New Company Registrations Soared In Thailand In 2010

[george]

New company registrations soared in 2010

By PETCHANET PRATRUANGKRAI

THE NATION

Published on January 7, 2011

BANGKOK: -- New company registrations are expected to grow by more than 22 per cent this year on an influx of investment to Asia, especially to Asean, amid slow economic growth in the United States and the euro zone.

The Business Development Department yesterday reported that new registered companies grew sharply by 23 per cent from 2009 to 50,776 firms last year, the highest in 99 years. Combined investment capital rose 20 per cent to Bt263.82 billion.

The investment capital for existing firms also increased sharply last year, by 37 per cent to Bt603 billion, while the number of businesses shutting down operations dropped by 6 per cent to 16,004.

Deputy Commerce Minister Alongkorn Ponlaboot attributed increasing new-business growth to strong economic fundamentals, despite Thailand facing three negative factors: a fragile global economy, political unrest, and natural disasters.

He said new company registrations should increase continuously this year on strong economic expansion. Investments from South Korea, Japan and China will benefit Thailand and other Asean countries, as the region has high potential to serve as a centre of manufacturing and trading.

Other factors that contributed to the growth of new businesses last year included recovering investment in the stock market, strong export growth, the government's investment under the Thai Khem Khaeng Project, and an increase in foreign direct investment.

However, six negative factors will affect new-business expansion this year, including a stronger baht, high interest rates, political uncertainty and the lead-up to the general election, the fragile global economy, higher inflation, and an increasing oil price.

Alongkorn said those factors would affect all business transactions, capital investment, and the establishment of new companies, as well as the collapse of others.

New businesses that were registered last year were mostly involved in construction and property development, financial service, electricity supply, and hotels.

In December alone, new registered businesses rose 26 per cent to 3,112 companies with an initial investment worth Bt11.18 billion.

-- The Nation 2011-01-07

[asiawatcher]

Nice to see the exodus from other countries into Thailand but the blown out figure of capital at 603Bn Baht is hogwash. Paid Up Capital on a company here is based on a stroke of the pen, not real money!

[Soutpeel]

Well at least he didnt use the word "HUB" or "crackdown"....

[bkkjames]

I wonder how many closed last year?

[Indo-Siam]

Thailand is directly benefiting from weakness in the business outlook in Vietnam, as described at http://www.economist.com/node/17859425?story_id=17859425&fsrc=rss

For most of the first decade of this millenium, Vietnam was Thailand's biggest rival as a base for foreign companies wishing to set up a subsidiary in Southeast Asia. And - the Vietnamese government did a good job of attracting investors. But - over the past two or three years, Vietnam has lost its luster - and Thailand has reaped the benefits. The Thai government is patting itself on the back for improving its attractiveness - but - in reality - Thailand has stood still - and is just benefiting from the stumbles elsewhere.

As someone who runs an incorporation services business in Thailand, the outlook for the next few years looks pretty bright. Year-on-year, 2010 vs 2009, our start-up count was up more than 60% - and this year is starting off strong.

Now, if Thailand can just avoid stumbling over itself ...........

Stevre

Indo-Siam

Edited January 7, 2011 by Indo-Siam