Why should i invest in Thailand?

[Senseo]

I've grown up with a Thai. All my life i've known Thai's to be friendly, polite and happy. I've traveled to Thailand so many times that i've lost count. I would say, it was love at first sight. 

But as an investor, something is holding me off. While i would love to spend the rest of my days in Thailand and invest money and time in building a better economy and environment, not having full ownership is disturbing. 

 

So why should i invest in a country that does not allow a foreigner to have full ownership of any land/building and business? 

How does Thailand attract foreign investors? 

[SpeakeasyThai]

You answered your own question in your last paragraph. I fully concur.

[manhood]

As anykind of business you are doing in thailand is not under your control and many of the tax advisers or lawers and far from beeing trustfull!

So if you not want to looese money stay away from any kind of investment!!!!!!!

[Damrongsak]

Are you butt-buddies with any Thai billionaires?  They do pretty well without foreign investment.

[simoh1490]

There are many different ways to invest, it doesn't have to be in houses or land, the SET and government bonds have been very popular with overseas investors because the core economy is so stable, also, as an American (if you are) you can own a business and land under the Amity Treaty.

[Peterw42]

5 minutes ago, simoh1490 said:

There are many different ways to invest, it doesn't have to be in houses or land, the SET and government bonds have been very popular with overseas investors because the core economy is so stable, also, as an American (if you are) you can own a business and land under the Amity Treaty.

The amity treaty isnt an open license to run a business in Thailand, there are still some broad restrictions, including land ownership.

 

The Thailand Treaty of Amity prohibits American investors from engaging in the following reserved activities:

• Communications
• Transportation;
• Fiduciary functions
• Banking involving depository functions;
• Land Ownership, Exploitation of land or
• Other natural resources; and
• Domestic trade in indigenous agricultural products.

https://www.siam-legal.com/Business-in-Thailand/US-Thai Amity.php

[micmichd]

32 minutes ago, SpeakeasyThai said:

You answered your own question in your last paragraph. I fully concur.

Why should someone want full ownership of something when he's already aware that it will be his last days? 

[Muzarella]

Invest in condominiums and mix use townhouses. Chinese are graving what they can...and it will do it even more in the future. On some areas, some properties incrased in value more than 100% in the last few years. You can get a long term lease on a piece of land and place a modern western house designed to be removable....  In that way you can sell or relocate the house anytime if necessary. I did using a Thai architect educated in the USA. Exports is a good and safe business in Thailand, specially in the food proccessing field. Franchises like 7/11 are also a good and safe investment.

Anyway, get a good bilingual  legal and tax advicer to sign any contract. I hope you are a fluent Thai speaker. Here that is mandatory for everything...specially for business.

Edited June 18, 2018 by Muzarella

[InMyShadow]

What does I've grown up with a thai mean? 

What does I want to invest in Thailand mean? You talking millions of dollars or a 2 million baht condo in Pattaya? 

[Muzarella]

8 minutes ago, Peterw42 said:

The amity treaty isnt an open license to run a business in Thailand, there are still some broad restrictions, including land ownership.

 

The Thailand Treaty of Amity prohibits American investors from engaging in the following reserved activities:

• Communications
• Transportation;
• Fiduciary functions
• Banking involving depository functions;
• Land Ownership, Exploitation of land or
• Other natural resources; and
• Domestic trade in indigenous agricultural products.

https://www.siam-legal.com/Business-in-Thailand/US-Thai Amity.php

Those exeptions are valid for indiiduals, not for Thai corporations, and Americans can be a maior partner and/or manager directors in Thai corporations, and Thai partnership companies.

[JAZZDOG]

3 minutes ago, Muzarella said:

Those exeptions are valid for indiiduals, not for Thai corporations, and Americans can be a maior partner and/or manager directors in Thai corporations, and Thai partnership companies.

Not without a work permit

[Peterw42]

Depends on your definition of investment, Do you want to own a house or do you want to find a Thai partner and open a shoe factory. There are lots of westerners who are not really investing, they are just trying to circumvent the property ownership or work permit laws, and calling it investment.

You can invest in a business in the west and the bank, venture capitalists or share holders own half your business.

[Muzarella]

7 minutes ago, JAZZDOG said:

Not without a work permit

Work permit is necessary if you are an employee, or a working partner. Not for an investor on a Thai company. By the way, the principal partner of one of the major exporters in Thaland, and a very well known billionaire, is Chinesse. The owner and founder of Alibaba is investing and creating companies in Thailand now.

Edited June 18, 2018 by Muzarella

[ScammedInThailand]

55 minutes ago, manhood said:

As anykind of business you are doing in thailand is not under your control and many of the tax advisers or lawers and far from beeing trustfull!

So if you not want to looese money stay away from any kind of investment!!!!!!!

Absolutely! Due to its rampant levels of corruption, abject justice system and the fact that Thailand attracts some of the world's most ruthless criminals and low-lifes and does very little to investigate and prosecute them - Thailand is a total 'no-go' if you are looking to invest money. Steer well clear!!

[Get Real]

22 hours ago, Senseo said:

How does Thailand attract foreign investors? 

They don´t

[KittenKong]

All my life i've known Thai's to be friendly, polite and happy. ........

But as an investor, something is holding me off.

Those Nigerian princes who email me also seem friendly, polite and happy. But would I give them any of my money? The fxxx I would.

[Senseo]

59 minutes ago, SpeakeasyThai said:

You answered your own question in your last paragraph. I fully concur.

I was hoping that someone could give me another viewpoint. Is this really it or are there different ways of doing so?

 

24 minutes ago, micmichd said:

Why should someone want full ownership of something when he's already aware that it will be his last days? 

I have a great idea and i invested millions and a lot of time into creating something that benefited Thai people and their country but yet, i only own 49% of it, like it's some public company on the stock market. Hey, invest in my country with your money, with your time but you can only own less than half of it.

 

21 minutes ago, InMyShadow said:

What does I've grown up with a thai mean? 

What does I want to invest in Thailand mean? You talking millions of dollars or a 2 million baht condo in Pattaya? 

Growing up with Thai people gives you a small sense of how Thai people live. With investing, i mean investments with 6/7 figures. 

 

11 minutes ago, Peterw42 said:

Depends on your definition of investment, Do you want to own a house or do you want to find a Thai partner and open a shoe factory. There are lots of westerners who are not really investing, they are just trying to circumvent the property ownership or work permit laws, and calling it investment.

You can invest in a business in the west and the bank, venture capitalists or share holders own half your business.

Like i said before, i want to invest in creating a better economy and environment. That could mean creating a shoe factory with 30 employees that have good pay and extra benefits like insurance.

 

But only owning 49% is disturbing. So i don't really understand how Thailand is attracting foreign investors. 

[Oxx]

If one wants, as the OP stated, "to spend the rest of my days in Thailand" then investment in Thailand is pretty much imperative to protect one's assets from the effects of fluctuating foreign exchange rates.  Think of all the British expats who moved to Thailand when the exchange rate was around about 70 baht to the pound.  Now it's around 45.  Their GBP investments and income are now worth 35% less than if they'd moved them to Thailand.

 

Thailand has a reasonable selection of mutual funds available covering equities, bonds and property which are easy to invest in and are very liquid (something that can't be said about property investments).

[Senseo]

22 minutes ago, Muzarella said:

Work permit is necessary if you are an employee, or a working partner. Not for an investor on a Thai company. By the way, the principal partner of one of the major exporters in Thaland, and a very well known billionaire, is Chinesse. The owner and founder of Alibaba is investing and creating companies in Thailand now.

How would that work exactly? With Alibaba extending to Thailand since 51% needs to be in hands of a Thai person. 

[neeray]

7 minutes ago, Senseo said:

How would that work exactly? With Alibaba extending to Thailand since 51% needs to be in hands of a Thai person. 

With Alibaba kind of money, many privileges come with it.

We don't play in that league (not me anyway)

[ThaiPauly]

There's the cliche most people know, but it's worth repeating for the OP's sake

 

If you want to make a small fortune in Thailand start with a large one !!

[Senseo]

5 minutes ago, neeray said:

With Alibaba kind of money, many privileges come with it.

We don't play in that league (not me anyway)

That makes sense but perhaps, if the money is there, i could buy off some government officials to be able to fully own something.

 

[JAZZDOG]

48 minutes ago, Muzarella said:

Work permit is necessary if you are an employee, or a working partner. Not for an investor on a Thai company. By the way, the principal partner of one of the major exporters in Thaland, and a very well known billionaire, is Chinesse. The owner and founder of Alibaba is investing and creating companies in Thailand now.

If the director of Alibaba signs documents while on Thai soil he is required to have a work permit. Are they going to bust him, probably not, me probably so.

[xylophone]

8 minutes ago, Senseo said:

i could buy off some government officials to be able to fully own something.

And quite probably find yourself in trouble for breaking the law.

 

Remember that once you cross that line you leave yourself open to all sorts of corruption, bribe paying and jealousy and losing your company and assets. Really not worth it IMO.

[Peterw42]

12 minutes ago, Senseo said:

How would that work exactly? With Alibaba extending to Thailand since 51% needs to be in hands of a Thai person. 

A subsidiary holding company, incorporated in the cayman islands with an equity partner listed on the Thai stock exchange operating servers in America, with a call centre in the Philippines, a warehouse in China. Alibaba Thai office will be a small office in Bangkok, being the premises for 17 shelf companies and a Thai may own half of the premisses. 

I am joking but as others have said, like Toyota, Starbucks or BMW etc, its on a whole different level.

[JAZZDOG]

Why invest in LOS with all the corruption, political issues when there are so many places one can invest with a history in rule of law. Can you not read between the lines that foreign investment is not welcome here and will not be profitable without becoming involved in corruption in one way or another. Or by skirting the law.

[Mattd]

There are many ways to legally secure control of an investment in a startup company, I am no expert, but do know of others that have legally made a lot of money in Thailand, find a market that isn't already saturated, do a lot of due diligence and employ good corporate lawyers, as it is the way that the corporate and share holdings are structured that is critical.

Those that think that it is impossible to make money in Thailand are mistaken, if there is a market for the product and it is not easily replicated.

All of the big foreign companies here are structured so that they still have total control, Chevron, Toyota, Honda, BMW, Mercedes, Ford to name but a few.

4 minutes ago, JAZZDOG said:

Can you not read between the lines that foreign investment is not welcome here and will not be profitable without becoming involved in corruption in one way or another. Or by skirting the law.

Foreign investment is very much welcome here, hence why they have huge incentives under BOI etc. There was a comment early in the thread about Thai Billionaires, 99% of these are so because of foreign involvement / investment or franchises, whereby all parties have gained.

The old cliche is true here, in that to make money you need money.

[NoshowJones]

Excellent question Senseo, I would never invest anything in Thailand because of what you mentioned, the very sad lack of common sense from this and past governments sees to this. This should be a very interesting topic.

[steve73]

I recently found a UK investment trust that is invested 100% in Thai listed companies.  Aberdeen New Thai (ANW).

 

It probably won't be earth shattering performance, but I'm hoping it will at least keep pace with Thailand's inflation... and there's no need to convert GBP to THB to do so...     

[LennyW]

23 hours ago, Senseo said:

How does Thailand attract foreign investors? 

However they do, it must be quite beneficial, just ask Toyota, Honda, Isuzu, Ford, BMW, Triumph motorcycles to name but a few............