Sunbelt Asia Weekly Column
28 June 2019
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 for more information.
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. In fact, a company that is two-thirds Thai owned and with two-thirds of the directors as Thai nationals, is eligible to apply for the FDA license. 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 be 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 at (+66) 02-662-7004.
Thailands e-commerce sector is expected to see strong growth in the next few years, increasing in value from US$ 3 billion last year to US$ 13 billion by 2025 on the back of strong global demand for Thai products. The top five exports sold through cross-border trade in Thailand’s e-commerce are jewelry and watches, health and beauty products, auto parts, home and garden items, and collectibles. The US is the largest market for Thai e-commerce businesses, accounting for around half of all exported items bought through e-commerce. The UK is second followed by Australia, Germany, and Russia.
Test runs on the MRT Dark Blue line have begun and the opening from Hua Lamphong to Lak Song is scheduled to begin this year. The other extension from Tao Poon to Tha Phra is expected to open next year, making it the first circular transit line in Bangkok. The new lines will increase ridership to more than 400,000 passengers a day with the first extension and to 600,000 with the full opening. Five new lines are under construction connecting to the MRT Dark Blue Line; the BTS Light Green Line (Mo Chit-Khu Khot), the Yellow Line (Lat Phrao-Samrong), the Light Red Line (Taling Chan-Bang Sue), the Dark Red line (Bang Sue-Rangsit) and the Orange line (Thailand Cultural Centre-Minburi). The first four lines are expected to be completed by 2021 while the Orange line is scheduled for completion by 2024.
The Tourism Council predicts that tourist arrivals will reach 9 million in the second quarter of 2019 bringing the first half totals to 19 million, on track with the Tourism Authority of Thailands projected 19.9 million arrivals in the first half of the year. The TAT predicts the total number of tourist arrivals for 2019 to hit 40 million arrivals bringing a projected 2.13 trillion baht to the Thai economy.
Pattaya is being pushed as the newest MICE (meetings, incentives, conventions, exhibitions) destination by the Thailand Convention and Exhibition Bureau (TCEB), the Eastern Economic Corridor (EEC) Office and Pattaya City. Pattaya City, Chiang Mai, Phuket, Khon Kaen and Bangkok are promoted by the TCEB as the main MICE cities and new infrastructure including the expansion of U-tapao airport will help grow MICE travelers to the city. A new convention center is in the works, with an aim to grow the number of MICE events. Last year, Pattaya saw 169,629 foreign MICE travelers and 1.7 million domestic MICE travelers, generating 16 billion baht. TCEB is encouraging more hotel operators to be certified under the Thailand Mice Venue Standards or TMVS.
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Classic tropical beach bungalows on Koh Phangan
If living on a tropical island with your own business has always been your dream then this classic beach bungalow resort on Koh Phangan is your spot. With 3 rai of land, and 60 meters along the beach, this resort has 32 rooms; 13 are 22 sqm and 19 are 17.5sqm. Included is a large restaurant and many great reviews on booking sites. Known for its classic homey feel, the lease on this fabulous beach front resort is 14 years with a rent of 58,333 baht a month. There are two full time employees and a monthly payroll of 30,000 baht. The business is located in Ban Tai, with access to the main road and a walk from the party scene in Ban Tai village.
ASKING PRICE: 8 million baht
Phuket guesthouse near 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
Restaurant, pub and hotel in heart of Pattaya
This long-running business in the heart of Pattaya and only 300 meters from the beach is a major steal, the owners are retiring after more than 20 years in business and are looking to sell these two freehold properties. Such a prime location does not come up very often, and include in that a popular and well regarded restaurant, pub, and hotel and the two four story shophouse units are a deal.
There are 10 rooms with an office and apartment over the two buildings, plus a large dining area that seats 70 people, a large bar area, and a large shaded outside terrace. The restaurant and bar seats over 100 customers and is open from 8 am to 1 am. Total size of the properties are 63 sqw over four floors. The rooms come fully furnished with en suite bathrooms, air conditioning and large flat screen televisions.
All fixtures, fittings, and equipment are included in the sale price. The property is in the company name.
UPDATED NEW ASKING PRICE: 30 million baht
Online loan business in Pattaya
This online loan business uses an application for borrowers to apply for loans, and the owner has been running the business herself making small online loans and collections.
The borrower uses a motorbike registration as collateral for the loan and the lender holds the title until the loan is paid, if the borrower defaults the company already owns the motorbike which can be sold to pay off the loan.
Based in Chonburi, this business has a registered capital of 5 million baht and includes the registered business. Anyone with capital can run this business, lending experience not necessary.
The 3,000,000 Baht selling price is negotiable.
ASKING PRICE: 3 million baht
Import & Distributor of wholesale foods, includes 4 retail shops
This import and distributor of wholesale foods was established in 1999 and provides high quality imported products for Thai retailers, wholesalers, and industrial users. The business is a direct importer and distributor of fresh produce and other unique food products from both local and overseas manufacturers and suppliers. The business also has four company-owned retail outlets located in wholesale markets.
The company has seen local gross sales average 360 million baht a year, export gross sales average 50 million baht a year .The owner will assist the new owner for one month and would be willing to be on call for a mutually agreed upon extended period of time to introduce all customers, suppliers, and business prospects as well as provide all information and documentation. The owner is retiring and so is selling this profitable company, the new owner could see a return of investment in 4 years.
UPDATED NEW ASKING PRICE: 40 million baht
Assets sale of turnkey restaurant in great Ekkamai location
A great deal for someone interested in walking into a fully set up restaurant on Ekkamai road. The restaurant has 350 sqm over five floors, with two floors used for the restaurant. The new owner could easily expand the upper floors for a hostel set up. Rent on the building is 80,000 baht with a 3 + 3 year lease. The kitchen equipment is only 1.5 years old. The new owner can move into a popular location and start their own restaurant easily. The owner is selling the assets and lease as he is moving back to his home country.
ASKING PRICE: 1.8 million baht
Futsal training center near MRT
This futsal training center is near a MRT station and many nearby schools Established in June 2018 the business has seen annual revenues reach 3.2 million baht.
There are five full time and one part time staff with a total monthly payroll of 60,000 baht. The lease contract is until 2030 and monthly rent is 120,000 baht.
The owner is forced to sell due to ill health.
ASKING PRICE: 8 million baht
Fun retail store chain with unique concept with branches around Thailand and in Cambodia
With a unique and fun concept, this retail store has expanded rapidly and now has 39 branches around Thailand and in Cambodia. The stores are a destination and always have something new and fun to explore. Offering low priced fashion products and unique gifts that resonate with tourists and residents, the owners of this store have found that their success has outstripped their ability to manage the business. The company sources their products direct from the factory both locally and around the region. With an ever changing trendy offering of fun products, the company has created a popular and well-known brand image.
The business has 39 locations of which one is the headquarters and warehouse in Min Buri, and a company owned store in a popular tourist district as well as one licensed store. Total rent and services on these locations is around 5 million baht a month. There is 188 staff with a total monthly payroll of 3.17 million baht. Annual sales reach 344 million baht giving a profit of 38 million baht. Inventory valued at 100 million baht is included in the sale.
The company is debt-free would offer the new owner a good income but this is ideal for someone seeking to grow the business through franchising and owner-operated stores as the retail concept has proven to be quite popular.
NEW UPDATED ASKING PRICE: 180 Million baht