Thailand has untapped startup potential, BCG report says

Thailand may be Southeast Asia’s second-largest economy in gross GDP terms, but its startup ecosystem still has untapped potential, a new report has revealed.

The report by Boston Consulting Group and its tech division BCG X notes that though Thailand has a higher gross GDP than Singapore, Vietnam, the Philippines, and Malaysia, it’s home to the smallest number of startups among the five.

According to Tech in Asia data, the country has roughly 180 startups that have received funding, compared to 1,780 in Singapore, which has a slightly smaller gross GDP.

The report was produced in collaboration with Alpha Founders Capital and WV. Tech in Asia contributed to the report as a knowledge and data partner.

With the Thai startup scene “underrepresented” compared to the nation’s GDP, the report said the nation has “vast untapped growth opportunities.”

It seems investors agree that opportunities exist in the Thai market. As the BCG X report also illustrated, there are a growing number of investors doing business in the country.

There were only 10 corporate venture capital (CVC) firms in the country in 2018, yet this figure swelled to 17 in 2022, per Techsauce data.

The number of corporate investors in Thailand also increased from eight in 2015 to 28 as of last year.

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In addition, Thailand’s startup landscape is poised to receive an injection of more than US$400 million in VC funds in the next few years, according to the report.

The report also touched upon policies the Thai government has launched in recent years to encourage the development of startups, including capital gains tax exemptions and the launch of a national fund for startups.

Credits

Graphics: Peter Cowan

Editing: Dhania Putri Sarahtika