NEW BUSINESS SURGE
NEW BUSINESS SURGE
New Business Registrations Surge as 2019 Begins
The Director-General of the Department of Business Development, Mr Wuti Kraiweeraphan, revealed an extreme growth in new businesses for January in Thailand, compared to the previous month and the same month last year. Factors that Mr. Wuti accounted for this were investment promotion by the Thai government, expanding influence of online trade, and increased need for logistics support.
More New Business Registrations, Less Business Dissolutions
In January 2019, 7,311 new companies were registered, compared to 4,102 in December 2018, up 78%. When compared to the 6,965 registrations in January 2018, the increase was 5%, but still significant overall. More importantly, the number of dissolutions decreased from 5,511 in December 2018 to only 1,401 in January. The 75% decrease is a positive indication for the investment environment in Thailand.
The EEC Leads in New Business Registrations
Much of the increase in new businesses is located in the Eastern Economic Corridor, or EEC, and extending to the recently established Southern Economic Corridor. By offering tax and other incentives for businesses in such areas as Chachaengsao, Chonburi, and Rayong to the east and Ranong, Surat Thani, and Chumpon to the south, investment in new operations have burgeoned beyond Bangkok, with a healthy chunk coming from foreign investment from Japan, Singapore, and China.
Although these regions have seen elevated capital investment, doubling from the previous month, there has been an overall decrease countrywide. Nevertheless, registered capital is only one economic indicator, and it cannot be overshadowed by the rise in total businesses established across Thailand.
Transportation and Logistics Move into the Top Three
With the expansion of investment across the EEC and SEC, it makes sense that the top three sectors for new business registrations in Thailand were general construction, real estate, and transportation and logistics. Construction and real estate were already in the top two, but transportation and logistics enters the top three for the first time, bumping down restaurant and food service business registrations.
Furthermore, the EEC itself saw mainly service, wholesale and retail trade, and production operations established, as well as warehousing and logistics businesses. Mr. Wuti explained that the growth of online business, which has led to a greater demand for such services, as a driving factor for the increase in these sectors.
B-Accounting Can Support Your Business in Thailand
With such an optimistic start to 2019, having more businesses operating in Thailand does mean increased competition among all players. So, the Department of Business Development predicts that the total number of business registrations in Thailand for 2019 will be about the same as 2018 at about 70,000. Nevertheless, this will not stop government investment promotion and incentives to encourage growth across all sectors, as there are many factors, globally and locally, that will affect whether a business is established in Thailand.
At B-Accounting, we are committed to helping our clients ensure their businesses run smoothly and successfully. We offer a range of services including financial and paralegal, so we can also assist in opening businesses in Thailand as well.
Are you interested in taking advantage of the excellent economic environment in Thailand by opening a business here?
Ask for a quote by phone at +66 (0)2 234 4889 (available in both Thai and English) or on our website at https://www.b-accounting.com