Thai Economy

Thai Economy

Thailand is located in a region with bright growth prospects and a relatively young population compared to the rest of the world. SouthEast Asia with over 600 million people is a market with vast human and resource, potential projected to grow 6.3 percent in 2017.

In the recent years Thailand economy has been hit with a few blows as have many other economies in the world. But amazingly the Thai economy and the Thai baht stay stronger and less affected than other economies and currencies around the world.

Thailand in Focus

Thailand has the world’s
15th largest agricultural output
17th largest manufacturing output
13rd largest tourist receipts
24th largest economy by purchasing power

Facts about(2015)
Population 67,9 million
Land 513.120 km2
GDP per capita USD 5 732
GDP Growth 2,8%
Export (Mill.USD) 211
Import (Mill.USD)  202
Inflation (CPI) -0,9%
Unemployment rate 0.7%
External debt  32.8 % (GDP)
International reserves
USD billion
156.5
Corporate Income Tax 10-20%
Withholding Tax 0-15%
Value Added Tax 7%
FDI USD 10.8 billion

Thailand: Logistics hub in South-East Asia

Why Thailand?

Highly developed level of infrastructure and proximity to Asia’s biggest markets

Air transport –
six international airports,27 domestic airports affording access to all regions

Suvarnabhumi has been ranked as the 10th best airport globally.

Sea Trade

8 deep-sea ports Laem Chabang seaport among the world’s 20 busiest seaports

Four thousand miles of internal waterways, 4,000 miles of railways with international connections, and over 64,000 miles of well-maintained highways

Thailand’s Free Trade Agreements

  • Member of ASEAN since 1967
  • AFTA – Asean Free Trade Area 1992
  • AEC -ASEAN Economic Community by 2015
  • ARCEP –ASEAN Regional – CAFTA –China – ASEAN FTA
  • Comprehensive Partnership 10 ASEAN countries+6 (Australia,China,India,Japan,New Zealand, South Korea)
  • ARCEP 3,2 billion people;combined GDP USD 1500 billion
  • THAILAND signed FTA with
    Japan,China, Australia, Laos,Peru, New Zealand

If ASEAN were a single country, it would already be the seventh-largest economy in the world, with a combined GDP of USD 2.6 trillion in 2016. It is projected to rank as the fourth-largest economy by 2050.

ASEAN
Huge Market:

2016:
625 million+

Steady economic growth rate


2016:+4.7%

Thailand’s external trade
2016

EXPORT
USD 213.7 billions

Main export goods
Textiles, footwear, fishery products, rice, rubber, jewelry, automobiles, computers and electrical appliances
Main export partners
  ASEAN 25.3%
  USA 11.4%
  CHINA 11.0%
  EU 28 10.3%
  JAPAN 9.6%
  HONG KONG 5.3%
  AUSTRALIA  4.8%

IMPORT
USD 195.8 billions

Main import goods
Electrical products, machinery, mineral fuel, vehicles, optical instruments,iron and steel products, organic chemicals
Main import patners

 

  CHINA 21.6%
  ASEAN 20.4%
  JAPAN 15.8%
  EU28 9.3%
  USA 6.2%
  Korea South 3.7%
  Taiwan 3.7%

Thailand’s main industries

Electronics and electrical sector at a glance

  • Production: nearly USD 60 billion and almost 25% of the country’s export revenues.
  • Thailand accounts for about 40% of global HDD production, exporting USD 12 billion worth annual.
  • Thai EE industry world’s second-biggest producer of air conditioners and HDD, fourth-largest for refrigerators.
  • Thailand is the largest electrical appliances manufacturing base in ASEAN.
  • Big players: Western Digital Corporation, Seagate Technology LLC, Hitachi Global Storage Technologies and Toshiba Corporation, Philips,Canon, Daikin Industries,LG, Samsung, Sony,Sanyo, Tatung,Matsushita Electronic Works, NIKON, Electrolux

Rubber industry

Thailand World’s No 1 Producer and Exporter of Natural Rubber

Global production: In 2015 12.3 Mill.tons, 36% of which was produced in Thailand. Annual production: 4.3 Mill. Tons, Exports: 3.2 Mill tons. Main export products of the Thai rubber industry: tires, tubes for motorcycles, cars, airplanes, gloves, rubber bands, medical gloves

A great number of MNC Rubber companies set up factories in Thailand: Goodyear, Bridgestone,Michelin, Dunlop, Ansell, Top Glove

Thai Food Industry

Thailand is one of the world’s top ten producers and exporters of food, including processed food products. Thailand is one of the world’s largest producers of food products such as rice, canned tuna, frozen seafood, chicken and canned pineapple.

The food industry accounted for as much as 23 percent of gross domestic product (GDP) in 2015. The food exports in 2015 totaled roughly (USD 25.5 billion), with the top 5 exports being rice (17.1%), sugar (8.6%), chicken (7.8%), tuna (7.5%), and shrimp (6.3%). The value of Thai food exports increased 5.6% from the previous year.

Thailand is the world’s thirteenth-largest exporter of agricultural products and food, with a market share of 2.2 percent of world food exports. It is the largest exporter of rice, rubber, cassava, shrimp, and canned tuna. It is also one of the major exporters of sugar, canned pineapple, chicken, fruits and vegetables, and animal feeds

Thailand is among the top 5 exporters of tuna and cutletfish.
Thailand’s abundant natural resources play a central role in its comparative advantage, 80% of the raw materials in domestic food manufacturing are locally available. Procedures and technologies meet international quality and sanitation standards

Thai Automotive Industry

  • A key sector accounting for approximately 12% of the Thai GDP
  • More 550 000 workers
  • Ranks the first among ASEAN countries and 15th in the world in 2015
  • Thailand’s second-largest export industry
  • Exports in 2015 USD 26.5 billion
  • Total domestic to export ratio is 50:50
  • Main export markets: ASEAN 27,6%, Australia 17,5%, EU 8,6%,Saudi Arabia 5,6%. Japan 4%, USA 3,8%
  • World’s biggest producer and exporter of one-ton pickup trucks

Gem and Jewelry industry

About industry:

  • Third important export branch in Thailand
  • 700 factories 80% of which are SME
  • The industry’s workforce: 1,3 million
  • Worldwide acceptance of „Bangkok Cut” technique for small diamond
  • World leader of colored stones polishing
  • Gemopolis industrial estate:100 companies
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 Thailand’s rank in World’s gem and jewelry export,

  • 10th largest exporter of gold ornaments
  • No.1. exporter of silver ornaments
  • 3rd largest exporter of polished corundum
    Total export in 2015: USD 10,8 billion)

Main export markets: Hong Kong (21%), Switzerland (17%)

ASEAN (16%), EU (15%) USA(12%),

Rapidly growing markets  Bahrein, Katar, Arab Emirates

COSMETICS INDUSTRY

Thailand’s beauty and personal care product market is valued at USD 5.8 billion with domestic market accounting for USD 3.5 billion.  Thailand’s export of cosmetic products is valued at USD 2.3 billion,. Annual growth of exports between 6-10 %. The sector is currently third in Asia after Japan and South Korea. 

Main export items: anti-aging facial and eye treatment, baby-child specific products hair care whitening, skin care, herbal ingredients and spa treatments.

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Award-winning Spa products:
ERB, HARN,THANNatural hair, body and skin care products of healing and beautifying properties

Brands:
TG Nature
Care Co.Ltd.

Brands:
Oriental Princess
Cute Press

Health Promotion

Thai SPA

One of the top five services in the world

1463 registered spas, health shops
Vocational schools, universities – Rangsit, Mahidol, Rajabhat
10,000 trained personals each year
Wat Pho – Unesco’s Memory of the World

Long Stay

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