Scope For Start-Up In Logistics Sectors In Thailand
Thailand offers easy access to every possibility and necessity, starting from transportation links, medical facilities, and others. From the lively community of startups and the essential structure for the upliftment of a company to digital businesses, Thailand is a dynamic place for all your requirements.
Why Choose Thailand For a startup?
Building a startup of your own requires guts, optimism, determination, and hard work. Despite all these, approximately 70% of startups don’t last even for ten years. However, if you have ideas and wish to try your luck along with all the requirements for successful startups, then Thailand is the best place to choose.
Thailand had always been nurtured young and potential companies who are looking for various expansions rather than offering opportunities for new startups. And the rapid and tremendous growth of the Thai economy is evident in that. Thailand can provide a lot to those who:
- A strong idealistic mindset along with a unique business plan
- Have plenty of supply of funds for startups
- Can understand Thai culture, tradition, and mentality
- Have enough patience and open-mindedness.
During the year 2017-18, when 80% of startups have been started sinking, Thailand was the country that witnessed double-digit growth in 2018. The startups here are funded by both local and foreign VCs. Bangkok took first place and bagged venture capital deals with 600% growth between 2010 and 2017. The government support during the journey was applaudable, and this supports from the Thai government is still going on.
Scope for logistics business and services in Thailand
The performance of Thailand’s logistics industry is continuously doing great since 2018. The significant improvements are due to the enormous investment in the transportation sector and legal reforms by the government.
As per the World Bank’s data, Thailand rose by 13 places from 45th in 2016 to 32nd in 2018 in the logistics industry. Thailand’s logistics industry came 2nd after Singapore in ASEAN and was in 7th place in Asia. Thailand has witnessed huge investments in transport infrastructure under the 12th National Economic and Social Development Plan for 2107-2021. They aim to cut logistics costs to 12% from 14% (as per the 11th plan for 2012-2016). This cut in cost is not only limited to major cities and border towns but nearby countries too.
Also, it can be imagined by the fact that Thailand is going to manufacture over 3.5 million units of vehicles and having the aim to become one of the top nations in the global automotive market. The future of logistics is bright, and you can establish your startup with your ideas.
Logistic challenges in Thailand
Thailand becomes the focal point when talking about logistics in Asian countries. Since the country is renowned as one of the most highly potential countries both in terms of the logistics hub and transport, the country has become the business centre of the Southeast Asian region. One common reason behind this growth is Thailand’s centralized location and geographical position, and of course, it is well-connected with many of its business partner countries.
However, when it comes to the logistics hub and its services, it may not be as easy as pie so, before you plan to set up your company in Thailand’s logistics know the policy of becoming a logistics hub. The logistics hub has always been a critical element for economic development and the upliftment of national competitiveness in Thailand. Therefore, in this country, the development of its logistic system has been given great importance from the very beginning.
However, Thailand’s logistic hubs remain shuttered and inferior to those in Malaysia and Singapore. They are outstanding due to their astounding infrastructure, well planning, punctual delivery of goods, robust management system, and efficient authorization of state-of-the-art technologies in the management of logistic services. The logistic system of a country is based on six fundamental vital dimensions:
- Quality of the trade and all transport-related infrastructure.
- Efficient and effective customer-clearance procedure
- Should have the capability to track and trace the consignments
- Quality and competence of a logistic hub and service
- Comfortable arrangement of competitively pricing in international shipments
- On-time shipments. Should reach the designated destination within expected delivery or scheduled timing.
How can you nurture your Thailand startup?
If you are investing a massive amount for a startup in Thailand, then why not spend some time nurturing programs for a startup in Thailand? Participating in a nurturing program can enhance the potentiality of your business.
- In Thailand, there are plenty of multinational and big Thai companies that operate their business in the Thai kingdom and gain a lot of fruitful ideas by participating in nurturing startups. If you can participate in a nurturing program, take it as your arm research and development of your effort. By doing this, you can keep an eye on the growth and progress of your business, and you can include some of the new elements and ideas to your business that you will gain.
- If you are an investor in the logistic hub in Thailand, then you must participate in nurturing programs for startups. These nurturing programs are a funding organization by participating where you can get ample ideas of spending and saving capital at the right places and the right time.
Robust funding doesn’t only mean handling and arranging over some lump sum of cash to the startup owners. Effecting funding can protect your investment from fraudulent and unnecessary penalties or charges. Thus, you must participate at least in one or two start-ups before entering the Thai ecosystem to establish your business.
Help and support the startups
Whether you want to invest in a logistics industry or any other sector in Thailand, you make sure that your startup gets access to specialized equipment and services. There are many support organizations and service providers to nurture and help you in establishing a hotshot company in a centralized location in Thailand. Therefore, participating or working with a nurturing organization can benefit you and your business in many ways.
Thailand is excellent as a capitalistic country and hence actively receptive to foreign businesses. And as a nation of spenders who are lying at the peak of china’s massive growth, the Thai kingdom is the source of an explosive short and standard class with cash to spend.
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