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Thailand is a country in Southeast Asia that has a well-established manufacturing sector, especially in the electronics industry, household appliances, including AC, refrigeration machines, and automotive. This sector has been active since the 1980s, and with the presence of foreign multinational companies, the White Elephant country has successfully built a strong manufacturing infrastructure in line with Southeast Asian standards.
The high dependence on local suppliers, networks, and business ecosystems makes relocating to neighboring countries not a priority for some companies. So, what are the market opportunities and possibilities for cooperation with similar companies in the homeland?
This will be revealed at the “Thailand Industrial Business Matching” event, organized by the Thai Trade Center (TTC) under the auspices of the Department of International Trade Promotion (DITP) at the Hotel Indonesia Kempinski, Jakarta, on May 2, 2024.
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This event provides a platform for face-to-face meetings between Thai and Indonesian businesspeople to explore business potentials and opportunities. The event is attended by around 19 Thai entrepreneurs from various sectors, especially the electronics industry and household appliances, including AC, refrigeration machines, and automotive.
Meanwhile, in Indonesia, this event is supported by entrepreneurs from related industries, such as the Small and Medium Automotive Component Industry Association (PIKKO) Indonesia, the Association of Electronic Industry and Household Electrical Appliances of Indonesia (GABEL), and the Chamber of Commerce and Industry (Kadin) Indonesia, an Indonesian business organization engaged in the economy. Thailand’s Economy and Construction Industry The construction sector plays a crucial role in the country’s economy as it also serves as the basis for the growth of other sectors. The GDP from the construction sector has been increasing over the years, indicating its growing importance. This contributes to the expansion of commercial and residential construction markets as well as real estate in Thailand. The construction market volume in Thailand is estimated to reach USD 26.68 billion in 2024 and is projected to reach USD 34.05 billion by 2029, growing at a compounded annual growth rate (CAGR) of over 5% during the forecast period (2024-2029). According to Sivara, the growth of the construction industry is partly influenced by the demand for housing units. Additionally, there are more shopping centers and restaurants being built domestically to meet consumer needs. Overview of Thailand’s Automotive Industry Thailand, with the second largest economy in Southeast Asia, is becoming a focal point in the automotive industry. Promising GDP projections, with a CAGR of 5.4% from 2021 to 2025, bring further growth potential in this industry, with an estimated value of USD 632 billion by the end of that period. An analysis of Thailand’s automotive market composition reveals the presence of around 1,800 companies in this sector, including some large companies, as well as around 700 Tier 1 automotive parts manufacturers and over 1,000 Tier 2 and 3 manufacturers. The strong presence in this sector not only reflects the breadth of the current automotive supply chain but also indicates readiness for further growth due to the dynamic market structure. Furthermore, factors such as continuously developing infrastructure, government support for the automotive industry, and increasing market penetration make Thailand an attractive destination for vehicle manufacturers and automotive parts suppliers. With strong growth potential, coupled with solid infrastructure and government support, Thailand offers opportunities for stakeholders in the automotive industry to invest and grow. Innovation, collaboration, and adaptation to market changes are key to success in this dynamic business environment. Meanwhile, the air conditioning market in Thailand was valued at USD 1,645.21 million in 2023 and is expected to grow rapidly with a compounded annual growth rate (CAGR) of 5.93% until 2029. The Thai AC market has developed and innovated significantly in recent years. The presence of AC is essential to maintain comfort in homes, offices, and various commercial spaces. The Thai AC and refrigeration machine market is driven not only by housing demand but also by the commercial and industrial sectors, including hotels, shopping centers, and manufacturing facilities. It is also worth mentioning that there will be two interesting events related to this topic, held at EH 98 – 100 BITEC, Bangkok, Thailand, on September 4-7, 2024. The first is the “Bangkok RHVAC,” The 13th Bangkok Refrigeration, Heating, Ventilation, and Air-Conditioning Exhibition. The event is considered one of the five important exhibition and trade events in the world for the refrigeration, heating, ventilation, and AC sectors. RHVAC is the second largest exhibition and trade event in the Asia-Pacific region and the largest in Southeast Asia. The second event is “Bangkok E&E” The 9th Bangkok Electric & Electronics 2024 (Bangkok E&E), an exhibition of the latest electrical and electronic goods from Thailand, showcasing the latest developments in energy-saving electrical and electronic technologies. Bangkok E&E 2024 will feature innovations and the latest technology from Thailand and other leading manufacturing countries, including China, ASEAN, Korea, India, the Middle East, Europe, and the United States. Both events can be considered as one-stop solutions and provide a golden opportunity to meet directly and through online platforms with leading manufacturers from around the world.Read also: Chandra Asri Petrochemical Secures USD194 Million Investment from EGCO Group Thailand
