(CTN News) – Western businesses are being pushed to seek out new places as a result of political and economic instability in China. The Swiss Businesses have an option in Thailand, where they have been doing business for almost a century.
David Stauffacher, what do you think the future holds for China? And he frowns. Who knows what the future holds? Stauffacher is the current president of the Thai-Swiss BusinessesAssociation in Bangkok. Not everyone shares his pessimism about China’s progress.
Western businesses have long hailed China as a place of endless possibilities. However, the initial excitement has worn off. More and more businesses are questioning whether or not they can continue operations in Beijing and Shanghai.
Stauffacher states, “China has become too uncertain from a business perspective.” Restrictive tactics to combat the Covid-19 outbreak, disrupted supply chains, rising labour prices, and blocked ports have left their marks during the past five years.
In recent years, Thailand has emerged as an attractive destination for Swiss businesses seeking international expansion. The Land of Smiles, as Thailand is often affectionately called, offers a myriad of opportunities and advantages that make it a magnet for Swiss entrepreneurs.
This article explores the factors contributing to Thailand’s appeal for Swiss businesses, delving into its robust economy, strategic location, favorable business environment, cultural synergy, and more.
factors contributing to Thailand’s appeal for Swiss businesses
A Growing Economy
Thailand’s Economic Growth
Thailand’s robust economic growth has caught the attention of Swiss businesses. With a GDP exceeding $500 billion, it ranks among the largest economies in Southeast Asia. The country’s consistent economic expansion, driven by sectors like manufacturing, tourism, and technology, presents a promising market for Swiss companies.
Switzerland and Thailand share a strong trade relationship. The two nations have established bilateral agreements that facilitate commerce. The Swiss-Thailand Free Trade Agreement has reduced trade barriers, making it easier for Swiss businesses to export and import goods and services.
Gateway to Asia
Thailand’s geographical location is strategically positioned as a gateway to the Asian market. Its excellent connectivity, including well-developed ports and airports, makes it an ideal hub for Swiss companies looking to tap into the booming Asian markets.
Logistics and Infrastructure
Thailand boasts a well-developed infrastructure and logistics network, ensuring efficient transportation and distribution. This infrastructure advantage is particularly beneficial for Swiss businesses with supply chain requirements.
Favorable Business Environment
Ease of Doing Business
Thailand is committed to improving its business environment. The government has implemented reforms to streamline business registration and licensing processes, making it easier for foreign companies, including those from Switzerland, to establish and operate in the country.
Swiss businesses can benefit from various tax incentives offered by the Thai government. These incentives aim to attract foreign investment and promote specific industries, such as technology and research and development.
Thailand and Switzerland may seem worlds apart culturally, but they share a common thread in valuing quality and precision. This cultural synergy fosters a strong working relationship and mutual respect between Thai and Swiss businesses.
Thailand’s workforce is known for its adaptability and willingness to embrace new ideas. Swiss businesses find it easier to integrate their operations and work culture in Thailand, creating a harmonious working environment.
Thriving Tourism Industry
Switzerland and Thailand are both renowned tourist destinations. Swiss businesses can leverage Thailand’s thriving tourism industry, either by catering to the influx of Swiss tourists or by participating in Thailand’s growing travel and hospitality sector.
Investment in Tourism
The Thai government continues to invest in infrastructure and promotion of its tourism industry. This presents Swiss businesses with opportunities to collaborate and invest in the sector.
In conclusion, Thailand’s appeal for Swiss businesses lies in its growing economy, strategic location, favorable business environment, cultural synergy, and the opportunities presented by its thriving tourism industry. As Swiss entrepreneurs look beyond their borders for expansion, Thailand shines as a promising destination offering a blend of business potential and cultural compatibility.