Business and Market Overview of Thailand

Thailand business and market overview includingfrom 27% in 1990 to 10% by 2004. The
economy, industry, demography, infrastructure,proportion of the population categorised belonging
retail trade and food culture. Provides an overviewin the low-income household is estimated at 60%
for those interested in conducting business in thewhile middle and high-income households account
country.for 30%. The average household income in
ECONOMY. Thailand has a pro-business marketBangkok is twice than the national average.
economy driven by strong foreign investmentsINFRASTRUCTURE. Telecommunication services
and export oriented manufacturing especially into the general public are overall adequate. Internet
electronics, foods and automobiles. Thailand'sbroadband services are mostly concentrated in
exports account for 60% of the country's GDP.Bangkok. Cities and towns are well connected by
Thailand experienced strong economic growthroads but lacks super highways connecting
prior to the Asian economic crisis of 1997 withThailand's cities and major towns. Cities the major
GDP growth averaging 9.4% annually. However,towns are served by airports and well connected
the crisis adversely affected businesses inby buses and rail system.
Thailand and saw the value of the Thai BahtINTERNATIONAL TRADE. Thailand's major trading
decline by more than 50% against the US dollar.partners include Japan, US, China, Hong Kong,
Since the crisis, the economy has grown on aSingapore, Malaysia and Taiwan. Main exports
growth path.from Thailand include electronics, vehicle and
Thailand's GDP was US$163.5 billion with a GDPvehicle parts, textiles, garments, footwear,
per capita of US$2,537 in 2004. Thailand's GDPseafood, processed foods, rice, rubber, jewellery,
grew by an average of 4.6% annually from 2000electrical appliances including computers. Main
to 2004 driven mainly by exports of highimports include machineries and equipments, raw
technology products mainly electronics. Inflationmaterials and finished products, consumer goods
remained below 2.0% from 2000 to 2003 butand fuels.
increased to 2.8% by 2004. However,CONSUMER USAGE OF TECHNOLOGY. There
unemployment showed a declining trend fromwere nearly 17.3 million installed fixed-line
3.6% in 2000 to 1.8% by 2004.telephones in 2004 giving a penetration of 40%
Nearly 60% of Thailand's workforce is involved inof all Thai homes installed with telephones. The
the agriculture industry but contributed to onlypenetration of mobile phones increased from just
9.8% of the country's GDP in 2004. The services7% of the population in 2001 to 42% or 27 million
industry contributed towards 46.1% of Thailand'smobile phones by 2004. The penetration of
GDP and manufacturing 44.1% during the period.computers is still low but increased from 5.1% of
Major industries include tourism, electronics,the households in 2001 to nearly 12% by 2004.
textiles and garments, processed foods,The number of internet users reached an
beverages, agriculture produce, jewellery,estimated 8 million in 2004 but most of the
furniture, plastics, vehicles and vehicle parts andinternet users are concentrated in Bangkok and
mining of tungsten and tin. Major agriculturethe major cities and towns. The penetration of
products include rice, tapioca, rubber, corn,television in homes in 93% indicating many
sugarcane, coconuts, soybean and milk.low-income homes have televisions.
DEMOGRAPHY. Ethnic Thais account for 75% ofRETAIL MARKET. The retail industry in Thailand
Thailand's 65 million population and another 11%totalled an estimated US$24.5 billion in 2004. There
are Chinese or Sino-Thais who have assimilatedare nearly 300,000 traditional "mom and pop"
into the Thai culture or are from mixed marriages.stores in Thailand accounting for 65% of the total
Minorities include Malays who lived mainly inretail sales. However, there are 4,500 modern
southern Thailand and account for 4% of theretail establishments (hypermarkets,
population. Others include the Mon, Lao, Khmers,supermarkets, department stores and
Puan and Karen minorities and immigrants fromconvenience stores) accounting for 35% of the
India. Nearly 95% of the country's population aretotal retail sales. Most of the modern retail
Buddhists while Malays in Thailand areestablishments are located in Bangkok. Shopping in
predominantly Muslims. Thai is the nationalmodern retail establishments is increasingly popular
language while languages used by the minoritiesand more establishments expected in the near
include Malay, Isan and Khmer. Schools teachfuture.
English but proficiency is low and generally, theFOOD CULTURE. Rice is the staple food but while
educated elite are more proficient with thethose in central and southern Thailand prefer
language.white fragrant rice those in northern Thailand
The majority of the Thai population still live in theprefer the glutinous variety. Thai dishes are
rural communities though the proportion of thegenerally hot and spicy but foods from the
urban population is increasing. Thailand's urbannorthern region are generally milder. Thais are less
population increased from 22% of the totaladapting to western foods even if they could
population in 2000 to 31% by 2004. Thailand'safford it compared to consumers in Singapore
capital and major city Bangkok accounts forand Malaysia. However, bakery and coffer shop
nearly 8% of the country's total population. Otherchains are gaining popularity among young
major cities include Nonthaburi, Pak Kret, Hat Yai,professionals who have adapted to western
Nakhon Ratchasima, Chiang Mai and Udon Thani.culture.
Thailand successfully reduced the poverty level