Economic Overview
Thailand has actively sought to improve and expand its economic growth. The diversity that now exists within the Thai market has developed from an economy originally dependent upon agricultural sales. The government saw foreign investment as a positive direction for the Thai economy to follow, by taking these steps an industrial, labour orientated manufacturing sector, geared to the export market, formed. The 1990’s saw impressive growth in the technological goods market, such as ICT equipment and vehicle parts. Thailand’s economy, since these new market sector developments, has seen inconsistent growth and decline. The Asian financial crisis had a sufficient negative impact on the Thailand economy to result in falling property prices, export competitive advantages diminished, and the country acquiring short term foreign debt. The economy began a recovery and 2002 market growth reached 5.2% compared with the previous year of 1.8%, the current market growth has been producing stable figures. This Thai economy is still suffering and having to cope with economic pressures. The most prominent international event that has caused the country to suffer is the Indian Ocean tsunami disaster. The tsunami affected six provinces of southern Thailand in December 2004, and was a great humanitarian disaster. Tourists, from mainly Sweden, Germany and the UK, as well as local Thai people were caught up and lost their lives in the disaster. This disaster along with a rise in the world’s oil prices has contributed to a levelling of Thailand’s economic growth.
Thailand is the UK’s 39th largest export market, taking goods worth £639million in 2004. The UK is Thailand’s most significant European investor and the second largest European exporter.
Opportunities
In Thailand UK goods have an excellent reputation amongst the different Thai markets, the main opportunity sectors are:
- Engineering
- Food and beverages
- Cosmetics and pharmaceuticals
- Oil and gas
- Education and training
GDP: US $176.3billion
GDP per Capita: US $2,719
GDP growth: 4.5%
Inflation: 2.75%
Top ten UK exports to Thailand
1. Electrical machinery £42,531
2. Power generating machinery and equipment £33,753
3. Beverages £26,512
4. Specialised industrial machinery £23,848
5. Medicinal and pharmaceutical products £20,025
6. General industrial machinery £17,551
7. Miscellaneous manufactured articles £16,935
8. Office machines and ADP equipment £14,977
9. Road vehicles £13,934
10. Iron and steel £10,626
Top ten UK imports from Thailand
1. Road vehicles £159,513
2. Miscellaneous manufactured articles £98,442
3. Office machines and ADP equipment £95,425
4. Electrical machinery £94,349
5. Clothing £84,414
6. Meat and meat preparations £60,268
7. Telecommunications and sound recording equipment £54,944
8. Furniture and parts thereof £44,736
9. Vegetables and fruit £26,234
10. Fish, crustaceans, molluscs £23,814
Export partner: US 16.1%, Japan 14%, China 7.4%, Singapore 7.3%, Malaysia 5.5%, Hong Kong 5.1%
Import partner: Japan 23.7%, China 8.7%, US 7.7%, Malaysia 5.9%, Singapore 4.4%, Taiwan 4.1%
UK relations and investment
The UK has maintained good diplomatic relations with Thailand since 1875, when Thailand was then known as Siam. The UK is a well known and respected country amongst the Thailand population and the two share countries share common interests and have close educational ties. The UK is seen by Thailand as a European figure head as it is Thailand’s largest export market. The two countries are also partners in establishing the Asia-Europe Meeting. The two countries and the European Commission are co-partnering an ASEM project to combat money laundering in Asia. These joint challenges help to strengthen the bilateral relations between the two countries. The British Embassy in Bangkok has a large staff including 35 UK-based diplomats; they’re engaged in political, economic, commercial and visa issues. The current British Ambassador to the Kingdom of Thailand is His Excellency Mr David Fall, and the current Thai Ambassador to the UK is His Excellency Mr Vikrom Koompirochana.
The UK has long established companies doing business in Thailand, Shell, BP, Standard Charter, HSBC, who have been joined by Tesco, Boots, and Grampian Foods. These companies’ investments have amounted to £2 billion in recent years. UK Trade & Investments work with the Embassy to help to enhance the experience of trade between the UK and Thailand, and the competitiveness of UK companies overseas.
International relations
The ASEAN works to unite the countries of Southeast Asia and helps to strengthen and develop ties between the members of the association. As Thailand is one of the founding members it plays and an integral role in the association’s success and has made increased efforts to construct strong ties with its neighbours India and China. Thailand has experienced difficulties establishing a good relationship with, its neighbouring and bordering country, Burma. The border that stretches between the two countries has been the main cause of tension as drugs, illegal immigrants and refugees pass over from Burma to Thailand. Thailand has made further efforts to attempt to reconcile the disruption between the two countries. Thailand plays an active and key role in maintaining international relations, making great efforts to establish a united international community. Thai armed forces have been sent to various countries, which are disruption by war and civil unrest, to aid with peacekeeping duties. Thailand has also maintained good relations with the US and was granted by them the status of Major Non-NATO Ally in 2004.
Human Rights
Thailand is a country striving for improvement, in not just international trade relations and economy but for civilian society also. These efforts are shown through Thailand’s generally successful human rights record. Thailand’s 1997 Constitution has made a considerable contribution to the protection of human rights. It has made it possible for independent agencies designed to prevent corruption and the abuse of government power to act and be successful. Although widely successful the Constitution is weak in some areas and some incidents do occur throughout the country. The media is a relatively free device in comparison to other countries in the region and street protests have also been allowed to take place in peace. But some campaigns cause concern that human rights have been breached. For example, the governments ‘Campaign against Drugs’ recorded 2,600 deaths that have been rarely and inadequately investigated.
Assistance
The UK does offer Thailand a small amount of aid to fund a variety of programmes. Larger assistance is not as readily available as there is no official aid programme set up by the Department for International Development (DFID). The smaller scale aid comes from the Foreign and Commonwealth Office programme via the British Embassy in Bangkok. The programmes help to combat child exploitation, promote Thailand’s unique biodiversity and HIV/AIDS awareness.
Political History
Thailand is the only Southeast Asian country that has never been colonised or occupied by a western power; we can see this sense of freedom in this name Thailand, which literally means ‘free land’. The country was previously called Siam but was changed Thailand in 1939. The Chakri dynasty that is based in Bangkok has ruled the Kingdom of Thailand since 1782. Thailand switched from absolute to constitutional monarchy in 1932 and the government was conducted by a Prime Minister, Cabinet and Legislature. However between 1932 and 1991 there have been several military coups.
Timeline
1782 The country is known as Siam and a new capital of Bangkok is founded. The Chakri dynasty begins their rule under King Rama I, the dynasty rules to this present day.
1868-1910 Reign of King Chulalongkorn. The Railway network is established and western advisers are employed to help modernise Siam’s administration.
1917 Siam and Great Britain become allies during World War I
1932 A bloodless coup against absolute monarch King Prajadhipok sees the establishment of a constitutional monarchy with a parliamentary government.
1939 Siam changes its name to Thailand
1941 After Japanese forces land, Thailand, allows them to advance towards British controlled Malay Penisula, Singapore and Burma.
1942 Thailand declares war on Britain and US
1945 End of World War II. Thailand is compelled to return territory it had invaded from Laos, Cambodia and Malaya. King Ananda returns from exile.
1946 King Ananda assassinated
1947 There is a military coup lead by Phibun Songkhram and the military retain power until 1973.
1973 Riots in Bangkok bring about a short civilian rule as the military government is overturned, but the resulting government produced from the free elections is unstable.
1976 Military takes over again
1980 General Prem Tinsulanonda assumes power
1983 Prem gives up his military leadership role and becomes the head of a new civilian government, he is re-elected in 1986
1988 General Chatichai Choonhaven replaces Prem
1991 Another military coup sees a civilian, Anand Panyarachun, is chosen as prime minister
1992 Anand is replaced with General Suchinda Krapayoon, but demonstrations force him to resign. Elections in September result in Chuan Leekpai, leader of the Democratic Party, being chosen as prime minister
1995 In the wake of the government collapsing, Banharn Silpa-archa leader of the Thai Nation party is elected as prime minister.
1996 Banharn’s government is forced to resign over allegations of corruption. Chavalit Yongchaiyudh of the New Aspiration party wins elections.
1997 Asian financial crisis causes the baht to fall dramatically against the dollar and this leads to bankruptcies and numbers of unemployment rise. Chuan Leekpai becomes prime minister
1998 migrant workers are sent back are sent back to countries of origin due to economic problems caused by the financial crisis. Chuan involves the opposition in order to introduce economic reforms quickly.
1999 Thai economy begins to improve and the media highlights the high costs for AIDS and HIV’s drug treatments; this causes pressure on companies who make the drugs to make them cheaper
2001 Thaksin Shinawatra leader of the new Thai Love Thai Party wins elections; there is however allegations of vote-buying that forces a partial re-run of poll.
2004 Thousands of people are killed as the Tsunami disaster hits the western coast of southern Thailand.
2005 Thaksin Shinawatra begins his second term as his party wins a landslide victory in February elections
2005 The government doubles efforts to fight bird flu after fresh outbreaks
2006 A sudden election ordered by the PM after protests against him is boycotted by the opposition and is annulled, so there is a political vacuum as PM takes a 7 week break from politics.
BRITISH EMBASSY BANGKOK
Please have a look at the commercial section in Bangkok
