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Thailand Country Outlook 2007
Thailand Country Outlook 2007
Ann Bacher
Senior Commercial Officer
U.S. Embassy, Commercial Service, Bangkok
Is Thailand right for you?Is Thailand right for you?
Thailand:Vibrant Market in the Heart of ASEAN
• 10 Country members
• 500 Million Consumers
• Combined GDP of US$737 billion
• $88 billion in US direct investment
• 4th largest US export market
• Total 2-way trade $168 billion
Thailand: A Nation in Transition 2005-2007
• Political changes
• Economic changes
• Social changes
Thailand Overview : Politics
Chief of state: King Bhumibol Adulyadej (since 1946)
• Principal Government Officials
• Chief of State: King Bhumibol Adulyadej
• Interim Government CNS/PM:Surayuth Jalanont
• Political type: Constitutional monarchy
• Interim Constitution
• Independence: Never colonized; traditional founding date 1238
Head of Government: Prime Minister Surayuth Jalanont
Thailand: AT A GLANCE
• Population
• Religion
• Literacy
• Language
Thailand Outlook : Economy• GDP: $176.38 billion• Per capita GDP: $ 2,724 (05),$ 3,600 (06) • GDP Growth rate: 6.1% (04), 4.7% (05),
4.8 % (06), 4.5% (07) • Inflation Rate: 2.7% (04) 4.6% (05), 4.5%
(06), 5.1% (07)• Unemployment rate: 2.0% of total labor
force• Key Industries: tourism, textiles, garments,
agricultural products, automotive, manufacturing, services
Thailand: A Trader
• Export Economy
• 15th Largest Trading Partner for U.S.
• 2 way trade 30 Billion
• Exports to U.S. 22 Billion up 13%
• In Asia: China, Japan, Taiwan, Malaysia, Thailand
Thailand: Investment
• Japan Largest Investor
• U.S. #2
• Singapore, Europe, Hong Kong, Taiwan
• Sectors: Automotive, Electronics, Chemicals, Services, Manufacturing
US Investors23 billion USD – 250,000 employees
Building Stronger U.S –Thai Business Ties
Bilateral Agreements• Treaty of Amity and Economic
Relations (1833, amended 1966)• Double Taxation Convention
(Dec. 15, 1997)• The Economic Cooperation
Framework (Dec. 2001)• Trade and Investment
Framework agreement (TIFA) (Oct. 23, 2002)
• Free Trade Agreement (suspended)
Private Partnership
• American Chamber of Commerce in Thailand
• U.S-Thai/Thai-US Business Council
• U.S – Thailand FTA Business Coalition
• U.S-ASEAN Business Council
Market Strengths
• Good Fundamentals• Strong domestic
consumption• Increase in exports• Open to Foreign
Investment• Low-cost skilled
workers
• Low inflation• Good infrastructure• Government support
& incentives• Location
Challenges in Thailand
• Political Turmoil• Unrest in Southern
Provinces• Corruption/Transparency• Weak IPR Protection• AVIAN Influenza Threat• Customs/Tariffs Issues• Thai Way
Where do U.S. Exporters Succeed ?
• Electrical Power Equipment
• Education and Training• Food Processing and
Packaging Equipment• Medical/Laboratory /
Healthcare
• Defense Sales• Automotive Parts and
Aftermarket• Safety and Security• Information Technology• Environmental
Technologies
Cosmetics• Market size : $1,078 million (FY06)• Total imports: $261 million with $57 million from U.S. • Expected growth rate: 12% this year• US products are highly sought after and well regarded• Competition from France, Japan, UK and Germany getting stronger
Best Prospects• Anti-aging facial treatments• Whitening facial treatments, body lotions• Hi-end makeup and skin care• Cosmetic products for men
Best ProspectsPramot
• Medical Devices Market in Thailand :– $553 million market with 20% growth rate– 89% import and products from the US has 36% share– 978 public hospitals (105,600 beds) and 356 private
hospitals (35,900 beds)– Leading best prospect: orthopedic devices, rehabilitation
devices, diagnostic test kits, and cardiovascular devices. • use of local distributor is highly recommended.
• Education and Training Service– US largest share with – 10th leading country – Overall sector is a $720 million market in Thailand– The market is untapped and always opens to new-comers – Brand recognition is high and word of mouth is crucial
Nalin
Best Prospects
Best Prospect • Food and drink processing equipment, Cooking or heating
food machinery, Fruit, vegetable and herb processing equipment, Fruit juice machinery, Snack food and confectionery equipment, and Meat processing equipment
Pramot
Food Processing and Packaging Equipment• Market size: $696 million (FY05)• Total imports: $493 million with $26 million from U.S. • Expected growth rate: over 20% for the next few years• In FY2005, the U.S. Suppliers shared about 5% of the total imported market
Best Prospects
Market Overview - Electric Power System• Generation capacity – 26.4 GW • Growth in electricity demand – 5% • Fuel mix – gas 72%, coal 12%, hydro and other
16% - renewable growing • Total imports of transmission and distribution
equipment - 3.5 billion• U.S. market share – 10%
Best Prospects• Generators & parts, Power transmission & distribution
equipment, Equipment for substations & terminal stations, Energy efficiency equipment
Kitisorn
Best Prospects
Automotive Parts and Services/Equipment• Thailand: Detroit of the ASEAN Region• Largest vehicle assembling capacity• Largest domestic market • Assembling industry of double digit growth – 16% - 1.3 million• Parts manufacturing of highest quality
Best Growth prospect for after market• General automotive service equipment & tools
• Tire (wheel) & brake service equipment
• Body and paint repair service equipment
Wanwemol
Best Prospects
Thailand: Growing demand for safety & security equipment • Increasing Government Investment for Public Safety
– Global Requirements: International Airports, Seaports– Market size- $459 Million
• Increasing Private Investment for Property Security – Hi-end property market Boom: Condominium, Hotels, Detached Houses– Commercial Property: Shopping Malls, Office Buildings
Best Growth prospect for after market• Access control systems: card technology systems (smart card, proximity-card, magnetic
strip card), biometric devices, security doors and power fences
• Alarm systems: fire/ intruder alarm systems
• Video surveillance systems: digital video recording and network transmission, CCTV
• Detection equipment: handheld/ walkthrough metal detectors, motion detectors, smoke detectors, x-ray/ screening equipment, anti-shop lifting devices
Wanwemol
Best Prospects
ICT Market in Thailand• In 2005, total ICT market was around $ 10.79 billion, comprising
of $ 7.9 billion for communication, $ 1.6 billion on hardware, $ 1.06 billion for software, and $ 171 million in service
• Forecasted growth rate of 12% in 2006 to a value of $ 12.64 billion.
• U.S Share of Import market estimated around 70-80%
Best Prospects:• Data Communication Infrastructure, Wireless network,
Package software such as CRM application, security software, Internet Infrastructure
OraphanBest Prospects
What do you need to do to Succeed?
• Know the MarketExport Counseling
• Develop a Trusted Local PartnerInt’l Partner Search/International Company Profile
• Learn the RulesFlexible Market Research
• Build the RelationshipGold Key Service/Trade Events
For More Information on Doing Business with Thailand
http://www.buyusa.gov/thailand/enhttp://www.buyusa.gov/thailand/en http://www.Export.govhttp://www.Export.gov
http://www.buyusa.gov/asianowhttp://www.buyusa.gov/asianow
Thank you