Tuesday, October 20, 2020

Business registrations fall 7% in August

Sep 25. 2020
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By The Nation

The number of newly registered companies fell to 5,538 in August, down 7 per cent year on year and 2 per cent from July.

"Total share capital of companies registering their business in August was Bt14.31 billion," said Department of Business Development deputy director-general Sorada Lertapachit.

Meanwhile a total of 1,337 companies closed in August, down 24 per cent year on year, but up 6 per cent compared to July.

"Combined share capital of companies that closed [in August] was Bt5.40 billion, down 81 per cent year on year from Bt23.52 billion," she said.

In the Eastern Economic Corridor (EEC), 4,353 new companies registered from January to August, down 12.5 per cent year on year. The majority (3,087) were located in Chonburi province and most (60.63 per cent) were in the services sector – property, construction, and food – followed by retail and manufacturing businesses.

Foreign investors hold a combined 40.51 per cent stake in the new companies – dominated by Japan (48.19 per cent), China (11.11 per cent) and Singapore (5.46 per cent).

Most new foreign investment (52.97 per cent) was in Rayong province and focused on automotive parts manufacturing.

Investment was being boosted by government efforts to mitigate the Covid-19 impact, and growth of businesses meeting demand in the “new normal” era, Sorada said.

However, a second Covid-19 wave after the country reopens to foreign tourists next month would hit business and investor confidence, so the government should impose strict health screening for tourists, she added.

Reopening to tourists will benefit the service and tourism sectors, including transportation, accommodation, restaurants, and travel businesses, she said.

"Therefore, we expect business registrations to hit the target of 70,000 companies or 5,500 companies per month at the end of this year.”

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