The Startup Ecosystem of Thailand

Over the last forty years, Thailand has taken a leap forward into a more economically developed country through multiple reforms and social innovations. Mainly seen as a tourist destination, the emergence of COVID-19 caused the public sector to prioritize startup ecosystem development as an important step in securing Thailand’s future economic growth. Those efforts are not yet focused or determined enough compared to Thailand’s counterparts in locations like Singapore or Malaysia, but are a good start toward ensuring the Thai ecosystem can fulfill its potential.
Thailand attracts not only tourists, but also flocks of digital nomads residing largely in Chiang Mai and Bangkok. With creative policies, the Thai public sector could tap into this immense knowledge and talent base. The goal should be to connect local and foreign entrepreneurs with the hope that viable projects will follow, increasing linkage to Thailand and its talented people. This is not yet happening at a satisfactory rate.
Though the linkage of foreign and local talent is still lacking, the Thai public sector is innovative in terms of visa programs and the deployment of other vehicles to allow expats to stay in Thailand long term. Examples include the unique Elite visa for business, leisure, and professional travel, as well as a Smart Visa for foreigners who have established tech startups in Thailand. Moreover, the newly launched Long-Term Residents Visa is the first visa with various tax and non-tax benefits for high-potential individuals. A government organization that contributes to the globalization of the startup scene, the National Innovation Agency (NIA), attracts foreign investment by promoting strategic startup ecosystems as centers for innovation in a number of key industries.
Infrastructure is an important element for attracting foreigners; government announced infrastructure investments like U-Tapao Airport City, the high-speed railway, and the MRT Purple Line are likely to create an attractive environment. In addition to these government efforts, founders can benefit from a supportive startup community, affordable living, and low operating costs in Thailand.
As in other Asian countries, Thailand would benefit from a cultural shift toward making the young population less risk averse and more entrepreneurial. Thankfully, the country has had several unicorns in the past years, such as Line Man Wongnai, Flash Express, and Ascend Money, all passing US$1 billion in valuation. Hopefully, this will stimulate the entrepreneurial spirit of the population and draw more capital into the startup scene.
Considering Thailand’s robust economy, the country could produce more unicorns in the coming years. For this to happen, the ecosystem needs to attract more foreign investment. To this end, the Thai government has already passed tax cuts for VCs and incentivized investing in certain industries.