25 Jun /13

Thailand: The Land of Smiles…and Business Opportunity

thai business translationsWith economic growth slowing in the established but saturated markets of North America and Europe, it’s no surprise that businesses are seeking new growth opportunities in emerging markets elsewhere. There is, without doubt, no shortage of firms who are attempting to gain a foothold in the big emerging economies of India, Brazil and China. However, the run for these booming markets has simultaneously created great opportunities for smart investors in less publicized economic growth regions. As companies flock to the BRIC economies, other emerging economies try to attract foreign capital with inviting interest rates and favorable tax incentives. One of these often overlooked but highly attractive growth nations is Thailand.

Thailand Facts

  • Steady and significant growth: The Thai economy has grown from USD 176 billion in 2005 to USD 366 billion in 2012 and is currently grwing at a rate of 6.5% per year.
  • Thailand’s rate of inflation has decreased to a stable 3%.
  • There are 25 million Thais currently using the internet; however, this number is expected to almost double – reaching 40-50 million users – by 2015. This trend alone will significantly increase the Thai market for consumer goods.
  • In 2015, Thailand will merge with the other 9 countries of the Association of Southeast Asian Nations (ASEAN) to form the Asian Economic Community (AEC), an institution comparable to the European Free Trade Organization
  • The Yingluck Government is in the process of planning to develop/upgrade all areas of Thailand’s infrastructure to attract manufacturing and ease the distribution of commerce.

With the economic data underwriting its steady growth, why isn’t Thailand already an attractive business destination? So far investors have been deterred by a lack of trust into the federal authorities, and a lack of knowledge of the local business system. Foreign businesses interests are traditionally apprehensive of Thai regulatory organizations and perceive them as corrupt and biased against foreigner investors. In addition to this widespread perception, Thailand has strict regulations about the inflow/outflow of capital and, in most cases, will not allow majority foreign ownership of a company and real estates. Further complicating matters was the absence of a reliable and affordable distribution network.

In recent years, Thai officials have made great strides to improve the logistics network of the nation and removed bureaucratic hurdles for foreign companies. But the key to unlocking the full economic potential of Thailand is communication. Thailand’s professional population as well as its regulatory institutions are currently structured around the Thai language. Multinational corporations are not. This lack of communication further cements the negative reputation of Thai regulatory agencies, the inability to correctly navigate Thailand’s intricate capital and ownership laws, and can be partially blamed for the ineffective development and use of domestic business systems.

Many of these issues can be resolved by employing an experienced language service provider that is comfortable with Thai business documents, regulations, and contracts and can also assist you to design a marketing campaign tailored specifically to the Thai market.

Whether you are planning on establishing business operations in Thailand, need Thai government documents certified or require assistance with personal communication while on a business trip to Bangkok, EVS Translations is your ideal Thai translation services vendor.