Thailand sees more businesses go bankrupt over past 7 months

The Business Development Department (BDD) under the Commerce Ministry revealed yesterday that more than 7,500 businesses in Thailand went bankrupt in the past seven months.

The number of bankruptcies increased by 24% compared to the same time last year while the number of new businesses is also expected to decrease said the BDD.

BDD Director Tossapon Tangsuboot made public business registration statistics in Thailand in July of this year, and in the past seven months from January to July, and they don’t look good.

Some 5,858 new businesses were created in July, an increase of 12% from June. Most of the new businesses were construction companies, real estate businesses, and restaurants. The registered capital of each company was less than a million baht. Meanwhile, 1,543 businesses went bankrupt in July, an increase of 5.47% from June.

On the positive side, more foreign businesses invested in Thailand in July. Thirty-nine new companies opened last month, adding 3.7 billion baht to the country’s kitty.

In total, 323 of Thailand’s foreign businesses generated over 73 billion baht of investment with most of those investors hailing from Japan, Singapore, and the US.

During the past seven months from January to July, Tossapon said the number of new businesses decreased by 1.12% compared to the same period last year. The number of businesses that closed was 7,552, which increased by 1.12% compared to last year.

New businesses were also expected to decrease throughout the rest of 2022. This year, it is expected that Thailand sees only 68,000 to 72,000 new businesses.

Thailand saw 72,958 new businesses in 2021, 63,340 in 2020, and 71,485 in 2019.

SOURCE: Department of Business Development | Khaosod