Business registrations jump, exports reach 6 year high
New business registrations rose to 6,597 new businesses registered in November, a 14 percent year compared to the same period last year. The combined value of 64.46 billion baht was a 328 percent rise year on year. Real Estate companies topped the new business registrations followed by general construction and ornaments, particularly gold shops. During the first 11 months of 2017 68,212 juristic persons have been registered, up 14% from the same period in 2016. The total capital investment was 372.7 billion baht, up 74% compared to 2016. The government has already accepted 71,000 new business registrations this year and expects to hit 72,000, next year when single person business registrations will be allowed that number is expected to soar to over 75,000. Businesses that closed during the year also dropped by 1 percent and fell 4 percent year on year in November. Improvements to the new business registration process has resulted in the growing numbers, according to the Department’ director-general.
Exports reached their highest level of growth in six years in November, hitting 13.4 percent growth, while exports grew 10.1 percent in the first 11 months of the year with an export value of US$217 billion. Export growth has been over 10 percent every month since May. The Commerce Ministry believes export growth for the entire year will be around 10 percent and 6-6.5 percent next year with the export value averaging US$250 billion. Rice exports hit 1.5 million tons last month and are expected to exceed 11 million tons this year; other key exports include para rubber, tapioca products, and fresh and frozen chicken. Exports to South Asia saw the highest growth, leaping 41.8 percent followed by the U.S. which grew by 20.7 percent, exports to China grew 16.9 percent and to the EU 5.3 percent.
Kasikorn Bank’s research arm, K-Research, predicts the GDP will rise 4 percent in 2018, with 4.2 percent growth predicted for the first half and 3.9 percent for the second half. The research unit believes that domestic investment from the private and public sectors and the global economic recovery maintaining economic growth. Domestic investment, which was sluggish this year with a 1.8 percent growth, is expected to climb next year to 3 percent and public sector investment will grow 8 percent assuming the government sticks to the general election plans set for next year. Exports and tourism are expected to be the main drivers of growth, and while the number of tourists is expected to fall slightly, spending per person per trip is forecast to climb.
The latest land price assessment is due on January 1 but Silom road is expected to show the highest land values in the country with one million baht per square wa (four square meters), Ploenchit, Rama 1, and Ratchadamri areas came in second highest at 900,000 baht per square wa. Condo prices are expected to also rise with the rising land price assessments; the average price of condos has averaged a 9 percent rise each year for the past five years. Pathumwan and Ratchathewi saw the highest rises with 16 percent while inner city locations such as Yannawa saw a rise of 12 percent while outer Bangkok prices grew by 5 percent. Phra Khanong-Suan Luang area, Phaya Thai-Ratchadaphisek, and Thon Buri-Phetkasem saw the highest numbers of new condos added, with all three areas accounting for 58 percent of total new condos added. Demand for new condos rose 14 percent in 2017; Phra Khanong-Suan Luang, Phaya Thai-Ratchadaphisek and Pathumwan-Ratchathewi saw the highest numbers of condos sold.