Thailand was well on its way to be the SE Asia business hub and favorite in the area for foreign business investment before 2006. Then after the coup and years of political unrest and one of the worst floods in Thailand’s history damaging many factories and putting some completely out of business the investor confidence is low. It seems many investors are in a wait and see mode for Thailand while looking at business possibilities in Vietnam, Malaysia, Cambodia and new openings in Burma(Myanmar) .

The good news is the government is working on flood prevention plans now and hopes to start implementing them shortly. It has been said that they included foreign experts in the planning stages and everyone hopes that they come up with a sound plan, but the facts seem to be that Bangkok is in a very bad location and that there needs to be serious consideration of the relocation of key industrial sites to safer less flood prone areas as at this time only 40% of the affected factories are said to be operating again.

Suggestions have been:

1.  To diversify the factory locations in areas that are not in flood prone areas possibly expanding in the Rayong industrial area and consider locating new industrial zones in the North East as those areas are not prone to flooding along with the fact most of the factory workers come from the North East. The Rayong area already has a sea port and the North East area has a rail system that can be expanded on to make shipping and logistics feasible and efficient.
2. The government should also make things easier for investors wanting to setup businesses here with simplified business visas and real permanent residency process. Most business visas require people to exit the country every 90 days which can be expensive and unnecessary if the foreign business person does not need to leave and needs to work. The permanent residency process is said to be one of the most difficult of any country and seems like something the government really does not want foreigners to have. These items should be addressed and made straight forward and simplified in order to promote more business investment and also for retired foreigners and married couples wanting to spend their golden years here with security knowing that their investments are secure. Having to leave the country every 90 days or only a visa for 1 year at a time hardly promotes any feeling of security.

In summary, Thailand has the potential to be a great developing country with tremendous opportunities for both Thais and foreigners for business investment providing flood prevention measures are put into place along with proper location of key industrial sites in safe areas. Also measures need to be implemented to better protect foreigners and their investments in Thailand along with more simplified visa process for longer term visas without the need to leave the country every 90 days and to really implement the permanent residency process for foreigners doing long term business here, foreigners married to Thais, or foreigners retiring here so that they may feel comfortable and secure which will in turn promote more and more investments in the Thai economy helping the country move forward to be the business hub of South East Asia providing safety and security for Thais and foreigners alike. Implementing and really promoting permanent residency will make foreigners much more comfortable to invest in business in Thailand or to retire here and feel secure to invest and bring their money here which they will in turn be spending in the Thai economy. Malaysia is currently offering 10 year visas and the ability to own freehold up to 2 homes for foreigners wanting to move there. Perhaps Thailand could look at that option to at least keep up with others in the region.