Sunbelt Asia Weekly Column
24 May 2019
Sunbelt Asia will be closed on Monday June 3rd in honor of the birthday of HM Queen Suthida. This is a public holiday and all government offices will be closed. We will re-open for business as usual on Tuesday, June 4th.
Thailand still led the pack as the Least Miserable Economy again this year on Bloombergs Misery Index which evaluates inflation and unemployment rates to determine the misery levels of various economies. The index released this year is based on forecasts by economists, while the last year scores are based on actual data. Thailands low unemployment rates and low inflation accounted for the ranking. Singapore, which came second last year, was overtaken by Switzerland which is forecast to rise two places from number 4 last year. Venezuela topped the list as Worlds Most Miserable Economy.
The MyExpatriate Market Pay report showed that the pay and benefits for expatriate saw a major increase in 2018 with the overall package of an average overseas worker increasing by US$27,917 year on year. The report ranks factors such as salary, benefits, and tax. Thailands salaries remained in line with most other countries, while benefits were average the tax rate was lower than many other countries on the report with Japan having the highest taxes for expat employees.
A recent CEO survey conducted by Oxford Business Group (OBG) in four Asean emerging markets showed that Thai CEOs are generally quite positive about key indicators, including transparency for conducting business, access to credit, and the competitiveness of the domestic tax regime. Thailand saw more confidence from CEOs about future investment with 81 percent saying their firm was likely to make a significant capital investment in the next year, lower than the 75 percent in the Philippines.
New business registrations hit nearly 6,000 in April with a total registered capital of 15 billion baht and May is forecast to be higher than in April. So far this year 32,000 new businesses have registered with the Department of Business Development and that number is expected to exceed 70,000 for the entire year. Most of the new businesses registered in April are in Bangkok and neighboring provinces and support the governments electric train construction projects, followed by other construction, real estate, and tourism-related projects in the Eastern Economic Corridor (EEC).
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Rayong Factory near EEC
Located in Rayong with easy access to nearby factories and businesses in the EEC, this firm provides power generation equipment as well as acoustic enclosures, stainless exhaust mufflers and generating set load banks. The current owners are selling as one is retiring and returning to his home country while the other partner wishes to focus on his own consulting business. The retiring partner will help the new owner to better understand the product and transfer customer relationships to the home firm in Australia
The current owners have only just taken over the business but retained the client list from the previous owners. Annual sales have been at 35 million baht with a profit of 5.6 million baht. There are 20 full time staff with a total monthly payroll of 530,000 baht. The factory is 1500 sm on land that rents for 94,500 baht a month.
The business needs a full-time factory manager to help the business grow. All equipment, fixtures and fittings are included in the sale.
ASKING PRICE 22 million baht
Online Expat Directory and Guide
Walk in and take over a small one-person business perfect for someone who wants an online business. This online expat directory and guide website is for sale and has been in operation since 2017.
This is easy to run from a home office or anywhere! And requires one person to update and sell advertising. The only expenses are the accountant monthly fee of Baht 5,000 (60,000 Baht for 1 year) and the website yearly payment of US$ 697 (about 24,000 Baht for 1 year ). Other expenses include the CRM customer data program costs about 985 Baht a month (11,820 Baht for 1 year.), all other revenue was profit which can be taken as a salary. Revenues are raised from selling advertising, banners, featured listings etc.
The website updates are simple to do with the back office system, no coding skills are needed. there is a great support team available in USA for any technical issues, included is a CRM system that has all records of clients and contacts.
ASKING PRICE 2.2 million baht
Recruiting Agency with Extensive Database
Established 14 years ago, this recruiting agency has developed a great reputation in the Thai market for its extensive database of high-quality candidates and its well-managed recruitment system. With over 1,500 clients and well-trained staff the business has seen profits average 10 million baht a year on revenues of 30 million. There are 20 full time employees and the business is fully licensed with the license not expiring for four more years. There is already a strong associate director in place who is interested in moving the company forward so the new owner will be stepping into a turn-key business.
The founding director is retiring and the company has some independence issues with the network of which it is an independent member. The business has 8 million baht in registered capital and with 20 full-time employees, can support work permits. The business will require a name change but the new owner will retain all databases. Known for its placement with blue chip companies in Thailand, this business is ready for a new owner to walk in.
ASKING PRICE: 25 million baht
Gemstone & Jewelry Factory
Take advantage of Thailands premier reputation for high quality gemstones and jewelry design with this long-running jewelry factory in Bangkok. The business exports gold and silver jewelry and gemstone jewelry to the EU and the US, nearly 95 percent of its product are exported. The factory, which was established in 1994 has a team of loyal, well-trained and experienced staff who will stay on. The factory, which is set in 600sqm 5 story shophouse, has the capacity to produce 12,000 pieces a month and is currently running at only 6,000 pieces, showing a huge potential to double sales.
With a good reputation and a huge database of customers the business saw sales reach 24 million last year with a profit of around 15 20 percent. There are 35 full time employees with a total monthly payroll o f 450,000 baht. There are more than 400,000 3D designs on file, valued at $1 per file and inventory valued at 5.5 million baht, both are included in the sale.
The sale includes all design files, customer database, and inventory 7,000,000 baht., a Thai company with 12 million baht in registered capital. There are currently four foreigners working full-time with work permits. The owner is moving back to his home country for family reasons and so is looking to sell this business that has huge growth potential.
ASKING PRICE: 12 million baht
Fully Licensed School Offering Diploma Courses in Media Technology
Fully compliant with Ministry of Education regulations this school offers diploma courses and short term courses in media technology and entertainment.
The school has been in business for 16 years and has earned a name in the entertainment business but the current owner wishes to retire and has not been able to market or grow this school in the past few years.
The business needs a cash investor with business and marketing skills to return the business to profitability.
The school has two fully equipped recording studios and a green room. All fixtures, fittings and equipment are included in the sale.
This business could easily be turned around with a strong sales and marketing leader in charge. The current asking price is negotiable.
ASKING PRICE 30 million baht
Wood Manufacturing Business in Chiang Mai
This manufacturer of solid wood doors and windows is located in Chiang Mai, a popular destination for both expats and Thais looking for a second home. Known for its timber, this company uses high quality teak or mahogany for its top quality windows and doors. The company also produces top quality wooden flooring including parquet, tongue and groove and decking. The business sends their high quality wooden products across the country.
The business was established in 2010 and owns the land the 1500 sqm factory is set upon. The factory has two floors and nine full time employees. The monthly payroll is 120,000 baht and the business saw sales of 7.14 million baht in 2014 and profits of 2.85 million baht. Top quality inventory valued at 800,000 baht is included int the sale. The owners are retiring and so wish to sell the business.
ASKING PRICE 24.9 million baht
New Price on Phuket Hostel Minutes from the Beach
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! NEW ASKING PRICE: 1 million baht
Updated Price on Chaweng Hotel on Samui
Located in one of the top locations in Chaweng near Soi Green Mango on Koh Samui, this hotel has 28 rooms with four different room types all fitted out with TVs. Catering to all kinds of travelers, the hotel also has 8 hostel rooms with bunk beds and 1 dorm room. Fully fitted out with an elevator, generator, water tanks, storerooms, emergency stair exit, and reception the hotel does have a hotel license. Fully renovated in 2017 the sale includes all equipment, fixtures, and fittings as well as the Thai company and the hotel license. This allows the new owner to walk in, take over the premises with a new name and run it right from the get go.
The owners are selling as they are focusing on their franchise business and are looking to reduce operations on Samui.
The hotel has a lease contract through 2031 with the annual rental set for each period of 3 years.
UPDATED! NEWASKING PRICE: 18 million baht