It is important for foreign businesses in Thailand to work with a Thailand accounting company to facilitate entry into different markets. Thailand offers a variety of business structures, many of which are available for foreign investors as long as they do not violate the Foreign Business Act.
According to the latest TCC Confidence Index, uncertainties brought about by the new government in Thailand and the trade war between the US and China have resulted into decline in confidence among business investors in May 2019. The 15-month low was expected to improve by June when the new Thai government starts with the proposed new projects that will inject cash flow to the economy and help it grow by 3.5% this year.
The May 2019 TCC Confidence Index results were derived from a survey of 370 members of the Thai Chambers of Commerce. The TCC Confidence Index figure for May 2019 was recorded at 47.7, the lowest in 15 months. Lower indication scores were revealed in all regions including Bangkok and other neighbouring provinces.
Consumption and investment performance were severely affected amidst concerns of a new government, low farm product prices that affect purchasing power and the ongoing US-China trade war. Thai export sectors as well as industrial and trading sectors were also impacted.
UTCC’s Centre for Economic and Business Forecasting Director Thanawat Ponvichai described the Thai economy particularly local economies as weak. Pricing of farm products is an issue in all regions. The only sectors that are performing include tourism and service sectors in the eastern and northern regions. At the moment, tourism is the key economic driver in the country.
However, positive attributes are now being seen because farm product pricing was improved in June and the establishment of a new government has stimulated the economy. Disbursements of investment budgets have resulted to more employment opportunities and procurement in different areas.
There are many challenges ahead for a foreign company operating in Thailand but through Thailand accounting company, most of the issues can be managed. There are many new government incentives from allowances to easier access for non-Thai nationals. A great deal is now possible which would be unthinkable years ago.