Thailand is one of the few Southeast Asian countries that have set an excellent example of a transitional shift in the economy. Once this land is known for agriculture but today, they mark their impression as one of the most promising manufacturing hubs across the globe. The credit of this transitional shift from an agrarian state to a manufacturing hub the IT industry of the country.
Digital Economy of Thailand
Today the country has a significant contribution to the digital economy from 6 billion US dollars in 2015 to 16 billion USD in 2019. Alone, the online travel sector is estimated as of 7 billion US dollars.
Several industries like consumer electronics, telecommunications service, digital entertainment, and gaming, etc. got new revenue sources by rising in the IT industry. Apart from that, the people of Thailand are internet savvy of different levels who use social media networking, online shopping, mobile, games, etc. which creates a high demand for IT products.
In recent years, due to political instability or pandemic when mobility to the office is challenged, virtualization and cloud-based startups are proving beneficial.
‘Smart Thailand’ project, a joint initiative of the Government of Thailand and The Ministry of ICT, is the part of the ICT framework- termed as ICT 2020. This program, along with the Smart City project of the government, creates opportunities for small industries and startups to compete at the international level.
This project creates a high demand for Internet and IT related products to reach every household of the country and thus creating an excellent opportunity for the IT industry and their startups. The program is valid from 2018for the aim of achieving the target by 2022. Therefore it is still relevant.
If you have ideas and looking for startups in the IT industry of Thailand, this is the best time to enter. The government created a promising and conducive environment for all investors, including foreign nationals.
Assistance by Government of Thailand
The government of Thailand has constituted many organizations to help startups in several ways.
- One of the crucial organizations is the Board of Investment (BOI), which helps startups to excel in their field and to make their contribution to the economic development of the country.
- Also, the government implements several drives for tax incentives; this step releases the burden of liability from the shoulder of startups. Also, it encourages the investor to invest in new and young ideas to promote their business. It encourages people to participate more in creating startups in the IT industry.
- The government of Thailand, with BOI Thailand, releases a policy statement. The policy constitutes the plans of the Tue government to extend their assistance in the technology industry and related startups.
The government is doing a lot and helps you in every possible if you have an idea and willing to give shape to these ideas in transforming them into the business.
There are different fields where you can create your startup in the IT industry of Thailand with the help of BOI.
- Artificial Intelligence Technology
- Software Testing Technology
- Big Data Analytics Technology
- Automation Technology
- Decentralized Sequential Transaction Database
- Sensor Technology
- Robotics Technology
- Human-Computer Interaction Technology/Brain-Computer Interface
- Smart Grid
- Internet of Things Technology
- Embedded Technology
- Natural Language Processing Technology
- Digital Engineering and Manufacturing Technology
- Virtual & Augmented Reality Technology
- Wearable Technology
How BOI Helps?
If you are citizens outside Thailand and planning for startups in the IT industry, then always go with the BOI Thailand. The benefits of doing so are highlighted below.
- You can buy land for your company.
- The government permits you to hire professionals and experts from other countries with their families. This is the most significant benefits as being IT startups you need to import the foreign workforce.
- There can be a hundred percent foreign ownership on your startup.
- Up to the initial fifteen years, you can enjoy the benefits of tax exemption.
In a nutshell, the government of Thailand helps a lot to the foreign investor as well, which boosts the country’s economic growth.
Resources for Assistance For Startup
Apart from significant assistance from the government of Thailand, as mentioned above, several options assist and encourage startups. This assistance can be categorized as below.
Even if you have an idea and capacity to transform it into business, the major concern always lies with the fund. There are several ways of getting funds, but none is better than going for the help of VC.VC is the short form of Venture Capital. VC offers funds for startupon the terms and expectations of higher returns. This is different from the bank loan, VC see the potential growth in your ideas and contribute the funds for long term investment. They also care about the short term losses, unlike a bank.
Mentorship is essential for guidance for any startups. They are the best replacement for training as it is very difficult for startups to get training by sitting in the classroom. Mentorship helps you in placing the money and strategy at the exact place and time to get success and to generate the result.
Incubators help you in developing the business at the very initial stage. They help you in shaping your ideas into a real business by assisting in creating a comprehensive business plan.
Accelerators are vital and are the backbone for startup nursery in Thailand. They consist of several big companies or banking organizations. They nurture any startups which have the potential to claim their presence in the real market. They provide initial training to mentorship to help in creating a business model.
They also provide financial assistance after successful completion of the training. They keep these programs generally from three to six months. You can say that the accelerators act as VC, mentorship as well as incubators. There are ample of accelerators in Thailand who helps startups related to IT Industry in nurturing them.
It depends upon the startups on how they use these resources at the right time. Thailand provides you ample of resources; your success rate depends upon your ability to use these resources.