Results of• October AHK29,World Business Outlook 2019 Survey – Fall 2021:Ball Thailand German Working Group Meeting
The AHK World Business Outlook is based on a survey of member companies of the German Chambers of Commerce Abroad, Delegations and Representative Offices (AHKs). About 50 GTCC members participated German-Thai Chamber of Commerce, Bangkok in the survey from 24 September to 11 October 2021.
The results of the AHK World Business Outlook Survey – Fall 2021 show that GTCC member companies which participated in this survey are satisfied with the current business situation of their company. Most of them follow global discussions on environmental and social sustainability goals in their daily work. Key findings (1) •
42% of the survey respondents in Thailand report “satisfactory” of the current business situation of their company. Compared to the results from AHK World Business Outlook survey – Fall 2020, their situation is more positive as they rate it as more “good” and less “bad”.
2
Key findings (2)
•
In the next twelve months, - 54% of the surveyed companies in Thailand expect better business development, similar to the results last year. Those expecting business development “worse” account for 6% which decreases from last year (14.8%). - As for the economic development, 42% of the respondents think it will remain the same. Those expecting economic development “worse” account for 26% which significantly decreases from last year (47.6%) - Most of the surveyed companies (44%) will maintain the level of their investment, while 34% of them will increase their investment. - Most of the surveyed companies (50%) will hire more employees, while 40% will maintain the number of their employees and 10 % will have less employees. Compared to the survey results of 2020, the current outlook of employment development is more positive.
3
Key findings (3) •
Five biggest risks for companies in Thailand are demand (58.3%), legal certainty (50%), exchange rates (43.8%), economic policy conditions (37.5%), and trade barriers (31.3%), similar to the risks they encountered last year. But legal certainty is rated much higher than that in 2020.
•
Travel restrictions are the top effect of the Covid-19 pandemic on their company as rated by most respondents (86%), followed by problems in the supply chain/logistics (70%), postponed/cancelled investments (48%), less demand for products and services (46%), cancellation of orders (40%) and production loss/sick employees (40%). Less demands and postponed/cancelled investments have lower effects on them compared to the results of survey last year.
•
48% of the surveyed companies plan to diversify their supply chain by looking for new or additional suppliers. The respondents also plan for change of supply routes (16%), relocating productions to new locations (8%), while 36% mention they have no planning.
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Key findings (4) •
Environmental and social sustainability goals are important to their company. Most of them (63.6%) follow global discussions on environmental and social sustainability goals in their daily work.
•
However, majority of the respondents (44.2%) are not dealing with the expected Carbon Border Adjustment Mechanism (CBAM - CO₂ border adjustment mechanism) of the EU.
•
34.9% are preparing for the implementation of the German Supply Chain Due Diligence Act , which is the same proportion of those who are not preparing.
•
Majority of them (48.8%) are not affected by the EU Emission Trading System.
5
Key findings (5) •
The issue of sustainable corporate financing is becoming increasingly important for them (51.2%) and their company has set own sustainability targets to implement(87.8%).
•
40.9% mention local environmental or climate protection legislation do not require them to make considerable efforts
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How do you access the current situation of your company?
2021
2020
0.0%
36.0%
42.0%
23.0%
22.0%
50.8%
20.0%
40.0%
26.0%
60.0% good
satisfactory
80.0%
100.0%
120.0%
bad
7
Which business development does your company expect for the next 12 months?
2021
54.0%
2020
52.5%
0.0%
20.0%
40.0%
32.8%
40.0%
better
60.0%
about the same
6.0%
14.8%
80.0%
100.0%
120.0%
worse
8
Which economic development does your company expect for the next 12 months?
2021
2020
0.00%
32.0%
18.1%
42.0%
34.4%
20.00%
40.00% better
26.0%
47.60%
60.00% about the same
80.00% worse
100.00%
120.00%
9
How do you think local investments and employment of your company is likely to develop in the next 12 months? Responses on investment no investment lower
2021
6.0%
0.0%
2021
2020
21.3%
lower
2020
10.0% 23.0%
16.0% 29.5% 44.0% 34.4%
about the same higher
Responses on employment
34.0%
40.0%
49.2%
50.0%
higher
14.8% 20.0%
40.0%
about the same
60.0%
0.0%
27.9% 20.0%
40.0%
60.0%
10
What are the biggest risks for your company’s economic development in the next 12 months? 37.5%
12.5% 2021
16.7%
economic policy conditions
50.0%
33.3%
legal certainty exchange rate
58.3%
price of law materials
24.6%
9.8%
24.6%
16.4% 16.4% 31.1% 3.3%
0.0%
infrastructure
41.7%
16.7% 22.9%
2020
trade barriers regulation
31.3%
12.5%
49.2%
lack of skilled workers
23%
labour costs
27.9%
20.0%
price of energy
40.0%
75.4%
60.0%
80.0%
financing conditions demand
11
What effects do you expect or do you already have from the coronavirus pandemic? Other
10.0% 18.0%
48.0%
18.0%
2021
Increased legal uncertainty
70.0%
Investments are postponed/canceled
46.0%
86.0%
36.0% 40.0% 40.0% 32.0%
Problems in the supply chain/logistics Liquidity constraints/lack of financing Less demand for my products and services
4.90% N/A 21.3%
2020
1.6% 0.0%
73.8%
36.1%
67.2% 41.0% 37.7%
Travel restrictions Cancellation of trade fairs/events
82.0%
Cancellation of orders Own production losses/sick employees
16.4% 20.0%
40.0%
60.0%
80.0%
100.0%
Missing goods/services
12
Do you plan to diversify your supply chain or have you already made adjustments? Yes, other
8.00%
Yes, changing/shortening supply routes
16.00%
Yes, looking for new/additional suppliers
Yes, relocating production to new locations
48.00%
8.00%
No
0.00%
36.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
13
How important are environmental and social sustainability goals in your daily work? 1/4
We are following the global discussion on these topics, but have not yet felt any practical effects Yes
No
No answer 0.0%
We are preparing for the implementation of the German Supply Chain Due Diligence Act
63.6%
34.9%
No
20.5%
No answer
15.9% 20.0%
Yes
40.0%
60.0%
80.0%
34.9%
30.2%
26.0% 28.0% 30.0% 32.0% 34.0% 36.0%
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How important are environmental and social sustainability goals in your daily work? 2/4 We are dealing with the expected Carbon Border Adjustment Mechanism (CBAM - CO₂ border adjustment mechanism) of the EU
Yes
Yes
27.9%
23.3% No
No
48.8%
44.2%
No answer 0.0%
We are directly or indirectly affected by the EU Emission Trading System
No answer
32.6% 10.0%
20.0%
30.0%
40.0%
50.0%
0.0%
23.3% 20.0%
40.0%
60.0%
15
How important are environmental and social sustainability goals in your daily work? 3/4 The issue of sustainable corporate financing is becoming increasingly important for us Yes
51.2%
No
No answer
30.2%
18.6%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Our company has set its own sustainability targets, which we are working to implement Yes
No
No answer
0.0%
87.8%
4.1%
8.2% 50.0%
100.0%
16
How important are environmental and social sustainability goals in your daily work? 4/4 Local environmental or climate protection legislation requires us to make considerable efforts Yes
36.4%
No
40.9%
No answer
0.0%
22.7%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
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