Tractus in Thailand

Tractus Asia was established in Bangkok, Thailand in 1995 as multinationals were making significant investments in the Kingdom and throughout the rest of Southeast Asia

While Thailand was once the go-to location for investors in ASEAN who were drawn by its rapid growth, political stability, FDI-friendly business environment, and broad array of market opportunities in manufacturing, services, and agriculture, the past decade has not been easy on Thailand.

Its once leading position as the most attractive investment destination in Southeast Asia has been tarnished by political uncertainty, a slowing economy and rising costs relative to some of its other emerging ASEAN neighbors. Nevertheless, opportunities still abound for companies wanting to capitalize on Thailand’s diverse economy and continued strengths across a broad array of key manufacturing, service and agricultural industry sectors. Few economies in ASEAN have world-class competitiveness in all three of these industries, but Thailand comes close.

Tractus has a proven track record of advising and assisting companies make informed decisions about how to structure and where to locate their investments in Thailand’s dynamic economy. Since 1995 our Bangkok, Thailand team has grown to 18 professionals which support our consulting, economic development and Business Inc.ubator® clients while our shared service staff provide back office support for our 7 offices throughout Asia as well as our business Inc.ubator clients.

Strategy & Execution

Tractus was founded in Thailand to assist companies in finding the optimal site locations for their investments, acquire industrial real estate and negotiate competitive investment incentive packages in Thailand. Our services have since grown to cover multiple strategy development and implementation services under our Strategy & Execution Service Line, as well as growing to add our Economic Development and Corporate Finance Service Lines. Companies now rely on us to undertake market research, market opportunity and business case assessments and advise them on the most appropriate market entry strategy for their business in Thailand. Our Team helps clients begin with an understanding of their goals and then develop a strategy based on an objective analysis of market fundamentals and a sound business case.

Throughout our company history in Thailand our list of clients have touched all sectors of the Thai economy. Our experience includes advising manufacturing and service firms from sectors that include garments, semiconductors and electronics, specialty chemicals, automotive components, and food processing, among others across our Strategy & Execution service line. The Tractus Thailand team has informed our client’s investment decisions in these sectors through conducting manufacturing and site location evaluations, real estate transactions and investment incentives, business case assessments, as well as operational feasibility studies and market opportunity assessments.

Tractus’ Program Management Team is also headquartered in our Bangkok Office. As our clients make investment decisions, they often seek our Teams’ expertise to provide project management services overseeing the design, engineering, and construction contracts of new production facilities and offices, as well as expanding existing ones. Our Project Management team has managed projects on budget and schedule for facilities that range from 2,000 m2 to 150,000 m2 in Thailand and throughout Asia.

Tractus’ Thailand provides Business Inc.ubator® solutions for companies that are looking to identify a low-risk entry in the increasingly crowded market without the expense of formally establishing a subsidiary or business entity and has worked with clients from industries in agriculture and FCMG. Our Tractus Office, in central Bangkok, provides the office space and management oversight our clients seek to either outsource sales plans, or manage locally hired staff to meet sales objectives.

Regardless of the investment strategy chosen, the Tractus Thailand team has the expertise and experience to support our clients with their investment strategy execution from registration of the legal entity, recruiting key management personnel, selection of professional service vendors to managing the design, engineering and construction project management of a new or existing facility and providing management oversite of existing operations.

Corporate Finance

As markets in Asia mature and become more competitive, oftentimes the best strategy for accelerating market entry is to enter into a joint venture or acquire and established firm. While Thailand is consistently ranked as one of the easiest places to do business in Asia from a regulatory perspective, joint ventures and acquisitions in the Land of Smiles can be deceptively difficult to conclude successfully due to differences in culture and expectations of Thailand’s highly entrepreneurial investors.

The Thailand Corporate Finance team has developed significant experience structuring private placements and raising funds for innovative technology companies, particularly in the medtech space from North America. While markets for growth capital are highly developed in North America and to a lesser extent Europe, Asia is a relative newcomer to the venture capital and private equity scene. But there is significant interest by private and sovereign wealth funds to capitalize on the opportunities for matching Asian capital and market opportunities with cutting edge technology firms from the US. Tractus has been able to successfully secure growth capital for several early and mid-stage technology firms at valuations significantly higher than might be expected from the more competitive markets in North America and Europe.

Economic Development

Tractus regularly works with Economic Development Organizations (EDOs) that include industry and trade association, investment promotion agencies, trade promotion agencies and private developers, as they assess trade and increasingly outbound investment attraction policies in Thailand.

Thailand remains a mature market for attracting outbound foreign direct investment (OFDI) and a key strategy that we help our clients implement. Tractus has worked extensively with our EDO clients on long-term strategy and trade service requests that provide insights for increasing trade opportunities in sectors of the economy like food and agriculture.