Thailand market: frieght forwarding and vertical market analysis

Editor's Notes

1. Worldwide Connections The establishment of the ASEAN Economic Community (AEC) in 2015 has set up ASEAN as a single market that facilitates free flows of goods; and freer flows of services, investment, capital and skilled labor within the region. With further progress and expansion, we will become the center of a new economic engine of ASEAN
2. Strategically located at the heart of Asia, Thailand aptly serves investors as a dynamic gateway to a fast growing economic market. Our growing economy, world-class infrastructure, competitive human capital and strong government support, are responsible for our key position as one of the most attractive investment destinations for foreign investors.
3. Attractive Host Country Thailand has demonstrated remarkable economic progress experiencing foreign direct investment (FDI) inflows’ growth of 21% over the past 6 years, compared to the global percentage of 0.7%. Occupying the 4th rank in Asia’s top prospective host economies, Thailand has gained a solid reputation as a second home for various global multinational enterprises (MNEs).
4. Thailand has signed free trade agreements (FTA) with numerous trading partners worldwide, to reinforce its commitment to free and fair global trade, while conducting ongoing negotiations for new FTAs.
5.  Hub of Regional Road Connectivity Thailand has more than 465,000 kilometers of roads and a vast highway network connecting each region nationwide. We are also continuously upgrading and constructing new international road networks. Our goal is to increase regional cooperation with numerous fast-growing countries such as China, India, Viet Nam, Malaysia and Singapore and become a major hub of regional road connectivity
6. Increasing Momentum Toward Regional Transport Connectivity:
7. Rail Systems More than 4,000 kilometers of railway lines connect the various regions of Thailand. Plans are in the works to build both double-track railways and high speed trains, enabling a better connection with neighboring countries..
8. A new mass transit system in Bangkok is also under construction. A total of more than 175 new stops are expected in the Bangkok Metropolitan Mass Transit system as well as in the rail connection between the Suvarnabhumi and Don Mueang airports
9. Competitive Corporate Income Tax With the reduction of the successive corporate income tax to 20% in 2013, the corporate tax rate in Thailand ranks as the 2nd lowest in the ASEAN countries. Not only has this led to an increase in economic activities and investments in Thailand but it has also put the kingdom in a competitive position against other countries.
10. BOI – Board of Investment Thailand
11. In order to obtain investment promotion, the BOI applicant must follow the conditions prescribed by the Board of Investment as specified in the BOI promotion certificate in which the following incentives will be granted:
12. Thailand as the heart of Asia: Full-service aerospace hub Major player in the region for aircraft maintenance industry (Value of US$637 millions)
13. International cargo fluctuated yearly, from slightly increased in previous year to slightly decline in 2015. Yet, some airlines managed to grow their cargo shipments while others reported loss in volume of air cargo. Thai Airways International experienced another difficult year on cargo segment, as they dropped the number of shipments for both international and domestic services in all AOT’s airports. The situation was similar with Bangkok Airways to which they lost volume of cargo shipment as well. Conversely, those low cost airlines based at Don Mueang International Airport enjoyed the drastic increased of their cargo performance both international and domestic market. This can be assumed that those low cost airlines paid more attention to air cargo business over the years.
14. Eva Airways remains the all cargo operator with the highest freight volume among 239,265 tons of air cargo carried by freighters, followed by Nippon Cargo Airlines and Airways All Nippon Airways. K-Mile Air was the fastest growing operator in 2015 with an increase of 517.7% The major national carriers, Thai airways International reported divergent results.
15. Thailand is a nation home to both a strong, thriving agricultural base and advanced technologies and research-driven resources, provides a competitive advantage to the bio-plastic industry.
16. Thailand has more than 3000 companies and offers existing complete value chain industries to the bio-plastics industry.
17. Seagate is manufactured and hub in Thailand.
18. Thailand is the world’s top producers of food products such as rice, canned, tuna, frozen seafood, chicken, canned pineapples, and etc
19. Thailand’s abundant natural resources provide the country with a clear comparative advantage in the food processing industry.
20. Food import is very less percentage of overall. Therefore, it is not necessary to concern.
21. With its centuries-old reputation for superb craftsmanship and its strong manufacturing base, Thailand has become one of the world’s top exporters of gems and jewelry.
22. The fine jewelry industry is labor-intensive and relies on skilled craftsmanship, beautiful designs and modern technology to produce jewelry competitive in international markets. Multinational corporations can leverage Thailand’s unique advantages, including high-quality Thai artisanship in the areas of cutting and polishing colored stones and diamonds, sufficient supply of skilled workers at low cost, natural resources, and government promotion.
23. Polished Diamond from Thailand are admired around the World for high quality. Georg Jensen, a global Denish luxury brand chose Thailand as production base in Asia Pacific Distribution. Pandora relocates its operations in Thailand.
24. Non-tax incentives include permission to bring in expatriates, own land and take or remit foreign currency abroad.
25. Thailand is one of the world’s largest medical tourism markets, with the number of international patients continuing to rise. According to Thailand’s Ministry of Public Health and the Kasikorn Research Center, Thailand welcomed more than 2.5 million international patients in 2015,
26. Thailand is the largest producer of natural rubber
27. The southern part of Thailand has a monsoon climate, which is highly conducive to rubber tree cultivation.
28. SET is Stock Exchange of Thailand. The most top companies in SET also means they earn high net profit, high market share and have the power to take the role in Thai Market.