Business prospect in Thailand
Thailand is among the Best Countries of the world where one can start a business and flourish in that too. According to the world bank report it stands at 21st position in Ease of doing Business. The survey done by world Bank is related to these five attributes: affordability, bureaucracy, low manufacturing costs, global connection, and access to capital.
The survey took note of the several factors why Thailand is the best country for starting a business. Firstly, Thailand has been considered one of the most visited countries. It has a very stable agricultural sector as well as a booming and competitive manufacturing industry. Thailand is also the world’s largest exporter of rice and a leader in textiles, tin, and electronics. Being considered as the second-largest economy in Southeast Asia, Thailand is conveniently a business hub for the ASEAN region.
Thailand's top exports include:
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Agricultural goods:
Thailand is a leading exporter of natural rubber, canned tuna, frozen shrimp, cassava, cooked poultry, canned pineapples, rice, and sugar.
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Manufactured goods:
Thailand's manufactured goods exports include electronics, vehicles, machinery and equipment, and foodstuffs.
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Other exports:
Thailand's other exports include office machine parts, integrated circuits, delivery trucks, and motor vehicles.
Thailand's top imports include:
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Crude petroleum:
In August 2024, Thailand's top import was crude petroleum, valued at $32.8 billion.
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Integrated circuits:
In August 2024, Thailand's second-largest import was integrated circuits, valued at $15 billion.
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Gold:
In August 2024, Thailand's third-largest import was gold, valued at $11 billion.
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Petroleum gas:
In August 2024, Thailand's fourth-largest import was petroleum gas, valued at $10.6 billion.
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Broadcasting equipment:
In August 2024, Thailand's fifth-largest import was broadcasting equipment, valued at $6.67 billion.
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Machinery:
Thailand imports machinery to support its milling industry.
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Iron and steel:
Thailand imports iron and steel.
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Precious stones and metals:
Thailand imports precious stones and metals.
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Plastics:
Thailand imports plastics.
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Motor vehicles and parts:
Thailand imports motor vehicles and parts.
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Copper:
Thailand imports copper.
* Thailand's main trading partners include China, Japan, the United Arab Emirates, the United States, and Malaysia. *
India and Thailand- Economic Prospect:
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The strategic location of Thailand in the heart of South-East Asia, bordering the Andaman Sea makes it an important partner of India and is the gateway to the ASEAN, as the region has integrated into the ASEAN Economic Community (AEC). In the ASEAN region, Thailand ranks as India’s 5th largest trading partner after Singapore, Indonesia, Malaysia, and Vietnam. Since 1947, India has enjoyed dynamic bilateral relations with Thailand. 2022 marks the 75th year of diplomatic ties between the two nations. Quite interestingly, India’s ‘Act East’ and Thailand’s ‘Look West’ policy have provided the outline for enhancing mutual diplomatic as well as economic collaboration in a positive direction.
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Major Indian companies in Thailand include – Tata Steel Thailand, Tata Consultancy Services, Aditya Birla Group, Tech Mahindra, Kirloskar Brothers Ltd., etc. Leading Thai companies in the fields of agro-processing, construction, automotive, engineering and banking have an active and growing business presence in India.
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Commerce, culture, and connectivity are often cited as the three main pillars of India-Thailand relations. Maritime trade between the two countries has existed since 1500 BCE, paving the way for people-to-people contact and cultural interaction between the two states bordering the Bay of Bengal.
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India’s exports to Thailand stood at US$ 3.3 billion from April-November 2023-24.
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Major exported items from India to Thailand include nuclear reactors, boilers, machinery, and mechanical appliances (US$ 570 million) followed by pearls, precious or semiprecious stones (US$ 428 million), marine products (US$ 219 million), mineral fuels, mineral oils etc. (US$ 79 million), coffee, tea, mate, and spices (US$ 107 million), etc. from April-November 2023-24.
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Major items imported from India to Thailand include vegetable oils (US$ 523 million) followed by plastic raw materials (US$ 915 million), organic chemicals (US$ 523 million), AC, nuclear reactors, boilers, machinery, and mechanical appliances (US$ 1.01 billion), electronics components (US$ 895 million), telecom instruments (US$ 70 million), etc. from April-November 2023-24.
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Gems and Jewelry Market (Indian advantage)
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The gem and jewelry exports from India to Thailand constitutes 15% of the total exports target for the Southeast Asian nation. Thailand is among the top 10 importers of gems and jewelry products from India.
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The gem and jewellery exports from India to Thailand constitutes 15% of the total exports target for the Southeast Asian nation. Thailand is among the top 10 importers of gems and jewelry products from India. India’s Act East policy and Thailand’s Act West policy have always been complementary to each other. From 2015 to 2020, the bilateral trade has increased from $7.2 Billion to $12.5 Billion. Last year, Thailand ranked the 16th largest gem and jewellery exporter in the world. Moreover, it ranked as the first and third largest exporter in silver jewellery and coloured gemstone, respectively. Various incentives, marketing programmes, policies have helped the sector tremendously in both countries. India is the 4th largest export market for Thailand and has become the 3rd largest importing source.”
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Mr. Milan Chokshi, Convener, Promotions, Marketing & Business Development, GJEPC said, “Both India and Thailand, with highly skilled workers and craftmanship, are two prominent players in the global gem and jewellery arena. India is known for its high-quality cut and polished diamonds and hand-crafted jewellery, while Thailand is known for its Ruby and Sapphire processing. I believe that when it comes to jewellery making, both can complement each other to take their gem and jewellery business to greater heights.”
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India has many natural advantages to emerge as the gems and jewellery hub of the world, including diamond and coloured stone cutting and polishing skills, a globally recognised jewellery production capacity, and relatively low wage rates.
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Foreign Direct Investment has been increasing in India and the country currently has 10 Special Economic Zones for gems and jewellery.
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Businesses are moving out of Hong Kong to Thailand and India, leading to more opportunities that could create a triangle of growth between Jaipur, Mumbai and Bangkok, which should capitalise on this development.
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Thailand Gems and Jewelry Fair, 5 days (generally in September)of B2B events in Thailand, Bangkok. The Fair let's the buyer Sourcing colorstone directly from Bangkok , The gemstone capital of the world. And Bangkok is also Onestop service for gems and jewelry manufacturing with full range of gems and jewelry cluster.
Major companies in Thailand:
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As of September 4, 2024, DELTA ELECTRONICS (THAILAND) is the most valuable company in Thailand, with a market cap of $38.74 billion. Following it are PTT ($27.69 billion) and AIRPORTS OF THAILAND ($25.2 billion).
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U.S. energy major Exxon Mobil Corp., Europe's leading tiremaker, Michelin, the Japanese company that invented instant noodles, Nissin Foods, and BRAND's Suntory, a unit of the world's third-largest spirits manufacturer, are among other heavyweights that have also chosen Thailand as their regional headquarters.
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Major Indian companies present in Thailand include Apollo Tyres (Thailand) Ltd, Camber Pharmaceuticals Co., Ltd, Coforge Ltd (former NIIT), Dr. Reddy's Laboratories (Thailand) Limited, Dee Development Engineers Ltd., Dhoot Transmission Pvt
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Unlike some of its less developed neighbours, Thailand has robust infrastructure and a modern IT and communications network as well as inexpensive and convenient transport links internally, within south-east Asia and beyond. The advantages listed above have made Thailand a growing international business hub in Asia. The country has attracted big hitters such as General Electric Co, Rolls Royce, Michelin, Bausch & Lomb and Novartis and is emerging as a player within a number of industries including the car industry, aerospace, food manufacturing and biotechnology.