Sourcing Opportunities in Thiland

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Sourcing Opportunities in Thailand

Jul, 2016 www.dragonsourcing.com

Table of Contents                 

Executive Summary Thailand – Macro Economics Industrial Machinery Electrical, Electronic Equipment Automobiles Rubber & Rubber Products Plastics & Plastic Products Mineral Fuels Precious Metals Processed Fish & Meat Organic Chemicals Cereals Medical & Optical Apparatus Iron & Steel Products Sugar Wood & Wood Products Fresh or Frozen Fish & Crustaceans

2

2

Executive Summary – Top Export Categories (1/2) Category

HS Code

Top Products

Electronic Machinery

HS 84 series

Automatic data processing machines, optical readers.

Industrial air conditioning units

Electrical, Equipment

HS 85 series

Integrated circuits and micro assemblies

HS 87 Automobiles series Rubber & Rubber Products

Plastics & Plastic Products

HS 40 series

HS 39 series

HS 27 Mineral Fuels series Precious Metals

HS 71 series

Trucks & transportation vehicles Auto Parts & accessories Cars Natural Rubber Pneumatic tires of Rubber Polymers of ethylene in primary form Polyacetal, polyether, epoxide resin, polycarbonate, etc., in primary form Polymers of propylene, in primary form Plastic packing goods or closures stoppers, lids, caps, closures Petroleum Oils Oils & other products of the distillation like tar Crude Petroleum Oils Jewelry Gold Diamonds

2014 Export Value in USD Billion

CAGR of Exports Value (5 years)

12.1

-1.46%

4.6

8%

7.5

-2%

10.3

20%

6.7 6.5 6.0

14% -1% -10%

3.5

6%

4.2

20%

1.9

-2%

1.3

15%

1.1

7%

9.8

6%

1.2

19%

0.4 3.8 2.7 1.8

-14% 4% -20% 13%

Thailand’s share of Global Exports (2014)

Top Export Destinations

Import Duty into US

Import Duty into EU

Export Duty

2%

USA, Japan, China, Malaysia, Netherlands

0% (central heating boilers & parts) 6.7% (steam turbines)

0% (portable automatic data-processing machines)

Nil

1%

0% (motors exceeding 75 kW but under USA, Japan, China, 149.2 kW) -6.7% (synchronous motors, Malaysia, Singapore valued not over $4 each)

0% (Processors & controllers)

Nil

2%

Australia, Indonesia, Philippines, 0% (pedestrian controlled tractors) - 6% 0% (Motor vehicles for the Malaysia, Saudi (steel tubing vehicle parts) transport of goods) Arabia

8%

2%

0.45%

2%

China, USA, Malaysia, Japan, Korea

0% (Natural rubber latex) -8% (conveyor belt width exceeding 20 cm)

0% (Natural rubber latex)

0% (Polyethylene having a China, Japan, 0% (Ethylene-vinyl acetate copolymers) specific gravity of 0.94 or Indonesia, Vietnam, - 6.5% (Polyethylene) more) - 6.50% (Linear lowIndia density polyethylene)

Singapore, Malaysia, China, Lao, Vietnam

0% (coal) - 2.9¢/kg + 12.5% (Phenols)

China, USA, 2.5% (Silver articles) - 4% 0% (natural pearls) -11% (Imitation Switzerland, (base metal clad with jewelry valued over 33 cents per meter) Germany, Singapore precious metal)

Note: Export value, CAGR of Export values are provided for the products and Percentage of Global exports are provided for the entire category.

Categories have been arranged in the descending order of highest percentage of Thailand’s exports in 2014. © 2015 Dragon Sourcing. All rights reserved.

0% (Light oils and preparations)

3

Nil

Nil

Nil

Nil

Nil

Executive Summary – Top Export Categories (2/2) Category

HS Code

Processed HS 16 Fish & Meat series Organic Chemicals

HS 29 series

Cereals

HS 10 series

Medical & Optical Apparatus

HS 90 series

Iron & Steel HS 73 Products series

Sugar Wood & Wood Products

Top Products

Processed Fish Processed Meat Processed Crustaceans & molluscs

Fresh or Frozen Fish HS 03 & series Crustaceans

CAGR of Exports Value (5 years) 6% 4%

1.2

-10%

Cyclic hydrocarbons

1.9

14%

Rice

5.4

-3%

Maize (Corn)

0.2

16%

Optical Fiber Cables Liquid Crystal Devices Lenses, prisms, mirrors etc.

Iron & Steel Products

0.9 0.6 0.6 1.1

0% 31% -6% 5%

Iron & Steel Structures (rods, angle, plates)

Cane or beet sugar HS 17 Sugar confectionery (including series white chocolate) HS 44 series

2014 Export Value in USD Billion 3.0 2.1

0.5

10%

2.7

2%

0.1

0%

Wood sawn/chipped lengthwise, sliced/peeled

0.9

14%

Crustaceans Molluscs

0.9 0.4

-16% 1%

Fish fillets

0.3

-7%

Thailand’s share of Global Exports (2014)

Top Export Destinations

Import Duty into US

Import Duty into EU

Export Duty

14%

Japan, USA, UK, Australia, Canada

0.8¢/kg (Sausages-Pork) -10% (Fish sticks)

5.50% (Salmon) – 24% (Fillets known as 'loins')

Nil

2%

China, India, Singapore, Indonesia, Korea

0% (Acyclic hydrocarbons) - 6.5% (Esters of acrylic acid)

0% (Cyclohexane)

Nil

4%

1%

0% (Semi-milled or wholly Nigeria, Benin, USA, 0% (Rye seed) – 11.2% (Semi-milled or milled rice) - 7.7% (Rice for China, Ivory Coast wholly milled rice) sowing) 0% (Lenses accessories) - 6.7% 0% (Lenses used in civil USA, Japan, China, (Optical fibers, optical fiber bundles and aircraft) -2.90% (Image Germany, Singapore cables) conductor cables)

Nil

1%

Japan, USA, Australia, Malaysia, Vietnam

0% (Sheet piling of Iron & Steel) – 12.5% (Coach screws)

0% (Iron or steel wire used in civil aircraft) - 2.70% (Iron or steel grinding balls & similar articles for mills)

Nil

6%

Indonesia, Japan, China, Malaysia, Cambodia

0% (Cough drops) – 12.2% (Dairy products)

33.90 EUR / 100 kg (Beet Sugar for refining)

Nil

2%

China, Korea, Japan, Iran, Malaysia

2%

Japan, USA, China, Italy, Vietnam

0% (Coniferous wood sawn or chipped lengthwise) – 10.7% (Containers 0% (Coniferous wood sawn 5%-40% designed for use in the harvesting of or chipped lengthwise) fruits and vegetables) 0% (Freshwater fish) – 15% (Livers)

20% (Frozen Rock lobster and other sea crawfish)

Note: Export value, CAGR of Export values are provided for the products and Percentage of Global exports are provided for the entire category.

Categories have been arranged in the descending order of highest percentage of Thailand’s exports in 2014. © 2015 Dragon Sourcing. All rights reserved.

Nil

4

Nil

Executive Summary – Emerging Export Products Export Value % of Total Growth rate in (2014) in USD World Export Value 2013-2014 Billion (2014) (% per annum)

Emerging Products

HS Code

Top Export Destinations

Import Duty into US

Import Duty into EU

Export Duty

Rice

1006

5.438

22.06%

23%

Nigeria, Benin, USA, China, Ivory Coast

0%-6.7%

211.00 EUR / 1000 kg (Rice)

Nil

Polymers of ethylene, in primary forms

3901

4.200

4.99%

14%

0%-6.5%

0%-6.50%

Nil

Printing machinery

8443

2.551

2.45%

35%

0%-6.7%

0%

Nil

8414

1.931

2.54%

12%

Japan, China, Norway, USA, India

0%-6.7%

0%

Nil

7102

1.852

1.28%

11%

China, Belgium, India, Israel, USA

0%-11%

0%-4%

Nil

8536

1.560

1.56%

15%

Japan, Singapore, Malaysia, USA, Indonesia

0%-6.7%

0%

Nil

0714

1.527

52.63%

16%

China, Japan, Singapore, New Zealand, Australia

0%-20%

6%

Nil

8527

1.415

8.57%

20%

Japan, USA, Belgium, India, Germany

0%-6.7%

0%

Nil

Printed circuits

8534

1.238

2.57%

32%

China, Malaysia, USA, Japan, Germany

0%-6.7%

0%

Nil

Oils & other products of the distillation of high temp coal tar etc.

2707

1.227

5.48%

32%

China, Singapore, Korea, Indonesia, Malaysia

0%-12.5%

0%

Nil

Air, vacuum pumps; hoods incorporated a fan Diamonds Electrical app for switching (ex fuse, switches, etc.) not exceeding 1000 volt Manioc, arrowroot (yams) etc.

Reception app for radio-telephony/ radiobroadcasting

Š 2015 Dragon Sourcing. All rights reserved.

China, Japan, Indonesia, Vietnam, India USA, Japan, Netherlands, Germany, China

5

Sourcing Opportunities in Thailand

THAILAND- MACRO ECONOMICS

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Thailand Overview – Thailand is a constitutional monarchy in South East Asia that consists of 77 provinces spread across six regions: North, North East, Central, East, West and South.  Population: 67.2 million (2014 statistics)

  

Surface area slightly larger than Spain ~513,115 km2 Coastline about the same as Vietnam ~3,219 km About 0.43% of total land area is made up of water bodies such as lakes and rivers Population (2014)

Area (km2)

67,200,000

513,120

8 million

1569

Samut Prakan

1.2 million

1004

Nonthaburi

1.1 million

622

Udon Thani

0.15 million

1142

Thailand Bangkok

Gross Domestic Product

2014

Growth (2014)

The GDP was USD 373.8 billion in 2014

0.7%

Exports

Total global exports from Thailand constituted about 1% of global exports

Foreign Direct Investments

Japan is the prominent investor into Thailand with about 60.6% investments

6% 20.93%

Value (2014) USD 373.8 billion USD 225.784 billion USD 12.7 billion

The Gross Domestic Product (GDP) expanded 0.3 percent in the first quarter of 2015 over the previous quarter. GDP Growth Rate in Thailand averaged 0.93 Percent growth from 1993 until 2014, reaching an all time high of 11.40 Percent in the first quarter of 2012 and a record low of -11.10 Percent in the fourth quarter of 2011.

Source: World Bank, International Trade Center, Bank of Thailand © 2015 Dragon Sourcing. All rights reserved.

7

Thailand – Industry and Workforce

    

Thailand is an upper-middle income economy with a gross national income of USD 13,510 per capita (year 2013).

Thailand provides the investor with a hard working and knowledgeable workforce with high-trained technicians and disciplined workers. Labor costs in Thailand are relatively low compared with other countries in the area such as Malaysia and Indonesia while productivity levels remain high. Investors agreed that Thailand is a very cost-effective place to do business Majority of the workforce is employed in the Agricultural Sector. The effort of the government to move the workforce from low income agricultural sector to others obtained good resulted after years with the ratio decreased from 80% in the 1980’s to 38% in 2012.

The stable and steady workforce in Manufacturing sector has been attributed to the growth of the industrial manufacture in Thailand.

For many years, Thailand has been facing the shortage of low-skilled workers and have to import low-skilled migrant workers from neighboring countries. At present, Thailand is host to almost 3 million migrant workers. In the future, these business owners will be forced to rely on the migrant workforce, since the low-skilled Thai workforce can not be expanded.

Source: tradingeconomics.com © 2015 Dragon Sourcing. All rights reserved.

8

Thailand – GDP

Sources: knoema.com, data.worldbank.org

Sources: knoema.com, data.worldbank.org

Key Insights:

Annual GDP Growth Rate: Thailand witnessed more than 6% growth in GDP in 2012 which slowed down to 3% growth in 2013 and 0.7% in 2014 due to global economic slowdown.

Main

contributors towards the GDP growth are Services and Manufacturing sectors with 48.2% and 38.2% share respectively of the total GDP.

Source: thailand-business-news.com © 2015 Dragon Sourcing. All rights reserved.

9

Thailand – Trading Partners Thailand exports are steadily growing to all major regions of the world at 9.87% CAGR (2006-2011)

CAGR 8% CAGR 4% CAGR 3% CAGR < 1% CAGR 7%

CAGR 3% CAGR 8% CAGR 14%

CAGR 7%

CAGR 1%

Sources: Key Indicators of Thailand -2011, Asian development Bank-ADB

- The top regions importing from Thailand include: China, US, Japan, Malaysia, Hong Kong, Singapore, Indonesia, Australia, Vietnam and Philippines. Export to Indonesia have been increasing at a 14% from 2010-2013.

- Top imported partners includes: Japan, China, EU and US which are also the biggest trade partners of Thailand.

- Among the Multilateral and Bilateral trade agreements, Japan continued to be Thailand’s top trading partner and the biggest investor to the country.

Europe

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10

Germany

Thailand – Foreign Investment

Sources: UNCTAD, Indexmundi, Ministry of Foreign Affairs-Thailand

Sources: UNCTAD, Indexmundi, Ministry of Foreign Affairs-Thailand

Key Insight –Foreign investors are attracted by Thailand’s strong growth in the past years, low cost labor force and significant performance of its manufacture industry. FDI has grown substantially over recent years in 2012 and 2013.

–Japan was the largest FDI investor to Thailand in 2014 followed by USA, UK, Hong Kong, The Netherlands and France.

Flood Crisis –Some regions of Thailand are prone to seasonal flash-flooding due to their tropical savanna climate. In 2013, seventeen factories were temporarily shut down in a major Thai industrial zone dominated by foreign companies. Hence investors are reluctant at times to invest in Thailand.

–Various disaster and risk reduction activities have been continuously implemented by the government agencies. Also, there is a separate department ‘Department of Disaster Prevention and Mitigation’ operating under the Thailand government, aiming at enhancing the disaster management capacity and efficiency in terms of disseminating and receiving disaster related information, exchanging and sharing information with the government and non-government agencies.

Sources: UNCTAD, Indexmundi, Ministry of Foreign Affairs-Thailand, reuters.com, unisdr.org, adrc.asia © 2015 Dragon Sourcing. All rights reserved.

11

Thailand – Exchange rate

Exchange rate to be administrated by The Bank of Thailand on behalf of the Government:

Source: x-rates.com

The Baht (Thailand currency) was allowed to float before 1963. After that it was pegged to US dollar (1963-1978) firstly by a fixed rate then by a

fluctuation range. In 1978, the Baht was pegged to its major trading partners instead of USD. During 1984-1997, the Baht value was defended against the U.S. Dollar by monetary and financial measures in line with the pegged exchange rate regime. It was allowed to float again in 1997 by the managed-float exchange rate regime. The Government would only intervene to prevent excessive volatilities and achieve economic targets. It is observed that there has been an appreciation of THB vs. US dollar since 2005. It caused by Thailand’s investment capital which kept increasing dramatically and other measures to attract investment such as high interest rate, etc.  There are emerging concern on the appreciation of the Baht as it would cause difficulties to export and he operation of small and medium enterprises.

© 2015 Dragon Sourcing. All rights reserved.

12

INDUSTRIAL MACHINERY

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13

Industrial Machinery – Market Trends

Key Insights:

Thailand is a net exporter of Industrial Machinery Expansion and development of Thailand’s agri-business industry is expected to increase demand for imported machinery and technology for the food processing industry.

There

is high demand for food and farm machinery, alternative energy/ energy conservation machinery, textile machinery, automotive machinery, mould and die industry

The industry is expected to grow at 10% annually in the 2-3 years.

The

major imported product categories were electrical machinery and accessories and air or vacuum pumps, gas compressors and fans.

The

main exports of industrial machinery were printing machinery and printing type blocks.

An import duty of 0-9.7% is levied on Electrical Appliances

exports from Thailand into Europe. The rate of 0-9.9% is levied on Thailand Electrical Appliances imported into US.

Source: International Trade Centre, boi.go.th, export.gov © 2015 Dragon Sourcing. All rights reserved.

14

Industrial Machinery – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

The

country's machinery and metalworking sector employs a labor force of around 400,000 people and comprises approximately 50,000 enterprises as on 2013. At present, Thailand is a global leader in machinery and there are numerous opportunities to invest in this industry.

Toshiba

Carrier (Thailand) Co. Ltd., Korawit Engineering Ltd., Bangkok Fastening Co. Ltd., Kulthorn Kirby PCL, Global Thaixon Precision Industry Co., Ltd., Kusatsu Electric (Thailand) Co.,Ltd., Thai Agricultural Machinery Co., Ltd. are some of the industrial machinery manufacturers in Thailand.

Source: business-in-asia.com © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 15

ELECTRICAL, ELECTRONIC EQUIPMENT © 2015 Dragon Sourcing. All rights reserved.

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Electrical, Electronic Equipment – Market Trends Key Insights:

Electrical

appliances and electronic goods sector is projected to grow by 4 percent in 2015 from last year. It is also expected that the exports would grow by 3-5 percent annually in the next 3 years, while the domestic market is expected to expand by 5-10 per cent per year.

The

production of electrical and electronic goods is projected to grow by 1-2 percent in 2015. The electronicgoods sector is expected to grow by 0.5-1 percent in line with the rising demand for mobile communication devices.

Thailand’s

robust manufacturing base and well-developed infrastructure, including an efficient road and ports system, make Thailand an ideal place for electrical and electronics operations.

Thailand’s

major electrical appliance products were air conditioners, refrigerators, and digital cameras & video camera recorders. Air conditioners, which accounted for 15% of the electrical appliance industry, had the highest export value in the industry; while the export of refrigerators and digital cameras & video camera recorders increased by 10% and 12%, respectively.

Thailand’s

main electronics exports were hard disk drives (HDD) and integrated circuits (IC), which accounted for approximately 34% and 26% of total electronics exports, respectively.

Source: International Trade Centre, nationmultimedia.com, boi.go.th © 2015 Dragon Sourcing. All rights reserved.

17

Electrical, Electronic Equipment – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Currently, almost all of the major electrical appliance manufacturers are represented

in Thailand. The Kingdom is not only a regional leader, but also a leader on a global level as Japanese, Korean, European and American multinational companies manufacture electrical appliances in Thailand.

Japanese

manufacturers constitute half of the industry: JVC, Sony, Orion, Nikon, Pioneer, Panasonic, Canon, Sharp, Hitachi, Mitsubishi, Toshiba, TDK, NEC, Stanley, Rohm, Alps Electric, Epson, Alpine, Minebea, NHK, Seiko, Sanyo and Fujitsu, among many others are represented in Thailand.

Source: International Trade Centre, boi.go.th © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 18

AUTOMOBILES

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19

Automobiles – Market Trends

Key Insights:

Automotive industry is projected to grow at 15.4% in 2016. Total production of Automobiles in 2014 was about 1.8 million units. In 2015, the production number is expected to reach 2.15 million units.

Domestic

sales is set to get close to 1 million units, thus stabilizing the domestic market.

Eco car production

will play a central role in the growth of automotive market in 2015. About 50% of the manufactured vehicles are exported.

The BOI and the Ministry of Finance offer incentives to Eco

Car manufacturers. Under the incentive program, the BOI offers projects with a minimum investment value of 5 billion baht, an 8 year corporate income tax holiday, as well as duty-free importation of machinery.

Thailand

is expected to retain its position as the main automotive production hub within ASEAN.

Export growth rate is around 3% annually.

Source: International Trade Centre, thaiautobook.com © 2015 Dragon Sourcing. All rights reserved.

20

Automobiles – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

85% of the market share is controlled by Japanese, about 5% by US OEMs. Toyota have the biggest share of about 35% in the vehicles market, followed

by Mitsubishi, Auto Alliance, Nissan, Isuzu, Honda, Chevrolet and Suzuki at 25%, 11%, 9%, 5%, 8%, 3% and 3% respectively.

Source: International Trade Centre, thaiautobook.blogspot.in © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 21

RUBBER & RUBBER PRODUCTS

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22

Rubber & Rubber Products – Market Trends

Key Insights:

Production of Natural rubber:  2012: 3.77 million metric tons  2013: 4.17 million metric tons  2014: 4.32 million metric tons Asia accounts for 93% of the world

natural rubber production with Thailand being the largest producer followed

by Indonesia and Vietnam.

China, the world’s top buyer of rubber, has slowed demand for natural rubber and hence Thailand is left with massive rubber surplus.

Also, rubber prices have fallen approximately 30% in 2014 and rubber producers are seeing a fall in revenue.

The

Thai Government is encouraging farmers to reduce rubber production and switch to producing palm oil. There are plans to initiate cutting down almost 3,50,000 rubber trees annually to counter the oversupply and fall in prices.

Source: International Trade Centre, thainr.com, businesseventsthailand.com © 2015 Dragon Sourcing. All rights reserved.

23

Rubber & Rubber Products – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Thailand’s major rubber product companies are Thai Rubber Latex Corporation, Sri Trang Agro-Industry Plc., World Rubber Ltd., Bridgestone Corporation and Top Glove Corporation Berhad.

Some

of the other top rubber exporting companies in Thailand are Von Bundit, Sri Trang Agro- Industry, Thai Hua, Thaitech Rubber, Southland, Bridgestone Natural Rubber, B.Right, Teck Bee Hang, Tavorn, Hadsyn, Siam Indo, A One, Numhua, and Thai Rubber Latex.

Source: International Trade Centre, thaiautobook.blogspot.in © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 24

PLASTICS & PLASTIC PRODUCTS © 2015 Dragon Sourcing. All rights reserved.

25

Plastics & Plastic Products – Market Trends

Key Insights:

Thailand is poised to become one of the regional hubs for biopolymer industry in the next 5 years as the industry starts to make serious investments.

Also,

Thailand’s industrial environment is very good, have enough feedstock and have big players like PTT Public Company Limited (Petroleum Authority of Thailand).

The

Bangkok-based Thai Bioplastics Industry Association claims that Thai cassava starch would be 30 percent cheaper as a biopolymer feedstock than corn starch in the United States.

Strong

and thriving agricultural base and advanced technologies and research-driven resources, provide a competitive advantage to the bio-plastics industry.

The Thai government has spent $60 million to implement a

detailed bio plastics development roadmap it unveiled in 2008, including a new round of tax incentives announced in January.

Firms

from Norway and Taiwan, for example, said they were partnering with Thai firms on bio plastics to take advantage of both Thai processing expertise and anticipated supplies of locally produced biopolymers. Thai companies also were adding capacity themselves.

Source: International Trade Centre, plasticsnews.com, boi.go.th © 2015 Dragon Sourcing. All rights reserved.

26

Plastics & Plastic Products – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

The

country has Southeast Asia's largest plastics processing industry, with 4,000 companies (about 60% small and medium scale industries and remaining 40% large sized companies), and a strong local presence of factories of global car and electronics manufacturers.

Source: International Trade Centre, plasticsnews.com, businesseventsthailand.com © 2015 Dragon Sourcing. All rights reserved.

27

Note: Star refers to supplier hubs

MINERAL FUELS

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28

Mineral Fuels – Market Trends Key Insights:

Approximately

80% of the nation’s oil demand is sourced through imports, making it one of the largest net oil importers in ASEAN. A large capacity for oil processing, however, means that Thailand is a net exporter of petroleum products, which include motor and aviation fuel.

Although Thailand will increase its natural gas production in

the short term as it makes use of its significant reserves, the pace of domestic energy demand growth means that the country will have grown more dependent on imports for its energy needs by 2016.

Petroleum supply including onshore and offshore in 2015:  Natural Gas: 36,505 Million standard cubic feet per day

 

Condensate: 2,012,500 barrels per day Crude Oil: 1,612,691 barrels per day

Due

to increasing demand for natural gas and the limited scope of its reserves, Thailand is actively seeking new gas resources. It is also seeking to improve security of energy supply by diversifying its power generation fuel mix, through increased use of renewable resources, particularly solar, wind, hydro and biomass.

Oil

and gas companies are allowed to import duty-free equipment, with an average import total approaching US$ 1.5 billion per year. Foreign experts are also given special facilitation, with 1,500 to 2,000 per year granted entry.

Source: International Trade Centre, Department of Mineral Fuels (Thailand), aperc.ieej.or.jp © 2015 Dragon Sourcing. All rights reserved.

29

Mineral Fuels – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

There are over 300 platforms in the Gulf of Thailand, of which 279 are production or

processing platforms. Thailand has a strong complement of locally established drilling, contracting, consulting, service and supply companies, with special preference for exploration and production operators to source locally.

The oil industry in Thailand is dominated by PTT, formerly the Petroleum Authority of

Thailand. The Energy Policy and Planning Office (EPPO), which is part of Thailand’s Ministry of Energy, oversees all aspects of the country’s energy policies, including the oil, natural gas, and power sectors.

The largest foreign

operator is Chevron, which currently accounts for 70 percent of Thailand’s natural gas production from 22 offshore fields.

Source: International Trade Centre, mbendi.com © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 30

PRECIOUS METALS

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31

Precious Metals – Market Trends

Key Insights:

Thailand's exports represent about 2% of world exports for this product, its ranking in world exports is 18.

China, USA and Switzerland are the major import markets for pearls and precious metals from Thailand.

About

24.8% of total exports from Thailand is towards China, 13.5% towards USA and Switzerland with 13%.

Gold Reserves in Thailand averaged 99.47 tons from 2000 until 2014, reaching an all time high of 152.41 tons in the third quarter of 2011.

Gold

consumption in Thailand, the biggest user in Asia after China and India, expanded 73 percent to 140.1 tons in 2013. Imports were higher than local consumption in 2013.

Source: International Trade Centre, World Gold Council Data © 2015 Dragon Sourcing. All rights reserved.

32

Precious Metals – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Adibadee Co., Ltd, ALX Gold Mining Co., Ltd., Amulet Jewel Co., Ltd., Asian Global

Co Ltd, Falcon Generation Co., Ltd., Gold Dust Rep, Goldshop Ghana Limited, Icon Minerals, Iris ( Thailand) Company Limited, KPJ Exports, Kimberley Holdings, Laj Enterprises Ltd, Moza Group Co., Ltd., Susso Gem Company Limited, YLG Bullion International Co Ltd are few suppliers/ exporters of gold and gold articles.

Source: International Trade Centre, globalsuppliersonline.com © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 33

PROCESSED FISH & MEAT

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34

Processed Fish & Meat – Market Trends

Key Insights:

Thailand

is a net exporter of Prepared/Preserved Fish &

Exported

growth in value between 2010 and 2014 is 2%

Meat.

per annum.

Import duty rate for importing Canned Fish into EU is 20% whereas it is 4% for USA.

Though

industry witnessed a dip in exports in 2014, in terms of quantity, there was a year-on-year increase of 8-10 per cent which, when coupled with a 30-per-cent fall in rawmaterial prices, resulted in a rise of 7-10 per cent in profit margin, which was good for the Thai tuna industry.

Thai tuna industry process about 800,000 tons of Tuna per

year. 95 percent of the raw materials are frozen imports from many different parts of the world and only 5 percent come from Thai-owned ships.

Source: International Trade Centre, thefishsite.com, intrafish.com © 2015 Dragon Sourcing. All rights reserved.

35

Processed Fish & Meat – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Asian

Alliance International Co., Ltd., Chotiwat Manufacturing Co., Ltd., Global Frozen Food (Thailand) Co., Ltd., Golden Prize Canning Co., Ltd., ISA Value Co., Ltd., MMP International Co., Ltd., Pataya Food Industries Ltd., RS Cannery Co., Ltd., Siam International Food Co., Ltd., SK Foods (Thailand) Public Co., Ltd., Spa International Food Group Co., Ltd., Songkla Canning Public Co., Ltd., Southeast Asian Packaging and Canning Ltd., Thai Union Frozen Products Public Co., Ltd., Thai Union Manufacturing Co., Ltd., Tropical Canning Public (Thailand) Co., Ltd., Unicord PLC, PB Fishery Products Co., Ltd. are the members of Thai Tuna Industry Association.

Source: International Trade Centre, thaituna.org © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 36

ORGANIC CHEMICALS

© 2015 Dragon Sourcing. All rights reserved.

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Exported growth in value between 2010-2014 (%, p.a.)

Exported growth in value between 2010-2014 (%, p.a.)

Organic Chemicals – Market Trends

Key Insights:

Thailand is a net exporter of Organic chemical The global average import duty rate for Organic

chemical compounds is 3.8%, with a minimum of 0% and a maximum of 30%.

Exported

growth in value between 2010 and 2014 is 10%

per annum.

About

56% of the total exports from Thailand is sent to China followed by India, Singapore and Indonesia at 11%, 10% and 10% respectively.

There

are about 750 organic chemical suppliers in Thailand. Many big manufacturers are located in the east part of Thailand.

There

are many ISO 9001:2008 and ISO 14001:2004 certified suppliers in the market.

Source: International Trade Centre, business-in-asia.com © 2015 Dragon Sourcing. All rights reserved.

38

Organic Chemicals – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Aditya

Birla Chemicals (Thailand), Sumitomo Corporation Thailand Ltd, Union Petrochemical Public Co. Ltd., Pimai Salt Co. Ltd, ARS Chemical (Thailand) Co. Ltd., Thai Caprolactam Public Company Limited, Siam Water Flame Co., Ltd., ICP Chemicals Co. Ltd., SQI Group of Companies, Imperial Industrial Chemicals (Thailand) Co. Ltd., Cape Industrial Co. Ltd (Cape Thailand Eastern Branch), PAE Public Co., Ltd., Technip Engineering (Thailand) Ltd., Thai Organic Chemicals Co., Ltd, are the various suppliers in the market.

Source: International Trade Centre, aboutthailand.info, chemtechsearch.com, business-in-asia.com © 2015 Dragon Sourcing. All rights reserved.

39

Note: Star refers to supplier hubs

CEREALS

© 2015 Dragon Sourcing. All rights reserved.

40

Cereals – Market Trends Key Insights:

Thailand is a net exporter of cereals. Exported growth in value between 2013 and 2014 is 24% per annum.

Industry

witnessed a fall in 2013 due to children’s breakfast cereals encountering a slowdown due to a shrinking birth rate in Thailand as well as the concern of overweight children.

Bread and Rolls is the largest and fastest growing products in the overall market.

Age

related products and Indulgence seeking behavior is driving Bakery and Cereals consumption in Thailand.

Breakfast

cereals is likely to enjoy the potential upside, with the expansion of city areas in Thailand where the lifestyle of dwellers revolves around consumption of packaged food for convenience purposes. To save their time and budgets, more Thai consumers replace their cooked meals or traditional breakfast menus such as pork sticks, rice porridge or omelette rice menus with favorable items of breakfast cereals mixed with milk to feel refreshed before the working day.

Private labels are performing well in Thailand, and penetration

is relatively high within the Thai Bakery and Cereals market.

Retailers in Thailand have heavily promoted and introduced store brands at a lower price, and consumers consider the quality to be almost the same as national brands.

Film

and Trays made of Flexible Packaging are the most commonly used packaging materials in Thailand's Bakery and Cereals market.

Source: International Trade Centre, euromonitor.com, whatech.com © 2015 Dragon Sourcing. All rights reserved.

41

Cereals – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Nestle

(Thailand) and Kellogg (Thailand) dominate the market owing to their longstanding establishment in Thailand, coupled with their wide array of breakfast cereals including flakes, muesli, children’s breakfast cereals and other RTE cereals.

They

hold a combined value share of 75% in 2013, with Nestlé (Thailand) constituting larger share of 43%.

Source: International Trade Centre, euromonitor.com © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 42

MEDICAL & OPTICAL APPARATUS

© 2015 Dragon Sourcing. All rights reserved.

43

Medical & Optical Apparatus – Market Trends

Key Insights:

In 2014, export of medical and optical apparatus was 4.67 billion whereas the import was 5.33 billion.

Thailand's exports represent 0.82% of world exports for this category, its ranking in world exports is 20.

Exported growth in value between 2010 and 2014 was 7% per annum. On the other hand, exported growth in value between 2013 and 2014 is 4%.

An

increase in import of medical and optical apparatus have been witnessed in China and USA.

Source: International Trade Centre © 2015 Dragon Sourcing. All rights reserved.

44

Medical & Optical Apparatus – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

BTL

Medical Techonologies Ltd, Extreme Co., Ltd., J Summit Co., Ltd., Medicia Instrument Service Co., Ltd., Sato Auto-ID (Thailand) Co., Ltd., Siam HGospital Supply Co., Ltd. are few players in the market.

Source: International Trade Centre © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 45

IRON & STEEL PRODUCTS

© 2015 Dragon Sourcing. All rights reserved.

46

Iron & Steel Products – Market Trends

Key Insights:

China

and Japan are the main suppliers of Iron & Steel products to Thailand.

Thailand's exports represent 1.28% of world exports for this product, its ranking in world exports is 20.

Exported growth in value between 2010 and 2014 was 7% per annum.

Iron & steel articles (forged or stamped) constitute majority of exports followed by structures (rods, angle, plates) of iron & steel, and iron & steel screws, bolts, nuts, coach-screws, etc.

Construction

industry is the major end user of iron and steel products with about 54% followed by automobiles and parts at 16%, machinery and industrial products at 13%, electrical appliances at 12% and packaging at 5%.

Source: International Trade Centre, giz.de © 2015 Dragon Sourcing. All rights reserved.

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Iron & Steel Products – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Sahaviriya

Steel Industries Public Company Limited(SSI), Bangkok Steel Industry Co. Ltd (Public), Millennium Steel Public Company Limited, Siam Construction Steel Company Limited, Siam Iron and Steel Company Limited, Thai Special Steel Industry, Thai Stainless Steel Co Ltd are the major players in the market.

Source: International Trade Centre © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 48

SUGAR

© 2015 Dragon Sourcing. All rights reserved.

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Sugar – Market Trends

Key Insights:

Thailand is a net exporter of Sugar. Thailand's exports represent 6.58% of world exports for this product, its ranking in world exports is 2.

Exported growth in value between 2010 and 2014 was 2% per annum.

Cane

or beet sugar and chemically pure sucrose (in solid form) is the main product exported followed by sugar confectionery (incl white choc), not containing cocoa.

Indonesia, Japan and China are the major import markets. Thailand produced a record 11.6 million tons of sugar in

2013/14, but dry weather in key growing areas is seen leading to a drop in sugar output to 10.5 million tons in 2014/15.

On the back of expansion in cane production estimated to

be 107 million tons in 2015/16, and sugar production increasing to 11.4 million tons, up 4% from 2014/15.

Source: International Trade Centre, internationalsugarjournal.com, agra-net.net © 2015 Dragon Sourcing. All rights reserved.

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Sugar – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Thai

Sugar Mill Co., Ltd., Uttaradit Sugar Industrial Co Ltd, Mitrphol Sugar Group, The Saharuang Co.,Ltd., Khon Kaen Sugar Industry Public Company Limited, New Krung Thai Sugar Factory Co., Ltd., are few sugar factories in Thailand.

Source: International Trade Centre © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 51

WOOD & WOOD PRODUCTS

© 2015 Dragon Sourcing. All rights reserved.

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Wood & Wood Products – Market Trends

Key Insights:

Thailand is a net exporter of wood and wood articles. Thailand's exports represent 1.64% of world exports for this product, its ranking in world exports is 19.

Exported growth in value between 2010 and 2014 was 8% per annum. On the other hand, exported growth in value between 2013 and 2014 is 6%.

China is the major importer of wood and wood articles from Thailand.

Wood

sawn/chipped lengthwise, sliced/peeled and fibreboard of wood are the major export products from Thailand.

An estimated 33% of Thailand’s total land area is covered

by forest. Production of hardwood timber from Thailand’s national forest is limited due to a ban on logging and stringent measures that protect forest conservation.

It’s

estimated that about 70 percent of Thailand’s wood furniture production is exported.

The

largest source of domestic hardwood in Thailand comes from para-rubber wood.

Source: International Trade Centre, gain.fas.usda.gov © 2015 Dragon Sourcing. All rights reserved.

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Wood & Wood Products – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

There are multiple ISO certified suppliers in the market. To name a few: Krabiwood

Industries Co., Ltd, Thai Bamboo and Wood Products Co., Ltd., Charoen Industry Co., Ltd., Siam Richwood Co., Ltd., Bangpakong Wood Co., Ltd., Phang Nga Parawood Industries Co., Ltd., Fancy Wood International Co., Ltd., Thai Plywood Co.,Ltd., Rayong Particle Board Co., Ltd., Vanachai Panel Industry Co., Ltd., Woodwork Creation Co., Ltd., Woodwork Product Co., Ltd., Laem Chabang Industry Co., Ltd., Agro Mats Co., Ltd., Areechai Wodtech Co., ltd, Hand & Heart Co., Ltd.

Source: International Trade Centre, business-in-asia.com © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 54

FRESH/FROZEN FISH & CRUSTACEANS © 2015 Dragon Sourcing. All rights reserved.

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Fresh/Frozen Fish & Crustaceans – Market Trends

Key Insights:

Thailand's exports represent 1.91% of world exports for this product, its ranking in world exports is 16.

Exported growth in value between 2013 and 2014 was 1% per annum.

Japan

and USA are the major export markets for fish, crustaceans, molluscs, aquatic invertebrates etc. from Thailand.

Industry

is witnessing depleted fish stocks mainly due to unregistered pirate ships that plunder the waters of other countries, often under assumed identities, the group says.

An

estimated 11-26m tons or 15% of the world’s fish are caught illegally each year.

Thailand's

fishing industry has come under scrutiny after investigations uncovered the use of human trafficking, forced labor and ill-treatment.

Source: International Trade Centre, theguardian.com, ejfoundation.org, fao.org © 2015 Dragon Sourcing. All rights reserved.

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Fresh/Frozen Fish & Crustaceans – Suppliers in Thailand Supplier Locations

Source: International Trade Centre

Luen

Thai Fishing Venture Limited, Thai Union Group, Siam Canadian Group, Mayao Foods Co., Ltd., Kondanmal Group, A.P.Frozen Foods Co., Ltd., Bangkok Selection Foods Co., Ltd., Anglo Thai Exports Co., Ltd., Anusorn Mahachai Surimi Co., Ltd., Baaeco V Food, BCT Trading Co., Ltd., are few exporters in the market.

Source: International Trade Centre © 2015 Dragon Sourcing. All rights reserved.

Note: Star refers to supplier hubs 57