Why do entrepreneurs love Southeast Asia?
It’s not just the low cost of living!
When the Empires of Europe were colonising Asia, the Kingdom of Siam used clever diplomacy to retain its independence. This is why, according to many scholars, the proper translation of the name of the country we now call Thailand is ‘The Land of the Free.’
If there’s one theme that persists when entrepreneurs working abroad are asked what inspires them, it’s an enduring desire to live a life of freedom. First vacationers, then Digital Nomads and today Digital Expats consistently choose Thailand as their destination when escaping from the humdrum of life in the West.
There is something in the very essence of Southeast Asia — and Thailand in particular — that lures independently-minded professionals.
Foreign participation in Thai business is very heavily restricted. This policy has protected Thailand from some of the worst effects of globalisation and allowed the country to develop its own highly competitive industries, including internationally renowned companies like Red Bull and Chang Beer. But when it comes to digital skills, no country is capable of relying entirely on the talents of its own people. The Thai government knows that digital industries require the expertise of foreigners, and for this reason there are special exceptions in place that allow the country to leverage highly specialised talent.
The freedom available in Thailand has attracted vast swathes of young hustlers with lifestyle businesses, dropshipping websites and influential social media accounts. While the success of these go-getters is no doubt enviable for many, this kind of business is not exactly lucrative for Thailand and its people. Instead, the country needs to attract ‘mature’ digital professionals — designers, developers and strategists capable of developing a thriving tech ecosystem and assisting in the digital transformation of public services. To that end, the government partners with companies like Iglu to offer a particularly hospitable package of permissions and access to healthcare for professionals who are serious about organising their business affairs in the country.
Companies that develop mobile apps go to great lengths to win the affections of the Thai market.
One reason is that Thailand has a young population that tends to adopt new technologies extremely quickly. There’s a strong cultural link between technology and fashion, and perhaps more than anywhere else, companies are able to drive real excitement in the Thai market by releasing new cosmetic options in both games and social media. Bangkok is the city with the largest number of active Facebook users in the world. Thailand’s ‘digital culture’ is one of individual expression and experimentation, with many Thais posting their thoughts and opinions on Facebook with far fewer inhibitions than Westerners. As a result, apps that localise well can build strong communities and benefit massively from word-of-mouth and co-branding.
The domination of Silicon Valley and other tech hubs has forced governments to regulate digital industries heavily. Decision makers simply can’t keep up with the pace of digital disruption, and many jurisdictions decide that it’s better to be safe than sorry and ban companies like Uber and AirBnB outright. For developing countries, such concerns are secondary to the need to attract foreign investment. Digital giants have a dominating presence in many parts of the world, but Southeast Asia is a notable exception. The thriving local tech ecosystem has meant that the largest tech companies have many serious competitors that prevent them from establishing total market dominance. Even companies like Uber have retreated from Southeast Asia, selling their business to local rivals. Within this context, the rapid pace of development of Thailand has created an environment where tech companies are safe from both overbearing regulation and from being identified as a threat and eliminated by a Western competitor.
The North of Thailand is part of a mountainous region some academics have named ‘Zomia.’ This region is said to be home to some of the world’s most independent people, who have preserved their customs and languages despite every attempt at statecraft by the rulers of modern nation states. This character has inevitably crept into the culture of nearby cities such as Chiang Mai, a truly international city known for its artists, culinary scene and expat population.
In the south of Thailand, Phuket attracts location-independent workers who aim to live by the mantra of ‘working on the beach.’ Finally, Bangkok serves as the ideal staging ground for international business, with its unequalled transport links to the rest of Asia and the world.
