downloads. Today, computing mainly automates things for all of us, but when we connect all these things, one can truly start assisting people in a more meaningful way. The data shows in 2020 the total cloud services revenues exceed $250bn.

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Source: Asian Correspondent