Why invest in Thailand?
About Thailand’s charm and economy 2020
Thailand, which is a promising country for expansion, the expanding domestic consumer market, and the middle class and the wealthy class will have new business opportunities due to expansion.
Focus on Thailand, where the number of new corona-infected persons declined from the lockdown early and the economic activity recovered.
After the city closed in early March 2020, the number of patients with coronavirus infection in Bangkok could be reduced to one on May 1, and the number of patients being treated in Thailand was 186.
This is due to the medical system in Thailand, the high medical infrastructure, and national character.
(May 6, 2020) New corona infected person There is 1 person in all over Thailand, and there are 186 people during treatment.
Thailand’s economy and investment, which are regarded as “developed countries” among ASEAN countries
In Thailand’s Prayut administration, the long-term vision “Thailand 4.0” aims to increase GDP per capita to $ 13,000 by 2036.
It is said that the “Thailand 4.0” aimed at fostering next-generation industries based on digital and IT will be shifting to an innovation-led economic route.
We are working to promote “Thailand 4.0” as a new economic model in order to escape from middle-income countries and develop into smart, rich high-income countries.
Thailand 4.0 aiming for a digital nation
・ Next-generation vehicles
・ Smart electronics
・ Medical / health tourism
・ Agriculture / Biotechnology
・ Future food
・ Robot industry
・ Aviation / Logistics
・ Biofuel / Bioscience
・ Digital industry
・ Medical hub
“Hub” and South-East Economic Corridor for Asian countries and global expansion
“East-West Economic Corridor”
The East-West Economic Corridor was established in 1998 and is an economic development plan based on a 1,450 km long road that connects four countries in the Indochina Peninsula.
“Southern Economic Corridor”
The “Southern Economic Corridor”, a land route connecting the southern regions of the Indochina Peninsula of Thailand, Vietnam, and Cambodia from east to west, has been established.
The Southern Economic Corridor can play the role of hub function for Asian markets
● The Japanese market continues to expand
The market for Japanese products and services has also expanded. In fact, many Japanese restaurants and medical services are being developed.
● Agricultural production and manufacturing capacity
Thailand, the world’s rice exporter. Thailand is one of the three largest rice exporters alongside India and Vietnam, and in 2018, these three countries accounted for 62% of the world’s exported rice. Agriculture accounts for less than 40% of the workforce, but GDP is only 12%. On the other hand, about 15% are employed in the manufacturing industry, but they account for about 34% of GDP and less than 90% of export value. The export power of agricultural products such as rice, bananas and canned fruits is high in the world. Pineapple production is 2.11 million tons, the fourth largest in the world.
There are many large shopping malls in Thailand, and it is the most advanced shopping in Southeast Asia such as 24-hour Seven-Eleven shopping.
● Thai manufacturing industry (automobile industry)
It is the largest electronics and automobile manufacturing base in the ASEAN region, and is the second largest concentration of Japanese companies in the world after China.
Japanese manufacturers hold a 90% share of the Thai automobile industry’s production, domestic sales and exports. Competition between Japanese companies is intensifying, and it is said that it is more difficult to secure profitability than before.
● Medical in Thailand
It is generally good at public key hospitals and major private hospitals in major cities. In Bangkok, the medical standard of a typical private hospital has a fairly high level of technical skill, and is comparable to that of Japanese hospitals. A doctor who has graduated from a Japanese medical school, or a doctor or nurse with training experience at a Japanese hospital works.
In addition, the level of medical care for infection treatment at COVID19 was high, and many infected persons were discharged from the hospital. (As of May 1, 2020, 160 patients are being treated and no medical disruption has occurred)
(Trade) between Japan and Thailand
According to the 2019 trade statistics released by the Thai Ministry of Commerce on the 22nd, exports were down 2.7% compared to 2018, at $ 246.2 billion (about 27 trillion yen).
For customs clearance from Thailand, if the customs clearance procedure is performed on the day before the ship departs, the ship can depart the next day.
Regarding sea transportation, the voyage time from Bangkok to Tokyo (main port of Japan) is generally around 8 to 10 days. It can be done in about two weeks with a DOOR TO DOOR transportation from a factory in the suburbs of Bangkok to a destination in Japan.
If you have a “tax payment certificate” that proves that you are paying taxes as a Thai company, any company can do trade business. Trading business can be easily operated.
(1) Exports (goods) 252.2 billion dollars (2018, NESDC) Automobiles / parts, computers / parts, machinery / equipment, agricultural products, processed foods
(2) Imported goods (goods) $ 229.8 billion (2018, NESDC) Machinery, crude oil, electronic parts
(1) Export 1. China (12.0%) 2. United States (11.1%) 3. Japan (9.9%)
(2) Import 1. China (20.1%) 2. Japan (14.2%) 3. United States (6.0%)
Aim to expand exports from ASEAN to India, China and Africa.
(Japan and Thailand)
5,444 Japanese companies were confirmed as of May 2017
The number of Japanese living in Thailand is estimated to be about 100,000, forming the world’s largest Japanese society
Japan is Thailand’s largest investor (share 35.1%)
In addition to a well-developed infrastructure (paved roads), the existence of preferential foreign investment policies, the conclusion of FTAs, etc., a stable power supply can be cited.
● High demand for “Japanese brands”
Known as the most pro-Japanese country in the world, the demand for “Japanese brands” is very high. For this reason, it can be said that even Japanese companies can easily do business.
Japanese cuisine and fashion, as well as pop culture such as anime, manga, and movies are gaining popularity.
Bangkok will be number one in the Asia-Pacific destination in 2018, and Phuket will be number six.
40 million tourists visit Thailand annually.
The number of Japanese tourists visiting Thailand was 1,806,340, exceeding 1.8 million annually.
By nationality, the Japanese is the 6th largest after China (about 10.99 million), Malaysia (about 4.17 million), India (about 2 million), South Korea (about 1.89 million), and Laos (about 1.85 million).
The number of foreigners (preliminary figures) who entered Thailand in 2018 increased by 7.5% year-on-year to a record high of 3,827,300.
Many popular resorts with mild climate
Thailand has a tropical monsoon climate, which can be roughly divided into a rainy season and a dry season, but the annual average temperature in Bangkok is 29 ° C and the average humidity is 73% (2014). You can think of it as the climate around July and August.
The government has declared that it will invest about 1.80 trillion baht (about 5.80 trillion yen) by 2022 to build infrastructure such as intercity rail and highways.
In addition to seven international airports, there are 28 commercial airports.
In Thailand, Bangkok New International Airport (Suvarnabhumi Airport), which is used by approximately 62.81 million people a year, is the hub of the regional aviation network. A target for 2035 is to develop a Suvarnabhumi seaside city development plan that includes a land use plan around the airport, and railways such as the Sky Train connecting Suvarnabhumi International Airport and Bangkok have already been established and the Eastern Seaboard It is also planned to expand the communication network connecting the industrial area and the northern and western parts of the central area.
In terms of shipping, we have ports such as Bangkok Port (Khlong Thy Port), Laem Chabang Port and Map Ta Phut Industrial Port. Bangkok Port has been playing the role of Thailand’s main port for more than 50 years, and is an international port boasting an annual handling volume of over 12,000 tons.
Investment in foreign investors is increasing because Thailand has a relatively well-established legal system related to real estate.
Even foreigners can become owners. Real estate is cheap and has the advantage of a tax system.
For a condominium owned for real estate investment
If the amount is less than 50 million baht, the new land and house tax (Japanese property tax) is 0.02%.
Inheritance tax and gift tax were introduced on February 1, 2016, but they are applicable to assets over 100 million baht.
Thailand is a net importer of crude oil but a net exporter of petroleum products.
Since about 60% of power plants in Thailand use natural gas as fuel, the government has stated “dependence on natural gas”.
There are concerns over the depletion of major domestic primary energy resources, which are planned to be coal-fired power plants in the two southern regions and are the engine of economic growth.
Currently, there is a movement to shift to renewable energy.
Renewable energy has become one of the indispensable energy resources for Thailand, with its production increasing at a remarkable momentum with an average annual growth rate of 12% from 2014 to 2018.
As Thailand is blessed with agricultural resources, biomass accounts for a large part of the renewable energy production of the whole country.
A new energy plan was announced. “Power Development Plan: PDP 2015 (2015-2036)” (electric power development plan), “Alternative Energy Development Plan: AEDP 2015 (2015-2036)” (alternative energy development plan), “Energy Efficiency Development Plan: EEDP 2015 (2015 -2036) “(energy efficiency development plan).
It is clearly stated that nuclear power generation will be started in the future.
The Thai government introduced the government support system for new energy as the earliest in Southeast Asia.
Announced that 20% of all energy will be new energy by 2022.
Thai Economic Indicators (Japanese version) DOWNLOAD Here