Mukdahan, Thailand

Business Associations

Demographic Profile

Growing population in Mukdahan province for last three years as depicted in the graph below; shows a profitable venture in establishing business setups at Mukdahan province. The economy section details out the list of such profitable ventures.

The demographic breakup of the Mukdahan province demonstrates largest contribution from working population between the age of 30 to 60 years. There is an equal distribution between men and women and hence companies dealing in both men and women products will find the market in this province.
Since the young population between the age of 0-14 is the next large segment in Mukdahan province companies dealing in baby products, sports goods, bicycles and toys etc may find good business opportunity in this province.

Economic Zones

Zoned in BOI zone 3, interested entrepreneurs will enjoy the following benefits.
Tax and Duty Privileges:

• Exemption of import duty on machinery.
• Corporate income tax exemption for 8 years provided that a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up-date, otherwise the corporate income tax exemption will be reduced by 1 year.
• Exemption of import duty exemption on raw or essential materials used in the manufacturing of export products for 5 years.
• Deduction from net profit of 25 percent of the project’s infrastructure installation or construction costs in addition to normal depreciation, and such deductions can be made from the net profit of one or several years within 10 years form the date of first revenue derived from the promoted activity.
Special Privileges for investors in Zone 3 (36 provinces):
• 50 per cent reduction of corporate income tax for 5 years after the exemption period.
• Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activity.
• 75 percent import duty reduction on raw or essential materials used in manufacturing for domestic sales for 5 years, based on annual approval (This incentive is not available to projects in Laem Chabung Industrial Estate and industrial estates or promoted industrial zones in Rayong province.)
Source: The Board of Investment of Thailand
Cost of Doing Business
Labor force and labor laws

– Minimum wage (if there is): 165 THB per day (as of 1 January 2011)
Remarks about the labor: Number of Employed Persons Aged 15 years and over by occupation, quarterly and sex in quarter 4 of 2009 shows that there are in the fourth quarter 203,617 labors in Mukdahan province. 124,945 people are skilled agricultural and fishery workers. 25,542 people are service workers and shop and market sales workers. 155,000 people worked in elementary occupation, and 12,864 people are craft and related trade workers.
Source: Statistical tables, Labour Force Survey: 2552-2553, Provincial level, National Statistical Office

Infrastructure Facilities

Much of the prosperity in Mukdahan is attributable to the easier transit to Laos from Thailand brought about by the construction of two bridges. West a new bridge to Thailand which is being jointly supported by Laos, Thailand and Japan.

Transports
By Bus
Transport company has provided buses from Bangkok to Mudahan at Mo Chit Bus Stationa on Kampaengphet 2 Road. Contact number: 0-2936-2852-66.

By Train
From Hua Lam Phong station, Bangkok to UbonRatchathani, then take the bus from UbonRatchathani to Mukdahan (about 167 km.) Buses run three times a day. For more information call 0-2223-7010 or 0-2223-7020
Electricity
There are eight electricity substations in Mukdahan. The total of 82,373,640.74 units of the electricity has been used.
Summary of Annual Power Supplies in Mukdahan 2009

Source : Regional Electric Authority Mukdahan Province, 2010
Water Supplies
Mukdahan has one Water Supply which distributes water throughout a municipality (Thetsaban) and Sanitation district 3 (Sukapiban 3) areas.

Source : Water Supply Office, Mukdahan (2010)

Investment Opportunities

Logistic Provider

The logistics business in Mukdahan province is growing. Situated in the strategic area of EWEC and being border province of Thailand connecting to Savannakhet province in Laos, Mukdahan province has 31 entrepreneurs registered for international cargo transportation. These companies own 176 vans, 7 cargo containers, 32 trailers, 57 semi-trailers and 38 tow trucks.

Source: Mukdahan Provincial Transport Office

Macro Economic Indicators

Economic growth of the Mukdahan province is quite visible through the growth patterns of gross provincial product and per capita income since last three years as depicted in the graph below. This combined with the growing population in the Mukdahan province give you immense business opportunity.

In which sectors can you have business opportunity?
GPP statistics 2009 at current market price by economic activities (Mukdahan Provincial Statistics Report: 2010) shows that the leading sectors which contributes to GPP are Agriculture, hunting and forestry (3,614 million baht), Wholesale and retail trade,(2,444 million baht), Education (2,287 million baht), Manufacturing (1,592 million baht) and Public Administration and defense; compulsory social security fund (1,026 million baht). This wholesale and retail trade majorly comprises of repair of motor vehicles and personal& household goods as depicted in the graph below.

Local products that you can consider trading with Mukdahan province
Forests in Mukdahan were once abundant. There are various and precious kinds of woods and trees. However, they are now reducing due to the continuous forest invasion and destruction.
A. Agriculture & Agro-processing
In 2010, the production in agricultural sector increases. Rice, cassava and rubber production have continuously entered into several markets. Most of the farmers in Mukdahan province grow rice. The planted area in 2009/ 2010 of major rice divided into 97,985 rai which can produce 44,638 tons of non-glutinous rice (average 456 kilograms/ rai) and 432,593 rai which can produce 202,877 tons of glutinous rice (average 470 kilograms/ rai).
Cassava is an important agronomy of the province. With 135,107 rai planted area, farmers can produce 418,389 tons (average 3,097 kilogram/ rai). While with 108,230 rai planted area, farmers can produce 1,224,478 tons (11,314 kilograms/ rai). And rubber, Mukdahan’s important economic crop, with 108,648 rai planted area can produce 4,788 tons (average 292 kilograms/ rai).
Statistics of industrial establishments reveals the increasing in number of agricultural industry from 207 in 2008 to 208 plants/ factories in 2009 (+ 0.5%).
Source: Mukdahan Provincial Industrial Office

Manufacturing
Manufacturing sector contributes 1,592 million baht to the Gross Provincial Products of Mukdahan province in 2009. The expansion of the sector comes from the agricultural productivity. Leading types of industries of Mukdahan province are agriculture, transport, non-metallic metals, metal products, wood & wood products and food. Number of plants/ factories of each industry shown as follow:

Opportunities in Tourism

Skyscraping Ho Kaeo Tower, Phu Pha Thoep and Kaeng Kabao, Eight Ethnic Minorities, Famous Sweet Tamarind, Large Ancient Kettledrum, Origin of Lam Phaya, Stunning View of the Mekong River, Gateway to Indochina. The founding of Mukdahan dates to the late Ayutthaya period, over 200 years ago, when the site of the new town was selected at the mouth of Huai Muk on the bank of the Mekong River in 1767. The town was completed in 1770 and named “Mukdahan” (moonstone or pearl) according to a propitious sign that appeared while the town was under construction. Even today the locals call the town “Mueang Muk” or the pearl on the bank of the Mekong.

For most of its existence, Mukdahan has been a significant gateway to Indochinese countries. The local people of Mukdahan have had a long relationship with the people in Savannakhet province of neighboring Laos, with whom they share a 70 km long Mekong River border. Further, Mukdahan is home to 8 ethnic minorities; namely, Thai Isan, Phu Thai, Thai Kha, Kraso, Thai Kaloeng, Thai Yo, Thai Saek, and Thai Kula. The area also has abundant natural beauty. Mukdahan is also a famous province for producing high quality Mudmee silk.

Mukdahan, the pearl on the bank of the Mekong, has been an historical gateway to Indochinese countries, and the population of the province reflects this: 8 different ethnic minorities live in Mukdahan; namely, Thai Isan, Phu Thai, Thai Kha, Kraso, Thai Kaloeng, Thai Yo, Thai Saek, and Thai Kula. Mukdahan has abundant natural beauty and is also famed for its high quality Mudmee silk.
The rate of tourism in Mukdahan has been slightly increase with reference to an annual report of a number of tourists; average length of stay; average expenditure/person/day (Baht/Day); The total income received from the tourists (Million Baht); a number of rooms and occupancy rate(%) of the year.

Source: 2006-2007 Academic Division, Tourism Authority of Thailand /2008 Department of Tourism, Ministry of Tourism and Sports