The financial feasibility analysis of establishing a riverside market along the Ping River in Fa Ham sub-district, Mueang district, Chiang Mai Province

Abstract

This study evaluated the financial feasibility and assessed financial risks of establishing the Ping Riverside Market in the Fa Ham community, Chiang Mai Province, to inform community investment decisions. A mixed-methods design was employed, combining qualitative analysis to establish financial assumptions with quantitative analysis to assess project viability. Data were collected through in-depth interviews and focus group discussions with 14 participants, including municipal officials, community leaders, subject specialists, and members of the research team, over an eight-month period from June 2025 to January 2026. The findings indicated that the project requires an initial investment of approximately THB 1.91 million. A key cost advantage is the absence of land rental expenses because the market would operate on public land. Based on a 10% discount rate, the project showed strong financial viability, with a net present value of THB 18.94 million, an internal rate of return of 239%, and a payback period of approximately five months. Sensitivity analysis identified rental income as the most critical determinant of project success. The study therefore recommends maintaining high occupancy rates and implementing sustainable environmental management to support long-term viability.