Opportunities for IT industry Related Startups in Thailand
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 impression as one of the most promising manufacturing hubs across the globe. The credit for this transitional shift from an agrarian state to a manufacturing hub is 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 at 7 billion US dollars.
Several industries like consumer electronics, telecommunications service, digital entertainment, 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.
The ‘Smart Thailand’ project, a joint initiative of the Government of Thailand and The Ministry of ICT, is part of the ICT framework- termed ICT 2020. This program, along with the Smart City project 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 in the country and thus creating an excellent opportunity for the IT industry and its startups. The program is valid from 2018for to achieve 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 from the 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 are willing to give shape to these ideas in transforming them into 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 a citizen outside Thailand and planning for startups in the IT industry, then always go with 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 benefit as being IT startups you need to import the foreign workforce.
- There can be a hundred per cent foreign ownership of 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 of foreign investors 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 the 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 a VC.VC is the short form of Venture Capital. VC offers funds for startups on the terms and expectations of higher returns. This is different from a bank loan, VC sees the potential growth in your ideas and contributes the funds for long-term investment. They also care about short-term losses, unlike a bank.
Mentorship is essential for guidance for any startup. 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 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 of startup nurseries 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 the 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 accelerators in Thailand that help startups related to the IT Industry nurture them.
It depends upon the startups on how they use these resources at the right time. Thailand provides you with ample of resources; your success rate depends upon your ability to use these resources.
With his IT education background and 3 decades of experience in the technology industry, Ande was instrumental in starting up 11 IT companies in Thailand and at present, he manages his latest startup venture as an investor and advisor.
Please read more about Ande’s thought leadership on Future Businesses and the top 10 technologies that would prevail in our future times.
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