Investing In Thailand – How Not To Get Ripped Off
As with all developing countries, Thailand is doing its best to attract overseas businesses to its shores. These new businesses bring new jobs, increased revenue, and potential growth. In a bid to help areas outside the capital achieve better growth Thailand is offering incentives to businesses that choose to “set up shop” further afield. In terms of investors, Thailand has been divided into 3 zones with a sub area in zone 3 that includes the most remote and developing areas.
One area that is being talked about enthusiastically for investment is Rayong and its surrounding areas, where excellent opportunities are thought to be emerging for foreign companies. It’s a very picturesque part of the country, is commutable from Bangkok, and has a number of efficient ports and roads. Thailand is currently the 14th largest automobile market and in fact many U.S. automobile companies are already based in Thailand. Thai employees are known to be hard working, very cost competitive and highly trainable. On the whole Thailand is an attractive place to invest, however scams lurk around every corner, especially when a foreigner is spotted. You should also be aware it’s not just local con artists you need to watch out for. One friendly, well dressed expat may approach you on the street, invite you to his impressive office and propose to you the wondrous opportunities within the Forex market. Promising returns of over 10% a month on investments ensures many naive newcomers fall victim to such scams. Scams where the money you invest is simply stolen and lost without trace.
If you’re thinking of investing in Thailand you must first and foremost be completely aware and educated about common frauds such as Ex-Pat clubs, and British Nationals selling misleading legal and financial advice. Just because you’re approached by someone in a suit who looks official, it doesn’t mean they’re a legitimate business person. Like most things in life, if it looks too good to be true it most probably is.
Here is a brief overview of the stock exchange performance in Thailand in recent years.
With global interest rates at low levels, individual investors in Thailand and around the world are jumping at the opportunities to invest. Small businesses are particularly appealing as investments, as these tend to have less volatile stock prices, higher cash dividends, and above average potential growth. Value investing for high dividends has been extremely rewarding on the Thai Stock Exchange for many years, yet this is highly unreported. It’s been suggested that less than 100 out of the 460 companies listed on the Thai Stock exchange are researched by the brokers, even though many of these under-researched smaller companies have been outperforming local and global stock indexes for many years.
For foreign investors there are some really exciting opportunities if you do your research, and a few savvy investors are already grasping these new discoveries. Another alluring investment opportunity in Thailand is that of gold, however like anything else, there are charlatans waiting to grab your cash. Many scam gold trading firms have been formed and have tricked people into investing in the gold spot market. Tempting proposals range from gold stashed in far away locations such as Switzerland or South Africa, to the opportunity to buy whole gold mines which are in fact completely fictional. Executed correctly and with solid advice, the gold market is definitely one of the most secure investment opportunities in Thailand. If you are willing to wait for your profit, gold is a currency unlikely to disappear and is a sound, solid investment which can be cashed in at any point. If a gold investment company is not listed on internationally credible websites then the chances are there’s a reason. Ideally you should deal with a reputable Wall Street firm, who would give you far more reliable advice and guidance. Despite there being many scams across different sectors, one that foreigners should steer well clear of is the Gem market. Entitled the Thai Gem Scam or Bangkok Gem Scam and practiced all over Asia it is enticing many tourists.
It’s been suggested that members of the Royal Thai Police and even politicians are involved in the fraud. Foreigners are convinced by friendly Thais that the gems in their jewelry stores can be sold for quadruple the cost back in their countries, and that they would be foolish not to invest. On their return home the gems are found to be completely worthless. Countless numbers of the jewelry stores are involved, and there is a high probability that your honest and hospitable new jewelry store owner ‘friend’ is also participating.
If properly informed, Thailand offers plenty of exciting and legitimate investment opportunities for foreigners.
We are a matchmaking company that has built an internationally respected reputation for providing the highest quality dating services for Western guys seeking a long-term, committed relationship with a Thai woman as well as Visa Assistance.
We also host Dating Events where you can meet single, lovely and trustworthy Thai ladies who are also looking for genuine relationship.
To know more about it, send us a message and we will talk.
