Thailand is set to be transformed into a haven for new start-up businesses and tech entrepreneurs in the next 5-10 years. The Thai government has seen the potential this country has to attract new businesses and a new age of tech start-ups and are taking the initiative. This article looks at why Thailand could truly thrive as a global tech start-up destination, and what this could mean for the future of the country.
Start-Up Business in Thailand
Thailand already has a booming economy that is going from strength to strength. A push to become a world tech start-up destination should only benefit the country and is a logical step. Thailand is particularly suitable for this push when compared to other Asian countries. We explain why…
Central location within Asia
Thailand undoubtedly has one of the best locations in Asia. This country is considered to be in the strategic and geographic heart of Southeast Asia. It has borders with Myanmar, Laos, Cambodia and Malaysia, and also has great links to Vietnam, China and Japan. In short, Thailand can serve as an economic tech start-up hub that other emerging markets and countries can flock to and use their purchasing power to invest in.
Openness and worthiness as a host
Aside from its fantastic location, Thailand as a country is well known for its openness and excellent hosting skills. People love to travel to, and work in Thailand – that’s a fact. Thailand is a hugely popular destination, its people are friendly and welcoming, and it has an economy and system that is increasingly favourable to expats and overseas investors.
Economic development – Thailand Industry 4.0
The economy of Thailand has gone through several developmental stages and the latest transition to happen is a progression to Industry 4.0. The Thai government is attempting to change the country into a service-based economy with an emphasis on the development of technology and innovation. The first step towards this goal is the National Competitive Enhancement Act for Targeted Industries – this act improves business taxation, and also provides investment funding for R&D companies and tech start-ups.
Smart Visa project
Next, we have the governments introduction of the Smart Visa. This Visa is aimed specifically at start-up businesses and entrepreneurs and provides them with fantastic incentives to set up in Thailand. So what does this project mean? For start-up businesses, it means a 5-year exemption from corporate income tax. For co-working spaces, it means an 8-year exemption from corporate income tax. Finally, venture capital firms are granted a 10-year corporate income tax exemption. This is obviously a fantastic monetary incentive for start-ups to work in Thailand.
Creation of new “innovation districts”
Another fantastic measure that the Thai government is creating is to build a series of innovation districts. These will be districts that are packed full of new start-up businesses all pertaining to specific industries. The idea behind these districts is to promote business and to encourage cooperation between different businesses – in these districts, ideas, new technology and processes should thrive and everyone should benefit. Districts included in this new incentive include Pathumwan, Klong San and Punnawithi. Companies such as True Digital Park are already investing and working within these districts.
Thailand Economic Performance in Future
A transition to becoming a global tech start up destination can only mean positive things for the Thai economy. The government hopes that this will bring a wave of investment, technology, new ideas and business into the country from near and afar. This, in turn, should help drive the Thai economy forward and usher in a new age of prosperity and growth.
It could also mean that the economy relies less on tourism and that Thailand can reclaim some of its treasured natural areas as its citizens will not have to rely solely on tourism as a means of making a living. The push to become a global tech start up destination should open up a whole new range of employment opportunities and truly transform the country. The next 5-10 years certainly look to be interesting as the government makes this push and we see Thailand embrace its fantastic position to become a tech start up hotspot.
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