As the second-largest economy in Asean, Thailand's start-up scene has made leaps and bounds in the past few years. As a result, the National Innovation Agency (NIA) -- the state body which functions as an "integrator" for Thai start-ups -- will encourage local startups to invite domestic and international venture capital to invest between US$10-100 million (about 320 million to 3.2 billion baht) in start-up companies across the country.
Since 2016, the government has been working with start-up companies to turn Thailand into a society of entrepreneurs, the NIA said.
As a result, the number of start-ups has ballooned, larger companies are stepping up their investments in start-up companies, and the total of investments by venture capitalists has also significantly increased, the agency said.
Last year, the start-up ecosystem in Thailand grew by about 30-40% and it is expected to grow above 50% this year in terms of the total investment injection. At present, funding from overseas and local investors for the local start-up community stands at 44 billion baht.
This year will also see a number of large Series-C fundraising deals among Thai start-ups, some of which have already achieved "centaur" status with valuations of at least US$100 million.
The rise of Thai start-ups has made Thailand an attractive hub for start-up companies, which resulted in Bangkok being chosen as the best city for start-ups in Asia and the world's seventh best city for start-ups, the NIA said.
The agency recently released the national masterplan for the second phase of start-up development for 2019-2021. In the second phase, the NIA will be focusing on the "three Is" -- which stands for innovation, investment, and internationalisation. The strategy was chosen in the hope of firmly establishing Thailand's spot on the list of the World's Top 20 Start-up Nations.
To encourage innovation, the agency will support start-ups to develop disruptive, innovative technology in areas such as artificial intelligence, healthcare and green technology, so that they can meet the needs of the market.
To promote internationalisation, the agency has collaborated with the private sector to set up start-ups in Bangkok's Punnawithi and Rama IX areas. It has also set up a start-up zone in Yothi and invited international investors from Japan, Singapore, Austria, France and Germany to expand their business and invest in start-ups in those areas.
"I believe Thailand has the potential to become a hub for international start-ups, as geographically the country is a gateway to Southeast Asia," said Pariwat Wongsamran, director of NIA's Start-up Thailand initiative.
"Our strategic location allows us link the local market with the wider market worldwide," he said. "Moreover, the government is also providing a number of incentives, such as smart visas, to get international firms to set up operations here."
He added that another important reason for international firms to enter and expand their business in Thailand is the size of its market, as there are more than 70 million people in Thailand that start-ups can work with to carry out market testing. "Start-ups can develop their products and services, and use Thailand as their proving ground," said Mr Pariwat.
"Our goal is to attract 3,000 international innovation-driven entrepreneurs across multiple industries in the next 10 years," he said.
Meanwhile, the NIA will also urge local start-ups to look and go beyond the domestic market, with the goal of creating homegrown "unicorns" -- start-ups valued at $1 billion or more -- within three to five years.
"Unlike Singapore, Indonesia and Malaysia, Thailand still lacks a major internationally recognised start-up," Mr Pariwat said.
"The growth of Thai start-ups is still very limited because they don't have a global or regional outlook."
"In order to build "unicorns", we need to venture abroad -- at least within Southeast Asia," he added.
According to Mr Pariwat, the next Thai "unicorn" is likely to emerge from the agricultural, food, health, travel and tourism technology sector, where the kingdom has already made inroads.
He said that the NIA will submit the National Start-up Act to the cabinet for approval after the new government is sworn in, adding that the act will include incentives geared at improving Thailand's start-up ecosystem.
The agency expects that by 2021, Thailand will have around 1,000 start-ups employing over 5,000 highly skilled experts, which could boost the country's gross domestic product by up to 5%.