Record-breaking business registrations and foreign investment in Thailand
Business registrations in Thailand soared to an all-time high in the previous year, exceeding 85,000, a figure not seen in the last decade. These registrations represented a total registered capital of 560 billion baht (US$15 billion). Foreign investment also saw a significant rise, hitting 130 billion baht (US$3.6 billion) in 2023, with Japan leading the investment pool.
Projections for the current year indicate new businesses to cross the 95,000 mark with foreign investment expected to surpass 140 billion baht. These details were shared by Auramon Supthaweethum, director-general of Thailand’s Business Development Department.
The number of new businesses registered in the previous year showed a 12% increase from 2022, climbing to 85,300 from 76,488. The registered capital also saw a significant increase of 31%, surging from 430 billion baht to 562 billion baht. Auramon attributed this rise to the country’s economic recovery and various government stimulus measures that were introduced, including large-scale public infrastructure projects and tourism stimulus policies.
Businesses in the service sector continue to attract high registration numbers, particularly in general construction, real estate, and restaurants. The top five sectors for business registration were general construction accounting for 7.65% of the total, real estate at 7.49%, restaurants/food establishments at 4.69%, consulting businesses at 2.40%, and agencies at 2.28%.
An analysis of corporate registrations in 2023 revealed that the rise in new business registrations was driven by various sectors, including service, wholesale/retail and manufacturing. The service sector accounted for 58% of total registrations, with significant growth observed in businesses related to foreign currency exchange, job placement agencies, and real estate-related services.
The Business Development Department, operational since 1923, currently has a total of 1,877,236 registered businesses with a registered capital of 29.4 trillion baht. Of these, 890,317 are active legal entities, consisting of 689,917 limited companies, 198,955 limited partnerships and ordinary partnerships, and 1,445 public limited companies.
Auramon further elaborated on the positive growth trend for 2024, expecting the number of new business registrations to hit between 90,000 and 95,000, representing an increase of 5-10% from 2023. Importantly, foreign investment is also expected to rise by 5-10%, representing an additional 130-140 billion baht, reported Bangkok Post.
In 2023, the Foreign Business Committee approved 667 investment applications under the Foreign Business Act, with a total investment worth 130 billion baht, leading to the employment of 6,845 Thai workers. The top foreign investors were Japan, the US, China, and Hong Kong.
In related news, Thailand’s media spending experienced 4% growth this year, reaching 88 billion baht, driven by online, TV, and out-of-home media. The thriving e-commerce landscape boosted affiliate marketing trends.
