Swot Analysis Of Thailand

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1. Political landscape • Political regime: constitutional monarchy (since 1932) • International relations: Thailand participates actively in many regional and international organizations and keeps close and longstanding security ties with the United States. Thailand is a member of ASEAN and thereby plays an imperative and pro-active role in ensuring stability, harmony, cooperation and development in the region. • Role of government in the economy: There are 3 independent authorities holding the political power of Thailand: Executive, Legislative and Judicial. Despite the royal’s little direct power under the constitution coupled with Thailand’s self-regarded constitutional monarchy, the King is truly a symbol of national identity and unity.…show more content…
However, the political situation does not stop it from maintaining a positive growth rate. In fact, Thai political constitutions are well-structured and the government makes great efforts to stabilize security and create the favorable legal framework for FDI. 2. Legal landscape • Judicial system: Thailand has a general code, business & bankruptcy law. Judgements of international courts are unacceptable in Thailand. Problems sorted via arbitration may be resolved in a year or two; whereas issues which are litigated in internal courts can take a while more & are subject to appeal. • Business regulations: In any case, outside interest in most administration divisions is restricted to 49 percent possession, certain sorts of businesses are held for Thai nationals as it were. Outside interest in those organizations must involve under half of share capital, unless uniquely allowed or generally…show more content…
The two principal taxes levied are direct taxes and indirect taxes (value added tax, specific business tax, excise tax, customs duties, and stamp duties). Thailand currently has double tax treaties with 60 countries. A 3-year corporate income tax exemption capped at 50% of the total investment might be granted to BOI and non-BOI promoted companies that conduct specific types of investment in Thailand. • Labor law: A new firm to be set up in Thailand should be registered with DBD at the Ministry of Commerce. If the organization falls under the non-Thai nationals, as defined by the Foreign Business Act, it must acquire a remote business permit. Thai law additionally saves 39 occupations for Thai laborers and will not concede work grants for non-natives to take part in these occupations, including attorneys, designers, and structural architects. • Outlook: As BOI offers numerous investment incentives that might reduce or eliminate the tax liabilities, Thailand is attractive to do business for foreign investors in terms of legal landscape. However, Thailand will have to work on improving the quality of land administration index. This will help Thailand improve its competitiveness with other countries which have pursued investment climate reforms strenuously in recent

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