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Thailand: Business registrations up 78% in January
The number of business registrations surged 78% year-on-year in January, led by logistics and transport, on the back of growing online trade and active investment in the flagship Eastern Economic Corridor (EEC).
According to Vuttikrai Leewiraphan, director-general of the Business Development Department, new business registrations reached 7,311 last month, compared with 4,102 in December and 6,965 in January 2018.
The surge was propelled by accelerated investment in state infrastructure projects, the tourism recovery and greater investor confidence.
The top three sectors for new business registration in January were building and construction (620) and property (386), driven by higher investment and urbanisation. Logistics and transport came third with 184 on rapidly growing online trade, surpassing restaurants.
Mr Vuttikrai said new business registrations increased in the EEC and the recently approved Southern Economic Corridor.
Last August, the cabinet approved in principle a southern corridor scheme linking the Andaman Sea, the Gulf of Thailand and countries along the Indian Ocean.
The scheme is estimated to cost at least 200 billion baht, which will mostly be spent on transport links in four provinces, namely Chumphon, Ranong, Surat Thani and Nakhon Si Thammarat.
Under the scheme, the two coasts will be connected by a new railway running from Nakhon Pathom, Hua Hin and Prachuap Khiri Khan to Chumphon, to be completed in 2020. The government also hopes to add a route to Ranong, where plans are in action to make the area a hub for ocean transit links with the Bay of Bengal.
The sea link will facilitate trade with Bimstec (the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation), which consists of Bangladesh, India, Myanmar, Sri Lanka and Bhutan.
Chumphon could potentially be developed as a centre for fruit distribution, while Surat Thani is envisioned as a bioeconomy hub.
The southern corridor will be developed to link with the Royal Coast tourism cluster, which includes Phetchaburi, Prachuap Khiri Khan, Chumphon and Ranong.
Yesterday the department reported that 1,401 companies were liquidated in January, up 4% from the same month a year earlier. The liquidated businesses were mostly in building/construction, real estate and management advisory services.
The department forecasts the number of new business registrations this year to be on a par with last year’s figure, or about 70,000, with the country’s economic growth and tourism recovery the key drivers.
Mr Vuttikrai said negative factors such as global economic uncertainties, international trade prospects and domestic political clarity also warrant a close watch.
Source: https://www.bangkokpost.com/business/news/1633066/business-registrations-up-78-in-january