Thailand: Not just a pretty face

The stunning country of Thailand, so popular with visitors, is not only the second largest economy in Southeast Asia, but also the fastest growing economy in the region - expanding at a remarkable rate  - 7.8 per cent in 2010, with GDP set to rise 4.6 per cent for 2012-15.

It is easy to see why the country is flourishing: it has gained respect internationally as a key player in the Southeast Asia region, and now has considerable influence as a member of the Association of Southeast Asian Nations (ASEAN), the World Trade Organisation (WTO) and the G77. As His Excellency Mr. Kitti Wasinondh, Ambassador of Thailand to the UK explains: “Thailand’s position in Southeast Asia and its membership of ASEAN makes it the gateway to the rest of the region and neighbouring developing economies like Laos, Burma,Cambodia, and Southern China.”

A recently industrialised economy, Thailand’s prosperity has been driven by thriving industries in manufacturing, tourism and agriculture, along with a well developed infrastructure, a free enterprise economy, pro-investment policies and strong export industries - which account for more than two thirds of its GDP.

Moreover, the  election victory by Yingluck Shinawatra, Thailand’s first female Prime Minister of the Puea-Thai party earlier this year, ushers in an era of renewed optimism and openness in Thai society. Consumer confidence has soared to a six-year high, driving up the Stock Exchange of Thailand Index a whopping 7 per cent.

Prime Minister Yingluck Shinawatra is introducing dramatic change through significant reform, tabling a clear set of priorities to engender economic stability and national reconciliation. Tax breaks for business, more money for rural development, a reduction in petrol prices, significant investment in infrastructure; and a crack down on drugs and corruption - are all on Thailand’s agenda.

There has also been a staged shift in Thailand’s economy over recent years. Traditionally agriculture was its biggest sector, yet it now only accounts for around 12 per cent of the country’s GDP - though Thailand remains the world's leading exporter of rice. On the other hand, the industrial sector has been expanding rapidly. In 2010, Thailand saw a 14.4 per cent growth in industrial production with industry accounting for almost half the country’s GDP. The automotive sector grew by 63 per cent in 2010 - producing 1.6 million cars ranking it as the 12th largest motor vehicle producing country in the world. Experts predict that by the year 2015 Thailand will be one of the top ten motor vehicle producing countries in the world.

Thailand is a country rich in natural beauty and cultural treasures, from its heavenly beaches to stunning jungle treks, to its richly ornamented temples and its capital, the vibrant and cosmopolitan city of Bangkok. The country boasts eight UNESCO World Heritage sites, and has something for everyone – including its deliciously aromatic cuisine which has become such a firm favourite around the world.

For UK investors, Thailand offers a fantastic prospect. As Ambassador Kitti Wasinondh explains: "With a highly educated workforce, a strong infrastructure and a well-developed banking and finance sector, Thailand is an excellent country in which to do business and was ranked 19th in the 2011 ‘Ease of Doing Business’ index, ahead of FDI champion Malaysia. Building on its economic progress and climate of renewed political optimism, Thailand is keen to forge new partnerships with UK investors. For example, a key priority is the development of the alternative and renewable energy sector, with the government offering special incentives to foreign investors who help Thailand develop in this area. The Government is also looking to grow its rail network, agro-industry, creative economy and education sectors; and it is also seeking further investment within the automotive and biotechnology sectors.

“Moreover, there is a natural affinity between the UK and Thailand which have enjoyed close relations for over a century. Bilateral affiliations extend to a number of areas including trade and investment, education, security and crime prevention. Two-way trade between Thailand and the UK reached a record £5.6 billion last year, and the UK is the leading EU investor in Thailand, with more than £20 billion allocated to various projects.”

Ambassador Kitti Wasinondh adds that now is a particularly vibrant time to engage with the Thai nation, as a host of yearlong celebrations for the "Auspicious Occasion of His Majesty the King’s 7th Cycle of Twelve Years (84th) Birthday Anniversary" begin on 5th December 2011.

A call to action, the Ambassador says: “Come celebrate with Thailand… We welcome you with open arms and our Thai hospitality to our charming and beautiful country, for business or for pleasure.”

CONTACT:
ROYAL THAI EMBASSY
www.thaiembassyuk.org.uk