Thailand Country
Outlook 2008
Ann Bacher
Commercial Counselor
US C
U.S.
Commercial
i lS
Service
i
U.S. Embassy, Bangkok
Is Thailand right for you?
Thailand:Vibrant Market in the
Heart of ASEAN
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10 Member Countries
565 Million Consumers
Combined GDP of US$1,073
million
US$88 billion FDI from U.S.
5th U.S. Export Market, with
Two-way Trade at
US$169.8 Billion
Thailand: A Nation in Transition
2005-2008
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Political Changes
Economic Changes
Social Changes
Thailand Overview : Politics
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King Bhumibol Adulyadej
(since 1946)
Prime Minister Samak Sundaravej
Type of Politics: Constitutional Monarchy
Head of State: King Bhumibol Adulyadej
PM: Samak Sundaravej
Coup & Constitution
Never Colonized
Thailand: AT A GLANCE
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Population
p
Religion
Literacy
Language
Thailand Outlook : Economy
GDP: US$284.4 Billion (07)
™ Per Capita GDP: US$ 3,720 (07)
™ GDP Growth Rate: 4.95% (06), 4.8% (07)
4.5-5.5% (08)
™ Inflation Rate: 4.7% (06), 2.3% (07),
3.2-3.7 (08)
™ Unemployment Rate: 1.4% (07), 1.5% (08)
™ Key Industries: Tourism, Agricultural
Products, Automotive, Computer
& Electronics, Gems & Jewelry,
Services
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Thailand – Outlook Growth
Rate (YOY%)
15
10
9.3
59
5.9
4.4
5
5.2
4.7
68
6.8
61
6.1
4.5
4.95
1.9
4.8
(% )
0
1995
1996
1997
-1.4
1.4
1998
1999
2000
2001
-5
-10
-10.3
-15
15
Year
2002
2003
2004
2005
2006
2007
Thailand’s Market Strengths
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Strategic Location, Gateway to
Asia
St
Strong
Business
B i
Ties
Ti with
ith Chi
China
Free Trade Agreements
Inexpensive Source of Labor
Future Growth Potential &
Current Size of Local Market
Increasing
g Export
p Growth
Cheap Property for Investment
and Rental
High-quality
High
quality Infrastructures
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Government Support &
Incentives
R l ti St
Relative
Stability
bilit
Quality International Schools
& Excellent Healthcare
S i
Services
High Quality of Life for
Expatriates
Friendly Local People
Challenges in Thailand
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Political Situation
High Oil Prices
Corruption/Transparency
Weak IPR Protection
Currency/Strong Thai Baht
Controversial Investment Regulations
like Amendments of the Foreign
Business Act, Retail Act
Customs/Tariffs Issues
Response to Avian Flu
Unrest in Southern Provinces
Thai Wayy
Thailand as a Gateway to Asia and
H b off ASEAN
Hub
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Tourism & Hospitality Services
Hub
Medical Tourism & World-class
Healthcare Service Hub
Detroit of Asia
Fashion & Jewelry Hub
Aviation & Air Transport Hub
Th i T
Thai
Trade
d F
Facts
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U.S. is Thailand’s 3rd largest trading partner after Japan and China (US$9.5
billion imports from U.S. & US$19.2 billion exports to U.S.)
U S is Thailand’s
U.S.
Thailand s largest export market (12
(12.6%).
6%)
U.S. is Thailand’s 3rd largest supplier, after Japan and China.
U.S. is Thailand 4th largest source of FDI (US$0.68 billion) after Japan
((US$4.34
$
billion),
), Singapore,
g p , Cayman
y
Island and U.S.
Bilateral FTAs with Australia, Bahrain, China, India, Japan &
New Zealand. Several ongoing FTA negotiations are such as
ASEAN-EU,, Chile,, Peru,, Taiwan and U.S.
Building Stronger
U.S –Thai Business Ties
Bilateral Agreements
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Treaty
T
t off Amity
A it and
d Commerce
C
(1833,
(1833 amended
d d 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)
Thailand Megaprojects
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Mass Transportation Development Projects
- Bangkok Underground Mass Transit System
- Extension of Bangkok Elevated Train
- Rail Projects such as Dual Railway Track
(Cha Choeng Sao-Sri
Sao Sri Racha
Racha-Laem
Laem Chabang Route)
™ 2nd
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Phase Construction of Suvarnabhumi Airport
Ua Arthorn Low-cost Housing Project
Ed cation De
Education
Development
elopment ssuch
ch as Pro
Provision
ision of Comp
Computers
ters
Public Healthcare System
Th il d M
Thailand
Megaprojects
j t
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Thailand Power Project Development Plan
(PDP) 2007
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Generators, Parts & Nuclear Power Technology
Power Transmission & Distribution Equipment
Substations Equipment
Energy Efficiency Equipment
National
N
ti
l Defense
D f
T h l
Technology
- Military Modernization
Where
e e do U
U.S.
S Exporters
po te s
Succeed ?
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Electrical Power
System/Equipment
Electronic Components
Education & Training Services
Food Processing & Packaging
Equipment
Medical/Laboratory/Healthcare
Devices
Aircraft & Aircraft Parts
Defense Sales
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Automotive Parts & Aftermarket
Equipment
Environmental Technology
Safety & Security Equipment
Telecommunication & Broadcast
Equipments
Cosmetics & Skincare Products
Best Prospects
Nalin Phupoksakul
Cosmetics
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Market Size : US$1,165 million (2007)
Total Imports: US$257 million, with US$58 Million from U.S.
Expected Growth Rate: 10%
US Products are Highly Sought After and Well Regarded
Competition from France, Japan, UK and Germany Getting Stronger
Best Prospects
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Anti-aging Facial Treatment
Whitening Facial Treatment, Body Lotion
Hi-end Makeup & Skin Care
Cosmetic Products for Men
B t Prospects
Best
P
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Pramot Wongvarnrungruang
Food Processing and Packaging Equipment
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Estimated 2007 Market Size: US$906 million
Estimated 2007 Total Imports: US$576 million, with US$56 million from U.S.
Expected Growth Rate: Over 20% for the Next Few Years
I 2007,
In
2007 U.S.
US S
Suppliers
li
Sh
Shared
d 9.7%
9 7% off th
the T
Total
t l IImported
t d Market
M k t
Best Prospects
Food & Drink Processing Equipment, Cooking Heating Food Machinery,
Fruit,Vegetable & Herb Processing Equipment, Fruit Juice Machinery,
Snack Food & Confectioner
Confectionery Eq
Equipment,
ipment Meat Processing Eq
Equipment
ipment
& Packaging Machinery
B t Prospects
Best
P
t
Nalin Phupoksakul
Medical Devices Market in Thailand:
– US$943 Million Market with 15% Growth Rate
– 75% Imports; US Has 28% Share
– 978 Public Hospitals (105,600 Beds) & 356 Private
Hospitals (35,900 Beds)
– Use of Local Distributor is Highly Recommended
Best Prospects
Orthopedic Devices,
Devices Rehabilitation Devices
Devices, Diagnostic
Test Kits and Cardiovascular Devices
Best Prospects
Nalin Phupoksakul
Education and Training
g Service
– US Largest Share in the Market
– 10th Leading Country Sending Students to U.S.
– Thai Students Taking Overseas Programs/Training Valued at
US$808 Million
– Market is Untapped & Opens to New-comers
– Brand Recognition
g
is High
g
– Word of Mouth is Crucial
B t Prospects
Best
P
t
Kitisorn Sookpradist
Market Overview - Electric Power System
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Generation Capacity – 26.4
26 4 GW
Growth in Electricity Demand – 5%
Fuel Mix – Gas 72%, Coal 12%, Hydro & Others 16% - Renewable
Energy Growing
Total Imports of Transmission & Distribution Equipment – US$3.5
$
Billion
U.S. Market Share – 10%
Thailand Power Development Plan 2007-2021 See Details at
http://www.egat.co.th/en/images/stories/pdf/report pdp2007 eng.pdf
http://www.egat.co.th/en/images/stories/pdf/report-pdp2007-eng.pdf
Best Prospects
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Generators
G
t
& Parts,
P t Power
P
Transmission
T
i i & Distribution
Di t ib ti Equipment,
E i
t
Equipment for Substations & Terminal Stations, Energy Efficiency
Equipment
Best Prospects
Wanwemol Charukultharvatch
Automotive Parts and Services/Equipment
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Thailand: Detroit of ASEAN
Largest Vehicle Assembling Capacity
Largest Domestic Market in ASEAN
Assembling Industry of Double Digit Growth – 1.3
1 3 million (2007)
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Parts Manufacturing of Highest Quality
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Best Prospects for After Market
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General Automotive Service Equipment & Tools
Ti (Wheel)
Tire
(Wh l) & B
Brake
k S
Service
i E
Equipment
i
t
Body & Paint Repair Service Equipment
Best Prospects
Wanwemol
Wanwemol Charukultharvatch
Thailand: Growing Demand for Safety & Security Equipment
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Increasing Government Investment for Public Safety
– Global Requirements: International Airports,
Airports Seaports
– Market Size of US$459 Million
Increasing Private Investment for Property Security
– Hi-end Property Market Boom: Condominium, Hotels, Detached Houses
– Commercial Property: Shopping Malls, Office Buildings
Best Prospects for After Market
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Access Control Systems:
y
Card Technology
gy Systems
y
((Smart Card, Proximityy
Card, Magnetic Strip Card), Biometric Devices, Security Doors & Power Fences
Alarm Systems: Fire/Intruder Alarm Systems
Video Surveillance Systems: Digital Video Recording & Network Transmission,
CCTV
Detection Equipment: Handheld/Walkthrough Metal Detectors, Motion Detectors
Smoke Detectors, X-ray/Screening Equipment, Anti-shop Lifting Device
B t Prospects
Best
P
t
Oraphan Boonyalug
Broadcast Equipment
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Estimated 2007 Total Market Size is US$1 Billion
Total Imports is US$2,234 Million, with US$22.9 Million from
U.S.
Best Prospects:
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Radio & TV Transmisstion, Console (Radio), Studio Equipment for
Radio & TV
TV, Software Systems such as Automation & Advertising
Solutions, Microwave Communications Equipment
Best Prospects
Kritsananan Sookpradist
Electronic Components (ELC)
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Market Size: US$29.28 Million (2007)
Total Imports: US$22
$ Billion (US$2.4
$
Billion from U.S.)
Manufacturing Base for 4 out of 5 Major HDD Producers: Seagate Technologies,
Western Digital, Hitachi Global Storage and Fujitsu
Over 80% of Raw Materials Used in Production & Assembling Processes
of Hard Disk Drive (HDD), Integrated Circuit (IC) & Consumer Electronics
Appliances are Imported.
Growth Rate of Electronics Manufacturing is Expected to Increase by 10–15%
in 2008.
Best Prospects
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Integrated Circuit (Wafers, Dice & Chips, Substrates & Lead Frames)
C
Computer
t Components
C
t (CPU,
(CPU HDD
HDD, FDD
FDD, CD R
Rom D
Drive,
i
T
Tape D
Drive,
i
Monitor, Printer, LCD Projector, Keyboard, Mouse, Network Equipment)
What do you need to
do to Succeed?
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Know the Market
Export Counseling
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Develop a Trusted Local Partner
International Partner Search/International Company Profile
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Learn the Rules
Flexible Market Research
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Build the Relationship
Gold Key Service/Trade Events
For More Information on Doing
Business with Thailand
http://www.buyusa.gov/thailand/en
http://www.amchamthailand.com/
http://bangkok.usembassy.gov/
http://www buyusa gov/asianow
http://www.buyusa.gov/asianow
http://www.Export.gov
Th k you
Thank