Barriers
One challenge will be language; although English is spoken widely in major cities, outside metropolitan areas you will need to brush up on your Thai, or a local dialect may be the common tongue.
You also need to be aware of the precarious political situation in Thailand, which can potentially flare up at any time. To the north is Burma, with which Thailand has had rocky relationship with in the past. There is also trouble in the south, bordering Malaysia. Add to that relatively frequent political coups and Thailand is a hotbed of political action.
Fortunately these trouble spots aren’t in areas containing many businesses, says Asawachintachit, and changes in government don’t interrupt business. “There has not been a change in economic policies as a result of political change. Over the past many years, you don’t see significant change regardless of the government. Life goes on,” she says.
She also says that contrary to a roaring trade in fake luxury goods, intellectual property protection is actually quite secure: “In the industrial sector we have never had any problems. Even in the fashion industry the government has stepped up a lot of efforts in trying to have better IP enforcement.”
The Future
Although Australia already enjoys quite a few benefits through the existing Thailand-Australia Free Trade Agreement, the big news is that Australia and New Zealand have signed an FTA with 10 ASEAN countries (see box). Add to that the fact that the entire ASEAN region will effectively become one economic region in a few years and establishing your business in Thailand now could mean more opportunities in surrounding countries later on.
Lam says to expect more from Thailand in the next decade. “Look out for opportunities with the government stimulus package, regional cooperation emerging out of the AANZFTA not just tariff reductions, but the fact that the ASEAN countries are looking at further regional cooperation,” she advises. “The business services sector will be one that presents opportunities in the medium to long term.”
Trade links
AusThai Connections: www.austhaiconnections.com
Australian Embassy in Thailand: www.thailand.embassy.gov.au
Australian-Thai Chamber of Commerce: www.austchamthailand.com
Royal Thai Embassy: canberra.thaiembassy.org
Thai Trade Fair: www.thaitradefair.com
Thailand Board of Investment: www.boi.go.th
Thailand South Australia Business Council: www.citcsa.org.au/content/thaisa
