泰国出海“生意经”：不卷低价，不碰灰产，不和华人打交道｜出海New Land
Introduction: The global business is in a state of chaos and upheaval, and going global has become an inevitable proposition for many Chinese companies. The 6.5 billion people in the world are scattered in nearly 200 countries and regions with extremely unbalanced development. The difficulty of entering this complex market may far exceed the predictions or imaginations of entrepreneurs.
Hardcore Keji has been closely paying attention to the overseas market and companies going global. Based on this, Hardcore Keji launches a new column: "Going Global New Land". We will cover developed countries and regions such as Europe, the United States, Japan, and Australia, as well as emerging markets in Southeast Asia, Latin America, the Middle East, and Africa.
The column will focus on companies and products, analyze the practical operation process of successful going-global companies from a professional perspective, and explore the causes and consequences of popular products in a country or region. Our higher expectation is to understand and convey the glimmer of new trends.
The following is the eleventh article of this column
Author | Zhang Ziyi
Editor | Yuan Silai
Thailand and Myanmar are separated by a river. Thais call it the Moei River, while Burmese call it the Thaung Yin River. Looking out from Mae Sot, Thailand, towards Myawaddy, Myanmar, one can see that the river that serves as the national boundary is neither wide nor deep, and it is almost effortless for a person to wade across.
This is the distance between Thailand and Myanmar, so short and so accessible.
In the past half a month, the "Wang Xing Incident" has drawn unprecedented attention to the Thailand-Myanmar border. Out of concern for their own safety, many people have canceled their trips to Thailand for the Spring Festival.
The tourism industry is a pillar industry in Thailand. Chinese tourists are also one of the biggest spenders in the Thai tourism industry.
According to the statistics of the Tourism Authority of Thailand, as many as 6.74 million Chinese tourists traveled to Thailand last year. In terms of tourism revenue, Chinese tourists contributed 95.3 billion yuan, accounting for 28% of the tourism industry's revenue.
There is no doubt that the Thai tourism industry will be severely impacted.
Beyond the tourism industry, the trade between China and Thailand is also quite frequent, and the bilateral investment relationship is even closer. By 2023, China has become the largest source of foreign investment in Thailand, accounting for 24% of Thailand's FDI.
In recent years, there have been many successful cases of investing and building factories in Thailand, starting businesses in Thailand, and Chinese brands going global to Thailand. During the expansion stage of companies going global, it is indeed necessary to send many Chinese employees to develop in Thailand.
If we sort out the experiences of compatriots who are known to have been deceived to Myanmar via Thailand on the Internet, we can find that many people were lured by "job opportunities".
When negative news about Thailand frequently appears on the hot search, many people are also weighing in their hearts: Is it still safe to do business in Thailand?
Hardcore Keji interviewed several people who have invested, started businesses, and worked in Thailand. The general consensus is: The current negative public opinion will not affect the enthusiasm and confidence of most people in going global to Thailand. However, no matter where you do business, it is necessary to be legal and compliant, which is also a guarantee of safety.
In addition, in the face of the reality that electronic fraud in Southeast Asia has been repeatedly banned but still persists, there are many details to pay attention to when going global.
01 Investment Hotspot
Due to his fondness for the local customs and culture of Thailand, Max chose to come to Thailand to invest and build a factory. A more practical aspect is that compared to the future tariff risks in the Vietnamese market, Thailand has become a safer market for exports to Europe and the United States.
Since 2024, Max has found that the land price in Thailand has doubled. Previously, one mu of land could be bought for 200,000 to 300,000 yuan, but now it needs 500,000 to 600,000 yuan. The land cost is almost the same as that in China. Even so, many factory owners around him are still going to Thailand for investigation.
Investing and building factories in Thailand is no longer a new thing.
Chinese enterprises' investments in Thailand cover several key industries. For example, Chinese enterprises such as BYD and Great Wall Motors have invested a large amount of capital in the new energy vehicle industry in Thailand, promoting Thailand to become an important electric vehicle production base in the ASEAN region. In 2023 alone, BYD and Great Wall Motors have committed to invest more than 1.44 billion US dollars in Thailand to establish new production facilities. In addition, China's investments in Thailand are also concentrated in the fields of electronic manufacturing, semiconductors, and intelligent manufacturing.
Thailand is also becoming the largest transit station for the manufacturing and export of Chinese home appliance enterprises. Haier plans to establish its largest overseas manufacturing base in Thailand, and Midea's air conditioning factory in Chonburi, Thailand, is already its largest digital and intelligent factory overseas.
Thailand has also become the second largest white goods manufacturing country in the world after China.
More and more Chinese enterprises choose to set up production bases and R&D centers in Thailand, which is closely related to the policy support of the Thai government.
In order to promote its economic transformation and upgrading, Thailand, through its Eastern Economic Corridor (EEC) and Thailand 4.0 strategy, vigorously attracts foreign investment into high value-added industries, and provides various incentives such as tax reductions, land concessions, and infrastructure support. At the same time, the Board of Investment of Thailand (BOI) further simplifies the approval process to provide convenience for foreign-funded enterprises.
Max told Hardcore Keji: "To open a wholly-owned company in Thailand, one is to look at the industry. Industries that the government prefers can be approved; the second is to buy land and invest locally. Most approvals are relatively smooth. If you buy land in the park, the government will also give a lot of policy support."
In terms of the specific process of investing and building factories, Max usually first understands the situation of different parks and the market price, and then contacts different park departments to understand the land price of the park. After making an appointment with the relevant personnel of the park, he will drive to the park for investigation. After having a certain intention, it will be handed over to a professional lawyer team to handle the follow-up matters.
"Lawyers can help you investigate whether the land is mortgaged or has other risks, and can also handle the procedures required for various aspects of the operation. The laws between countries are very different. You must find a professional and regular lawyer team. A well-known law firm will care about its reputation."
Max repeatedly emphasized the importance of being legal and compliant and abiding by local laws in the interview, "I also have friends who pay protection fees every month because they are not compliant themselves. There are always individual staff members in the local area who want to receive some benefits. If you are completely compliant, you don't need to worry about these."
02 Business Startup Destination
It is not only investing and building factories that attract Chinese enterprises to go global to Thailand.
POP MART's earlier released financial report for the first half of 2024 shows that the revenue in Southeast Asia has increased by more than 400% year-on-year, accounting for more than 40% of its overall overseas income.
The astonishing growth shows the potential of the Southeast Asian market. In July last year, the POP MART Thailand Labubu theme store was crowded with people, and the daily turnover exceeded 10 million yuan, once again setting a new record for its overseas single-store daily revenue.
The average price of POP MART products in Thailand is about 5%-10% higher than that in China. Even so, POP MART continues to be highly popular in Thailand. In shopping malls in Bangkok, the trendy toy vending machines are always filled with consumers waiting to make a purchase.
When the Magic Cube Gancube first went global to the Southeast Asian market, its sales ranking in the Thai market was once only second to Lego and POP MART, ranking third, which shocked the founder Jiang Ganyuan. And the average unit price of Gancube is several hundred yuan.
Lina, who works in Thailand, told Hardcore Keji: "There is a domestic factory doing e-commerce in Thailand. The storage box single product costs two to three hundred yuan, and there are two to three hundred orders sold every day. The Thai market is not only about low prices. Products that are well done in the niche fields can be sold at a high price."
Jeff, who has lived and started a business in Thailand for many years, believes that The consumption power in Thailand is strong, the proportion of high-net-worth individuals is high, and the business maturity is also higher than that of neighboring countries. The market is highly unified, unlike other neighboring countries that are affected by multiple ethnic groups and languages and are more scattered, making it relatively easier to develop the market.
"The prices of products in the Thai market are basically transparent, and there is no way to compete on low prices. Now, from the establishment of the supply chain to the subsequent services, it is possible to make money. If you only want to compete on prices locally, it is basically a dead end." Jeff told Hardcore Keji.
The overall economic level of Thailand is in the upper-middle level among Southeast Asian countries. Thailand's per capita GDP in 2024 is 7,810 US dollars, ranking fourth among Southeast Asian countries. Thailand is also the second largest economy in the ASEAN region.
The political environment in Thailand is relatively stable. China has long been Thailand's largest trading partner, and the governments of the two sides have maintained a long-term friendly relationship. These have become important reasons for many Chinese enterprises to go global.
Of course, this does not mean that there are no problems in going global to Thailand.
Max basically does not deal with the Chinese community in Thailand, and most of his company's employees are local Thais.
Coincidentally, Jeff also said that most of his partners in Thailand are local people, and there are no Chinese partners. "The cost of cooperating with Thais is lower, and there will be much less entertainment. The way everyone maintains the relationship is relatively simple."
For reference, "Zhengmian Lianjie" reported that: During the epidemic period... The Chinese in Mae Sot on the Thai side got through the Immigration Bureau, the Police Department, and the Border Guard to build the infrastructure for illegal immigration and smuggling... The Chinese on both sides jointly paved the way for the "electronic fraud" industry leaders from China.
Although the above report may be a partial phenomenon, both Max and Jeff believe that: The composition of some Chinese communities in Thailand is relatively complex, and one should be cautious when trying to develop a legitimate business.
Lina emphasized the importance of obtaining a work visa before going to Thailand to work. "Some Chinese-funded enterprises will let employees enter the country first in the form of visa-free entry, and then change to a business visa and then a work visa after entering the job. This is not compliant. The labor contract signed after entering the country with a tourist visa has no legal effect. Once discovered by the government, the employee will be deported and banned from entering the country."
Jeff told Hardcore Keji: "Previously, the company needed to give a tip to the staff when applying for a work visa, and the cost of processing was relatively high. Fortunately, this kind of situation does not exist now."
Due to various factors, foreign-funded enterprises in Thailand did not promptly handle work visas for their employees. Even though Lina joined a relatively large enterprise in Thailand, she also encountered the problem of not having the work visa processed in advance.
Whether it is safe to go global to Thailand is a matter of opinion. But at least, doing business legally and compliantly overseas is definitely a long-term strategy.