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Thailand a Smart Guide to Shipping CONNECT Thailand A smart guide to shipping This is your quick guide to help you connect with customers and businesses across Thailand. It’s here to help you understand the local culture, shipping requirements, regulations and key commercial opportunities to expand your business. united problem solversTM Contents CONNECT Thailand Visit UPS.com Thailand Overview 03 > Find out the most important facts about the markets to help you assess the potential for your business. Economic Potential 04 > Learn about what sells where and the most popular exports and imports that may be relevant to your sector. Business Culture 09 > Pointers on how to build successful relationships with local businesses and consumers. Tips and Advice 10 > Useful information and directory to help you ship to and from Thailand. Connecting with UPS 12 > A quick overview of UPS capabilities and experience and how we can help connect your business with customers across Thailand. 02 Contents Thailand Overview Economic Potential Business Culture Tips and Advice Connecting with UPS Thailand Overview CONNECT Thailand Visit UPS.com Open your new trade Thailand is known as The 'Land of Smiles' and has an ancient culture. It is a major economy in South East Asia with a strong international outlook. Thailand enjoys a strategic location at the heart of South East Asia and serves as a gateway to Southeast Asia route to Thailand. and the Greater Mekong sub-region, where new emerging markets offer great potential for business. From Thailand, it is convenient to trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), which has a cumulative population of more than 500 million. National facts and figures Thailand Capital Bangkok Population 69.04 million (2017) Land Area 513,120 sq. km Major Urban Centers Bangkok 9.27 million (2016) & Population Language Thai (official) 90.7%, Burmese 1.3%, Others 8% English is a common business language. Thailand’s economic fundamentals The "Thailand 4.0" policy - from abundant Thailand is booming business-wise Ease of doing business and trading low cost labor to an innovation value-based The economy is based on automotive production, Thailand has been ranked the world’s 27th most Thailand is ranked 3rd in ASEAN for "ease of doing exports of electronic products, tourism and agri- economy competitive nation by the International Institute business" by the World Bank. food production. Key elements, which mark the transition in the of Management Development. Thailand is ranked 26th globally for "ease of trading Thailand has Free Trade Agreements with Australia, country’s economy: Thailand is a country with a growth model that across borders". New Zealand, Japan, India, Peru and is included in - Become a high-income nation with emphasis on is trade oriented. The total value of exports and the ASEAN regional trade agreement. Thailand has research, science and technology imports exceeds 100% of its GDP. signed 36 active bilateral investment treaties. - Move towards an inclusive society - Focus on sustainable growth and development to protect the environment 03 Contents Thailand Overview Economic Potential Business Culture Tips and Advice Connecting with UPS Economic Potential CONNECT Thailand Visit UPS.com Unlocking your Thailand is the second largest economy in Southeast Asia after Indonesia. With an upper-middle income status, it serves as an economic anchor for its developing neighbor countries. Thailand’s economic fundamentals are sound, with low inflation and potential. unemployment rates, and reasonable public and external debt levels. Tourism and government spending, mostly on infrastructure and short-term stimulus measures, have helped boost its economy and maintained a low level of unemployment. With a relatively well-developed infrastructure, Focus on innovation to fuel economic growth a free-enterprise economy and pro-investment The ‘Thailand 4.0’ initiative sets up extensive reforms in order to policies, Thailand is highly dependent on move from an economy reliant on heavy industry and export international trade, with exports accounting for market production, towards an economy that is value-based and about 50% of its GDP. The country also offers an technology-driven. These reforms include promotion of industries that focus on innovation and have the potential to become the new attractive and modern legal framework and its growth engines for the country. economy benefits from regional dynamism. Aside from improving the national broadband network, building digital parks and nurturing innovative start-ups, the government is developing the Eastern Economic Corridor (EEC), which spans the Economic expansion Currency Thai Baht three provinces of Chonburi, Rayong and Chachoengsao (soon to The Thai economy expanded by 3.2% in 2016. The country’s GDP (US$) 406.84 billion (2016) be joined by Prachin Buri). economy is projected to grow by 3-4% in 2017, supported by the GDP Per development of the export sector, which will further contribute to 5.899 (2016) The EEC has been designed to develop high-tech industry and to Capita (US$) the recovery of manufacturing production and private investment. become a hub for industrial, infrastructure and urban development Thai exports are expected to grow more than 7-8% in 2017, which CPI Inflation Rate 0.2% (2016) in ASEAN. The EEC is expected to draw in US$ 43 billion worth of may help drive GDP growth. investment in infrastructure and industrial projects. Total Exports (US$) 215.4 billion (2016) - up by 40.1% since 2009 The following growth targets have been set for Thai exports to: Machinery including: computers, electrical One of the target industries of EEC is Aviation, with focus on high- Exports - tech, extensive research and development, infrastructure and • the ASEAN market by 5% machinery, equipment, vehicles & parts, gems commodities & jewelry, precious metals, rubber, chemicals, logistics as well as promotion of tourism destinations. • CLMV (Cambodia, Laos, Myanmar, Vietnam) by 6.4% electronic circuits & semiconductors, crude oil Other industries targeted by the project are: • the U.S. by 3.2% Total Imports (US$) 195.7 billion (2016) - up by 46.3% since 2009 • Next Generation Automotive • the EU by 3% • Smart Electronics Electrical machinery, equipment, machinery • Asia by 3% • Eco-friendly Petrochemicals and Bio-Chemicals including computers, mineral fuels including oil, • Africa by 2.5% Imports - iron, steel, vehicles, gems & jewelry, precious • Automation and Robotics commodities The service industry is the largest sector with a GDP share of metals, electronic circuits, home appliances, • Medical Hub 55%, followed by 36% Industrial, with Agriculture representing plastics and products • Affluent Medical & Wllness Tourism 9% of GDP. Other major sectors include electronics, automotive 62.6% of Thai exports by value are delivered to • Medical & Wellness Tourism manufacturing, transport, storage, communication, tourism, other Asian countries, 13.4% to North America, finance and real estate. another 13% to Europe and 2.9% to Africa. 75.2% • Food for the Future Export and import of Thailand’s imports (by value) in 2016 were countries • Digital industries purchased from other Asian countries, followed by Europe (12.6%), North America (7%) and Africa (1%). 04 Contents Thailand Overview Economic Potential Business Culture Tips and Advice Connecting with UPS Economic Potential CONNECT Thailand Visit UPS.com Special Economic The Thai government initiated the creation of The Special Economic Zones (SEZ) to accelerate economic transformation. The zone areas have been selected to take advantage of Thailand’s geographical location at the heart of Southeast Asia, its existing Zone. supply chain and new transport and communications infrastructure. Chiang Rai There will be 10 SEZs along the borders across the country with the aim of targeting Thailand key industries. Each zone has its target business activities which are decided and categorized by the area where the SEZ is located, e.g.: raw materials and economic and business conditions. Nong Khai Nakhon Phanom The SEZs not only have one-stop service centers with customs checkpoints, they also offer enhanced services for licensing and Tak permission applications and issuance procedures in each zone. Mukdahan Mixed incentives are well positioned for investors e.g. the corporate tax reductions, free of import duty for machines and raw materials for export production, exclusive rights to use foreign labor. Kanchanaburi THE 1ST PHASE OF SEZs THE 2ND PHASE OF SEZs TAK CHIANG RAI International Cross Docking, center of a labor-intensive industrial cluster, Tourist Destination, food manufacturing hub, agro-products and multimodal agriculture, non-metal products, textile, garment, transportation, food, medical transport, tourism, agriculture and food processing, furniture, and wood products. equipment manufacture, motor vehicles, electrical appliances and electronics, logistics business. NONG KHAI International Trading Center, tourism and multimodal transport production of SONGKHLA pineapples, tobacco, tomatoes, transportation network, international trading. Export Processing Industries and multimodal transport agricultural and fishery Sa Kaeo industry including related businesses, textile, clothing and leather industry, KANCHANABURI Industrial Estate, eco-tourism, agriculture and cross-border trade agro-industry, household furniture manufacture, rubber industry, logistics business, industrial food and beverages, chemical products,
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