Business and Industry Overview of Thailand

Economic climate. Thailand has a pro-business market economic system pushed by robust overseas investments and export oriented manufacturing specifically in electronics, food items and automobiles. Thailand’s exports account for sixty% of the country’s GDP. Thailand experienced robust financial progress prior to the Asian financial disaster of 1997 with GDP progress averaging 9.four% on a yearly basis. However, the disaster adversely influenced enterprises in Thailand and noticed the worth of the Thai Baht decline by more than 50% in opposition to the US greenback. Due to the fact the disaster, the economic system has developed on a progress path.
Thailand’s GDP was US$163.five billion with a GDP per capita of US$two,537 in 2004. Thailand’s GDP grew by an average of four.six% on a yearly basis from 2000 to 2004 pushed primarily by exports of high technological innovation merchandise primarily electronics. Inflation remained underneath two.% from 2000 to 2003 but amplified to two.eight% by 2004. However, unemployment confirmed a declining craze from three.six% in 2000 to 1.eight% by 2004.
Approximately sixty% of Thailand’s workforce is involved in the agriculture industry but contributed to only 9.eight% of the country’s GDP in 2004. The companies industry contributed to 46.1% of Thailand’s GDP and manufacturing 44.1% in the course of the time period. Main industries incorporate tourism, electronics, textiles and garments, processed food items, drinks, agriculture deliver, jewellery, home furniture, plastics, cars and motor vehicle elements and mining of tungsten and tin. Main agriculture merchandise incorporate rice, tapioca, rubber, corn, sugarcane, coconuts, soybean and milk.

DEMOGRAPHY. Ethnic Thais account for seventy five% of Thailand’s sixty five million population and yet another eleven% are Chinese or Sino-Thais who have assimilated into the Thai tradition or are from blended marriages. Minorities incorporate Malays who lived primarily in southern Thailand and account for four% of the population. Other individuals incorporate the Mon, Lao, Khmers, Puan and Karen minorities and immigrants from India. Approximately 95% of the country’s population are Buddhists while Malays in Thailand are predominantly Muslims. Thai is the national language while languages utilised by the minorities incorporate Malay, Isan and Khmer. Colleges train English but proficiency is low and usually, the educated elite are more proficient with the language.
The the greater part of the Thai population even now live in the rural communities while the proportion of the city population is rising. Thailand’s city population amplified from 22% of the total population in 2000 to 31% by 2004. Thailand’s money and major city Bangkok accounts for just about eight% of the country’s total population. Other major cities incorporate Nonthaburi, Pak Kret, Hat Yai, Nakhon Ratchasima, Chiang Mai and Udon Thani.
Thailand properly diminished the poverty amount from 27% in 1990 to ten% by 2004. The proportion of the population categorised belonging in the low-money household is estimated at sixty% while middle and high-money households account for 30%. The average household money in Bangkok is 2 times than the national average.

INFRASTRUCTURE. Telecommunication companies to the basic public are general enough. World wide web broadband companies are mostly concentrated in Bangkok. Metropolitan areas and cities are properly connected by roads but lacks super highways connecting Thailand’s cities and major cities. Metropolitan areas the major cities are served by airports and properly connected by buses and rail system.

Worldwide TRADE. Thailand’s major buying and selling companions incorporate Japan, US, China, Hong Kong, Singapore, Malaysia and Taiwan. Main exports from Thailand incorporate electronics, motor vehicle and motor vehicle elements, textiles, garments, footwear, seafood, processed food items, rice, rubber, jewellery, electrical appliances like computer systems. Main imports incorporate machineries and equipments, raw elements and finished merchandise, shopper merchandise and fuels.

Buyer Use OF Technology. There were being just about 17.three million set up set-line telephones in 2004 offering a penetration of forty% of all Thai homes set up with telephones. The penetration of cell telephones amplified from just 7% of the population in 2001 to forty two% or 27 million cell telephones by 2004. The penetration of computer systems is even now low but amplified from five.1% of the households in 2001 to just about twelve% by 2004. The selection of net users attained an estimated eight million in 2004 but most of the net users are concentrated in Bangkok and the major cities and cities. The penetration of television in homes in 93% indicating lots of low-money homes have televisions.

RETAIL Industry. The retail industry in Thailand totalled an estimated US$24.five billion in 2004. There are just about three hundred,000 traditional “mom and pop” shops in Thailand accounting for sixty five% of the total retail profits. However, there are four,five hundred modern day retail institutions (hypermarkets, supermarkets, division shops and advantage shops) accounting for 35% of the total retail profits. Most of the modern day retail institutions are situated in Bangkok. Procuring in modern day retail institutions is progressively well-liked and more institutions predicted in the in close proximity to long run.

Foods Culture. Rice is the staple food but while those in central and southern Thailand prefer white aromatic rice those in northern Thailand prefer the glutinous wide variety. Thai dishes are usually sizzling and spicy but food items from the northern location are usually milder. Thais are significantly less adapting to western food items even if they could find the money for it in contrast to shoppers in Singapore and Malaysia. However, bakery and coffer store chains are gaining popularity amid young pros who have adapted to western tradition.