The Reasons Behind Foreigner’s Presence in Bangkok

In recent years, Thailand has become more and more popular among foreigners when considering their residence. From the 2019 Thailand Migration Report, statistics from various sources shows that there is approximately 4.9 million non-Thai population residing and working in Thailand. Despite the low-skilled worker from neighboring countries, refugees and irregular migrants, there are 150,707 expats and 112,834 professional and skilled foreigners residing or working in Thailand.

Source: 2019 Thailand Migration Report

In general, one of the reasons why foreign people moved to Thailand is the relatively low cost of living. According to HSBC’s 2015 Expat Explorer Survey, Thailand is more affordable and easier for expats to set up and find accommodation than other regional financial capitals such as Shanghai. From the table below, it clearly shows that Japan and China have the largest amount of people living in Thailand with work permits. In Bangkok alone, there are 80,000 to 90,000 professional work permit holders. What are the specific reasons behind the large amount of residence in Thailand, especially Bangkok, from Japan and China?

China – Outstanding Medical Service

Thailand had the largest Chinese population in Southeast China that Chinese make up to 10-14% of the population. Apart from the lower living cost, Thailand medical service is another reason why Chinese live in Thailand. Thailand’s medical standards are not inferior and even ahead of that in China. The three best hospitals in Thailand, which are Bumrungrad Hospital, Samitivej Hospital and Bangkok Hospital, were once awarded the top ten hospitals in the world. With 40 hospitals obtained JCI (the most authoritative standard for evaluating medical institutions in the world), Thailand ranks first in the ratio in the ASEAN.

Japan – Presence of Japanese Firms

As of 2020, the Ministry of Foreign Affairs reports that Thailand has the fourth highest number of Japanese expatriates while Bangkok has the second-largest Japanese expatriate population of any city. Due to the infrastructure and connectivity of Bangkok, international firms are attracted to do business here with faster procedures to register a company, which allows for insurance coverage and legal protection. More than 4,500 Japanese firms (e.g. Toyota, Panasonic and Canon) are also attracted to establish their office in Bangkok for more profit from the cheaper labor force. A lot of Japanese would then reside in Bangkok for work.

Japan - Better living environment with lower cost

Because of the high land prices in Tokyo, the living spaces are usually small and expensive. With the same budget, Japanese can live in a Thai condominium with larger space and more facilities. From Numbeo, people would need around 173,379.16 Bahts in Tokyo to maintain the same standard of life that they can have with 100,000 Bahts in Bangkok.  There would be more disposable income for the Japanese to spend on other things and thus lead to a higher quality of life and living standard. Apart from housing, there are more and more Japanese restaurants and supermarkets there to fulfill the needs of the community of Japanese expatriates.

Source: Expatistan

Education is also one of the primary motivations for Japanese expat families since there is Thai-Japanese school that is open only to Japanese nationals which create their own social circle. The International Baccalaureate (IB) programme provided by international schools in Bangkok is attractive for those who would like to base their families in Bangkok.  

Apart from Japanese businesses mentioned before, there are more and more international firms from different fields set up office or even regional headquarters in Bangkok such as PepsiCo’s and Unilever. The global businesses would bring more capital and opportunities to Bangkok while more international talents would reside in Bangkok.