Decrease in New Business Registrations Due to Uncertainty in Global Trade Conditions
Amidst global economic turbulence and geopolitical conflicts, the Business Development Department has reported a drop in new business registrations for April 2025, noting a 3.14% decrease compared to the previous period. Despite this decline, the total registered capital saw a 17.86% increase, reaching THB 32.14 billion [1].
This trend is partly due to investors holding off on new ventures as they navigate through international trade policies, uncertainties about US tariffs, and broader global economic challenges. The top three sectors that welcomed the most registrations were general building construction, real estate, and restaurants and catering [1].
Intriguingly, two businesses registered during April 2025 boasted billion-dollar capital. Gulf Development Public Company Limited, with registered capital of THB 14.94 billion, is actively engaged in various activities both domestically and internationally. Idemitsu Apollo (Thailand) Co., Ltd., on the other hand, invests in the manufacturing and distribution of lubricants, greases, and related products, with a registered capital of THB 1.58 billion [1].
Looking at the broader picture, January-April 2025 showed a 4.39% decline in new business registrations, amounting to 30,148, while the total registered capital rose by 17.70% to THB 112.06 billion. The same pattern is observed in the top three sectors during this period: general building construction, real estate, and restaurants and catering [1].
The decline in new business registrations is seen most prominently in sectors such as real estate, online retail, general retail stores, and real estate brokerage. This is partly due to factors like global economic volatility, indebtedness of households in Thailand, and uncertainties regarding US import tax policies.
However, some sectors have experienced growth compared to the same period last year, including wholesale trade, animal feed wholesale, hotels, hospitals, and used car sales. This growth can be attributed to the government's tourism promotion activities and evolving health and lifestyle trends among consumers [1].
Moving forward, it is anticipated that Thailand's economy will find traction in the second half of 2025, fueled by factors such as private consumption, private investment, policy interest rate cuts, tourism recovery, and accelerated disbursement for public infrastructure projects. This could potentially contribute to an estimated 90,000 business registrations for the year [1].
The government's strategic approach, which includes efforts to ease foreign business ownership rules, simplify licensing requirements, and digitalize business registration processes, remains vital for maintaining Thailand's appeal as an investment destination during trying global economic circumstances [2][4].
[1] TAGS: New Business Registrations, global trade, The Department of Business Development, Economic Challenges, US tariffs[2] TAGS: Business Adaptation, KBank warns of rising bad debts[4] TAGS: Digitalization and Modernization, Thailand's Attractiveness as a Business Destination
- Amidst the drop in new business registrations due to international trade policies, uncertainties about US tariffs, and broader global economic challenges, the Business Development Department reported a notable increase in the total registered capital.
- The top three sectors experiencing the most business registrations were general building construction, real estate, and restaurants and catering, with two billion-dollar capital businesses registered in April 2025.
- Despite a 4.39% decline in new business registrations from January to April 2025, the total registered capital showed a 17.70% increase, emphasizing the need for investors to navigate through complex economic situations.
- Sectors such as real estate, online retail, general retail stores, and real estate brokerage have seen a decline due to factors like global economic volatility and indebtedness of Thai households.
- However, sectors like wholesale trade, animal feed wholesale, hotels, hospitals, and used car sales have experienced significant growth compared to the same period last year, attributed to government's tourism promotion activities and evolving health and lifestyle trends among consumers.
- Looking ahead, Thailand's economy is anticipated to find traction in the second half of 2025, fueled by factors such as private consumption, private investment, and public infrastructure projects. The government's strategic approach to easing foreign business ownership rules, simplifying licensing requirements, and digitalizing business registration processes are key for maintaining Thailand's appeal as an investment destination during challenging global economic situations.
