Infrastructure In Thailand

An Expert's View about Building Products and Construction in Thailand

Posted on: 6 Feb 2013

The Thai government plans to invest US$ 90 billion over the next 5-10 years to develop various infrastructure projects to promote Thailand as an ASEAN hub.

Monday, 07 Jan 2013 Infrastructure In Thailand The Thai government plans to invest US$ 90 billion over the next 5-10 years to develop various infrastructure projects to promote Thailand as an ASEAN hub in boosting connectivity within the region. Market overview Thailand is a country of 67.4 million people and one of the founding member states of the Association of South East Asian Nations (ASEAN). ASEAN comprises 10 nations in South East Asia with a combined population of around 500 million people. In 2015, it will become the ASEAN Economic Community (AEC). To accommodate the launch of the ASEAN Economic Community (AEC) and the economic expansion of the Greater Mekong Subregion (GMS), the Thai government plans to invest US$ 90 billion over the next 5-10 years to develop various infrastructure projects to promote Thailand as an ASEAN hub in boosting connectivity within the region. Some immediate projects to be implemented over the next 5 years include water and flood prevention management, Suvarnabhumi Airport expansion, Laem Chabang Port expansion, inter-city motorways, high speed trains, national rail network upgrade. A more detailed report, including project values, is available from UK Trade & Investment Thailand. Key opportunities There are business opportunities for UK companies with products and expertise in the following projects: ξ Water Resources Management and Flood Prevention ξ Mass Transit System Expansion Project ξ High Speed Train Project ξ Suvarnabhumi Airport Expansion Project ξ Laem Chabang Port Expansion Project ξ Inter-city motorways ξ National rail network upgrade Getting into the market Although Thailand offers good business opportunities, this does not mean that Thailand is the right market for every company. Initial research is crucial to assessing your prospects. Thais like to build relationships with potential business partners, so it is not a market where you are likely to send a few brochures and wait for the orders to roll in. But for those ready to do the initial research and develop relationships with Thai companies, the opportunities are clearly there. It is very important that British companies appear to have a local presence in Thailand, either through local representatives, a representative office, or joint venture companies. Such a presence shows that British companies are serious about the market and are willing to provide local technical support to their partners and customers. The Thai market is still price-oriented. Technical support is the second most important issue after pricing. How to Do Business When visiting Thailand, research the market and the companies you intend to contact. ξ Many Thai companies have websites - some in English. Much information is therefore readily available on both government and corporate websites. ξ Plan your visit - organise appointments before you depart the UK. Follow up with telephone calls on arrival to confirm availability. Meetings can be arranged over breakfast, lunch or dinner. ξ Arrange a market discussion with the relevant Commercial Officer at the British Embassy in Bangkok. ξ Take plenty of business cards and corporate literature. ξ Follow up meetings by letter/e-mail on return to the UK. If possible, keep the Embassy informed of progress. ξ Do not expect to do business immediately or necessarily on the first visit to Thailand. ξ Think about intellectual property rights issues. ξ Get professional legal advice on setting up a local company and research business partners thoroughly. Due diligence investigations are strongly recommended.
Posted: 06 February 2013

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