Business Report: Foreign Investors in Thailand

With the tech startup business booming in Bangkok, Thailand, foreign investors are beginning to close in as they survey where to inject their money.

Foreign investors can’t get too far unless they have permission from the Business Developmental Department. Tech startups are pushing panels like this in Thailand to reconsider the level of access foreign investors have to Thai business.

The primary reason for hesitation that comes from Thailand’s side is the risk of Thai nationals being not yet ready to compete with foreigners, whether they are investing or otherwise.

So, what aspects of Thailand’s economy do foreign investors have their eye on?

• Smart electronics
• Next-generation cars
• Agriculture and biotechnology
• Robotics for industry
• Digital
• Biofuels and biochemicals

In this current climate, foreign investors are limited to shareholdings of 49 percent of any Thai business.
Despite the apparent restrictions, foreigners are very active in the Thai economy. In 2016, foreign investors made up an impressive 25.44% of the buys in terms of value.

Because the Thai government push for foreign investment programs that boost the lower end of the economy, it makes sense to predict an influx of foreign investors. This prediction is based on two reasons: firstly the significant increase in tech startups, and secondly, the anticipation of the Thai government releasing their grip a little bit on how much foreigners may invest.

Thailand’s moderately growing economy doesn’t get in the way of a skilled and cost-effective workforce doubled with abundant resources. This combination is ideal for foreign investors at this time.
Because Thailand’s investment policy includes promotion of free trade and liberalization, the future of foreign investment is open to anyone who wants to take the risk.

What should you look out for in the coming year regarding foreign investment in Thailand?

As elections approach, there is a certain level of political uncertainty to take into account. However, despite this, the Thai economy appears to be considerably resilient, even to political upheavals.
New acts that the Thai government has recently implemented will allow for the development of infrastructure projects, ultimately easing regulations around foreign investment and generating a new wave of FDI.

With steady interest rates and inflation, Thailand is looking good from the inside out. They also have a low-level of unemployment and a relatively stable level of debt, making the Thai economy look great on paper for foreign investors.