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Critical Success Factors for Startups in Thailand

Thailand’s growing economy holds enormous promise for startups due to its strategic location and low-cost labour. But navigating the Thai market for unlocking this promise isn’t easy. It’s because more than any other global region, Thailand represents a grouping of economically, culturally, and commercially distinct regions. Investors and entrepreneurs alike need to consider the localization paradox facing startups in Thailand.

Thailand has made its mark globally both in terms of an attractive tourist destination as well as a profitable business setting. Overseas investors have proved this and attest to the success of setting up businesses in Thailand.

Starting a business in Thailand is always a difficult prospect. How do startups in Thailand overcome the hardships? Here’s a guide to staking a claim for Thailand’s startup success stories.

Embracing Partners

Ensuring a positive relationship with other Thai businesses is crucial to launching a startup in Thailand. However, for a startup to then grow its market, especially considering its limited resources, it’s imperious to leverage local Thai businesses rather than building everything in-house. Partnerships enable rapid market growth and enable startups to roll out products and services faster and more efficiently. Contrarywise this, building in-house is often more expensive and takes longer.

Developing and maintaining partnerships is particularly valuable in Thailand given its diversity as a region. Startups should partner with consulting firms in Thailand as well as local companies. A partnership success story worth mentioning is the partnership between Lalamove – a Hong Kong-based logistics startup and Line – a popular chat app in Thailand in 2016. Combining forces to create LINEMAN, Line used Lalamove’s delivery network for its entry into the delivery business, while Lalamove leveraged Line’s Thai user’s network of over 30 million for scaling into the Thai market.

Engaging With Thai Regulators

Each time a company enters or rolls out a new service in Thailand, it should initiate and engage in a proper dialogue with Thai regulators in advance. One of the key benefits of engaging early is it enables startups with an opportunity to build trust with Thai regulators. The difference between a successful startup and failed business model in Thailand could very well boil down to mutual understanding and transparency with Thai regulators–to the trust that the technology it uses is secure, that the startup promotes the best interests of Thai consumers, and that the startup’s goals and objectives are aligned with Thailand’s national objectives.

Early Expansion

The foremost lesson for an existing startup in Thailand is to expand early–to activate and develop a market expansion strategy from its onset instead of waiting to scale and becoming entrenched in a single region in Thailand. The reason this factor is critical is because the experience of a startup scaling in Thailand is particularly determined by the rate it expanded across multiple regions, its relationship with Thai regulators and partner network, and its product development. E-commerce giant Lazada and transportation services app Grab are two key examples of businesses adopting the mindset of scaling from day one.

Wise Expansion

Early expansion doesn’t mean startups should expand throughout Thailand and nearby countries without proper market research. As mentioned above, localization holds the key in Thailand. Thailand market research firms can help you with this regard as each country contains its own consumer habits, consumer spending power and other market nuances.

Particularly for startups based in Thailand with fewer resources and capital, it’s imperative to be capital-efficient and ensure you get the optimal return for each dollar you spend. With this in mind, selecting the right market strategy in Thailand for early expansion will have reaching implications with scalable company growth.

Adaptability of Products/Services

While early expansion and having a dialogue with regulators and partners is crucial for scaling across Thailand, startups in Thailand can’t afford to lose focus on the development of their core offerings, and adaptation of those offerings in the Thai market. Often, businesses that are focused on a particular country for several years, take product development lightly and don’t have the budget and time for investing to differentiate their product experience in the Thai market.

Investing In Talent

The next success factor surrounds experienced talent, which is hard to find in Thailand. When a startup wishes to expand or start a business in Thailand, it is imperative to invest in robust senior talent. A leader who would manage the Thai market is very crucial, needs to be culturally sensitive, understands the business model thoroughly, and be watchful enough to learn from the Thai market and respond accordingly.

While employees have their influence over the execution of the overall company’s vision, it’s still the company’s vision at the end of the day. It implies when hiring the initial members of the team, a startup in Thailand needs to look for people demonstrating a clear understanding of its vision and having ideas that would help the business. A startup must have people who understand its purpose, its customers, and how to make the vision of the startup a reality.

Proper Marketing

Finally, you have a business in Thailand with the finest product line, still, people aren’t buying? Probably you haven’t done enough market search or selected the right niche very carefully to meet audience requirements. Reaching out to potential customers towards your business entails persistent efforts in marketing. If you’re starting a business in Thailand, you would need the help of Thailand market research firms that helps you in focusing on the overall process of providing customer service, choosing the right niche, delivering a message to the right audience, and promoting the niche in Thai market.

Marketing your business in Thailand is an art form in itself. Thailand is becoming more heterogeneous, but the foundations of its culture won’t budge for anything: Thailand’s traditions, humour, protocols, discourses, are unchanging and at times stubbornly unaccommodating. Hence, the identity of your product offerings needs to seamlessly fashion itself. Cultural sensitivity and sympathetic protocol are of paramount importance for marketing in Thailand. The intricacies of its beliefs can make or break your business.

Bottom Line

When setting up a company in Thailand, it’s tough to do everything right and avoid any mistakes. There’s much work to be done, several KPIs to keep track of, and limited helping hands. In addition, you need to be aware of external forces beyond your control.

There’s no guarantee that a startup would succeed, but with a robust strategy built upon the above success factors, there’s a fighting chance that the startup’s idea might succeed. Startups that approach their business strategically without leaving anything to chance, generally stay in business longer and achieve scalability faster.

The Thai economy is ripe for disruption and the country is emerging as a mecca for both overseas and local startups with the Thai government concerted efforts of redirecting the country’s economy to a tech-based economy from an agriculture-based economy.

The post Critical Success Factors for Startups in Thailand appeared first on StartUp in Thailand.

Source: Asian Correspondent

Hospitality Industry and Digital Age

Most hospitality businesses have been propelled by digital disruption with most executives globally admitting that the transformative has impacted their business to a great extent. It is, therefore, crucial to identify digital disruption approaches and perspectives and to digital implementation across the hospitality industry which offers lucrative investment opportunities in Thailand.

Following weak business operations in 2020, hoteliers have continued to see depressed conditions throughout 2021. The first shoots of recovery would start to break through from the mid of 2022 and will regain pre-pandemic levels by 2023. Against this backdrop, Thai domestic tourism is recovering at a faster pace, thanks to relentless efforts and proactive policies set by the Thai government for stimulating demand. By the early half of 2021, the vaccination programs started to translate into a herd of foreign tourists restarting their travel, helped by a recovering economy and new entrepreneurs starting a business in Thailand contributing to the strong growth potential in Thai hospitality industry. 

In the post-pandemic world, hospitality players are moving swiftly to overhaul their business operations onto a more sustainable footing by adopting modern technology and developing their understanding of diverse and varied consumer needs and feeding this information into their advanced tech-driven models to offer their consumers customized travel experiences.

The hospitality sector in Thailand has a central role in its economy because it is among the most popular tourist destinations in the world. This is partly due to the world-class quality of hospitality the country offers to its tourists. As per The Travel & Tourist Competitiveness Report, 2019 by World Economic Forum, Thailand tops almost all the KPIs in the region as shown in the image above. The Thai hospitality sector has been the frontrunner in driving revenue for the country as well as offering business opportunities in Thailand to domestic as well as foreign players.

In addition, Thailand benefits from competitive pricing for accommodation and commute, offering a low cost of living for travellers as well as ex-pats. Beyond this, the Thai hospitality industry benefits from its comprehensive, extensive transportation network, national infrastructure that is being upgraded at a rapid pace, along with the rising number of low-cost carriers serving the domestic market. These factors have offered it an edge over its competitors. The Travel and Tourism Competitiveness Index compiled by the WEF ranked Thailand on the 31st spot out of 140 nations.

For hotel operators in Thailand, their main revenue generating source is room charges which account for approx. 65%-70% of their total revenue. The remainder is generated majorly from the sale of food and drinks.

Hotel Chains in Thailand

The Need for Digitalization Driven by Pandemic

It’s no secret that expectations from consumers are changing the guest experience fundamentally throughout the hospitality sector. Anyone who has travelled to Thailand in recent times can attest to the way the hospitality industry has changed dramatically over the last few years, largely in response to the pandemic and customers’ expectations. The restrictions due to pandemic together with customer expectations have heightened the ease and simplicity of technologies such as mobile, social media and cloud which have helped hospitality companies to deliver instant access and services to their customers.

Improving Guest Experience Through Technology

The notion of improving guest experience has revolutionized the use of technology and has changed business conversations at the strategic level. Companies are gaining enormous benefits from the data collated by all the smartphone apps, social media posts, lobby sensors, etc. However, companies must ensure that they focus on the vision that has been rebuilt around their guest. It’s all about knowing your customer and using innovative technologies to create a personalized experience for them.

Hospitality companies are establishing enterprise-wide digital business strategies for delivering the same.

Such technological and digital transformations have spawned foreign investment in Thailand and some fascinating shifts in the Thai hospitality space are listed below:

Personalization with integration

Your guests won’t think in terms of your line-of-business functions, so there’s no need of organizing information in silos. Putting your guest engagement first, however, requires businesses to understand their guest as an individual, making their systems integration crucial. For instance, most leading hotel chains in Thailand have integrated their restaurant food and beverage (F&B) and leisure systems with their hotel application. They have integrated that data as a key element in their digital strategy. Once that information is aggregated, it could be served as well as accessed by guests using their own devices, allowing them to book a spa treatment, a table at your restaurants or check out any time during their stay.

Mobile Devices and Apps

Mobile devices also play a significant part in enabling guests to personalize their experience with the help of their own devices. For instance, at some Thai hotels, guests can plug their own devices into the in-room entertainment systems so that they could easily access media of their own choice.

Data-Driven Consistent Guest Experience

Consistency remains one of the key challenges for Thai hotels and F&B operators when it comes to the customer experience. It takes a huge effort to create and manage any successful restaurant, so how do entrepreneurs repeat that success? The answer is the technology that does the work for you. Rather than storing all the business and customer-related information on an isolated on-premise point-of-sale (POS) system at every, hotels and restaurant chains are shifting to cloud applications that could be deployed and accessed from anywhere. 

It’s one of the major trends designed to improve the customer experience. The business could leverage better and centralized reporting for analysing all sorts of issues, from food costs to guest preferences. One restaurant chain, for instance, uses a cloud application for tracking and managing data on the vendors it uses globally. A restaurant’s brand reputation is based on how well it knows its own ingredients and where they’ve sourced from. Such centralization of information using cloud technology offers them a view of what’s happening in their supplier pipeline.

Brand Recognition and Direct Relationships

Brand recognition is the crux to customer loyalty, as hotels are using digital technology through improved loyalty programs and better guest recognition with the help of analytics, and guest-facing apps. By improving customer relationships, they also improve the chances of their guests booking rooms directly with the hotel instead of routing through Online Travel Agents. The guest engagement landscape is changing and would continue to do so over the coming years. A direct relationship with the customer becomes relevant to stay competitive. Ultimately, customers would gain big from this as they’ll see an even more range of services that are customized to their personal preferences.

Looking Ahead

To continue the momentum, the hospitality industry in Thailand would need to continue building on its digital strategies for reaching more customers and new markets, such as:

Bottom Line

Technological advancements are having a large impact on the Thai hospitality sector. Along with a persistent commitment to low tax rates, stable currency, committed government, and sensible regulation, the Thai hospitality sector gearing up for a powerful comeback. Painful as the pandemic has been, huge opportunities await for start up business in Thailand and corporations alike for creating fresh innovation, as the Thai industry emerges from the pandemic. 

There are immense opportunities for starting a company in Thailand in the hospitality space or as a tech service provider to these companies. One thing is definite as Thailand is powering up as an innovation and technology powerhouse, the moment of digital reckoning for its hospitality sector has begun.

The post Hospitality Industry and Digital Age appeared first on StartUp in Thailand.

Source: Asian Correspondent

Trade between India and Thailand

Thailand, the second largest economy in ASEAN after Indonesia, is an upper middle-income country with an open economy, a gross domestic product (GDP) of $503.5 billion and a negative 6.1 percent annual growth in 2020. Thailand is an export-dependent economy. Reports suggest that Thailand had exported a total of $226.7 billion worth of goods in 2020. The top export items in terms of value are motor cars, parts and accessories (9%), electronic goods and computers (8%), precious stones and jewelry (8%), rubber products (5%), and plastics (3%).

Trade relations between India and Thailand have grown by leaps and bounds during the last few  years, though it halted momentarily due to the global pandemic. In 2019, India did not export any services to Thailand nor did any export happen from Thailand to India.

The Thai economy is projected to grow by one to two percent in 2021 as the negative impact of a surge of COVID-19 in Thailand offsets the positive effects of the recovery of the world economy and global trade volumes, and government stimulus measures. Thailand owes its close trade and diplomatic ties with India to historic, cultural and social reasons.

Two-way trade in 2018 totalled USD12.46 billion with USD7.60 billion in Thailand exports to India and USD4.86 billion in Indian exports to Thailand. Thailand ranks as India’s fifth-largest trading partner in ASEAN.

The ASEAN Economic Community (AEC) blueprint 2025 is projected to boost investment and business opportunities in the coming years. The ultimate aim of the AEC blueprint is to achieve the ASEAN common market with intermediate steps taken to gradually bring greater integration among the member countries.

The benefits of this blueprint to countries doing business with ASEAN would be in the form of seamless movement of goods, tariff rationalisation and a more open and predictable investment regime in all ASEAN countries. This broadens up the opportunity 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.

Both Thailand and India have been touted as beneficiaries of the protracted trade war between the US and China. There is no sign of this abating any time soon. Thus 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).The SEC is developed with the vision of it becoming the gateway to South Asia. As part of this vision, the Port of Authority of Thailand(PAT) aims to make Ranong Port the logistics gateway between Thailand and India. The capacity of Ranong Port will be increased by six and a half times to reach a capacity of 500,000 TEUs per year by approximately 2022.

Items traded from India to Thailand

In 2019, India exported $4.39B to Thailand. The main products that India exported to Thailand are Diamonds ($653M), Combustion Engines ($401M), and Vehicle Parts ($173M). During the last 24 years the exports of India to Thailand have increased at an annualized rate of 8.6%, from $605M in 1995 to $4.39B in 2019.

Items traded from Thailand to India

In 2019, Thailand exported $7.06B to India. The main products that Thailand exported to India were Air Conditioners ($317M), Vehicle Parts ($295M), and Polyacetals ($282M). During the last 24 years, the exports of Thailand to India have increased at an annualized rate of 14.1%, from $297M in 1995 to $7.06B in 2019.

COMPARISON

In 2019,  India ranked 44 in the Economic Complexity Index (ECI 0.59), and 15 in total exports ($330B). That same year, Thailand ranked 31 in the Economic Complexity Index (ECI 1), and 23 in total exports ($249B).

Top Items exported from Thailand to India include

Items coming the other way from India To Thailand are

In 2019, the products from India that paid the highest import tariffs to enter Thailand were Food preparations (150%) and Grape wines, sparkling (150%).

The fast growing Indian market remains attractive for Thai investors, given the vast opportunities available in the infrastructure sector, tourism and retail industries. India continues to remain an interesting market for the export of goods from Thailand. Currently, Thai goods have benefited from tax reduction under ASEAN-India FTA in goods. For Thailand,  India is like a gateway to South Asia and beyond. As a result of the reduced tariff rates and new initiatives adopted by both countries, trade between the two countries increased manifold in recent years.

Major Indian Companies in Thailand include Tata group – Tata Motors (Thailand), Tata Steel Thailand and Tata Consultancy Services, The Aditya Birla Group, Mahindra Satyam, Ranbaxy, Dabur, Lupin, NIIT, Kirloskar Brothers Ltd, Punj Lloyd Group, Polyplex (Thailand) Public Co. Ltd, Precious Shipping PCL and Usha Siam Steel Industries PCL. It is known that companies like Jindal group [steel], Ashok Leylands [automobiles], Mahindras [automobiles], Escorts, D.R. Hotels (Nellore) Pvt. Ltd. and D.R. Utthama (Thailand) Co. Ltd., are also keen to expand their operations into Thailand.

Leading Thai companies in the fields of Agro-processing, construction, automotive, engineering and banking have an active and growing business presence in India

The two countries need to further expand their strategic, security, defence, and economic cooperation gave the geostrategic challenges as well as huge untapped potential. Both sides should invest the necessary energy, focus, and political capital in the relationship so that it can prosper rapidly to the advantage of the people of the two countries. Both Thai and Indian leaders are aware of the threats and impediments ahead and are determined to overcome them. They are also conscious of the huge existing opportunities and strengths and are resolute to harness them to mutual benefit and advantage.

The post Trade between India and Thailand appeared first on StartUp in Thailand.

Source: Asian Correspondent

Marketing Techniques to Watch for in Thailand

Thailand’s spending on internet media is projected to reach THB 27 Bn in 2022, accounting for 32 percent of total media spending, while the share of television spending is likely to decline below 50 per cent for the first time. Thailand’s 2022 media spending will outperform 2021, supported by the reopening and state stimulus schemes.

Innovations and technology have played a major part in Thailand’s recent economic growth. Businesses in most sectors in Thailand are facing immense challenges in adapting to the latest developments, which would continue to impact business across industries over the coming years. Companies would have to invest significantly in a variety of marketing technologies to stay afloat. Investment opportunities in Thailand for IT solutions providers and marketing firms are thus on the upswing.

Thai marketers are evolving constantly with the world around them. If 2021 was about recovering from an extraordinary shock, 2022 is all about responding, and thriving in the post-pandemic world. With so many advertising options and marketing channels out there, it could get overwhelming. Using every option might not be the best approach, rather making the most out of each option is the way to go. In this article, we will explore trends for helping marketers in Thailand.

Amplifying Customer Service with Artificial Intelligence

Artificial intelligence in marketing uses both online as well as offline customer data together with concepts like machine learning, social intelligence and natural language processing to gauge the audiences’ future actions. This enables businesses to target the audiences with the appropriate message through the relevant marketing medium at the right time to turn the prospects into business opportunities.

Specific areas where businesses use AI and machine learning for solving marketing problems and improving processes include:

Brands are implementing and optimizing AI and machine learning within the customer experience for empowering and elevating customer service from cost centres to revenue drivers. Engineers and web developers aren’t the only ones employing AI and machine learning tools. Marketing consulting firms in Thailand, too, are increasingly utilizing these technologies in their marketing efforts.

Voice Search Optimization

A growing contingent of internet users are using voice assistants for web search. For adapting to this rising trend, more and more marketers are optimizing their content for voice search. For leveraging the increase in voice searches, content is being created that answers people’s questions.

For staying up-to-date with this marketing trend, marketers can try searching for the most asked questions around their industry through keyword research tools like Google Keyword Planner. Lastly, most of the searches are done via mobile devices, marketers should ensure that their websites are mobile-friendly with fast loading speed to enhance their SEO ranking.

Voice search offers very profitable and interesting business opportunities in Thailand for businesses with a brick-and-mortar location or local presence, especially for those who are first movers and able to capitalize on this marketing trend.

Virtual Reality and Augmented Reality

One of the marketing trends that won’t just be evident in the year 2022 but for coming years is Virtual Reality and Augmented Reality. We will begin to see these innovative technologies used for promoting products and services, forever transforming marketing.

Virtual Reality and Augmented Reality are often also considered 360-degree marketing. Several real estate giants in Thailand have already started experimenting with virtual reality applications to allow potential customers experience their condominium units before they’re even constructed. More and more businesses in Thailand are experimenting with this type of marketing for improving the buyer’s awareness and increasing purchasing decisions.

Influencer marketing

2022 will be the year for the creators. Over the past year, the Thai influencer economy has grown considerably and is likely to continue to do so. In Thailand, influencer marketing spending has grown amid the pandemic, with 30% year-over-year growth to THB 2 Bn in 2020. During the outbreak:

Most of the Thai followers are buyers of influencer-endorsed products. As per a recent survey in Thailand, consumers noted that they mostly notice a new product when being endorsed by an influencer and at times are even convinced to purchase the said product.

Ways a business in Thailand can keep up with influencer marketing:

Inclusive marketing

An inclusive marketing strategy isn’t just about displaying diverse images on your social media pages or websites. Inclusive marketing isn’t a gimmick or a sales trick. A marketer must see how the world has shifted and recognized that being inclusive and respectful to local as well as foreign values is the new norm.

Consumers look for brands that practise what they preach and brands that are aligned with all values. If you’re starting a company in Thailand and looking for loyalty from your customers and lasting respect from them, you have to be an authentic brand. Let all groups or individuals recognize themselves in the marketing efforts of your brand and let them know that they can connect with your business. A truly inclusive brand walk the walk at each level. It means developing an inclusive culture and teams, building deep levels of customer intimacy with the various diverse customers that you serve.

Inclusive Marketing Tips for a Thai Business

The Role of Marketing Firms in Thailand

There are plenty of world-class marketing consulting firms in Thailand with the resources and expertise required to thrive in a competitive global market. And it’s isn’t just the Thai businesses that benefit from outsourcing to Thai marketing firms. Although the rates of Thai marketing agencies are comparatively lower than those in the western world, the quality of service is on par and even outdoes that of Western firms.

Marketing firms help you in identifying, reaching and connecting with your target audiences with the help of creative storytelling across digital platforms driving up your revenues and subsequently your profits.

Finally

It’s easy to get sidetracked by shiny innovative digital objects. Marketers adore new trends and want to stay at the leading edge of technologies. However, the truth is that most of the business growth still originates from foundational marketing tools. Don’t forget your foundation. Often, optimizing the base marketing execution would offer a better return on investment than experimenting with every new tool in the market.

As technology advances every second, a lot is changing quickly. Marketing is dynamic and quite volatile when it comes to changes. How to be on top of this?
The answer lies in adaptability. Keep up with the latest marketing trends and news. Comprehend what’s going to happen down the road and implement your marketing strategies towards it, and be fast!

The post Marketing Techniques to Watch for in Thailand appeared first on StartUp in Thailand.

Source: Asian Correspondent

How lucrative is it to invest in the Real Estate business in Thailand

References
https://www.ddproperty.com/en/property-guides/Thailand-Property-Market-Outlook-2022-57944

https://www.thaipbsworld.com/gradual-recovery-expected-for-residential-market/#:~:text=After%20experiencing%20its%20worst%20year,100%25%20of%20total%20home%20value.

How lucrative is it to invest in the Real Estate business of Thailand?

In 2021, the Thai real estate market showed sluggish growth due to various factors, including the pandemic that has knowingly impacted most industries. While it’s true that buyers have postponed, delayed, or even cancelled their property searches and buying processes, with the reopening of the Thai economy, home buyers have started to seize the opportunity of buying undervalued properties.

Looking at 2022, the Thai real estate market is projected to recover. It is particularly true for condominiums, which doesn’t show signs of oversupply and remain attractive for both local and foreign buyers.

Thailand House Price Index (HPI)

The above graph shows the house price index or percentage changes in house prices over 10 years in Thailand using the latest data available. Despite Thailand’s economic woes, the real estate market is picking up and is expected to do well. Both, domestic and foreign buyers, are still willing to spend to buy properties in Thailand.

Buyers, sellers, and renters from globally are becoming a part of the country’s real estate sector whether they are working as one of the many foreign retirees or ex-pats living here.

House prices in Thailand have been declining for couple of years now due to the slow economic growth, high household debt, and strict new loan-to-value (LTV) requirements demanding higher deposits. Pandemic has also directly impacted the Thai consumers purchasing power, which led to stagnant property prices in Thailand.

Can foreigners buy a Property in Thailand?

In Thailand, foreigners can only own a condominium in their own name. Foreigners could take ownership of a condo by buying a condo unit with a freehold title or by entering into a long lease agreement. Foreigners can attain the freehold ownership of the condo unit within the quota set for foreign ownership of a condominium.

As per Thai law, foreigners could own up to 49 per cent of the condominium project’s total saleable area. The remainder of 51 per cent could be acquired under the leasehold ownership. Leasehold ownership provides the right of possession and use of the unit for a defined time period and is fully transferable. The lease period is a maximum of 30 years which can be renewed further for 30 years. In most cases, condominiums developers offer a 90 years ownership period (30 years + 30 years + 30years).

For foreigners, investing in properties in Thailand would often get more bang for their bucks compared to their home countries. Rental properties in the city of Bangkok are high in demand from tourists and long-term residents. And, the south of Thailand also offers some great opportunities in the rental income space as most travellers wish to stay in luxurious residences along the coast.

Is this the Best Time to Invest in Properties in Thailand?

Now is the best time to invest in properties in Thailand at below pre-pandemic prices and wait for prices to rise as the Thai economy reopens for business. It would start taking effect once international travel normalizes with the reopening of international borders and particularly when the US and China become confident with their international travel again. Once it happens investors would be sitting pretty with an appreciated property asset that continues to appreciate. It will also offer the opportunity to benefit from a growing tourism sector through stable holiday rental income.

Real estate investment in Thailand has always been a safer play while stocks, commodity and bonds trading could be volatile. Thailand’s property market has traditionally retained its value well in spite of various crises over the decades.

The pandemic has transformed the way we work and live. The advent of remote working is an opportunity for start-up businesses in Thailand offering professionals with rental homes and villas to recalibrate their work-life balance. Being able to work away from crowded cities has become appealing for urban-dwellers and gives a good opportunity for starting a business in Thailand in this sector.

Future investment

Purchasing property in Thailand as an investment is a good choice as the country has seen a stable increase in real estate prices as demand in Thailand continues to stay on the stronger side. Thailand remains unswerving in its development, with modern networks of roads and connections to main commercial and industrial centres. Thailand also offers amenities that rival that of expats’ home countries.

With modern medical facilities, business facilities, accommodations, and fast internet connectivity, living in Thailand certainly have its perks. Exclusive locations also drive the property prices, offers great investment opportunities in Thailand it’s real estate sector.

One other way to maximize your return on investment, including buying and leasing out your property in Thailand. It’s a faster way to earn profits from your investment. Most of the investors take this route as the possible rental yields are approx. 5% making foreign investment in Thailand a great opportunity. As it’s only an average and a ballpark figure, rental yields could be higher in exclusive locations.

Investors in Thailand’s real estate sector would surely find a route to see a great return on their investments. From buying a deluxe condo in the heart of Bangkok city to renting out the property in the South, the property market in Thailand is definitely hot. Even with the pandemic wrecking parts of the Thai economy, the real estate market in Thailand is expected to make a comeback as early as later this year. And, the current pandemic makes it an optimal time for buying properties along the coasts which are at an all-time low, the future would surely yield great returns for investors who invest now.

Why Buy Property in Thailand?

A large number of ex-pats buy property in Thailand which is comparatively high than any other Asian country. There are numerous reasons why Thailand is among the most popular real estate destination for investors worldwide.

Business-Friendly Environment – Thailand has rich natural resources along with a comprehensive IT network across the country. Additionally, Thailand offers modern transport and communication facilities and a skilled workforce. All of these offer business opportunities in Thailand, and these services and infrastructures are one of the prime reasons why investors and entrepreneurs flock to Thailand.

Heaven for Digital Nomads – The city of Phuket in Thailand ranks at the top of the list for digital nomads as they work and can live there while enjoying a quality life at a comparatively low expense. The prices of properties in Phuket have hit rock bottom offering opportunities to open a small business in Thailand in the real estate sector.

Growing Economy – The country has made remarkable strides in expanding its economic freedom, subsequently moving shifting from a low-income country to an upper-income country. Experts also believe that by early 2023, Thailand’s real estate sector is expected to reach pre-pandemic levels. This projection is sooner than thought previously, with the easing of home loan regulations and the reopening speeding up the country’s recovery.

Strategic location – Thailand’s Eastern Economic Corridor (EEC) is all set to become the gateway to Asia due to its strategic location, bringing together investment, trade and transportation.

Finding and Choosing your Property in Thailand

Since Thailand’s real estate sector isn’t highly regulated, it’s recommended that you take the help of a consulting agency. This way you can find the help you in navigating the local Thai regulations.

Also, for a business, it’s advisable to avail business consulting services as it could be a hectic system to arrange the deeds of ownership, and purchasing a home in Thailand without local help could be problematic. A specialist agent or a real estate business consultant will also offer helpful advice as well as insight into the local Thai market and will help you even with the local Thai language. There would be a fee to pay for their services, but they’ll help you in avoiding costly mistakes.

The post How lucrative is it to invest in the Real Estate business in Thailand appeared first on StartUp in Thailand.

Source: Asian Correspondent

How Thailand is ramping up its Technological Landscape

Technology and innovations have been playing a crucial role in Thailand’s recent economic growth. Today, all kinds of businesses are facing enormous challenges in adapting to technological advancements, which would continue to impact every sector over the coming years. A business in Thailand would have to invest significantly in various technologies for the purpose of remaining afloat. Therefore, opportunities in Thailand for IT solutions providers are on the upswing.

Managing an economy today, as big as the Thai economy isn’t easy. But managing the economy for tomorrow? That’s a real test. It’s one which the Thai government is tackling head-on, with several new policies designed to future-proof its industry and workforce, particularly in the automotive, robotics, and agriculture sectors.

These measures, collectively known as Thailand 4.0, are designed for incentivizing FDIs and nurturing innovation in the domestic industries. The aim is to foster a Thai ecosystem that encourages emerging technology, creativity and innovation. The efforts range from Thailand’s present areas of strength—like electronics and automotive industries—to nextgeneration industries like robotics and healthcare.

5G ready

Thailand was one of the early-adopting countries of the 5G technology. Thailand’s 4.0 economic initiative augurs well the digital aspiration which the country has. When it comes to enterprises and industries, Thailand is among the key industrial hubs with numerous potential businesses seeking modernisation of their operations with the help of 5G technology. Thailand needs a programmable, efficient and secure and 5G network which brings opportunities for businesses in this sector for both overseas and domestic.

Thailand’s Focus on HealthTech

Thailand’s rising emphasis on digitalization for promoting and integrating the use of modern technology in its healthcare sector would have a progressive and significant impact. Under Thailand 4.0 scheme, the Thai government has launched several healthcare applications like H4U – a health profile app), Smart Health ID – a cloud service for patient administration and telehealth and telemedicine apps in the last couple of years.

.
Contact Startup in Thailand for a business consultation on how to start a technology business in Thailand.

Thailand offers a favourable environment for investment and business opportunities in Thailand particularly in digital health. The government of Thailand is also using 5G technology and AI (Artificial Intelligence) for combatting the current pandemic. It is helping doctors accurately and quickly diagnose the stages of illness. Thailand is demonstrating success in offering better health services by improving its HealthTech industry. Nevertheless, Thailand still has much to cover in its HealthTech sector to be at par with other neighbouring countries like Singapore and Malaysia.

Thailand’s move towards robotics

Thailand’s brave moves in the automotive sector is demonstrating a blueprint for success in various sectors. Thailand’s robotics industry, certain of its growth prospects and how intertwined automation is with auto production, incentives are being offered for attracting robotics firms. The Thai government is offering incentives in the field of robotics with the objective of overseas as well as domestic investors setting up business in Thailand and building jobs in manufacturing, designing and servicing these new tools.

Manufacturing Adopting IoT

Thailand’s economy, which has been traditionally dependent on agricultural exports, has reinvented itself in the past few decades. To drive the Thai industry forward and preserve its competitiveness, Thailand is looking to move from age-old assembly lines with staff carrying out repetitive tasks to the implementation of smart machines and automation.

Smart manufacturing employs data analytics for improving the performance of the overall manufacturing process and helps develop connected solutions to automate manufacturing operations. For instance, plant managers can access the production data instantly through their mobile phones or access the inventory available with just a push of a button.

Broad Applications of Blockchain

Keeping with Thailand 4.0’s stress on using digital technologies for spurring the country’s economic growth and development, the government of Thailand is exploring the feasibility of blockchain technology for creating value-added services for its mainstream industries. Blockchain technology has thrived not just in the cryptocurrency space but in numerous traditional industries in Thailand.

In 2017, Thailand Post started using blockchain technology for its warehousing, shipping, sorting, and delivery processes for enhancing its operational efficiency. In 2019, Thailand’s Ministry of Commerce started exploring blockchain technology in the areas of agriculture, trade finance and copyright for boosting Thailand’s credibility concerning intellectual property. During that time, Thailand’s Ministry of Finance also started exploring the use of blockchain for tracking tax payments and detecting tax fraud.

Thailand has developed as one of the most interesting and cryptocurrency countries in Asia. As of today, blockchain is increasingly used in food safety, real estate, asset management and intellectual property. Several market players are also exploring the possibilities of employing blockchain technology in managing problems across industries – from manufacturing and healthcare to finance and retailing. Some of the local Thai companies have confidence that blockchain technology would play a crucial part in their business and priority in their planning.

Data Protection and Cybersecurity

As the digital economy of Thailand grows, cybercrimes and privacy rights have turned out to be major concerns. The country currently offers legal protection for specific types of personal data in areas under the Financial Institution Business Act and National Health Act. However, such restricted protection isn’t adequate when personal data is spread via several channels, platforms and devices.

In early 2019, Thailand approved a Cybersecurity Bill and a Personal Data Protection Bill. The Bills are designed to directly govern the use, collection, storage, and processing of personal data. The bills are intended to implement legal safeguards for ensuring national security in cyberspace and protecting the privacy of personal data.

Fuelled by the rising demand for data protection requirements, awareness about data privacy is increasing in Thailand. Consumers are avoiding companies they don’t trust with their data. So, there is a huge demand for service providers in this sector as Thai businesses are facing the huge challenge of protecting their customer information from corruption, theft and unauthorised access.

Thailand’s digital transformation is intensely altering every facet of how businesses in Thailand operate and contest. With the rise of data which enterprises produce, store and manipulate, continues to grow, securing data is becoming a big business in Thailand. Data security services work in tandem with cyber security and network security services for keeping companies safe from attackers and preparing them to effectively respond if any incident occurs. From data protection, backups and recovery to data reuse, there are ample opportunities for cybersecurity businesses in Thailand as organisations want to keep their data secure and available for their operations, products and services.

AgriTech and FoodTech

In 2017, Thailand’s Board of Investment received 215 applications for projects associated with agriculture and agricultural products, worth over $1.9 billion. This illustrates how crucial agriculture is for Thailand. Most of the projects has been greenlighted by the Thai government and would steer the sector towards AgriTech and FoodTech. One of the key components of AgriTech is smart farming, a farming framework driven by technology that uses innovations like GPS, data analytics and automation through robotics for increasing the quality and yield of agricultural products. Over time, this blend of BOI incentives, entrepreneurial initiative and innovative technology, can help Thailand in shaping the future
of the country’s agriculture. Contact Startup in Thailand for setting up a BOI company

Finally
Today, digital disruption has become a major force across industries globally. Hence, the majority of global executives acknowledge that their industries would be disrupted to a transformative extent. In Thailand, it’s interesting to discover how Thai companies implement and develop digital transformation in today’s era of digital disruption. Thailand continues to make great strides towards digitalisation. With a robust industrial policy favouring digitalisation, the country is on the cusp of becoming a digital behemoth through its 4.0 digital revolution.


Contact Startup in Thailand for a no-obligation, FREE Business Consultation now.
Startup in Thailand is the only company in Thailand to provide a single-window solution for all
business startup and expansion requirements: Startup Consulting | Thailand Market Entry |
Legal assistance | Serviced Office | Factory Setup | Representation | Recruitment Services |
Accounting | Operations | Buying & Sourcing | Distribution | Sales & Marketing | M&A |
Regional Business Development | Management

Interesting Reads
Post Covid Thailand Economy
Thailand Digital Scenario
Understand the IT industry in Thailand

The post How Thailand is ramping up its Technological Landscape appeared first on StartUp in Thailand.

Source: Asian Correspondent

Top 5 Commodities Exported from Thailand

Situated in Southeast Asia, the Kingdom of Thailand exported $231.47 Bn worth of goods
globally in the year 2020. Thailand’s economy is highly dependent on exports, which usually
accounts for 60% of its GDP. The country itself is a newly industrialized nation, with a GDP of
23.41 trillion baht ($546 billion) in 2021, it is the 8th largest economy of Asia.

Thailand exports have grown from $193 Bn in 2010 to $245 Bn in 2019 and $231 Bn in 2020.
Thailand ranks at 25 among the top-ranked exporting countries in the world.

Thailand Major Exporting Partners

The country trade patterns have dramatically changed from the initial 1980s, where more
than two-thirds of its export earnings were attributed to agriculture and only one-third
would constitute manufacturing. By the arrival of the 21st century, Thailand’s agriculture
contributed around one-eighth of its export earnings and around one-tenth of its GDP, while
manufacturing contributed the most.

Thailand’s key trading partners include the United States, Japan, Singapore, China,
and Malaysia. According to the latest available information, 71% of the country’s products in
the year 2020 were exported to the United States 14.9%, China 12.8%, Japan 9.9%, etc.
Below table and graph show the top 10 exporting partners of Thailand in 2020.

Thailand’s main exports in 2020 were Industrial Machinery 16.4% ($37.6 Bn), Electronics
14.8% ($34.1 Bn), Vehicles 10.5% ($24 Bn), Gemstones with a share of 7.8% ($18 Bn),
Rubber and related articles 6.7% ($15.5 Bn), and so on.

Contact Startup in Thailand for a no-obligation, FREE Business Consultation about
Import and Export Opportunities

Machinery

It’s well established that the machinery industry in Thailand is a vital supporting industry to
its manufacturing sector, and it also plays a crucial role in the country’s overall economy. It
could be seen by the constant growth of its machinery industries. In 2020, the trade value of
machinery and parts reached $37.6 Bn. Apart from that, continued regional economic
expansion contributed to Thailand’s machinery sector growth.

Thailand’s BOI (Board of Investment) offers several incentives both tax as well as nontax for
projects meeting the objectives of national development. The tax-based incentives comprise
of import duties exemption on machinery and raw materials, and exemption from corporate
income tax up to eight years. Non-tax incentives consist of permission for bringing in
expatriates, receiving or remitting foreign currency abroad and owning land. Recognizing
the significance of the role that machinery plays in the economic development of the
country, the BOI is offering attractive incentives and subsidies for starting a company in
Thailand
which are engaged in manufacturing machinery in Thailand.

Electrical & Electronic equipment

Electrical and electronic equipment is among the largest exports sector of Thailand,
amounting to around 15% of its total exports. As of 2020, it is the largest exporter of
computers and related components in ASEAN. After China, Thailand is the world’s secondlargest producer of HDDs (Hard Disk Drives) with Seagate Technology and Western Digital
among the biggest producers.

With a total export value of $34.1 Bn in 2020, the country’s electrical and electronics
industry has developed and thrived for decades. The electrical and electronics sector hasn’t
just played a crucial role in its economy as the key growth driver but has also advanced
Thailand as the electrical and electronics manufacturing hub of Southeast Asia. Thai
government’s recognition of the role which the electrical and electronics sector has played
and is continuing to play in the country’s economic development provides attractive
investment opportunities in Thailand. The Thai government is offering incentives for
attracting major global players to start a business in Thailand in the electrical and
electronics field.

Vehicles

While the tourism industry in Thailand struggles to recover from a decline in overseas
visitors, Thailand’s auto industry is moving ahead and supporting the economy to bridge this
gap. Thailand’s value of automobile exports is projected to reach an all-time high in a couple
of years as the world economy reopens.

Vehicle manufacturing is the prime component of the Thai industry. With a total export
value of $24 Bn in 2020 compared to $27.27 Bn in 2019. Thailand’s vehicle exports have
flourished for decades. As per the customs data, these exports mainly comprise cars, car
parts, and accessories. Thailand is the fourth largest automobile export and assembly centre
in Asia and has the world’s leading car manufacturers like Ford, Toyota, Honda, General
Motors, BMW, Mercedes Benz, etc. among other major world players. It employs nearly
10% of the country’s workforce and contributes roughly 10% of its GDP.

Most of the vehicles that are built in the country are licensed and developed by foreign
producers, mostly American, Chinese and Japanese. The overall Thai market is dominated by
Japanese brands. The Japanese manufacturers in Thailand seem to focus on small, ecofriendly car production, for driving production and exploring further business opportunities
in Thailand
. The Thai car industry leverages the ASEAN Free Trade Area for finding a market
for most of its products. The country is also the biggest market in the world for pickup
trucks with above 50% market share for 1ton trucks.

Gemstones

Thailand has experience of centuries in the gemstone industry under its belt and the country
has cultured a vast network of artisans and a robust manufacturing base encompassing all
the value chain phases from mining to retail sale. With its strong foundation in place, the
industry continues to play a vital role in the Thai economy, providing stable employment for
jewellery designers, merchants, miners and gem cutters.

Thailand’s gemstone industry continues to be one of Thailand’s lucrative exports with
products exported to markets all over the world. Thailand exported gemstones for $18 Bn in 2020. Owing to their reputation for quality, a major chunk of the gemstones and jewellery are exported to premier markets including Switzerland, the US, Hong Kong, and India.

Keen to bolster the revenue flow from this industry into the country, the Thai government
and several industry bodies are promoting the sector abroad and putting a concerted effort
to support the industry at home. The Thai government along with the Board of Investment
(BOI) are offering substantial financial incentives to companies starting a business in
Thailand
in the gemstone trade, including exemption of import duty on raw materials such
as diamonds, gemstones, pearls, synthetic gemstones and various precious metals. The Thai
government also offers tax benefits on jewellery products through special trading avenues
like the Bangkok Gems and Jewellery Fair.

Rubber and Related Products

Thailand’s rubber industry has evolved significantly and diversified from small-scale rubber
plantations in the early 1900s to top rubber producers and exporters in the world. The
astounding growth of the rubber industry in Thailand is primarily attributed to its
abundance of natural resources, massive regional rubber consumption base, and enhanced
production infrastructure. As the demand for rubber continues to increase globally at a
steady pace, the Thai rubber industry is projected to flourish further, so does the foreign
investment in Thailand with top rubber suppliers in Thailand.

The country has grown to become the global leader as a natural rubber producer and
supplier in the last few decades — benefiting from advanced cultivation methods and its
tropical climate. Annually, the country produces more than 4.5 Mn tones of natural rubber
As per the BOI report, Thailand’s production of natural rubber has continued to
demonstrate a steady growth over the last few years with a growth rate of 5.81% per
annum.

Thailand is not just the global leader in producing natural rubber but also the global leader
in terms of global rubber exports. Thailand exported over $ 15.5 billion worth of rubber and
rubber articles globally in 2020. China is the largest importer of Thai rubber, followed by
Malaysia, the USA and Japan.

To further reinforce Thailand’s leading position in the rubber industry, the government of
Thailand has offered some strong and effective support. Additionally, to facilitate
cooperation among research organizations and enterprises for raising the level of valueadded rubber products, the government of Thailand has established a Rubber City in the
province of Songkhla, for serving as an investing and sourcing hub for rubber products
manufactured in the country.

Want to Start your Own Export Business in Thailand?

Looking for export business ideas, Thailand can be a major step towards success in your career.
There are ample investment opportunities in Thailand which can help have your own start up
business in Thailand. However, it is important to understand the local export and import market
and have a local startup specialist or look for startup advisory services that can help and advise
you. It’s also advisable to have a local business startup consultant who can introduce you to
important people.

Contact Startup in Thailand for a no-obligation, FREE Business Consultation

Interesting Reads:
Export-Import Industry of Thailand
Global Economic growth of Thailand
How Corona has impacted the world economy and Thailand

The post Top 5 Commodities Exported from Thailand appeared first on StartUp in Thailand.

Source: Asian Correspondent

How to Recruit the Best Candidates in Thailand?

Located in Southeast Asia and home to a population of 70 million hardworking Thais,
Thailand offers various investment opportunities in Thailand and subsequently has been
attractive to recruiters. As an emerging economy, Thailand is considered to be a newly
industrialised country. Thailand is an anchor economy for its neighbours Laos, Cambodia and
Myanmar.

Given the growth of digitisation, mobile data consumption and foreign investment in
Thailand, have paved paths for business opportunities in Thailand resulting in demands for
roles in the healthcare & life sciences, consumer & retail, technology, Internet &
telecommunications and professional services industry have soared, making it the most
lucrative industries among job candidates in Thailand today.

Thailand’s present economic instability due to the pandemic has impacted recruitment in
various ways, and consequently, recruiting leaders in Thailand are struggling to carry on
with hiring a quality workforce. Hiring in Thailand might be similar to hiring employees for
your parent organization. Still, you would want to be aware of probable differences so you
could shape your organization’s practices accordingly. Listed below are some of the
recruitment best practices you should follow while starting a business in Thailand.

Finding the Right Fit – Every role is unique and involves a different approach. It might be by
searching a database, proactive headhunting, advertising the positions or a social media
campaign. Employing this process, you can reach out to a maximum number of applicants
and shortlist the best candidates. With the Thai economy changing at a rapid pace, even if
you open a small business in Thailand you would look for candidates having a strong sense
of accountability, confidence and experience, and candidates that are agile as well as
flexible when faced with changes and challenges.

Local Language and Local Currency: Even if your employees have some English background
in school or college, you must use the Thai language in essential business communications,
especially crucial documents such as hiring letters and contracts. Also, it’s advisable to use
Thai baht for all the monetary items in these documents. These practices would ensure that
your new hires or prospective hires feel comfortable and can understand the important
details related to their employment.

Ensure established Processes: You would like to make a positive, impactful and professional
impression on your candidates, even if they’re located several time zones away. The best
approach is by using tried-and-tested processes. You should make yourself familiar with
various online interview platforms, and strategize about the pain points and topics that you
would like to cover with the time you have with the applicants.

Streamline your Scheduling Processes: Use the modern technology to your benefit so you
could schedule interviews with your candidates quickly and use the timed saved for more
pressing matters. Provide your applicants with an easy and automated way to log in for their
dedicated time slots and if required reschedule the interview.

Consistency: As you’re meeting your candidates remotely due to the pandemic, ensure that
you treat all of them consistently. Keep your interviews for each candidate of similar lengths
and try to ask every applicant similar kinds of questions. You might vary your conversations
for probing into your interviewee’s strengths, weaknesses and background. Still, you would
like to ensure equitable treatment to all your candidates as you would during in-person
hiring.

Employment Contracts: One of the ways of staying compliant in Thailand when hiring is
through an employment contract. This contract could be written or oral in Thailand. You can
spell out the employee’s benefits, compensation, and termination terms in the contractual
agreement before they begin work officially. In Thailand, working hours can’t exceed 48
hours per week, and employees aren’t allowed to overtime beyond 36 hours per week.
Employment compliances in Thailand also stipulate that an employee gets at least one
holiday in a week. Specialist HR companies can guide you on this if needed

Understanding Talent Beyond CV – With a bigger pool of talent, it becomes even tougher as
well as important for hiring managers to appreciate talent beyond a few pages of resume to
certify a position is a good fit. Recruiters would require more information about talent much
in advance of making their initial contact. It implies they’ll require tools for better
understanding applicants’ needs and desires, along with their qualifications. It’s not about
just seeing candidates, but people.

Understand the Visibility of your Brand – A recruiter in Thailand need to understand that
brand of their company might be viewed differently or maybe unknown to candidates
outside of their local pool. A major employer in Bangkok may be unheard of in Chiang Mai.
Then, such a recruiter needs to understand that the internal drivers of a candidate in Chiang
Mai might be different from those in Bangkok. What persuades candidates in Bangkok might
not resonate in Chiang Mai

Leveraging Software in Recruiting – Leveraging software-assisted recruiting for going
extensive with opportunities while managing volumes of candidates, avoiding biased
decisions and spending valuable time to evaluate the right candidate. It’s the thing of the
past of having a pile of documents and requiring human manual labour to go through each
CV thoroughly as a step in HR operations. Recruiting software and tools today, reduce
workload and enhance HR productivity via computers or smartphones or as per the
convenience of the user.

Startup specialist Thailand – An alternative and effective way is to work with startup
advisory services
. A reliable consulting agency will take on the legal, administrative, and
human resources work to hire new employees for your business, so you can focus on other
important aspects of your business venture. Because a good business consultant in Thailand
already has a well-established Thai presence. With a business startup consultant in
Thailand, you could start your business operations in Thailand sooner than if you go for the
hiring process by yourself in Thailand.

Contact Startup in Thailand for a no-obligation, FREE Business Consultation

Tips for Recruiting Candidates in Thailand

Avoid discrimination such as age and sex in job advertisements.
● Conducting background checks only with the prior permission of the applicants.
● Showing respect, the local Thai culture and environment and adapting to local
customs.
● Emphasizing branding as part of the recruitment strategy.
● Ensure to hire all types of workforce viz. skilled, semi-skilled as well as unskilled.
● Offering training and upskilling initiatives as required at different levels of the
organization.
● Employing modern technology for attracting Thai millennials.
● Reviewing the compensation package on an annual or a regular basis.
● Complying with ethical standards and ensuring to be a good corporate citizen.

Final Word

Every business requires productive and efficient employees, and every large-scale
organization or even a start-up business in Thailand wants to ensure that they are hiring
the best minds in their field. This isn’t a simple task and requires a lot of work.

Regardless of how successful your business is, you’re going to have some employee
turnover, which might be due to unhappy individuals or poor performance. You cannot
control people leaving your organization; however, you could do your best in hiring the best
people for your business.

Always remember, average people will help you in creating an average organization. And
you wish to be the best in the industry. So, you should hire the best talent. Getting this right
can help you in creating the best place to work in the long term while enjoying all the
commercial success. Contact Interactive Recruiters for any guidance or recruitment needs.

Interesting Reads
Fastest way to make $1 Million in Thailand
Every business idea is good, if executed properly
Investing in a human capital is an absolute mandate for every CEO
What does it take for a startup specialist to be successful globally

The post How to Recruit the Best Candidates in Thailand? appeared first on StartUp in Thailand.

Source: Asian Correspondent

Overview of Thailand’s Startup Ecosystem

The startup ecosystem in Thailand has grown systematically as Asia’s hidden gem while attracting
investors moderately compared to Singapore, Hongkong and China. In various ways, Thailand is
more developed industrially and is tied to the West commercially than most of the Southeast Asian
countries. There’s also a massive amount of inbound tourism offering investment opportunities in
Thailand
.

From the beginning of 2020 till now, the startup ecosystem in Thailand faced the greatest challenge
from the pandemic outbreaks which affected all the businesses. However, it also presented the
opportunities for the startups to alter their offerings and expand their business as well as market by
becoming fully digitalized for instance E-commerce platforms and Online services like Food Delivery
which has witnessed an incredible amount of growth. Digital Content and Online Education
Platforms have also seen a steep rise in user growth as well.

Thai Government Role in Supporting Startups

The Thai government is pushing for new regulations and is offering several government grants to
startups in the areas of eCommerce, tourism, smart city development, food tech, and others that are
considered significant to the Thai economy.

The National Innovation Agency is preparing to push the nation towards a ‘Country of startups’. The
NIA together with the public as well as the private sectors is trying to endorse a knowledge-sharing
culture and develop databases for the startups to help drive the Thailand market economy and the
country’s society forward. The board of national startups laid out four key aspects which include:

Thailand’s startup ecosystem is flourishing in a hyper-growth mode which could drive the country’s
economic recovery after the pandemic while the focus would be on large-sized investments in
mature startups. In the next 3 to 4 years, there would be startups jumping into the stock market for
raising funds, which implies a lot of opportunities for businesses in Thailand in various sectors
particularly Fintech, banking, etc.

Business opportunities in Thailand and its startup ecosystem can be grouped in the following
sectors:

E-commerce – E-commerce offers a massive investment opportunity in Thailand. The Thai
population skews older; however, the Thai people are extremely receptive and adaptive to newer
and innovative technology and are also incredibly social media-minded. The island nation constantly
bags the spot in the top 10 countries globally for social media statistics on consumer adoption
growth and network usage. Investors and businesses recognize these trends and have responded by
shifting from old-style retail to modern-day online retail stores. In the last few years, online retail
sales have blown up as the eCommerce market has taken over by storm. It should be noted that the
consumers in Thailand are very price sensitive and would spend time hunting for deals and savings.
Read more about Thailand – the best country to setup a Ecommerce

Fintech – The Thai government as well as the local entrepreneurs have made several concerted
efforts in lending their resources for setting up business in Thailand. For instance, The Thailand 4.0
project is tasked with establishing the foundation required for large-scale fintech growth. These
exertions have paid off leading to increased investment through 2017-2019, and more foreign
fintech firms expanding their business in Thailand. Read more about why Thailand is best for
Fintech growth

Foodtech – Thailand is one of the biggest food exporters and its food industry contributed 23 per
cent of its total GDP. There’s a trend for health consciousness and people are paying more attention
to innovative ingredients. Since Thailand has ample natural resources and optimal weather
conditions for food production, represents a high potential industry for startups in Thailand.
However, developing food innovation necessitates large investment which many local Thai
entrepreneurs may not afford which offers ample investment opportunities in Thailand for overseas
Foodtech companies.


LogisticsTech
– About 8% of all the funded startups in 2017 were in Logistics technology. This sector
is highly concentrated and companies focus predominantly on Thailand’s domestic market. Some of
the notable examples are eCommerce and GIZTX. Business analysts believe that the Southeast Asian
online market has great potential, given that nations are rushing to develop fifth-generation
network infrastructure amid the pandemic as customers shift to online due to lockdowns and
avoiding crowded places. This shift in consumer behaviour would generate a lot of opportunities for
startups in the logistics tech arena. Read more about why Thailand is the logistics hub of Asean.

E-Payment – The speedy development of Thailand’s e-Payment scene has made it an indispensable
part of modern life in Thailand, enabling unbounded global commerce and complimenting the rise of
the “New Normal” during the pandemic crisis, while setting the framework for Thailand to gradually
progress into a “cashless society. This sector isn’t limited to Thailand but focused on the larger
Southeast Asian region. E-Payment deserves the support and attention it is receiving in Thailand,
providing ease and financial enablement to individuals and a world full of potential business
opportunities in Thailand both at national and regional levels.

Finally
The pandemic has taken a toll on the startup ecosystem in Thailand as well. The impact on some of
the sectors like travel tech startups was severe with some fading out and others pivoting their
business. Despite some of the shortfalls, Thailand is making speedy progress, addressing its
structural problems, and developing favourable conditions for innovation. The Thai government
along with the private sectors are transforming the Thai startup community exponentially from a
hidden gem into one of Asia’s most promising ecosystems.

The startup ecosystem in Thailand is booming. For the last few years, big corporates have shown
interest in startups and developed accelerators for driving growth for businesses across different
sectors from medical technology to e-commerce. Entrepreneurs and investors are flocking to
Thailand to make the most of its strategic location which offers ease of doing business, lively
community of startups, well-connected transportation links, and digital businesses, together with all
the necessary infrastructure for setting up business in Thailand.

Do you have a plan of starting a business in Thailand? With the help of startup consulting services,
you can get a quick overview on how to start a business in Thailand and what kind of business suits
you best, the business and work visas requirements you would need, and dealing with company
registrations, etc. Get ready to explore Thailand’s startup ecosystem!

The post Overview of Thailand’s Startup Ecosystem appeared first on StartUp in Thailand.

Source: Asian Correspondent

Top 7 Critical Success Factors for Startups in Thailand

Thailand’s growing economy holds enormous promise for startups due to its strategic location and low-cost labour. But navigating the Thai market for unlocking this promise isn’t easy. It’s because more than any other global region, Thailand represents a grouping of economically, culturally, and commercially distinct regions. Investors and entrepreneurs alike need to consider the localization paradox facing startups in Thailand.

Thailand has made its mark globally both in terms of an attractive tourist destination as well as a profitable business setting. Overseas investors have proved this and attest to the success of setting up businesses in Thailand.

Starting a business in Thailand is always a difficult prospect. How do startups in Thailand overcome the hardships? Here’s a guide to staking a claim for Thailand’s startup success stories.

Embracing Partners

Ensuring a positive relationship with other Thai businesses is crucial to launching a startup in Thailand. However, for a startup to then grow its market, especially considering its limited resources, it’s imperious to leverage local Thai businesses rather than building everything in-house. Partnerships enable rapid market growth and enable startups to roll out products and services faster and more efficiently. Contrary wise this, building in-house is often more expensive and takes longer.

Developing and maintaining partnerships is particularly valuable in Thailand given its diversity as a region. Startups should partner with consulting firms in Thailand as well as local companies. A partnership success story worth mentioning is the partnership between Lalamove – a Hong Kong-based logistics startup and Line – a popular chat app in Thailand in 2016. Combining forces to create LINEMAN, Line used Lalamove’s delivery network for its entry into the delivery business, while Lalamove leveraged Line’s Thai user’s network of over 30 million for scaling into the Thai market.

Engaging With Thai Regulators

Each time a company enters or rolls out a new service in Thailand, it should initiate and engage in a proper dialogue with Thai regulators in advance. One of the key benefits of engaging early is it enables startups with an opportunity to build trust with Thai regulators. The difference between a successful startup and failed business model in Thailand could very well boil down to mutual understanding and transparency with Thai regulators–to the trust that the technology it uses is secure, that the startup promotes the best interests of Thai consumers, and that the startup’s goals and objectives are aligned with Thailand’s national objectives.

Early Expansion

The foremost lesson for an existing startup in Thailand is to expand early–to activate and develop a market expansion strategy from its onset instead of waiting to scale and becoming entrenched in a single region in Thailand. The reason this factor is critical is because the experience of a startup scaling in Thailand is particularly determined by the rate it expanded across multiple regions, its relationship with Thai regulators and partner network, and its product development. E-commerce giant Lazada and transportation services app Grab are two key examples of businesses adopting the mindset of scaling from day one.

Wise Expansion

Early expansion doesn’t mean startups should expand throughout Thailand and nearby countries without proper market research. As mentioned above, localization holds the key in Thailand. Thailand market research firms can help you with this regard as each country contains its own consumer habits, consumer spending power and other market nuances.

Particularly for startups based in Thailand with fewer resources and capital, it’s imperative to be capital-efficient and ensure you get the optimal return for each dollar you spend. With this in mind, selecting the right market strategy in Thailand for early expansion will have reaching implications with scalable company growth.

Adaptability of Products/Services

While early expansion and having a dialogue with regulators and partners is crucial for scaling across Thailand, startups in Thailand can’t afford to lose focus on the development of their core offerings, and adaptation of those offerings in the Thai market. Often, businesses that are focused on a particular country for several years, take product development lightly and don’t have the budget and time for investing to differentiate their product experience in the Thai market.

Investing In Talent

The next success factor surrounds experienced talent, which is hard to find in Thailand. When a startup wishes to expand or start a business in Thailand, it is imperative to invest in robust senior talent. A leader who would manage the Thai market is very crucial, needs to be culturally sensitive, understands the business model thoroughly, and be watchful enough to learn from the Thai market and respond accordingly.

While employees have their influence over the execution of the overall company’s vision, it’s still the company’s vision at the end of the day. It implies when hiring the initial members of the team, a startup in Thailand needs to look for people demonstrating a clear understanding of its vision and having ideas that would help the business. A startup must have people who understand its purpose, its customers, and how to make the vision of the startup a reality.

Proper Marketing

Finally, you have a business in Thailand with the finest product line, still, people aren’t buying? Probably you haven’t done enough market search or selected the right niche very carefully to meet audience requirements. Reaching out to potential customers towards your business entails persistent efforts in marketing. If you’re starting a business in Thailand, you would need the help of Thailand market research firms that helps you in focusing on the overall process of providing customer service, choosing the right niche, delivering a message to the right audience, and promoting the niche in Thai market.

Marketing your business in Thailand is an art form in itself. Thailand is becoming more heterogeneous, but the foundations of its culture won’t budge for anything: Thailand’s traditions, humour, protocols, discourses, are unchanging and at times stubbornly unaccommodating. Hence, the identity of your product offerings needs to seamlessly fashion itself. Cultural sensitivity and sympathetic protocol are of paramount importance for marketing in Thailand. The intricacies of its beliefs can make or break your business.

Bottom Line

When setting up a company in Thailand, it’s tough to do everything right and avoid any mistakes. There’s much work to be done, several KPIs to keep track of, and limited helping hands. In addition, you need to be aware of external forces beyond your control.

There’s no guarantee that a startup would succeed, but with a robust strategy built upon the above success factors, there’s a fighting chance that the startup’s idea might succeed. Startups that approach their business strategically without leaving anything to chance, generally stay in business longer and achieve scalability faster.

The Thai economy is ripe for disruption and the country is emerging as a mecca for both overseas and local startups with the Thai government concerted efforts of redirecting the country’s economy to a tech-based economy from an agriculture-based economy.

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Source: Asian Correspondent