Bangkok--1 Jul--Ipsos
Foreign investors seeking to establish a strong footprint in the ASEAN region should consider Thailand as the ideal geography for their Regional Head Office, according to global Go-to-Market specialists Ipsos Business Consulting.
Chukiat Wongtaveerat, Consulting Manager for Thailand noted that the Thai economy continues to experience challenging times but takes the view that investors need to look at Thailand in the context of the wider opportunities in South East Asia. "With the exception of the tourism sector, business in Thailand is experiencing a slowdown in growth, forcing many investors to question their strategy for Thailand" said Wongtaveerat. "But markets such as Cambodia, Laos, Myanmar and Vietnam are still of considerable interest to foreign investors as well as to business in Thailand seeking to grow in overseas markets. Thailand has all of the amenities and infrastructure of the Singapore city state but offers a significantly lower cost of doing business as well as a better quality life for expatriate staff. Much is spoken about the opportunity in the Mekong Sub-region as well as Indonesia and the Philippines. Thailand will undoubtedly make sense as the regional hub for many investors in ASEAN."
Whilst noting that Thailand still enjoys the benefits of one of the regions most skilled labour forces, Colin Kinghorn, Chief Operating Officer for Ipsos Business Consulting offered a word of caution about Thailand's competitive advantage. Kinghorn observed that many of the benefits of Thailand as a leading investment destination are overshadowed by a weaker economic performance, with lower domestic demand linked to issues such as higher levels of household debt. The country still relies on agriculture as a key driver of the economy. With lower commodity prices and the ongoing drought, there are clearly many risks for the local economy. The business community will continue to look to the Thai government for a strong package of economic and fiscal policies to help the country emerge from the downturn.
The Ipsos team at their Paris Head Office has recently published a book for foreigners coming to Thailand to do business for the first time. The book, Ipsos Flair, is intended to help foreign investors to succeed in Thailand by giving them a better understanding of the country's values and mood as well as the influence of its history, religion and culture. You can download the book for free from www.ipsoconsulting.com or email thailand.bc@ipsos.com