Volume 39, Number 05

Business

The Other Side of Siam
Ian de Stains, OBE, looks into the business beyond the beaches.
by Ian de Stains, OBE

Like many Weekender readers, I have a particular fondness for Thailand when it comes to temple visits and beach holidays. But the next time you kick back by the pool in Hua Hin with a Klosters, give a thought to Thailand as a place for business.

Clearly if you’re in leisure and tourism or any of the obvious spin-offs, there are opportunities galore. But the chances are—hotel ownership aside—that local businesses are the major providers. Yet, according to a 2006 survey conducted by the Japan External Trade Organization (JETRO), Thailand is the “most optimal location for establishing a production/sales base in the coming five to ten years.” That may, of course, explain why Japan is the biggest foreign investor in the country, with Suzuki and Siam Nissan producing eco-cars, and Ford-Mazda working on a passenger car project.

Ryoichi Sasaki, President of Toyota Motor Thailand Co. Ltd, oversees another major investment, “There are lots of strengths in Thailand,” he says.“ The top three, I would say, are supporting industries’ strengths, quality labor, social and economic stability. I should not forget the strong support of the Thai government, which is also very important.”

Thailand enjoys a strategic advantage: it is at the heart of Asia, a region that is widely considered to be the largest growing economic market. It serves as a portal to the newly emerging markets of Southeast Asia and the Greater Mekong, and it is a convenient base for trade with China and the countries of ASEAN, which together account for a population of around 500 million people.

The fact that there is no capital gains tax, an on-going low tax base coupled with relatively cheap property prices, makes Thailand an attractive option for the foreign investor who can also be sure of an excellent health care system, top-quality international schools and a willing and capable work force. Employment regulations are fair and unambiguous; Thai labour laws provide for considerable freedom.

Thailand likes to position itself as the Asian hub when it comes to medical development but there are many sectors in which foreign firms have succeeded. Among them are aircraft maintenance, alternative energy, bio-technology, the food industry, petrochemicals and so on. Greg Watkins, Executive Director of the British Chamber of Commerce in Thailand, cites the case of British Gas, one of a number of successful UK investments. Others include Tesco, whose largest store in terms of floor space is in Thailand, and Boots.

So the next time you’re tucking in to a bowl of tom yam khung, consider the opportunities afforded by Thailand; beyond those beautiful beaches, business beckons.