Thailand: A Booming Economy
Thailand is ranked as the 50th largest country in the world and is a part of Association of Southeast Asian Nations and ASEAN Economic Community (AEC) along with nine other countries namely: Indonesia, Malaysia, Philippines, Singapore, Brunei, Cambodia, Laos, Myanmar and Vietnam. The aim of AEC for 2017 is to create a single ASEAN market with gross domestic product (GDP) of $2.5 trillion & trade of $1 trillion. So far, ASEAN overall has progressed to a level of 80% in terms of eliminating tariffs on goods traded within the region.
According to statistics, the Thailand lighting market value totaled US $800 million in 2014, up 12 percent compared to 2013. The country's LED industry is estimated to grow at an annual rate of 30 percent in the next five years, with indoor lighting and construction applications consisting two major components of the LED lighting industry.
In terms of business opportunities, it is foreseen that a large number of companies and government projects will be using LED products as evidenced below:
- LED Automotive Lighting: The number of cars with LED headlights will grow from 1.5 million to 5 million between 2013-2017 with the value of LED components growing from USD 130 to 300 million.(According to Dirk Banderhaeghen of Philips Lumileds)
- Government Projects: Electricity Generating Authority of Thailand replaced LED Street Light at Mae Moh Power Plant., The Provincial Electricity Authority (PEA) is preparing to replace one million street lights nationwide with LED bulbs.
- Public & Private Infrastructure Projects: From the construction of the new parliament house to stadium, residential, commercial, hospitality and entertainment projects
- CP All Public Co., Ltd: Creates “7 Go Green” project and invest over 500 million THB to replace LED Light bulb in 7-Eleven throughout Thailand.
Thailand has long been a proponent of free & fair trade and its attractiveness as a production base for leading international companies is enhanced by a number of free trade agreements.