Tractus in Thailand

Tractus Asia was formed in Bangkok, Thailand in 1995 as multinationals were making significant investments in the Kingdom and the rest of Southeast Asia. While Thailand was once the go-to location for investors in ASEAN who were drawn by its rapid growth, FDI-friendly business environment, broad array of market opportunities in manufacturing, services and agriculture and political stability, the past decade has not been easy on Thailand.

Its once leading positon 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 in the Greater Mekong Sub-region (GMS). 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 of these three 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 to support our consulting, economic development, and corporate finance 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

We built our business around the need for corporates to find the optimal site locations for their investments, acquire industrial real estate and negotiate competitive investment incentive packages in Thailand. Companies now rely on us to undertake market research and market opportunity and business case assessments and advise them on the most appropriate market entry strategy for their business in Thailand. These strategies may include:

  • exporting into the country through a dedicated representative or agent
  • establishing a start-up greenfield investment requiring the identification of a new site and construction of facilities
  • entering into an equity joint venture or acquiring an existing business, or
  • entering the market utilizing Tractus’ business Inc.ubator services

Our strategy and execution clients have included manufacturing and service firms covering a diverse range of manufacturing and service industries for engagements such as evaluating the market opportunities for women’s intimate apparel and men’s underwear; business case assessments and operational feasibility study for hard disk drive (HDD) suspension manufacturing operation; conducting dozens of manufacturing site location evaluations; real estate transactions and investment incentives negotiations for semiconductor, automotive components, specialty chemicals, food processing, etc.

Tractus’ business Inc.ubator was conceived as a cost effective and low risk way for companies to evaluate the Thailand market without the expense of formally establishing a subsidiary or business entity or providing supplemental management support for existing businesses. Our business Inc.ubator clients utilize Tractus services such as:

  • legal entity to employ dedicated Thailand staff
  • office space as a place to do business
  • HR, administration and accounting shared services team for back-office support, and
  • senior management and Directors for experienced oversight

to establish a presence in the market before making a formal commitment to establish a legal entity and start-up operation in Thailand. Tractus’ business Inc.ubator has proven to be an effective vehicle for companies such as:

  • NovaTech Engineering to provide innovative beak treatment services for the poultry industry
  • the Kellogg Company to base its Southeast Asia supply chain team, and
  • Asset Management Systems (Thailand) Co., Ltd. to grow its medical asset management outsourcing business in Thailand

Tractus provides project management services overseeing the design, engineering, and construction contracts of new production facilities, or the upgrade of existing ones, and offices on behalf of our clients in Thailand, such as:

  • AMCOL International
  • Eagle Ottawa
  • Jelly Belly Candy Company
  • SDV Logistics

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.

Strategy

  • Market Opportunity Analysis
  • Regulatory Analysis
  • Business Case Assessments
  • Feasibility Studies

Execution

  • Site Selection
  • Real Estate Acquisition
  • Incentives Negotiations
  • Government Approvals
  • Start-up Management
  • PM & Client Rep

Business Inc.ubator

  • Recruiting Assistance
  • Office Space, Admin & Management Oversight
  • Operations Management

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 Tractus Thailand corporate finance team has years of experience negotiating joint ventures, acquisitions and dispositions. The team has assisted companies to:

  • identify and screen acquisition targets and joint venture partners
  • formulate optimal corporate/deal structures
  • undertake financial modeling and analysis
  • undertake financial and operational due diligence
  • support negotiations and deal documentation through closing on both acquisitions and dispositions

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.

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 Tractus Thailand corporate finance team has years of experience negotiating joint ventures, acquisitions and dispositions. Lead by Richard J. Smith, a long-time expatriate resident, the corporate finance team has assisted Thai and foreign companies identify and screen acquisition targets and joint venture partners; formulate optimal corporate/deal structures; undertake financial modeling and analysis; undertake financial and operational due diligence and support negotiations and deal documentation through closing on both acquisitions and dispositions.

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 in 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 Thailand’s corporate finance team 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.

Strategy

  • Strategy Development
  • Targeted Marketing
  • Lead Generation
  • FDI Missions

Trade Promotion

  • Market Research
  • Distributor Searches
  • Background Checks
  • Trade Show Representation

Technical Assistance

  • FDI & Trade Attractiveness Benchmarking
  • FDI & Trade Strategy Development
  • Economic Research & Analysis
  • Government Advocacy

Economic Development

For economic development organizations (EDOs), private developers, industry trade associations and government investment promotion agencies (IPAs) seeking to attract outbound foreign direct investment (OFDI), promote trade or develop investment attraction and trade promotion strategies and policies, the Thailand team leverages its experience advising and assisting corporate investors make informed decisions about where to invest to support these initiatives. Sharing these experiences gives economic development organizations insight into what strategies should be used to attract and retain investors and promote exports as well as policies to implement to promote economic growth.

Tractus represents US, EU and Asian EDOs and IPAs of regions, states and provinces and municipalities as well as industry trade associations to promote exports. We also provide sector analyses, trade show and trade mission support and representation for economic development and industry trade associations in Thailand.

The Tractus Thailand economic development team has significant experience undertaking technical assistance projects funded by multilateral organizations such as The World Bank, International Monetary Fund (IMF), ASEAN Secretariat, UNCTAD, the Ministry of Commerce of the government of Cambodia and others develop FDI attraction policies and strategies; benchmark the attractiveness of countries as destinations for FDI and undertake economic research and analysis.

Our Clients

What People Say About us

  • Tractus’s understanding of the ever changing BOI application process in this politically charged time was instrumental in us getting a successful approval with Thailand Board of Investment. Very pleased with the result when we thought it was doubtful at best.

    Staff understanding of our business was key to the success and frankly as the requirements changed due to the changing policies it was important that we had regular meetings so that Tractus staff could keep us up to date.

    Tractus has been an important part of our successful corporate strategy and planning in Thailand and Asia for many years but this last Thai project showed that they are very much on top of the changes that are facing the country and that Thailand is still a great place to invest.

    AMCOL Board of Investment Approval
  • I have found Tractus Asia to be a very competent and professional company to do business with and will look use them for future projects.

    Jelly Belly Candy Company – Project Management

For more information about the business strategy and execution capabilities of Tractus Thailand and how we can assist you to make informed decisions about how to invest in Thailand contact below

Strategy & Execution

Dennis J. Meseroll

Executive Director

Corporate Finance

Richard J. Smith

Head of Corporate Finance

Economic Development

John J. Evans

Managing Director

Download our FREE Tractus Economic Development RAMP for 2016

Contact Tractus Thailand

75/64 Richmond Office,
18/F, Sukumvit Road,
Soi 26, Bangkok 10110
THAILAND