Sunbelt Asia Weekly Column
9 August 2019
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Concerned about the new excise tax for entertainment venues?
The latest excise tax has many in the food and beverage industry concerned and a little confused. Sunbelt Asia has been retained by some of the largest food and beverage clients in Thailand. We specialize in the excise tax and all related matters, if you are an entertainment venue with concerns regarding the implementation of the excise tax don’t hesitate to get in touch with our senior lawyers who specialize in this area. Please call (+66) 02-662-7004
Thai travelers prefer booking through their mobile phones.
A recent Expedia survey found that Thai travelers are more likely to book hotels and flights with their mobile phones, of those surveyed 70 percent of respondents said they were likely to book a hotel using a mobile device, 18 percent somewhat likely and 12 percent least or not likely. While 67 percent said they were extremely likely to book a flight using a mobile device, 18 percent somewhat likely and 15 percent not likely. A new market research study shows that mobile users in the region will account for half of global app installs by 2020, three times more than in any other region.
Chinese firms moving operations to Thailand SEZs.
Ongoing trade tensions and rising labor costs have seen Chinese firms migrate to Thailand and Southeast Asia. Chinese companies are looking to the Eastern Economic Corridor and other economic zones in Thailand that offer special benefits including land purchase in addition to lower labor costs. A property consultancy firm indicates that Vietnam, Thailand and Malaysia are the primary benefactors of manufacturers moving out of China and that Thailand and Malaysia both have a mid-tech workforce now costing 60 per cent lower than in China, compared to 33 per cent in 2010. China was also a huge source for exported Thai fruits and vegetables with shipments to China rising by 31 percent year on year from January to May. Exports were boosted by the Asean-China Free Trade Area which has benefitted the countrys fruit and vegetable exporters since its implementation in 2003. China is the third biggest export market after Hong Kong and Chile.
Thailand Investment Year to Offer Further Tax Reductions for BOI Companies.
The IMD World Competitiveness Centre (a Swiss think tank) ranks Thailand at 25th in its 2019 index (consisting of 63 countries) only Singapore and Malaysia are placed ahead of it within ASEAN.This year has been marked as the Thailand Investment Year especially aimed at encouraging the private sector to invest in targeted industries the country is keen to develop over the long term. The particular focus this year will be on activities that will concentrate on the use of advanced technology and the development of the knowledge-based industry. Alongside existing incentives, Thailand Investment Year will provide a 50 percent reduction of corporate income tax for three years on top of the basic package for large investment projects (=Bt1bn) in targeted industries. Firms that commit to investment within the targeted industries located in the designated areas in the EEC will enjoy a maximum of up to 13 years of corporate income tax (CIT) exemption.
Targeted activities include electronics design, R&D, biotechnology, engineering design, scientific laboratories, calibration services, vocational training centers and targeted core technology development, etc. This is in line with their program to promote their Special Economic Zones for investment and development. The BOI offers valuable privileges including multiple work permits, foreign ownership, corporate tax breaks and more for qualifying businesses, whether in the SEZs around the country, the Eastern Economic Corridor (EEC) on the Eastern Seaboard or in qualifying industries. Contact us to see if your business or business idea qualifies. Call us at (+66) 02-662-7004 for a free consultation.
More countries added to Customs Department NSW electronic exchange.
The Customs Department plans to add three more countries to the National Single Window (NSW) electronic exchange system; Myanmar, Cambodia and the Philippines. The system allows importers and exporters a single system to handle customs formalities for 27 agencies. This reduces the amount of time and increases the efficiency of importing and exporting in a paperless system. New systems and increased investment in infrastructure saw Thailand surge from 45in 2016 to 32 in 2018 in the World Bank’s Logistics Performance Index.
Marijuana, the new super industry in Thailand.
Marijuana was legalized at the beginning of the year and while the industry remains in its infancy there is much confusion as to who can apply and how to do so. Sunbelt Asia is a specialist in the future of the Marijuana industry in Thailand, we have one of our senior partners and team dedicated to being at the forefront with the latest information, registrations and policies of this future super industry in Thailand. Contact us if you need representation to proceed with your application today. Please call (+66) 02-662-7004
Onnut Area Guesthouse
Located in the up and coming Onnut neighborhood with great street food and many neary restaurants and bars, this hostel is only a five minute walk from the BTS station. In business since 2015 the hostel has earned good ratings on booking sites and good word of mouth. The business offers guests free WiFi in addition to the 10 bed mixed dormitory, and 3 rooms private rooms. All dorm rooms are air conditioned and there are personal lockers for guests.
There are 2 full time employees and the lease is 3+3+3 year with a monthly rent of 25,000 baht. Sales last year reached around 400,000-500,000 baht. The owner is selling as he has no time to run the business. With a busy and active manager and good marketing this business could easily grow as more and more visitors turn to Onnut and other outside areas for budget accommodation.
ASKING PRICE: 999,000 baht
Updated Sale Price for Soi 11 Restaurants in Lease & Assets Sale
The owner of these two premises is seeking a fast sale as the business is now closed down. In the heart of the happening Soi 11 on Sukhumvit the owner is selling both a popular French restaurant and the bar (two separate businesses, same great building). The new owner would walk in and take over the entire 5 story building, fully fitted out with beautiful décor and a fabulous ambiance and great reviews.
There is a total of 520 sqm in the building and the owner invested more than 30 million baht to fit both spaces out with high quality furniture, décor and equipment. Rent on the building is 270,000 baht a month with a 3 + 3 year lease. This is the perfect opportunity to take over a beautifully decorated operation in the heart of the biggest night life street in Bangkok.
UPDATED ASKING PRICE: 8 million baht
Long-running Events Business
Events are an active and growing business in Thailand and a well-organized and well established events business can go far. This is your opportunity to buy into a long-running and well-known business that has been in business since 1994 and has a list of loyal clients.
The company handles corporate groups that come to Thailand for conferences, gala dinners, corporate team-building and events. Their client list consists mainly of five star hotels and travel agents.
There are 6 full time staff while the current owners handle sales and accounting. Freelancers and sub-contractors are added to the team to handle an average of 50 events per year all over Thailand. The company rent offices and a warehouse in town, with the contract renewable annually. Last year sales reached 25 million with four million baht in profit.
The owner wishes to retire soon but plans to remain available to assist the buyer in the handover period.
ASKING PRICE: 6.6 million baht
Beach Cafe near Hua Hin, includes Chanote Property
Located in the fast developing beach town of Khao Takiab, only 7km from Hua Hin, this lovely café is only a few minutes walk from many major four and five star hotels. Included in the sale price is chanote titled property and the business as well as all fixtures, fittings and equipment. If you have always wanted to live near the beach and run your own business, then this is a fantastic opportunity.
The restaurant has been open since 2005 and is fully equipped with all necessary restaurant and bar equipment including a kegerator. There are three floors with the top floor a private apartment that could be used by the owner or rented out. There is plenty of space for diners and a new garden area that is leased at 50,000 baht a year was recently added. The café is beautifully decorated with hand-painted murals from a well-known Thai artist, sourced brick, and a gorgeous European meets Asia aesthetic.
The owners will include all supplier contacts so the new owner can just walk in and take over. In the high season there are 8 full time staff and in the low season 6. Monthly wages during the high season are around 80,000 baht, sales during the high season average on 30,000 baht a day. The owner is selling the business as they are ready for a new challenge after building up this restaurant and bar.
ASKING PRICE: 16.5 million baht includes land
Chaweng Bar and Restaurant on Samui
Located in the most popular area of Koh Samui, this Chaweng bar and restaurant was established in 2017 and has been earning good reviews. The restaurant is over two floors with a total of 600 sqm and a fully fitted out kitchen and restaurant area.
The rent on the location is 375,000 with a renewal in 2022. There are 40 full time employees with a total monthly payroll of 600,000 baht. The business has seen sales of nearly 31 million baht annually and a profit of 500,000 baht.
The current owner is moving back to Bangkok and so is looking to sell this business. This is a turn key business for someone who wants to live on paradise island.
ASKING PRICE: 13 million baht
Bar & Grill in Samui’s Nightlife Zone
Located on the hottest nightlife street in Samui on Chaweng Beach this bar and grill is fully equipped with a fully fitted out kitchen, full wine storage area, a ground floor bar and another bar on the third floor with a full DJ booth hanging off the wall with full sound and music equipment.
The fourth floor is currently a storage area but could easily be converted into a VIP lounge.
There are also offices and a store room as well as the IT center with all controls. The business is a well-known and popular bar and the sale includes the lease in an amazing location in the heart of Chaweng as well as the brand name and Thai company if the buyer requires purchasing a company. There is no debt on the company and it is only registered to this business.
All fixtures, fittings, and equipment is included in the sale including top quality stainless kitchen and equipment, all DJ equipment and lighting, and the huge wine cellar holding over 300 bottles of wine. The bar is a huge draw with the younger crowds, there is also a small room next to the ground floor bar which is part of the sale, this can be used as a store; previously the space was rented out for 20,000 baht a month.
ASKING PRICE: 1.2 million USD or 39 Million baht
Koh Phangan Hostel in Central Location
Set in the heart of Ban Tai on Koh Phangan this new 22 bed hostel is convenient to the Full Moon Party as well as the other parties held on the island. The hostel also has a popular restaurant and bar serving Western and Thai food that seats 26 people. The business also offers motorbikes for rent and those are included in the sale. The rent on this 200 sqm building is only 16,000 baht a month.
The Full Moon Party draws thousands of visitors to the island every single month, while the neighborhood hosts the popular Black Moon Party as well as a few others. This is a great deal for someone who wants to get in on the ground floor of a backpacker business on Koh Phangan.
ASKING PRICE: 2.5 million baht
Price Drop on Phuket Guesthouse near Beach
The owner has dropped the price on this Phuket guesthouse as he is relocating soon. Located five minutes walk from a popular beach in Phuket, this guesthouse is also close enough to the party zone to go out and have a good time but not so close you hear it all! There are many restaurants, sports bars, shops, and convenience stores in the neighborhood- making it a popular tourist destination. The hostel is highly rated in Booking.com and Hostel World, and built up a good reputation.
The guesthouse has 5 private rooms and three dorm rooms that have 22 beds in total. Each room has air-conditioning and bathroom with hot water. There are two Thai staff and monthly rent on the building is 45,000 baht. There is no key money but one month guarantee is required. Payment is three months rent in advance. The owner is forced to sell as he is relocating due to personal circumstances.
UPDATED ASKING PRICE: 1 million baht