Take a trip to Thailand


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Business and Market Overview on Thailand

ECONOMY. Thailand has a pro-business marketservices to the general public are overall
economy driven by strong foreign investmentsadequate. Internet broadband services are
and export oriented manufacturing especiallymostly concentrated in Bangkok. Cities and
in electronics, foods and automobiles.towns are well connected by roads but lacks
Thailand's exports account for 60% of thesuper highways connecting Thailand's cities
country's GDP. Thailand experienced strongand major towns. Cities the major towns are
economic growth prior to the Asian economicserved by airports and well connected by
crisis of 1997 with GDP growth averaging 9.4%buses and rail system.INTERNATIONAL TRADE.
annually. However, the crisis adverselyThailand's major trading partners include
affected businesses in Thailand and saw theJapan, US, China, Hong Kong, Singapore,
value of the Thai Baht decline by more thanMalaysia and Taiwan. Main exports from
50% against the US dollar. Since the crisis,Thailand include electronics, vehicle and
the economy has grown on a growthvehicle parts, textiles, garments, footwear,
path.Thailand's GDP was US$163.5 billion withseafood, processed foods, rice, rubber,
a GDP per capita of US$2,537 in 2004.jewellery, electrical appliances including
Thailand's GDP grew by an average of 4.6%computers. Main imports include machineries
annually from 2000 to 2004 driven mainly byand equipments, raw materials and finished
exports of high technology products mainlyproducts, consumer goods and fuels.CONSUMER
electronics. Inflation remained below 2.0%USAGE OF TECHNOLOGY. There were nearly 17.3
from 2000 to 2003 but increased to 2.8% bymillion installed fixed-line telephones in
2004. However, unemployment showed a2004 giving a penetration of 40% of all Thai
declining trend from 3.6% in 2000 to 1.8% byhomes installed with telephones. The
2004.Nearly 60% of Thailand's workforce ispenetration of mobile phones increased from
involved in the agriculture industry butjust 7% of the population in 2001 to 42% or
contributed to only 9.8% of the country's GDP27 million mobile phones by 2004. The
in 2004. The services industry contributedpenetration of computers is still low but
towards 46.1% of Thailand's GDP andincreased from 5.1% of the households in 2001
manufacturing 44.1% during the period. Majorto nearly 12% by 2004. The number of internet
industries include tourism, electronics,users reached an estimated 8 million in 2004
textiles and garments, processed foods,but most of the internet users are
beverages, agriculture produce, jewellery,concentrated in Bangkok and the major cities
furniture, plastics, vehicles and vehicleand towns. The penetration of television in
parts and mining of tungsten and tin. Majorhomes in 93% indicating many low-income homes
agriculture products include rice, tapioca,have televisions.RETAIL MARKET. The retail
rubber, corn, sugarcane, coconuts, soybeanindustry in Thailand totalled an estimated
and milk.DEMOGRAPHY. Ethnic Thais account forUS$24.5 billion in 2004. There are nearly
75% of Thailand's 65 million population and300,000 traditional "mom and pop" stores in
another 11% are Chinese or Sino-Thais whoThailand accounting for 65% of the total
have assimilated into the Thai culture or areretail sales. However, there are 4,500 modern
from mixed marriages. Minorities includeretail establishments (hypermarkets,
Malays who lived mainly in southern Thailandsupermarkets, department stores and
and account for 4% of the population. Othersconvenience stores) accounting for 35% of the
include the Mon, Lao, Khmers, Puan and Karentotal retail sales. Most of the modern retail
minorities and immigrants from India. Nearlyestablishments are located in Bangkok.
95% of the country's population are BuddhistsShopping in modern retail establishments is
while Malays in Thailand are predominantlyincreasingly popular and more establishments
Muslims. Thai is the national language whileexpected in the near future.FOOD CULTURE.
languages used by the minorities includeRice is the staple food but while those in
Malay, Isan and Khmer. Schools teach Englishcentral and southern Thailand prefer white
but proficiency is low and generally, thefragrant rice those in northern Thailand
educated elite are more proficient with theprefer the glutinous variety. Thai dishes are
language.The majority of the Thai populationgenerally hot and spicy but foods from the
still live in the rural communities thoughnorthern region are generally milder. Thais
the proportion of the urban population isare less adapting to western foods even if
increasing. Thailand's urban populationthey could afford it compared to consumers in
increased from 22% of the total population inSingapore and Malaysia. However, bakery and
2000 to 31% by 2004. Thailand's capital andcoffer shop chains are gaining popularity
major city Bangkok accounts for nearly 8% ofamong young professionals who have adapted to
the country's total population. Other majorwestern culture.Khal Mastan is a Senior
cities include Nonthaburi, Pak Kret, Hat Yai,Consultant with Pegasus Business and Market
Nakhon Ratchasima, Chiang Mai and UdonAdvisory ( based in Malaysia. He involves
Thani.Thailand successfully reduced thehimself in business and marketing research
poverty level from 27% in 1990 to 10% byand provides consulting services on markets
2004. The proportion of the populationin Southeast Asia namely Malaysia, Thailand,
categorised belonging in the low-incomeSingapore, Indonesia, Philippines and Brunei.
household is estimated at 60% while middleHe has more than 20 years experience in the
and high-income households account for 30%.region and work experience in various
The average household income in Bangkok isindustries. He holds a bachelors degree in
twice than the nationalBiochemistry and an MBA. He can be contacted
average.INFRASTRUCTURE. Telecommunicationat or +6 (03) 7726 5373 in Malaysia.



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