Although politically Thailand has seen some uncertain times, businesses in the service
industries, medical supplies and IT services still see growth
opportunities in the long term. IE Singapore's Centre Director for Bangkok offers tips and insights.
Thanks to widespread and
affordable wireless access,
"unwired" consumers are able to
use the Internet on their mobile phones. Thailand is a market with many such consumers. Learn how
one Singapore company found success in Thailand.
UPS EXPORT SERIES
UPS has daily flights from Singapore that links to Bangkok, Thailand.
With a population of approximately 63 million people, Thailand enjoys a free-enterprise economy, well-developed infrastructure and pro-investment policies.
Thailand, an active member of the Association of South East Asian Nations (ASEAN), achieved an estimated US$272.1 billion gross domestic product in 2008.
The country's exports, in particular automobile production, and farm output, were the key economic drivers, as foreign investments and consumer demand slowed down amid persistent political turmoil.
Trade between Singapore and Thailand has grown impressively over the years, and Singapore is now Thailand's fourth largest trading partner after the United States, Japan and China. It is also the second largest foreign investor in Thailand after Japan.
Both governments have provided significant structures in which trade and investment can be enhanced. The Singapore-Thailand Enhanced Economic Relationship saw the signing of multiple Memoranda of Understanding on trade and investment, SME promotions, and collaborations in sectors such as spa development, automotive parts and components manufacturing, tourism and heat processed pork.
Singapore's exports to Thailand amounted to US$13.44 billion, representing a growth of 8.6 percent in 2008 versus 2007. Meanwhile, imports increased by 24 percent to US$15.9 billion in 2008 from US$12.8 billion in 2007.
The Thai Ministry of Commerce is the government agency that issues import licenses, which are valid for three months. Extensions are permitted for items requiring longer delivery periods and for goods produced according to certain specifications.
In addition to the licensing requirements of the Commerce Ministry, the Thai Food and Drug Association must approve the import of coffee (above 0.5kg), cosmetics, dairy products, eye wear, food, medicine, nutritional supplements and vitamins.
Exporters should also take note of the following commodity-specific stipulations to avoid delays at customs:
Shipments of animal skins require a Convention on International Trade Endangered Species of Wild Fauna and flora (CITES) certificate. An import license is also required from the Royal forest Department and Livestock Department.
Shipments of mobile phones require an import license from and registration with the Telecommunication Department.
Shipments of used electrical items require approval and certification from the Industrial Factory Department.
The consignee must provide the import license for shipments of toys. Commercial shipments also require a certificate from the Industrial Standards Department. This certificate is provided by the importer and may take 5 days to obtain.
Shipments of food require an import license from Thailand's Food and Drug Department and the Ministry of Public Health. Weight restrictions are imposed by the Food and Drug Association in Thailand on edible products imported as samples. Depending on the commodity the weight can range from 1 kg to 10 kgs.
Need further information? UPS can advise you on any restrictions or special requirements for shipping to Thailand.
A complimentary service by www.iadvisory.com.sg
Name: Sunny Chia
Company: UPS
Expertise: Import/Export
Market: Asia Pacific, Europe
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