The world has been described as a global village. When it comes to business, the world’s two largest economies, the United States of America and China, dominate the playing field. Besides these two countries, other countries may have conducive, if not better, environments for business. This article will explore the industrial machinery market in Thailand.
Industrial machinery in Thailand: market share and demand
The industrial machinery and manufacturing sector employs 16% of the labor force in Thailand. This translates to 9.3 million jobs and is only second to the agriculture sector, which employs 31% of the labor force. In 2021, the industry accounted for 34% of the country’s GDP.
The pandemic affected Thailand greatly, just like other countries. However, the government is taking measures to ensure that the economy is back on track in many sectors, including industrial machinery. Currently, Thailand is one of the leading ASEAN countries to vaccinate its population, with 23% of its population already vaccinated. Consequently, companies in the industrial machinery sector are ensuring that their employees are being vaccinated. World data forecasts that the economy will grow by 3% when 0.6% of its population receives the second dose. The production index of the industry has increased by 35% along with demand for electronics and medical equipment.
Key factors for sourcing industrial machinery in Thailand
Here are the essential factors encouraging businesses to source industrial machinery in Thailand.
Established U.S. brands
The presence of U.S. and other global brands in Thailand shows that Thailand is a globally recognized destination and should be considered in the industrial machinery sector. In 2019, goods and services trade between the U.S. and Thailand totaled $52.7 billion.
Exporting and geography of the Thai market
Thailand’s economic geography is immense and robust, making it a good hub for sourcing industrial machinery. Apart from being the 15th largest country in Asia, it is the 20th largest trading partner o the U.S. and the 26th largest trading partner for the European Union. 15% of its exports go to the U.S. alone. This serves to prove its ability to produce machinery that is accepted on a global scale.
Thailand 4.0 initiative
The Thailand 4.0 initiative aims to provide more finished products in the industrial machinery sector and embrace current eCommerce trends. The government-led initiatives focus on upcoming industrial machinery business trends to open up global opportunities using platforms such as Walmart, Amazon, and the like. The country seeks to pull away from previous models, which focused on different aspects. Thai 1.0 was purely an agricultural model, while Thai 2.0 involved the light industry. Thai 4.0 is supposed to pursue an advanced industry as 3.0 did.
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