BUSINESS OPPORTUNITIES

 
 

A key part of government policy since the Chaun Leekpai administration took office in 1997 has been to increase the potential Special Economic Zones to enhance the competitiveness of the Thai industrial sector. This involves working continuously to increase the potential of special economic zones, especially the Eastern Seaboard,into the country's main industrial production base, in order to support higher-technology industries and attract investment and collective integrated industrial development. This will save production costs and enhance industrial competitiveness. Moreover, domestic and foreign investment shall be given incentives under the Southern Seaboard development scheme.

The government has also committed to expediting the development of border and contiguous areaa to support the growth generated by sub-regional co-operation with neighbouring countries.

OPPORTUNITIES AND RESOURCES IN THE NORTHERN REGION

RESOURCE AVAILABILITY

Agricultural raw materials: The Northern region is the major producer of many crops including maize, mungbean, soybean, sorghum, groundnuts cotton, garlic, and many other varieties of cool climiate vegetables and fruits. Most of the area's produce is used in vegetable and fruit processing industries. The North has a substantial number of livestock, especially cattle and chickens.

Material: The North is rich in mineral resources. Its major ore and mineral outputs include fluorite ore, tin concentrates, wolfram ore, etc.

Water: The North's vast forest areas are the source of mainy of Thailand's rivers. The region has four major rivers: the Ping, Wang, Yom, and Nan, Water quality, particularly in Lamphun, is high, and is suitable for high-tech industries. The Ping River provides a large surface water source for water supply in the North. The Electricity Generating Authority of Thailand has also established several dams on this river.

Forest: The North has substantial timber reserves, which are used as raw material for many wood-based handicraft industries.
 

AVAILABILITY OF LABOUR AND TECHNICAL SKILLS

There are many technical training institutions in the Northern provinces. To further support industry's need for technically trained personnel, the directors of many technical schools have co-operated with manufactures in providing students with particular skills. Some manufacturers have donated used machines and equipment to these schools for their workshop activities.
 

OPPORTUNITIES

Agro-related activities: fruit and vegetable processing, animal feed industry, livestock farming, medicinal plants and fast-growing tree plantations. Potential locations: around Tak, Lampang, and Chiang Rai in the upper part; and areas around Nakhon Sawan, Phitsanulok, Phichit, and Phetchabun in the lower part. Supporting factors: availability of raw materials, land price, and suitable land quality.

Hydrocarbon and gas relatedactivities in the industrial estate in the Upper North.

Labour intensive industries: ceramics, handicrafts, artificial flowers, garments, toys, jewellery, and electronics. Opportunities to develop the Chiang Mai-Lamphun-Lampang triangle into the country's electronic production base. Supporting factors: availability of labour, `industrial estates, quality water, proximity to other industrial facilities, including an international airport in Chiang Mai.

Tourism-related activities in all far north provinces, and in the Kamphaeng Phet-Sukhothai area of the Lower North.

Border trade activities and facilities: Supporting factors include proximity of many provinces to Myanmar (Tak, Mae Hong Son, Chiang Mai, Chiang Rai) and Laos (Phayao, Nan, Uttaradit)
 

OPPORTUNITIES AND RESOURCES IN THE NORTHEASTERN REGION

RESOURCE AVAILABILITY

Land: The Northeast is Thailand's largest region with land available for industrial development at a reasonable cost.

Agricultural raw materials: major crops in the Northeast include cassava, sugar cane, maize jute and kenaf soybean, ground nuts, and mungbean. The region has several major fruits and vegetables that are used as raw materials in food processing industries such as pineapple, tomato, and young corn. The Northeast has a large number of livestock, especially chicknes, water buffaloes, and cattle. The region's centre is an important source of animal hides.

Minerals and natural gas: Major minerals in the Northeast include barite, copper, iron, lead, tungsten, manganese, gold, gypsum, emery, phosphate,antimony, uranium, potash, rock salt, graphite, marble, sand, gem stones, lignite, and natural gas. Udon Ratchathani, Khon Kaen, and Nakhon Ratchasima are important bases for these minerals while rock salt and potash can be found in almost every province in the region. Natural gas reserves in the Northeast are large. The present source of natural gas is the Nam Phong field in Khon Kaen. Currently, other sources are being explored by major oil groups in Chaiyaphum and Udon Thani with future exploration efforts likely in Sakon Nakhon and Mukdahan Provinces.
 

AVAILABILITY OF LABOUR AND TECHNICAL SKILLS

The Northeast is Thailand's most populous region and has been a traditional source of labour for the entire country. Northeasterners are regarded as hard working, well disciplined, and fast learning. In addition to the vast pool of unskilled labour, a large number of skilled and semi-skilled workers are supplied by three major universities located in Khon Kaen, Nakhon Ratchasima, and Ubon Ratchathani, as well as other technical schools and colleges.

Unskilled workers are eligible to participate in government programs offered by the Regional Skill Development Institute located in Khon Kaen and Ubon Ratchathani, and at a private training centre in Nakhon Ratchasima, the Choonhavan Training Centre, which specialises in training technicians for work in the automotive industry. Despite the large number of Northeasterners who seek employment outside the region every year, most prefer to come back to their homeland as opportunities arise.
 

OPPORTUNITIES

Food industries: fruit and vegetable processing, egg powder manufacturing, ginger products, bean thread, vegetable oil, processed foods.

Agro-industries: animal feed, beef and dairy cattle and linked industries, tapioca flour, glucose, tanning, silo and seeds.

Textile industries: manufacture of silk fabric, knitted fabric, apparel, and fishing net.

Non-metallic industries: plastic bags, straws and bottles, bamboo boards, toothpicks and chopsticks, wood and rattan furniture, artificial flowers and plants, paper and pulp, and ceramics.

Metallic industries: electronic and electrical components, agricultutural equipment and machinery, transportation machinery.

Cottage industries: pottery, wickerware, gem cutting and carving.

Service industries: hotels, amusement parks, resorts, hospitals and other health-related establishments, department stores, sports complexes.

OPPORTUNITIES AND RESOURCES IN THE UPPER CENTRAL REGION

RESOURCE AVAILABILITY

Land: It is expected that the land utilisation pattern will progressively change as more land is used for non-agricultural activities; in particular emerging industrial estates. Land prices in the Upper Central region in general are still affordable despite a rather sharp increase in recent years in the southern part of the region.

Agricultural raw materials: The Upper Central region is the major production base of many kinds of agricultural products, many of which are used as raw materials for related industries. Almost 50 percent of its total area is used for paddy cultivation while 27 percent is used for growing field crops, fruit trees, tree crops, vegetables, and flowers. Major field crops grown in the UCR are maize, cassava, sugar cane, mungbean, sorghum, soybean, groundnuts, and cotton.

The UCR produces 10 percent of the country's maize, 10 percent of its mungbeans, 38 percent of its sorghum, 10 percent of its cotton, and two to five percent of all other crops. Major fruit trees grown in the UCR include tangerine, mango, coconut, and banana while major vegetable crops are short cucumber, taro, yard-long bean, hot pepper, Chinese Kale, pumpkin, water spinach, and white ground.The region also supports a variety of livestock.

Ores and minerals: The UCR is the Thailand's major source of limestone, and hence the primary production base for cement and related construction materials. Many types of infrastructure have also been established to facillitate limestone mining and cement industries. Cement produced in the UCR is used to supply the established Bangkok market in addition to growig new markets in the Northeast and neighbouring countries. Other ores and minerals in the UCR include iron, phosphate, lead, and gems.
 

AVAILABILITY OF LABOUR AND TECHNICAL SKILLS

The UCR is among the country's most densely populated areas, outside of te greater Bangkok area. Other densely populated areas include Phuket, Pattani, and Chon Buri. Available work force is thus one of the region's comparative advantages. The UCER also has a high percentage of educated labour; 14 percent of the region's work force has higher education. Additional highly skilled labour can be obtained relatively easily from the Bangkok area. The UCR is thus ready for further development in terns of availability of labour and technical skills.
 

OPPORTUNITIES

Resource-based industries: agro-processing industries of agricultural and livestock/fishery products. Construction material industries utilising non-metallic mineral resources in the area such as limestone and gypsum from neighbouring areas Phichit and Nakhon Sawan.

Supporting industries: light processing industries, labour intensive and highly responsive to market needs. Examples include appareal, accessories, sundries, houseware, sporting goods, and artificial flowers. Precision machining and electronics industries. Supporting factors include quality water, stable supply of electricity, proximity to airport, and labour force.

Agricultural input industries: fertiliser, pesticides, and agricultural machinery. These industries were located mostly in Bangkok in the past because of access to themarket and the industrial agglomeration of Bangkok. However, as these advantages continue to decline in Bangkok, the Upper Central Region (UCR) is becoming more attractive.

Energy consuming industries: chemical seasoning, noodles, sugar, starch, cement, ceramics.

Cottage industries: Supporting factors: existing cottage industries with sufficient technology, availability of seasonal workers from the agricultural sector, tourism sites such as Ayutthaya, Lop Buri, and Phra Phutthabat, proximity to Bangkok and hence overseas to catch market information and tastes, and the Royal Project of Folk Arts and Crafts for Farmers in Bang Sai, Ayutthaya, which offers the training course in basic handicraft skills.
 

OPPORTUNITIES AND RESOURCES IN THE EASTERN REGION

RESOURCE AVAILABILITY

Agricultural raw materials: Major agricultural products in the Eastern region include rice, sugarcane, cassave, rubber, fruits, and fast-growing trees. These provide a strong base for agricultural processing busineeses, rubber products, paper pulp, furniture, and canned food industries. There is also a large  number of livestock in Chachoengsao, Chon Buri, and Prachin Buri. Fishery activities in Chon Buri and Rayong can facilitate the expansion of food processing and cold storae industries in the region.

Minerals and natural gas: The Eastern region is endowed with gem stones, especially in Trat and Chanthaburi. Other minerals include antimony, quartz, tin, and manganese. Large quantities of natural gas are present  in Gulf of Thailand area.
 

AVAILABILITY OF LABOUR AND TECHNICAL SKILLS

The region's status as a newly industrialised area with a developed inter-regional transportation network has resulted in the fast inflow of labour from other regions.
 

OPPORTUNITIES

Food industries in Chon Buri, Rayong, Chanthaburi, Trat, and Prachin Buri. The provinces have good availability of raw materials and water supply, and suitable locations for development.

Chemical, petrochemical and metal industries in Chachoengsao, Chon Buri, and Rayong. Supporting factors: proximity to ports and availability of raw materials.

Tourism development in Chanthanburi and Trat. Supporting factors: natural attractions such as beautiful coastlines, proximity to Bangkok, and availability of labour.

Rubber wood processing, rubber products in Chanthaburi and Trat. Supporting factors: availability of raw materials and bright domestic and world market prospects.

Service industries in all six provinces in order to accommodate industrial expansion.

OPPORTUNITIES AND RESOURCES IN THE SOUTHERN REGION

RESOURCE AVAILABILITY

Agricultural raw materials: Major cach crops in the South include rubber, palm oil, coconut coffee, and fruit. Other potential cash crops include cocoa, cashew nuts, pepper, and vegetables. Rubber plantations utilise 21 percent of the region's total land. The South also produces a major portion of the Thailand's seafood, especially black tiger prawns. Livestock output in the South also has potential for expansion as the region is classified as the disease free zone. A large part of the region's outputs are used as raw materials for various major agro-industries in the South.

Minerals: The Southern region is richly endowed with minerals. Major industrial minerals include gypsum, feldspar, marble, coal, kaolin, phosphate, ball clay, chromite, tin, tungsten, manganese, and columbite-tantalite. Tin generates the highest income for the region.

Natural gas: The five major sources of natural gas in the South have a combined capacity of 557 million m³/day. 

Forest products: Southern forests are mostly virgin and mangrove forests. Yang or rubber tree is the most important wood in the South. Forests in the South cover 20.6 percent of the region's total area. Surat Thani has the largest forest ara while  Songkhla has the largest rubber tree growing area.

Water: As the south is affected by monsoons, its rainy period lasts for most of the year. Consequently, the region has numerous rivers, including the Tapee, Pattani, Su Ngai Kolok, Trang, and Kra Buri, which provide adequate water sources for irrigation, industrial production, and residential water supply.
 

AVAILABILITY OF LABOUR AND TECHNICAL SKILLS

Although the agricultural provinces in the region are a source of lower-skilled labour, Southerners are less industrialised than other regions.
 

OPPORTUNITIES

Industries that utilise local raw materials for domestic and export markets: Finished rubber products: automobile tires, condoms, rubber bands, rubber parts for automobiles, inner and outer bicyle and motorcycle tires, rubber sponges.

Construction materials: cement, ceramics, gypsum board, marble and granite floor tiles certain finished rubber products, frozen seafood, canned seafood, prawn feed, finished seafood, seafood essence for the food industry, products from  rubber wood.

Food processing industries which utilise the abundance of local raw materials: vegetable and fruit processing: canned fruits and vegetables, instant coffee, palm oil, non-dairy coffee creamer, finished coconut milk, ground pepper, canned fruit and vegetable juice, dairy products, and livestock products.

Industries, which import raw materials to produce for export: plastic products, electronics.

Service industries: tourism-related activities, such as hotels and handicrafts in tourist attracting provinces. Potential provinces include Surat Thani, and Krabi..

OPPORTUNITIES AND RESOURCES IN THE WESTERN REGION

RESOURCE AVAILABILITY

Agricultural and natural resources

Agricultural raw materials: The Western Region is the major growing area for sugar cane (Suphanburi, Kanchanaburi, and Ratchaburi) and pineapples (Phetchaburi and PrachaupKhiri Khan), most of which are used as raw materials for sugar refineries and canned pineapple factories in the West and other parts of the country. Other major outputs are rice along the Mae Klong and Thachin river basin) and coconut (Prachaup Khiri Khan). There are also fresh and marine fisheries in the region. The Western region is considered the national swineraising centre, concentrated mainly in Ratchaburi.

Forest: The Western region is well endowed with forests. The region's forest area comprises 59 national forest conservation zones, six national parks, and three wild animal conservation zones.

Minerals: The Western region has an adequate supply of minerals. Major minerals include tin, tungsten, fluorite, feldspar, manganese, and lead. Most minerals are found in the Western part of the region..

Water: Water sources in the West include rain water, river water, and sea water. The region has the Mae Klong and Thachin River with branches that run through every province. The provinces of Samut Songkhram, Phetchaburi, and Prachaup Khiri Khan, are connected to the Gulf of Thailand.
 

AVAILABILITY OF LABOUR AND TECHNICAL SKILLS

The Western region has an adequate supply of unskilled and semi-skilled local labour. Skilled labour is supplied locally or from either the neighbouring province of Nakhon Pathom, wher a campus of the University of Fine Art is located, or from Bangakok. Many provinces in the west have a strong industrial base and, hence, the locallabour force is highly industrial-oriented.
 

OPPORTUNITIES

Agricultural processing: food seasoning, wood and paper products, fruits and vegetbles, and sugar in Kanchanaburi and Suphanburi; coconut products in Samut Songkhram; pineapple processing, para wood products in Prachaup Khiri Khan. Supporting factor: availability of raw materials.

Large scale industries: pulp food processing, machinery, textile (dying and printing) in Ratchaburi. Major supporting factors are strong base of existing industries and availability of industrial facilities.

Down-stream manufacturing and service activities of the steel industry, port-related activities in Prachaup Khiri Khan.

Cement and ceramic products in Phetchaburi, Supporting factors: availability of raw materials and specific skills, strong existing ceramic industry base.

Less polluting industries are becoming more and more welcome in every province, especially Samut Songkhram and Ratchaburi.