Industry & Retail
From The Report: Thailand 2018
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After a decade of external disruption – which saw the 2008 global financial crisis, floods in 2011 and a military coup in 2014 – Thai industry is getting back on track. According to the Ministry of Industry, the manufacturing production index grew by 2.5% in 2017, with stronger growth in the second half of the year. This trend continued in 2018, with January and February both seeing year-on-year growth of 4.7%. The government has also identified 10 priority investment sectors, evenly split into First S-Curve and New S-Curve industries. In terms of retail, general economic stability is having a positive impact on the sector, while years of targeted investment have also supported growth. Some uncertainty remains, however, with consumer debt still elevated. This chapter contains interviews with Kobchai Sungsitthisawad, Director-General, Department of Industrial Promotion; Christian Wiedmann, President, BMW Group Thailand; and Supaluck Umpujh, Chairwoman, The Mall Group.

Articles from this Chapter

Overview

Leveraging strengths: Development plans seek to add value to the country’s strongest industries and upskill the workforce to meet changing needs
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After a decade of external disruption – which saw the 2008 global financial crisis, the floods of 2011, political protests in 2013-14 and the military coup of 2014 – Thai industry is getting back on track. According to the Ministry of Industry, the manufacturing production index (MPI) grew by 2.5% in 2017, with stronger growth in the second half of the year. This trend continued in 2018, with January and February both seeing year-on-year (y-o-y) growth of 4.7%. This has moderated in more…

Analysis

Taste for innovation: Thailand 4.0 prioritises development of food manufacturing
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While Thailand has long capitalised on the popularity of its cuisine, the production, selling and exporting of food products is being given renewed focus under the national Thailand 4.0 initiative. With food processing listed as one of the First S-Curve industries that the authorities are seeking to add value to in the short to medium term, multipronged efforts are been made to align the agriculture, manufacturing, retail and hospitality sectors. Combined with a renewed focus on research…

Interview

Expanding capabilities: Kobchai Sungsitthisawad, Director-General, Department of Industrial Promotion, on fostering small and medium-sized enterprises (SMEs) and foreign collaboration
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Interview:Kobchai Sungsitthisawad, Director-General, Department of Industrial Promotion How can Thailand establish a competitive environment for the development of S-Curve industries? KOBCHAI SUNGSITTHISAWAD: Knowing that the industrial sector contributes to 40% of our GDP, the government established the Thailand 4.0 policy to move into a higher-value market, with the Ministry of Industry leading development and the Department of Industrial Promotion executing it. If the industrial segment…

Interview

Consumption catalyst: Christian Wiedmann, President, BMW Group Thailand, on the positive outlook for plug-in hybrid and electric vehicles
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Interview:Christian Wiedmann, President, BMW Group Thailand What is your medium-term outlook for domestic electric vehicle (EV) demand? CHRISTIAN WIEDMANN: Similar to other countries, EV development in Thailand will depend on government initiatives in three areas: manufacturing support, consumption and infrastructure. First, the government has put forward proposals for manufacturers to apply for support from the Board of Investment (BOI), and companies have until the end of 2018 to submit…

Analysis

Long-term drive: Government initiatives seek to maintain the country’s position as a regional leader in the automotive industry
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Auto manufacturing has long been at the centre of Thai industry. For more than half a century the segment has been the target of incentives, and these efforts have successfully attracted many foreign investors. As a result, the country is now a major international player in the making and selling of vehicles, and is the largest producer in South-east Asia. However, production costs are increasing, competition is intense, automobile technology is evolving at a fast pace and some policies have…

Overview

Remodelled approach: Major retailers work to improve consumers’ shopping experience in the face of subdued growth
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After a prolonged period of sluggishness, the retail sector in Thailand shown signs of healthier growth. General stability is having a positive impact on the sector, while years of targeted investment have also supported growth. However, some uncertainty remains, as consumer debt is still elevated and an uneven distribution of purchasing power growth exists. Meanwhile, traditional retailers are being challenged by e-commerce, which offers significant potential following the improving warehouse…

Interview

Hand in hand: Supaluck Umpujh, Chairwoman, The Mall Group, on the importance of digitisation, globalisation and tourism
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Interview:Supaluck Umpujh, Chairwoman, The Mall Group What is the sector doing to embrace technology and innovation under Thailand 4.0? SUPALUCK UMPUJH: The entire world, not only Thailand, recognises the importance of the new wave of technological change. In recent years, our government has tried to anticipate and stimulate the impact of digital technology on the economy. Nowadays, it is mobile and millennial consumers who are driving the country’s retail trends. Less than a decade ago…