Thailand is a constitutional monarchy with His Majesty King Bhumibol Adulyadej, or King Rama IX, the ninth king of the Chakri Dynasty, as the present king. His Majesty is recognized as the Head of State. The King has reigned for 64 years, making him the longest reigning monarch in the world. Thailand is a constitutional monarchy, whereby the Prime Minister is the head of government and a hereditary monarch is head of state. The Judiciary is independent of the Executive and the Legislature. The King of Thailand has little direct power under the constitution but is a symbol of national identity and unity. King Bhumibol — who has been on the throne since 1946 — commands enormous popular respect and moral authority, which he has used on occasion to resolve political crises that have threatened national stability. On 2 December 2008, the Constitution Court of Thailand banned a number of political parties for election fraud which included the then ruling PPP (People’s Power Party). The current coalition government was then formed with the opposition Democratic Party representatives. Abhisit, Democrat Party Leader, became Thailand’s 27th prime minister.
Thailand’s major international airports are Suvarnabhumi Airport, Chiang Mai, Chiang Rai, Hat Yai, Phuket. Suvarnabhumi International Airport’s current capacity is 42 million passengers/year, 76 flights/hour, 3 million tons of cargo/year.Don Muang Airport is now mainly used for domestic flights. Don Muang International Airport has capacity of 10 million passengers/year, 60 flights/hour, 36,500 tons of cargo/year. Thailand’s Commercial Ports:Laem Chabang Port is one of the top deep-sea ports in Southeast Asia, positioned as the most efficient gateway to Thailand and the Indochina region. It has capacity of 10.8 million TEU. Throughput in fiscal year 2008 was 5.2 TEU.Bangkok Port’s capacity is approximately 1.3 million TEU. Its bonded warehouse now offers several value-added services such as online inventory account reporting, more equipment for lifting and moving goods, and expansion of storage areas.
The Greater Mekong Subregion (GMS) consists of Cambodia, Lao PDR, Myanmar, Thailand, Vietnam, and Yunan Province of China. The GMS Program, with support from ADB and other donors, fosters the implementation of high priority subregional projects in transport, energy, telecommunications, environment, human resource development, tourism, trade, private sector investment, and agriculture. Objectives of GMS Economic Cooperation:Connect centers of economic activity Facilitate trade, investment, and tourism Reduce transport costs, and facilitate mobility across borders Major Intra-GMS Highway Routes:Mae Sai, Northern Thailand – Kyaington, Burma – Jing Hong & Kunming, Southern ChinaChiang Khong, Northern Thailand – Luang Nam Tha, Laos – Jing Hong & Kunming, Southern ChinaMukdahan, Northeastern Thailand – Savannakhet, Laos – Dong Ha & Da Nang, VietnamBangkok, Thailand – Phnom Penh, Cambodia – Ho Chi Minh City & Vung Tau, VietnamTrat, Eastern Thailand – Koh Kong & Sihanoukville, Cambodia Mae Sod, Western Thailand – Myawaddi, Mawlamyine & Yangon, Burma
Tourism Hub:Thailand is one of the most popular travel destinations in the world. Year after year, Bangkok has been chosen by international tourists to be one of the most favorite places to visit. Thus, tourism contributes to 6-7% of GDP. Income from tourism in 2009 was approx. $16 Billion.Medical Tourism & World-class Healthcare Service Hub:Thailand is known as one of the world’s most popular destinations for medical tourism. The relatively competitive price, high quality service and warm hospitality of Thai people have contributed to a rapid inflow of millions of foreign patients into the country to take advantage of the lower cost of medical treatments. According to the Thai Health Ministry, the medical hub project has attracted $1.5 billion annually for recent years. Regional Hub for Automobile Manufacturing:As home to the largest and most dynamic automotive industry in Southeast Asia, Thailand plays an important role as a key growth center in the global automotive market and serves as a major manufacturing base for world-class automotive manufacturers from Europe, America and Japan. Building on the success of its initial plan to make Thailand one of the world’s major pickup manufacturers, the Royal Thai Government announced its second master plan to become a manufacturing hub for the “Eco car”, with the objective to maintain Thailand’s competitive level and position it as a production hub in the global market. This will increase opportunities for parts manufacturing, automotive technologies and related services in OEM manufacturing. Additionally, greater integration of vehicle markets among ASEAN countries implies a market of regional volume for replacement parts and after-market service equipment. Gems and Jewelry HubThailand’s gem and jewelry industry has emerged as a major international player in the production, processing and trade of the products. The country has positioned itself as a regional hub for diamond and precious stone cutting, capitalizing on its low labor costs, skilled craftsmen and its proximity to major colored gemstone producing countries including Myanmar, Sri Lanka and India. It currently ranks as the world's fifth largest diamond-cutting center. Gems and jewelry is currently the 3rd largest export item in terms of value ($9.76 Billion in 2009), a 17.5% increase over 2008.The Block Burmese JADE Act: Congressman Tom Lantos’ legislation has impacted Thailand’s gem industry as gems originating in Burma are not allowed to be exported to the US. The "Tom Lantos" Block Burmese JADE Act has passed both House & Senateand was signed into law on July 29, 2008.
Transcript of "Cynthia griffin"
Thailand Country Outlook 2011 U.S. Commercial Service, Bangkok Commercial Counselor Michael McGeeCommercial Attaché Francis “Chip” Peters
Thailand At A Glance About the size of Thiland Over 65 million people Bangkok 8-10 million Chiang Mai over 180,000 Infrastructure Suvarnabhumi Airport Laem Chabang Port (20th in world) Eastern Seaboard – Industrial Zone
Political Overview Type of Politics: Constitutional Monarchy Head of State: King Rama IX Prime Minister: Yingluck ShinawatraKing Bhumibol Adulyadej PM Yingluck Shinawatra Democracy Monument, Built in 1932 to Commemorate Thailand 1st Constitution
Thailand Economic Outlook GDP: $263.5 billion GDP per capita: $3,921.3 (09) Inflation rate: 5.5% (08), -0.9 (09) Unemployment rate: 1.4% (08); 1.5% (09) Key industries Tourism, food processing, agro-industry, automotive, electrical & electronics, gems & jewelry, services - Tourism revenue accounted for 6% of GDP
Thailand’s Market Strengths Strategic Location in the Heart of Southeast Asia Inexpensive Source of Labor Future Growth Potential Government Support for Free Trade Agreements Cheap Property for Investment & Rental High-quality Infrastructure Excellent Healthcare & Int’l Schools Quality of Life for Expatriates Friendly Local People
Challenges in Thailand Political Situation Corruption/Transparency Weak IPR Protection Currency/Strong Thai Baht Customs/Tariffs Issues Unrest in Southern Provinces
Thailand, Gateway to Southeast Asia Major Transportation 30 Commercial Airports; 4 Major International Airports 9 Major Ports; 2 Primary Seaports (Klong Toey Port in Bangkok & Laem Chabang Port in Eastern Seaboard) 64, 600 Km. Highway Network 4,070 Km. Railway Line
Greater Mekong Subregion (GMS)Highway Routes – Planned and in Existence
Thailand: The Heart of ASEANThe Association of Southeast Asian Nations is a 10 membercountries with 580 million consumers (9% World Population) Key ASEAN location for: Tourism Medical Tourism World-class Healthcare Service Automobile Manufacturing Fashion & Jewelry
Importance of ASEAN to US One of the fastest growing economies A number of infrastructure development projects Combined GDP of over $1.5 trillion ASEAN integration by 2015 Strategically significant region Concluded FTAs with China, Japan, South Korea, Australia-New Zealand Region & signed FTA in goods with India
U.S. Investment in Thailand The U.S is the second largest investor in Thailand, afterJapan – investment estimated at approximately $24 billion. Key areas for US investment: - Petroleum & chemicals - Finance - Consumer products - Automobile production
US-Thai Trade Facts In 2009, US was Thailand’s largest export market ($16.6 billion), China was 2nd ($16.1 billion) In 2009, Thailand was our 23rd largest trading partner ($26 billion) & 28nd largest export market ($7 Billion) US is Thailand’s 3rd largest trading partner after Japan and China - Imports from US $8.4 billion; exports to US were $16.6 billion US is Thailand’s 4th largest supplier - after Japan, China & Malaysia
US–Thai Treaty of Amity Allows American citizens & businesses incorporated in the US or in Thailand to maintain a majority shareholding or to wholly own its company in Thailand (engage in business on the same basis as would a Thai national). These companies are exempt from most of the restrictions on foreign investment imposed by the Foreign Business Act of 1999. But still restrictions on investment in communications, transport, fiduciary functions, banking involving depository functions, the exploitation of land or other natural resources & domestic trade in agricultural products. Signed in 1833 & Amended in 1966
Flooding in Thailand Worst flooding in 50 years Flooding closes 7 industrial estates in Bangkok area Over 650,000 Thai workers displaced Extensive Disaster Recovery and Rebuild Efforts Expected Water management, infrastructure, construction… Contact: Office.Bangkok@trade.gov
2010 Best Prospects For U.S. Exporters Aircraft & Aircraft Parts & Food Processing & Packaging Equipment Automotive Parts & Aftermarket Equipment Franchises Defense Sales Medical/Laboratory/Healthcare Devices Education & Training Services Safety & Security Equipment Electrical Power System/Equipment Telecommunication & Broadcast Equipment Electronic Components
Laos Market - Opportunity & ChallengesPopulation: less than 6 millionAdvantages: Political stability Low costs of land, labor & energy Plentiful land & water resources Abundant mineral resourcesChallenges Small market, with low purchasing power Undeveloped basic infrastructures & logistics, scarce skilled labor Unstable currency, difficult for investment plan Protective regulation, rather than investment promotion oriented
Cambodia Market - Opportunity & ChallengesPopulation: About 14.5 millionAdvantages: Pro-business, pro-growth policy Low labor & business costs Abundant natural resources, especially oil & gas Liberal policy towards foreign worker inflow Investors can set up 100% foreign-owned investment projects Largely dollarized economy & absence of capital & exchange controlsChallenges Corruption, under-the-table costs add 50% to cost of doing business Inefficient government bureaucracy Inadequately educated, skilled workforce Inadequate transport & communications infrastructure Undeveloped financial & banking system Ineffective legal system
Burma - Business OutlookPopulation: About 48 million US trade and investment sanctions in place - Limited exports of U.S. products occurs Unrecorded & under-recorded border trade very common Major trading partners: - Thailand, China, Singapore, Japan, Malaysia, S. Korea & Bangladesh In 2009, USA exported $7 million & imported $100,000Challenges Corruption & cronyism Opaque & arbitrary policymaking/unpredictable trade policies No rule of law & no independent judiciary Inadequate infrastructure & outdated technology Undeveloped financial & banking system
The U.S. Commercial ServiceAgency:– U.S. Department of CommerceMission:– Promote U.S. Exports– Protect U.S. Commercial Interests Abroad– Promote Investment in AmericaLocations:– In US: 109 Export Assistance Centers– Overseas: 128 offices in 77 countries
Our RoleCounseling US Companies – Changes in regulations & standards – Economic trends – Networking and contact ListsTrade Promotion – Organize US Pavilions at trade shows – Supporting trade missions – Arranging meetings with potential distributorsAdvocacy for US Firms – Support for major tenders – Resolving trade barriers
How to Find the Right PartnerPractical Tip for SMEs in the US Looking to Export• Identify prospective distributors, sales agents, or partners• What’s their experience? What regions and industries do they cover?• A critical mistake is rushing into an agreement with the wrong partnerHow the US Commercial Service Can Help:• Locate qualified local companies as partners, agents, or distributors• Consider our “Gold Key Service”• We help select local companies to meet with and join you in these initial meetings
Promote Your Products & Services Practical Tip for US SMEs with a Presence In Thailand• If you already have a distributor in Thailand or a local office, we can help you extend your reach• Target key potential clients by sector and position• Offer an educational seminar that both informs and provides exposure for your firmHow the US Commercial Service Can Help:• Consider our “Single Company Promotion” service• We invite contacts among government, media, and private industry, with invitations from the US Embassy• Help you identify deal audience at your press event, seminar, product launch, or reception.
Thank YouUseful Sites• US Embassy Bangkok Web site bangkok.usembassy.gov• Commercial Service Web site www.buyusa.gov/thailand/en
Government Public Work Projects Rail-based Mass Transit Projects Government allocated $8 billon to fund mass transit system in Bangkok over the next 5 years. Projects over the next 5 years will mostly be developed by the Mass Rapid Transit Authority of Thailand (MRTA) and the State Railway of Thailand (SRT).• Upcoming Projects: Extension of First Subway Line (Blue Line) & Expansion of Subway Network Extension of the Elevated Transit System “Skytrain” (Green Line) Double Tracking & Expanding of Rail Networks (Red Line) Upgrading Signaling & Communication Systems, Maintenance Center Sourcing of new locomotives.
Government Public Work Projects ICT ProjectsICT 2010 Projects: Re-introduction of E-Government Project (government information network, $36.36 million from 2006-2014) Rolling out 3G broadband wireless network nationwide in Q4 of 2010 Investment for upgrading 3G network approx. $2 billion (total 2,700 cell sites nationwide)Opportunities: 2G network maintenance 3G & WIMAX infrastructure & content
Best Prospects:• Automotive Parts & Services/Equipment Market: Assembling hub in South East Asia (ASEAN) for the world majors (including GM & Ford) ASEAN’s largest assembling capacity (over 1 million units/year) ASEAN’s largest domestic vehicles market (650,000 units expected in 2010) ASEAN’s most capable automotive parts manufacturing industry Japanese manufacturers have largest share in the market (over 90%) One-ton pickups & small passenger cars most popular• Best Prospects: Accessories & performance parts General automotive service equipment & tools Tire (wheel) & brake service equipment Body & paint repair service equipment
Best Prospects:• Broadcast Equipment Market: Total import in 2009 was $5.3 billion, with $52.3 million from US 80-90% of broadcast equipment imported from overseas Inevitable move from analog to digital TV platform in 2011 Once digital technology is available, approx $3 billion investment will• flood into the market• Best Prospects: Radio & TV transmission Radio consoles (radio) Studio equipment for radio & television Software systems (e.g. automation & advertising solutions) Microwave communications equipment
Best Prospects:• Defense Equipment Market: 2010 defense budget approx. $4.7 billion Thai military’s ongoing modernization program with government support Focus on anti-riot & internal peacekeeping activities, border area & maritime interest protection, suppression of illegal immigrants & goods smuggling, anti-terrorism, disaster relief• Best Prospects:• C4I tactical communication systems, helicopters (training, tactical, transport), tanks & armored vehicles, training simulators, unmanned aerial vehicles (UAVs), air defense systems (ADSs), tactical data links (TDLs), electronic warfare (EW) equipment, coastal radar systems, amphibious landing crafts, multiple rocket launch systems (MRLSs) & combat communication equipment
Best Prospects:• Education & Training Services Market: US dominates the market, with largest market share Thailand ranks 10th in number of students studying in the US Thai students taking overseas programs/training valued at $808 million Market is untapped & open to new-comers High brand recognition Word of mouth is crucial
Market Share of Overseas Study DestinationUSA is the favorite destination, with 25,000 Thai students in 2009. 25000 20000 15000 10000 5000 0 2009 2008 2008 2009
Best Prospects:• Electric Power System Market: Generation capacity: 27.7 GW Growth in electricity demand: 2% Fuel mix: gas 70%, coal 20.8%, hydro 4.7%,• Fuel oil 1%, renewable 1.4%, imported 1.9%, diesel 0.2% Total import of electrical power equipment valued at $4.2 billion U.S. market share approx. 7%• Best Prospects: Power generator, clean coal technology & alternative/renewable energy technology Transmission & distribution equipment including underground power cable & submarine cable extension Technology & know-how to develop & improve green energy & nuclear power technology
Best Prospects:• Electronic Components Market: Market size of $26 billion in 2009; 2010 projected market $28.4 billion Total imports of $19 billion ($1.7 billion from US) Manufacturing base for 4 out of 5 major HDD producers: Seagate, Western Digital, Hitachi & Fujitsu Over 80% of raw materials used in production & assembling processes of HDD, integrated circuits (IC) & consumer electronics appliances are imported The Semiconductor Industry Association forecasts that global semiconductor sales will grow by 10.2% to $242.1 billion in 2010 and by 8.4% to $262.3 billion in 2011• Best Prospects:Integrated circuit (wafers, dice & chips, substrates & lead frames)Radio-frequency identification (RFID)Computer components (CPU, HDD, FDD, CD Rom drives, tapedrives, monitors, printers, LCD projectors, keyboards, mouses, network equipment)Automotive electronics
Best ProspectsFood Processing & Packaging Equipment Market: Thailand as world’s 7th largest food producer, with over 10,000 food producers 2009 market size of $2.6 billion; expected growth rate of 10-15% for the next few years Total imports of $1.9 billion, with $175 million from US (9% share)Best Prospects:Packaging machinery & materials (e.g. film making, form-fill-seal, heatsealers), refrigerators, freezers, food & drink processing equipment,cooking & heating machinery, fruit, vegetable & herb processingequipment, snack foods & confectionery equipment, meat processingequipment
Best Prospects:• Medical Devices Market: $1.23 billion market size in 2009 with 12% growth rate 65% imports; US has 30% share 972 public hospitals (104,296 beds) & 328 private hospitals (36,120 beds) Use of local distributor is highly recommended Thai FDA requires medical device products registration prior to importation – Best Prospects: Heart valves & artificial blood vessels, disposable diagnostic test kits, Quick diagnostic testing devices, respiratory devices & oxygen Therapy, rehabilitation devices, orthopedic & implant devices Invasive surgical devices, neurosurgical & other surgical devices Dermatological devices & accessories
Best Prospects:• Printing/Graphic Arts Equipment Market: Market size of $1.2 Billion in 2009; projected 2010 market size of $1.3 billion Imports of printing machinery increased from $192 million in 2006 to $896 million in 2009, ($23 million from US) Offset & digital printing machinery is 100% imported 0% import duty Thailand became the largest printing hub in ASEAN Major export destinations are Hong Kong, Japan & Singapore• Best Prospects: Computer to Plate (CtP) technology High-quality inkjet printers (digital photography, wide format inkjet printers, printer-based multi-function office devices, & digital presses in imaging & graphic space) & high-quality printing ink Post press printing equipment (trimming, perforating, gluing, laminating & bindery machinery
Best Prospects:• Renewable Energy Market: Government 15-year Renewable Energy Development Plan: increase electricity generation from renewable energy to 20% by 2022 Government supporting schemes & incentives: Government’s subsidy as add-up price on purchasing price of electricity produced from less than 10MW renewable energy projects, called “Adder” Board of Investment tax incentives Revolving fund program Government Co-Investing Scheme “ESCO Venture Capital Fund” Grants for biogas, municipal solid waste & solar hot water projects Technical assistances• Best Prospects: Solar, wind, biomass, biogas
Best Prospects:Safety & Security Equipment Market: Increasing government investment for public safety Global requirements: international airports, seaports Market size of $319 million in 2009 Projected market size of $470 in 2010 Increasing private investment for property security Hi-end property market boom: condominium, hotels, detached houses Commercial property: shopping malls, office buildingsBest Prospects: Video surveillance systems: digital video recording & network transmission, CCTV & night vision equipment Anti-intrusion device: alarm systems, fire/intruder alarm system Detection equipment: handheld/walkthrough metal detectors, motion Detectors X-ray/screening equipment Access control systems: card technology systems (smart card, proximity- card, magnetic strip card), biometric devices, security doors & power fences
Best Prospects:• Telecommunications Equipment Market: ICT market in 2009 was $16.8 billion; projected 2010 market increase 7% Promising non-voice sector in 2010 is estimated at $787 million; 70% increase over 2008 Stronger competition among telecom operators to expand new networks & prepare for new technologies, including 3G and WIMAX Demand for network infrastructure• Best Prospects: 2G network maintenance 3G network upgrades Broadband Internet infrastructure Wireless communication networks
Best ProspectsWater Pollution Control Equipment Market: Estimated market size of wastewater treatment equipment in 2009 was $177 million Import of equipment was $152 million; US share approx. 14% Growth is expected due to increasing investment in waste to energy & government’s stricter environmental control Expected growth of 10-15% over next few yearsBest Prospects: Pumps (submersible, centrifugal, aerator/mixer, dosing, vacuum) Sludge dewatering equipment (filter presses, belt press, small dewatering systems) Screening machines (bar screens, shredding screens) Consultants & engineering services (pollution prevention technologies, advance wastewater treatment, water monitoring system, biological treatment system, renewable energy technology Advance water treatment chemicals
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