Joint ventures continue to exert a significant influence on the Thai business landscape, providing avenues for both local and foreign enterprises to collaborate and foster growth across diverse industries. As the regulatory environment evolves and noteworthy legal developments persist, staying well-informed and adapting strategies accordingly is crucial for JV participants. With Thailand’s economy rebounding from the repercussions of the COVID-19 pandemic, JVs are poised to maintain their status as a favored investment approach for businesses seeking growth opportunities and market access.
From a legal standpoint, assets contributed by a participant and those originating from the joint venture (JV) itself are considered indistinguishable, as both are regarded as assets of the JV company. Nevertheless, when it comes to asset valuation, assets contributed by the participants may utilize their original valuation at the time of transfer to the JV (at the outset) as a baseline for the valuation process.