Thailand: an overview
The RBS group has been present in Thailand since 1991.
Our Global Transaction Services (GTS) business offers
clients cash and liquidity management, trade and supply
chain finance, and commercial cards. Our services are
delivered through a dedicated team of local banking
professionals, who are supported by regional teams and
experts from across our global network.
So, however large or small your operations in Thailand, we
can offer the services and support to help you succeed.
Geography
THAILAND
Bangkok
Laem
Chabang
Thailand is in South East Asia, bordering Cambodia,
Laos, Burma, Malaysia, the Gulf of Thailand and the
Andaman Sea. Around 34% of the population live in
cities and conurbations 1. Its main cities include Bangkok
(capital), Nakhon Ratchasima, Chiang Rai and Chiang
Mai. Bangkok is the principal commercial centre. Industry
tends to be concentrated along the south eastern coast
in the provinces of Chonburi, Samut Prakan, Rayong and
Chachoensao.
1
2
CIA World Factbook
UKTI: Doing Business in Thailand
Capital
Bangkok.
Major ports
Laem Chabang, Bangkok.
Language
Thai. English is widely understood.
Economic overview
Thailand has a free market, pro-investment economy,
heavily reliant on traditional exports of machinery, electronic
components, agricultural products and jewellery. Strong
exports helped the country achieve average GDP growth
of around 4% from 2000 until the global financial crisis
in 2008 2. As exports plummeted, the Thai economy
contracted in 2009 but bounced back strongly in 2010 as
export markets returned. Thailand’s National Economic
and Social Development Board has forecast that Thailand’s
economy will grow by around 4% in 2011 3.
Economic indicators
2009
2010
% change
Population
66,344,642
66,720,153
GDP
US$544.4 billion
US$586.9 billion
0.566
7.81
GDP per capita US$8,200
US$8,700
6.1
Exports
US$152 billion
US$191 billion
25.66
Imports
US$118 billion
US$157 billion
33.05
Unemployment 1.5%
1.2%
-20
Inflation
-0.9%
3.3%
–
Public debt
44.9% of GDP
42.3% of GDP
Source: CIA World Factbook
National Economic and Social Development Board:
Economic Outlook 2011
3
-5.79
Business opportunities
Imports
Imports by industry (% total imports)
Imports by country (% share)
Japan
China
19
Electrical
Equipment
19
28
Malaysia
Fuel
Machinery
Other
Iron & Steel
13
62
19
4
Plastics
4
6
Precious Stones
4
Vehicles
14
8
Other
Source: CIA World Factbook, 2009
Source: International Trade Centre, Trade Performance HS, 2009
Exports
Exports by country (% share)
Exports by industry (% total exports)
US
11
Machinery
China
Electrical
Equipment
17
Japan
11
Other
Vehicles
39
15
10
Precious Stones
Rubber
68
8
4
5
6
6
Fuel
Plastics
Other
Source: CIA World Factbook, 2009
Source: International Trade Centre, Trade Performance HS, 2009
Thailand is one of the fastest growing markets in Asia and
strategically placed as a gateway to ASEAN (Association
of South East Asian Nations) economies, many of whom
share a zero tariff agreement with Thailand. Significant
opportunities exist within Thailand itself. The government is
currently investing heavily in transport, public health, water
supply development, education and training, and housing.
It also provides a range of tax incentives, support services
and import duty concessions to encourage international
businesses to invest in the country. Specific opportunities
also exist in electrical power, telecommunications and
renewable energy.
Financial information
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Currency and exchange rate
Recent average 48.3 baht = £1 sterling
Exchange controls
A minority of countries impose restrictions on the exchange
of their currency. A certificate issued by a commercial bank
stating that the import has been reported to the Bank of
Thailand is required for transactions over 500,000 baht.
Repatriation of capital
Local contacts
Foreign currency brought into or taken out of Thailand
above the value of US$20,000 must be declared at the
Thai Customs Office. Thai currency over the amount of
50,000 baht must also be declared.
British Embassy
14 Wireless Road
Lumpini, Pathumwan
Bangkok 10330
Tax
Tel: 00 66 2305 8333
www.ukinthailand.fco.gov.uk/en
Standard rate of VAT: 7%.
Contacts
UK contacts
UK Trade and Investment
1 Victoria Street
London SW1H 0ET
Tel: 020 7215 2471
www.ukti.gov.uk
UK government support agency dedicated to assisting UK
businesses to export. Provides sector and country specific
information and advice, trade fair and outward mission
participation and bespoke market intelligence services.
Royal Thai Embassy
29-30 Queen’s Gate
London
SW7 5JB
Tel: 020 7589 2944
www.thaiembassyuk.org.uk
Provides basic travel, visa and consular services.
Department of Export Promotion (Royal Thai Embassy)
11 Hertford Street
London
W13 7RN
Tel: 0207 493 5749
www.thaitradelondon.co.uk
Promotes Thai products in the UK and supports Thai
companies doing business overseas. It also promotes
Thailand as the South East Asian centre of production,
trade and international exhibition services. The department
can also help to find suitable Thai business partners.
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The embassy has a dedicated team, providing general and
sector related support for UK businesses wishing to do
business in Thailand. The team can provide information,
guidance and access to business contacts.
British Chamber of Commerce in Thailand
7th Floor, 208 Wireless Road
Lumpini, Pathumwan
Bangkok 10330
Tel: 00 66 2651 5350
http://members.bccthai.com/bcct/asp/default.asp
Provides practical business services; access to trade fairs
and seminars and access to a business network.
Statutory requirements
UK regulations
The Department for Business, Innovation and Skills controls
the export of goods according to the nature of the goods
and their intended use, and also their intended destination.
For current export controls refer to:
www.bis.gov.uk
Import restrictions and licences
Some goods (a small minority) require an import licence.
Thailand restricts and prohibits the import of certain
products. Further information is provided by the Ministry of
Commerce at www.moc.go.th
Samples
Importers generally seek to avoid paying duty on goods
entering the country solely for marketing purposes. Samples
with no commercial value may enter duty free and samples
with a value can be imported when a deposit is paid which
is refunded when the goods are re-exported. ATA carnets
may be used.
rbs.co.uk/international
Marking of goods
Commercial invoices
Labelling should be in Thai and quantities stated in metric.
Special labelling requirements apply to foods, medicines
and cosmetics. Further information can be found by
contacting the Division of Consumer Protection on
Labelling by email on consumer@ocpb.go.th
No prescribed format but include:
Shipping marks
Packages in a group should be numbered consecutively
and the gross and net weights of the goods should also be
shown.
Packing materials
No specific requirements.
Duties
Thai tariffs are based on the harmonised system. The
Market Access Database (http://madb.europa.eu/
mkaccdb2/indexPubli.htm) provides comprehensive
tariff details.
Insurance
No specific requirements.
Documentation
Special certificates
Countries often require importers to obtain prior
authorisation to bring certain products into the country. The
Thai government requirements include:
A plant health certificate.
• Country of purchase and country of origin
• Value of goods in each class
• Net weight of each item
• Total amount in FOB or CIF value
• Freight and insurance charges
• Discounts
• Import duties
Consular fees
Some countries will charge a legalisation fee for documents
such as a certificate of origin. If requested to have
documents legalised, Thai officials will generally do so for a
nominal fee. Where legalisation of documents is requested,
documents must be authenticated by the Foreign and
Commonwealth Office (Tel: 020 7008 1111).
Consular invoices
A Consular invoice is a document certifying a shipment
of goods and shows information such as the consignor,
consignee and value of the shipment. A consular invoice is
not required in Thailand.
Bills of lading
A bill of lading is a document issued by a carrier to a
shipper acknowledging receipt of goods to a named place
of delivery. As some countries specify the type of bill of
lading that will be acceptable it is important to check with
the relevant customs authority. In Thailand a bill of lading
may be ‘To order’.
A certificate of analysis for some chemicals.
A certificate of free sale for medicines.
Certificates of origin
A certificate of origin is a document stating in which
country goods originated. A certificate of origin may be
requested for certain commodities. If required, a European
Union certificate of origin, certified by a chamber of
commerce, should be provided.
To find out more about how RBS can support your
business needs in Thailand, please contact your
relationship manager or call 0800 210 0235.
This marketing communication is for information purposes only and does not constitute a binding obligation on The Royal Bank of Scotland plc or The Royal Bank of Scotland N.V.
The Royal Bank of Scotland plc. Registered in Scotland No. 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB.
The Royal Bank of Scotland plc is authorised and regulated in the United Kingdom by the Financial Services Authority. The Royal Bank of Scotland N.V. is authorised by De Nederlandsche Bank and regulated by the Autoriteit Financiele Markten (AFM) for the conduct of business in the Netherlands.
The Royal Bank of Scotland plc is in certain jurisdictions an authorised agent of The Royal Bank of Scotland N.V. and The Royal Bank of Scotland N.V. is in certain jurisdictions
an authorised agent of The Royal Bank of Scotland plc.
578-0811gUK
August 2011