Global tensions such as the US-China trade war, Brexit and crisis in Argentina and Turkey have affected the Asian market. For the Southeastern nations, these global headwinds were viewed as an excellent opportunity for growth. As such, the region is becoming a very lucrative alternative for supply-chain companies.
Amongst the Southeast nations, Thailand is expected to reach 3.5%-4.5% growth. Over THB 2 trillion are going to be invested by the state in projects such as the urban high-speed railway and energy production in the Eastern Economic Corridor. Moreover, the country’s current account surplus equivalent to 7.5% of GDP in 2018 made the THB currency strong. As a result, Thailand’s currency remained on the top spot amongst Asian currencies despite global market volatility.
Thailand is also becoming a top choice for real property investment all over the world. As such, several foreign investors have not been deterred by the country’s political climate. The country is the fourth most popular choice amongst Chinese property investors with USD 2.3 billion coming from the said source.
Despite political and global market tensions, Thailand continues to show robust growth. Read this post to see how foreign investors can benefit from the country’s economic climate for a successful company formation.
Choosing Thailand as an Offshore Company Destination
Boosting the Thailand economy means offering attractive incentives for foreigners to invest in the country. One of the most lucrative offers is the establishment of the Eastern Economic Corridor [PDF].
To encourage investment in the EEC, the Thai government will offer essential benefits to foreign investors and businesses in the area, such as attractive tax and non-tax incentives. Here are some of the top reasons to form a company in the EEC:
Establish a Strong Business Presence
With stable government support, foreign companies and entrepreneurs can establish a business presence in the 10 S-curve industries in EEC.
Source: KPMG
Increased Connectivity to Access Different Markets
Manufacturers and companies involved in supply-chain can significantly benefit from the EEC 21 industrial promotion zones. Development of the railway systems, highways and motorways that are linked to seaports and airports allow for easy transfer of goods.
Source: Thailand Board of Investment
Attractive Tax and Non-tax Incentives
Foreign direct investments are essential to make the EEC a success. Thus, the Thai government will be offering different incentives for foreigners who will form a company in the EEC zone and industries.
Source: BDO Thailand
Consult with Company Formation Experts
Thailand’s robust growth and resistance to the global market tension made the country an excellent offshore company destination. Plus, the incentives offered by the Thai government are remunerative opportunities for foreign entrepreneurs. Now, to efficiently establish an international company, it is essential to seek out company formation professionals.
Contact a company formation expert for a free consultation on what to do to form a company in the Thailand economic market.
References
US-China trade war could create winners in Southeast Asia: Bain & Co, Cnbc.com
TAT: Thailand wins Best Foreign Destination 2019 at SATTE Awards in New Delhi, Pata.org
Thailand Sees Strong Year End Economic Growth, Thailand-business-news.com
Thailand: Steady economy amid political risks, Think.ing.com
