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The number of new business registrations this year is anticipated to surpass 90,000, fueled by a resurgence in exports and tourism, along with government stimulus measures expected in the last quarter.
Auramon Supthaweethum, the director-general of the Department of Business Development (DBD), reported that new business registrations for the first 10 months of 2024 increased by 2.18% year-on-year, reaching 76,653.
In October alone, 7,267 new businesses were registered, reflecting a 9% rise from the previous month. This increase is attributed to upcoming infrastructure development projects, a recovery in consumer spending and tourism, and the expansion of factories across various regions of the country.
Ms. Auramon projects continued growth in new business registrations during the last two months of the year. The DBD estimates that new registrations for the year will exceed 90,000, marking an increase of 5-15%.
However, external risk factors pose challenges, including global economic pressures like geopolitical tensions, the slowdown of the Chinese economy, and the implications of the US presidential election, as these factors could significantly impact the global economic landscape. Countries are awaiting clarity on US foreign trade policies following Donald Trump’s recent election win on November 5.
Domestic challenges include rising inflation driven by increasing oil and food prices, especially for vegetables and fruits impacted by recent flooding, as well as dwindling purchasing power due to growing household debt. Additionally, financial institutions have tightened lending standards, and local business activities have slowed as companies await a clear plan regarding the government’s proposed stimulus policies.
As of October 31, the total number of registered businesses stood at 841,727, with a combined registered capital of 22.3 trillion baht. New business registrations are projected to approach one million next year, according to the DBD.
In the first 10 months of 2024, 786 foreign investors received permission to invest and operate in Thailand. Of these, 181 investments were made through the foreign business license application under the Foreign Business Act of 1999. Meanwhile, 605 cases involved requests for a certificate of business operations for foreigners in compliance with investment promotion regulations or received approval under the Industrial Estate Authority of Thailand Act, or exercised rights according to international treaties or agreements.
These investments totaled 161 billion baht.
The leading foreign investors included Japan, with 211 investors and 92 billion baht in investments; Singapore with 110 investors and 15 billion baht; China with 103 investors investing 14 billion baht; the US also with 103 investors and 5 billion baht; and Hong Kong with 57 investors contributing 14 billion baht.
In the Eastern Economic Corridor (EEC), 251 foreign investors were granted permits this year, representing 32% of all foreign investors approved, marking a 128% increase. The total investment value in the EEC reached 46 billion baht, accounting for 28% of total foreign investment and reflecting a 146% rise.
The top foreign investors in the EEC were Japan with 86 investors and investments worth 16 billion baht; China with 59 investors investing 8 billion baht; Hong Kong with 18 investors contributing 5 billion baht; and investors from other countries numbering 88, contributing an investment of 16 billion baht.
Major investments were concentrated in sectors such as 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.
