In an economy, there are two sectors, namely the public and private sectors.The public sector is part of the economy, which is owned, controlled, and organized by the government of the state.So, the next question must be arises that then what are the opportunities for an individual to own business in the public sector. Under the public sector lies public enterprises in which the state holds atleast 51% of the share capital; these organizations have public ownership and mostly provide private goods and services for commercial purposes.
Privatization in Thailand
In 2006 ThaksinShinawatra government brought up a privatization process in which the state-owned enterprises were privatized except Thailand’s petroleum authority. Mass communication and the airport authority of Thailand. This event was the turning point in economic development, especially in the public sector of the country.
Economy of Thailand
The economy of Thailand is mostly dependent on export. After Indonesia, it is the 2nd largest economy in Southeast Asia. Thailand exports around $105 billion per annum in which cars, electronics, and rice are on the top list.Thailand is the 4th Richest country in terms of GDP per capita.
Thailand is an excellent tourist attraction, and its 6% economy is contributed by tourism,and the rest comes from agriculture and industrial equipment electronics.Rice is one of the most cultivated crops in there about 50% of the total agricultural lands are engaged in rice cultivation. Fishing, animal husbandry is also contributed to the exports.
GDP of Thailand- Current and Forecast
The year 2019 was a little disappointing- the GDP growth was 2.5%. However, the Bank of Thailand predicts improvement of 0.3% and expects 2.8% GDP growth in 2020. IMF also projects the GDP growth of the world to 3.6% in the year 2020, and it is 0.1% higher than that of the previous year.
However, the world bank is looking in another way and projects the GDP of Thailand to 2.7% in the year 2020, which is only 0.2% up in comparison to the previous year. The government adopted new strategies to attract private enterprises and foreign investors, which will help them to earn profits through advanced technology and significant funds they can turn their projects into reality.
The IMF (International Monetary Fund) and World Bank continuously support to restructure its economy by granting funds.With these funds, Thailand improved its agricultural and industrial sectors to boost productivity.With the investment of foreign investors and private sectors, Thailand made commendable progress in automation system hardware, computer-based control systems, and total quality management.
Foreign Direct Investment (FDI) in Thailand
The policy of FDI is straightforward and comfortable, which makes Thailand one of the favorite destinations for foreign investors. The environment is inducive and the whole process to begin startups in the public sector is hassle-free for domestic as well as an international investor. The country FDI’s policy renders every detail related to the economy, incentives, BOI services, promotion policies, opportunities, international cost comparison, and approval procedure on time.
All these details can be achieved by a single-window process. So, if you are non-resident or non-citizen Thai and want to invest in the public sector of Thailand, the whole process is easy, and you get support from authority. Also, there are many startup accelerators and programs run by the government, which help startups, SMEs, and even to the individual innovator. Thailand is continuously on the path to becoming itself as a startup nation.
Thailand- Startup Hubs of Southeast Asia
National Innovation Agency (NIA) has organized STARTUP THAILAND 2019 with the help of their eight partners, private, public, and education sectors. The event’s main motto was to make Thailand the startups hub of southeast Asia. This event was organized at nine places along the Bangkok Innovation Corridor.
The event declared Bangkok as the best city for a startup in the public sector all over Asia and has the potential to make Thailand a global startup hub. National Innovation Agency alone encourages individuals and startups to come with ideas for startups in the public sector or any other sector. Not only this, but they also run several programs that offer assistance to startups in terms of credit guarantee with the help of the Ministry of Finance, Government of Thailand.
Opportunities in Rural Areas
If you have ideas for startups related to the public sector in rural areas, then it will be easy to give shape to your dream. Thailand’s government invests a significant amount, approx. 0.2 to 0.3% of their GDP for research and development in rural areas. The whole process for applying for startups or SMEs are easy and single widow facilities.
The National Innovation Agency, Ministry of Finance, and Ministry of Science and technology are arranging credit guarantee to these startups and SMEs on a more extended credit guarantee period. If you have any ideas related to Agritech, then you must be rewarded with great success. You get full support from the government to private accelerators to bring those ideas on the ground.
Challenge In the Journey of startups in the Public sector
Though the government of Thailand is doing its best in assisting to Entrepreneurs, SMEs, and Startups, still public sector seems less innovative than their private counterparts. This problem is occurring all over the world, not just Thailand.
The structure of the public sector is the prime reason for this problem; however, the Thai government s trying hard to make its way for startups. The significant challenges faced by startups in the public sector are listed below.
- As public sector startups, you will have to sere everyone, i.e., people of lowest literacy or region for the hardest reach.
- Legacy is a burden, and you cannot cut it down.
- You cant change the market fortnightly, need to adjust yourself according to the market.
- Cant leverage IP
- Cost versus value is worst in the case of public sector startups. If you manage to win, you can establish yourself there.
If you have ideas that are related to serving the people, you can convert these ideas into startups with the help of the Thai government.
Latest posts by Andy Aditya (see all)
- Hospitality in Thailand- Vast Industry with Ample Opportunities for Startups - September 14, 2020
- Leather Industry of Thailand – A Sustainable Growth Sector in the country - September 7, 2020
- Trace the development of oil and gas industry in Thailand - August 31, 2020