The number of new business registrations this year is expected to exceed 90,000, driven by the rebound in exports and tourism as well as the government’s stimulus measures in the final quarter.
Auramon Supthaweethum, director-general of the Department of Business Development (DBD), said new business registrations for the first 10 months of 2024 rose by 2.18% year-on-year to 76,653.
She said 7,267 new businesses were registered in October, a 9% increase over the previous month, attributed to infrastructure development projects slated to begin in the fourth quarter, a recovery in consumer spending and tourism, and the continued expansion of factories in various regions of the country.
New business registrations are expected to expand during the final two months of the year, said Ms Auramon.
The DBD forecasts new business registrations this year to exceed 90,000, marking a 5-15% increase.
However, there are some external risk factors, including global economic pressures, particularly geopolitical tensions, the slowdown of the Chinese economy, and the outcome of the US presidential election, which could affect the economic landscape worldwide, according to the DBD.
Nations are awaiting clarity on US foreign trade policies following Donald Trump’s victory in the presidential election on Nov 5.
Internal factors include rising inflation based on higher oil and food prices, particularly vegetables and fresh fruit, which were affected by the recent floods, reduced purchasing power as household debt ballooned.
In addition, financial institutions adopted stringent lending criteria and local business activities slowed as firms want a blueprint for the government’s planned stimulus policies.
The number of registered businesses as of Oct 31 tallied 841,727, with a combined registered capital of 22.3 trillion baht. The number of new business registrations is expected to potentially reach 1 million next year, according to the DBD.
In the first 10 months of 2024, 786 foreign investors were permitted to invest and conduct business in Thailand, comprising 181 investments through the foreign business licence application channel under the Foreign Business Act of 1999. Some 605 cases either requested a certificate of business operation for foreigners through investment channels in accordance with the Investment Promotion Act, or received permission in accordance with the Industrial Estate Authority of Thailand Act, or exercised rights in line with international treaties or agreements.
The total investment amounted to 161 billion baht.
The top five foreign investors were Japan with 211 investors and investment of 92 billion baht; Singapore had 110 investors and investment of 15 billion; China 103 investors with investment of 14 billion; the US 103 investors with investment of 5 billion; and Hong Kong 57 investors with investment of 14 billion.
Regarding investment in the Eastern Economic Corridor (EEC), there were 251 foreign investors, accounting for 32% of all foreign investors granted permits this year, a 128% increase, with a total investment value of 46 billion baht, accounting for 28% of total foreign investment, a 146% uptick.
The top four foreign investors in the EEC were Japan with 86 investors and investment of 16 billion baht; China with 59 investors and an outlay of 8 billion; Hong Kong with 18 investors and investment of 5 billion; and other countries with 88 investors and investment of 16 billion.
The majority of investments were in engineering services; auto parts and design services; installation, testing, repair, maintenance and training services related to machinery and equipment; core software system services; and contract manufacturing services.
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