BACK Delving Into 4 Businesses in Thailand That Deserve Investment
The world is currently entering into pivotal phase of transformation, and many violent and rapid changes are impacting lifestyles and businesses to a significant extent. This is expressly true for Thailand, which was once titled as one of the 5 Asian tigers, yet at present has not been left with even the resemblance of being a tiger. While in the past 2-3 years, news has circulated about many factories moving their production bases out from Thailand, at the same time, reports from the BOI state that billions of financial capital have been invested into Thailand. This demonstrates that Thailand still attracts foreign investors, and today, we will delve into the 4 businesses in Thailand that are the most appealing for investment.
1. Vehicle Parts
According to statistics obtained from the Department of Land Transport throughout the year of 2020, 2,638,466 red-labeled cars were applied for registration, while the number of domestic cars totaled 41 million vehicles. This indicates that Thailand’s automobiles comprise nearly 100% vehicles that use oil. Meanwhile, many major automobile giants have begun to produce increased numbers of electric vehicles, and have reduced production of oil-dependent vehicles. According to this equivalency, Thailand’s future may require adjustments towards greater numbers of electric vehicles, which may happen at a faster rate than that of previous trends. One reason is due to Japan’s ban on the distribution of oil-dependent automobiles within 2030, including countries in the European region, such as the United Kingdom, France, and the United States, which have each announced their cancellation of oil-dependent vehicle sales. This means that, should Thailand wish to produce vehicles for export, it must alternatively begin production on electric vehicles.
2. Technological and Digital Businesses
Many may not yet know that Thailand holds a leading status in the production of electronic parts, circuit boards, and other components to technological company giants. Particularly, the transmitted knowhow and high-level technologies from these parent companies has allowed electronic component exports to proceed in a better direction than before, and most notably for rapidly changing technologies in the fields of network systems, connectivity, AI, various cables, and wireless systems that function at the same level as, and will soon replace, wired systems. Online businesses are beginning to receive interest from parties requiring greater quantities of equipment and levels of security. Yet many factors in Thailand also require improvements, whether in the fields of various application development or software development, in order to support the cryptocurrency systems that are expected to receive increased future use. This can be seen from the public sector’s wallet applications that are used by almost all in the country. The most recent data from the BOI in 2020 reveal that the number 1 business registered for and invested in was the electrical appliance and electronics business, with a value greater than 50 billion baht.
3. Medical Industry
This is a newcomer to the industry which will play a part in pushing Thailand into becoming a medical center in the ASEAN region due to its internationally recognized research. Recently, a knowledge and technology transfer is underway concerning the production of the COVID-19 vaccine from leading global pharmaceutical companies. This means that Thailand has received recognition in matters concerning its laboratory rooms, factories, materials, production equipment, and machinery, which have attained international standards fit for the production of globally distributed vaccines. The production of medical device components has been recognized at the level of international standards, which adds to the opportunity of learning about emerging diseases before any other parties. Meanwhile, production costs are cheaper, so it is therefore unsurprising to wonder why Thailand will be a future medical center in this region. Additionally, the treatment standards of Thai physicians has received international recognition as being at the highest effectiveness, as can be observed from the historical control and treatment of COVID-19 patients. Data from the BOI show that requests for registration and investment promotion number a total of 83 projects, with a total value of 22.29 billion baht, having increased from 2019 by 165%.
4. Industry for the Elderly
It is likely undeniable that Thailand and the world are entering into a society of the elderly. This can be seen from the most recent Thai population statistics from 2019, where the population age range of 55-64 years had 8.9 million people, while the age range of 65 years and older had 8.1 million people. Thus, it can be concluded that within the next 10 years, the population of 65-75 years will have about 17 million people, which is an opportunity for businesses or industries that serve the elderly. This can be seen from competition in the adult diaper market that receives annual increases in usage, and does not even include elderly service businesses and other businesses that can be expected to grow in the future, such as elderly care supplies, food, walking aids, wheelchairs, self-help devices in the home and bathroom, and other products of a wide variety in an open market for investors who are looking for this opportunity.
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These various domestic factors, in addition to the Thai market, have opened a wide area for investors seeking business opportunities. Although the general economic outlook is not bright, the outcome will depend on who can find these opportunities first. In particular, businesses that can begin with their present resources without starting over, such as by renting readymade factories or warehouses to produce and distribute products to match market demand and reduce costs associated with building, factory, and new location construction, will enable the business operator to proceed in a timely and rapid manner. In modern business, whoever thinks first, adapts promptly, and acts immediately will gain the advantage and opportunity over competitors. Should one simply construct a factory and await its completion, the business trends may have already changed.
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