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Industry Outlook Analysis

13 Sep 2021

Industry

Mooncake Market, 2021: Turnover Set to Shrink 5.7% as Consumer Purchasing Power Remains Weak (Current Issue No.3267)

The Mid-Autumn Festival, which falls on September 21, 2021, presents another challenging year for the mooncake business due to the protracted COVID-19 pandemic, which is much worse than the previous year. As a result, consumer purchasing power remains weak, and this may affect the decision to purcha... Read more

8 Sep 2021

Services

Impact of E-Service Tax on Users of Foreign Digital Service Platforms (Current Issue No.3266)

As Thailand is transitioning towards a digital economy amid the increasing role of technologies in the business sector and our everyday life, including trading, entering into business agreements, and conducting financial transactions via digital platforms at home and abroad, plus the fact that such ... Read more

6 Sep 2021

Real Estate and Construction

Residential Property Market Projected to be Highly Fragile during the Remainder of 2021 (Current Issue No.3262)

Most residential property developers have postponed the opening of their new projects since the beginning of 2021 due to unfavorable market conditions and the high level of unsold residential units. They have also adjusted their business strategies in line with market conditions. According to the Ag... Read more

3 Sep 2021

Agriculture

Meat expenditure in 2021 to rise 2.0% due to higher price and cost (Current Issue No.3261)

KResearch assesses that meat prices will remain high over the remainder of 2021, stemming from cost of disease prevention and control in humans and animals, increased cost of animal feeds, import charges that tend to remain high, and the Baht’s volatility. Given the prolonged COVID-19 outbreak and t... Read more

1 Sep 2021

Services

Home Health Services: Option during COVID-19…2021 Turnover Projected to Reach at Least THB2.2 Billion (Current Issue No.3260)

ศูนย์วิจัยกสิกรไทย ประเมินว่า ศูนย์วิจัยกสิกรไทย ประเมินว่า ในปี 2564 มูลค่าการใช้จ่ายสำหรับบริการทางการแพทย์ที่บ้านของไทย จะอยู่ที่ 2,200 – 2,300 ล้านบาท เติบโตได้เล็กน้อยที่ 2.4% (YoY) แม้ว่าตลาดจะเติบโตได้จากการเพิ่มขึ้นของผู้ให้บริการ ประเภทการบริการที่หลากหลายขึ้น รวมทั้งสถานการณ์โควิด-19 ที่ทำ... Read more

25 Aug 2021

Agriculture

Thai mangosteen exports to grow 14.6-18.8 percent in 2021...despite short-term supply disruption (Current Issue No.3259)

KResearch projects that, despite short-term supply disruption stemming from the COVID-19 outbreaks, Thai mangosteen exports could be valued at an estimated USD 540-560 million, or growth of 14.6-18.8 percent YoY, mainly from export prices. While Indonesia may have taken a greater share of the Chines... Read more

23 Aug 2021

Industry

Increased Investment Risk Seen in Thai Tire Industry after US Imposed AD Duties, but 2021 Tire Exports to the US Projected to Grow over 2.6% (Current Issue No.3258)

Following more than a year of an anti-dumping investigation into tires imported from Thailand, the US has finally ruled that passenger vehicle and light truck tires imported from Thailand are subject to anti-dumping (AD) duties. As a result, prices of such Thai tires in the US have risen, although t... Read more

23 Aug 2021

Trading

Export growth reaches 11-year high in July 2021… Full-year growth projected at 12.4 percent (Business Brief No.3947)

In July 2021, Thai exports maintained strong growth at 20.27 percent YoY, the highest level in 11 years and higher than the market forecast of 19.7 percent YoY. Export growth during the first seven months of 2021 was equal to 16.2 percent, ... Read more

19 Aug 2021

Services

COVID-19 and outbreak control measures spur growth of food delivery market at 18.4 – 24.4 percent in 2021 (Current Issue No.3256)

Amid heightened COVID-19 control measures, food delivery service has become the primary income channel for restaurants. Marketing via online food delivery platforms, including promotional discounts and delivery fee waivers for restaurateurs, has also helped to attract new customers and increase orde... Read more

18 Aug 2021

Tourism

New Wave of COVID-19 to Deal Severe Blow to Global Tourism, including Thailand’s, during the Remainder of 2021 (Current Issue No.3255)

International tourism is experiencing a new wave of challenges again as many countries have been hard hit by the highly contagious Delta coronavirus (COVID-19) variant, with a rising number of infections. As a result, many countries have tightened border controls and issued an advisory warning again... Read more

9 Aug 2021

Industry

Turnover of Alternative Proteins Derived from Food Innovations Set to Reach THB4.5 Billion in 2021 amid Numerous Challenges (Current Issue No.3254)

Alternative proteins, which are among food techs, have emerged as one of the top consumer trends and thrived over the past few years. KResearch is of the view that the alternative protein market in Thailand is set to grow in the future as such products are now available through numerous channels whi... Read more

6 Aug 2021

Agriculture

Potential Crops that should be Promoted for the Processing of Plant-Based Alternative Protein Products to Ensure Sustainable Crop Supplies (Current Issue No.3253)

KResearch is of the view that Thailand has numerous crops that can be processed into plant-based protein foods of the future, namely green beans, sunflower sprouts, black sesame seeds, organic “Hom Mali” rice and straw mushrooms, based on the required analysis results. These include: 1) Such crops m... Read more

6 Aug 2021

Services

Elderly assistive devices market to reach THB 8 billion in 2021… consistent with Thailand’s trend towards an aged society (Current Issue No.3252)

KResearch projects that the value of medical equipment and assistive devices for the elderly in Thailand will amount to a range of THB8-9 billion in 2021, and register an compound annual growth rate (CAGR) of 7.8 percent over the next five years as Thailand is approaching an aged society status. The... Read more

5 Aug 2021

Industry

Thai Polylactic Acid Exports Set to Grow at least 38% in 2021, but May Pressured by Tighter Supply in 2022 (Current Issue No.3251)

Amid the current global green trends, Thailand’s polylactic acid (PLA) exports have gradually increased at a faster rate than growth in global PLA demand over the years. The rise is primarily attributable to the fact that Thai PLA producers have been able to bolster their annual manufacturing capaci... Read more

29 Jul 2021

Industry

Thai auto market could see sales drop to 720,000 due to prolonged COVID-19 outbreak, while exports may offer little support to production (Current Issue No.3249)

With the most recent wave of the COVID-19 pandemic, the Delta variant has established itself as a major global threat, having spurred a surge in the number of cases across many countries, including Thailand. It may also impact economies worldwide over the long term if the outbreak is not successfull... Read more

27 Jul 2021

Services

Private hospitals reliant on medical tourism to encounter difficulty in 2021-2022 amid ongoing COVID-19 outbreak (Current Issue No.3248)

Private hospitals are one of the businesses that have been severely affected by the COVID-19 outbreaks, especially private hospitals that are normally reliant on revenue from foreign patients through medical tourism. Like regular international travelers, medical tourists are presently unable to trav... Read more

23 Jul 2021

Trading

Global demand boosts exports across Asia in 1H21, with Thai exports boasting strong growth of 15.53 percent YoY; yet recovery remains below that of regional rivals (Business Brief No.3940)

In June 2021, Thai exports hit its highest level in 11 years with robust growth of 43.82 percent YoY, above market expectations of 38.1-percent growth. While Thai exports in 1H21 grew 15.53 percent YoY, the level was not high in comparison to the export growth of regional rivals, which generally gre... Read more

15 Jul 2021

Turnover in 2021 Snack Business Projected to Shrink 4.0% amid Eroding Consumer Purchasing Power (Current Issue No.3242)

KResearch is of the view that the prolonged COVID-19 pandemic, which recently prompted the government to reimpose lockdowns and curfews in high-risk zones, has caused consumers to embrace frugality or thrift. As snacks are generally perceived as non-essential products, their consumption rate is set ... Read more

14 Jul 2021

Services

Growth potential for health tech in Thailand amid rising demand for health services (Current Issue No.3243)

In KResearch’s view, spending on health tech in Thailand remains modest, at around THB 300-400 million in 2021. However, the COVID-19 pandemic has quickly elevated the role of technology in health services as it helps to reduce risk and provides greater convenience to patients. Moreover, Thailand’s ... Read more

9 Jul 2021

Industry

Turnover in 2021 Snack Business Projected to Shrink 4.0% amid Eroding Consumer Purchasing Power (Current Issue No.3242)

KResearch is of the view that the prolonged COVID-19 pandemic, which recently prompted the government to reimpose lockdowns and curfews in high-risk zones, has caused consumers to embrace frugality or thrift. As snacks are generally perceived as non-essential products, their consumption rate is set ... Read more

8 Jul 2021

Agriculture

Outlook for Thai agriculture in 2H21 indicates slow growth compared to the first half of the year (Current Issue No.3241)

KResearch has assessed that the overall Thai agricultural sector in 2H21 will likely grow at a slower rate compared to 1H21. This slowdown can be attributed to the prices of most agricultural products that are expected to decline due to the accelerated growth of farm output by 1.1-3.0 percent YoY. ... Read more

6 Jul 2021

Industry

EV contract manufacturing – new business model for the EV industry amid challenge of building a strong customer base (Current Issue No.3239)

The technological transition to electric vehicles (EVs) on a global scale has led to the emergence of a new business model that differs from the model currently adopted by mainstream automakers. Such model comes in the form of EV contract manufacturing (EVCM) on an open EV platform which allows new ... Read more

5 Jul 2021

Real Estate and Construction

2021 Construction Investment Projected to Shrink Roughly 3.8% due to a One-Month Ban on Construction Activity (Current Issue No.3238)

The protracted COVID-19 pandemic and rising number of daily infections has prompted the Thai government to impose a partial lockdown. This measure includes a ban on construction activity at large projects for at least one month, effective June 28 – July 28, 2021, ... Read more

5 Jul 2021

Services

Restaurant business 2021 likely to suffer THB 55 - 70 billion in lost revenue compared to previous year amid rampant COVID-19 outbreak (Current Issue No.3237)

With the recent wave of COVID-19 in Thailand, the number of daily cases has surged in many areas, particularly the Bangkok Metropolitan Region (BMR), which is categorized as a zone of maximum and strict COVID-19 control. This development has prompted the government to raise COVID-19 control and prev... Read more

1 Jul 2021

Tourism

Plan to reopen the country to international tourists: key conditions rest on bringing COVID-19 outbreak under control nationwide (Current Issue No.3235)

On June 29, 2021, the Ratchakitcha website (Government Gazette) published “Thailand’s Tourism Reopening Scheme”, which comes into effect on July 1, 2021. Cooperation among the related parties allowed the second phase of the reopening plan to move forward according to plan on July 1, 2021. Provinces ... Read more

25 Jun 2021

Industry

Global Economic Recovery Set to Support 2021 Thai PCB Export Growth to over 20% (Current Issue No.3232)

The world’s economic recovery from the COVID-19 pandemic has led KReseach to assess that Thai printed circuit board shipments will grow roughly 20.1-24.1 percent in 2021, or equivalent to USD1,573-1,626 million. The increase is expected to be bolstered by strong demand for products in the ICT catego... Read more

25 Jun 2021

Agriculture

Export value for Thai durian hits record high in May 2021; new record expected for full-year 2021 with accelerated growth of 35 - 40 percent (Current Issue No.3233)

Durian, the aptly-named ‘King of Fruits’, generates the highest revenue for Thailand out of all its fruit exports. Since 2014, the export value for durian has surpassed all other fruits, and just recently reached a monthly record high of USD 934.9 million in May 2021, with growth of 95.3 percent YoY... Read more

24 Jun 2021

Industry

EU Carbon Border Adjustment Mechanism (CBA) Presents Another Challenge for Thai Exports (Current Issue No.3231)

In 2023, it is expected that the European Union (EU) will use a Carbon Border Adjustment (CBA) mechanism for goods and services that are imported from third non-EU countries as part of the European Green Deal – an ambitious package of measures aimed at preserving Europe’s natural environment. During... Read more

24 Jun 2021

Trading

Thai exports in May 2021 reach an 11-year high at 41.59%; full-year 2021 growth forecast at 9.0% (Business Brief No.3935)

Thai exports in May 2021 reached an 11-year high with growth of 41.59 percent YoY. Excluding oil-related products, gold, weaponry and military supplies, May’s overall exports grew 45.87 percent YoY. For the first five months of 2021, exports rose 10.78 percent YoY. However, export growth during this... Read more

21 Jun 2021

Services

Retail Business, 2021: Contracting 2.0%…Eyeing Vaccine Rollout to Help Restore Consumer Spending (Current Issue No.3230)

KResearch maintains a cautious view towards the retail business during the remainder of 2021. For 2020, we expect that retail sales will contract 2.0 percent YoY. However, close attention must be paid to vaccine rollout at home over the coming few months (June-September), and whether there is a pote... Read more

8 Jun 2021

Services

Online learning: Expenses pose challenge to low-income parents (Current Issue No.3229)

The 2021 school year marks yet another year that sees students taking their classes online. Some educational institutions have organized online sessions ahead of the new school term, which is presently set to begin on June 14, 2021. KResearch conducted a survey in the Bangkok Metropolitan Region to ... Read more

1 Jun 2021

Real Estate and Construction

Home Purchases in Bangkok Metropolitan Area Projected to Contract for Third Consecutive Year during 2021 (Current Issue No.3228)

It is expected that home purchases in the Bangkok Metropolitan area during 2H21 will improve over a sharp plunge reported for 1H21 if the COVID-19 pandemic can be contained by July, and if vaccination rollouts are on track, and there are new economic stimulus measures introduced by the government. H... Read more

28 May 2021

Industry

Auto exports may reach 890,000-950,000 units in 2021; entry of Chinese carmakers set to increase export opportunities over the next three years (Current Issue No.3227)

KResearch has assessed that Thai auto exports in 2021 should improve from the previous year, thanks in large part to the economic recovery of major trading partners in Oceania and Asia. At the same time, an increasing number of Japanese car manufacturers are using Thailand as a production base for e... Read more

24 May 2021

Agriculture

AgriTech set to transform Thai agricultural sector; guidelines should be adopted for use of technology in small-scale operations (Current Issue No.3223)

While the use of agricultural technology or AgriTech in Thailand is still very much at its initial stage, KBank believes AgriTech will play a more prominent role in the country over the next 3 to 5 years, thanks to increasingly affordable technology and broader knowledge of its usage that becomes mo... Read more

8 May 2021

Agriculture

Agricultural Product Prices Likely be Pressured by Supply Glut and Sluggish Demand from COVID-19 during remainder of 2021 (Current Issue No.3220)

KResearch assesses that prices of most Thai agricultural products, including rice, rubber, cassava, oil palm and sugarcane, will decline during the remainder of 2021 due to the double shock from both a supply glut resulting from favorable climate conditions for crop cultivation and weakening domesti... Read more

7 May 2021

Industry

Post-COVID Supply Chain Realignment and Change in Global Investment Flows: Thailand Projected to Benefit USD1.1-1.4 Billion from Increasing FDI in Existing Industries (Current Issue No.3218)

A new paradigm in global investment flows is being seen as the COVID-19 pandemic has triggered massive supply chain adjustments. Realizing the fragility of global supply chains and the intensifying trade and technology war between the US and China, multi-national companies have begun to diversify ri... Read more

30 Apr 2021

Services

New COVID-19 outbreak stifles restaurants’ recovery in 2021; slump to continue from 2020, with projected revenue merely THB 382 – 394 billion (Current Issue No.3216)

Restaurants face ongoing challenges after the emergence of the third COVID-19 wave. While as of this writing the government has yet to announce a lockdown or ban dining-in at restaurants, the restrictions on restaurants’ business hours and consumer anxiety towards on-premise services have even more ... Read more

29 Apr 2021

Industry

Chip shortage 2021: Thai vehicle production falls short by 40,000 units, while car manufacturers implement supply-side structural reform for automotive chips to support long-term demand (Current Issue No.3214)

Since late 2020, the global automotive industry has been experiencing a microprocessor chip shortage. The principal reason for this crisis is the fragile structure of the automotive chip manufacturing industry. Demand and supply volatility for these chips has been triggered by multiple factors, incl... Read more

29 Apr 2021

Industry

2021 Domestic Car Sales to Shrink 1.5% due to COVID-19, but Higher Exports to Boost Car Production to at least 1.8 Million Units (Current Issue No.3215)

Although the government did not announce lockdown restrictions to cope with the latest wave of COVID-19, the highest number of daily infections since the start of the pandemic here has not only triggered concern among Thai consumers about their future income, but also affected overall domestic consu... Read more

26 Apr 2021

Services

Third COVID-19 wave inhibits growth in domestic spending on food and beverages, likely to rise 0.5% in 2021 if crisis is resolved within 3 months (Current Issue No.3212)

The impact of the third COVID-19 wave is set to hinder consumer spending on food and beverages for 2021. As a result, businesses in this sector will continue to face difficulties in raising sales throughout the year. KResearch assessed that under a base-case scenario which sees the outbreak containe... Read more

23 Apr 2021

Agriculture

Hemp: Cash crop of the future under multiple conditions (Current Issue No.3211)

Hemp has the potential to become Thailand’s next cash crop with perceived utilization in downstream industries for varied purposes with high added-value. Meanwhile, the initial supply of hemp - once restrictions have been lifted - will likely hit the market in 4Q21, and is projected to see steady in... Read more

22 Apr 2021

Tourism

Two Waves of COVID-19 within Three Months to Derail Recovery of Thailand’s 2021 Inbound Tourism (Current Issue No.3210)

The latest wave of the COVID-19 pandemic may take longer to ease as compared to the two previous waves because the number of daily cases is substantially higher and most people have been infected by the fast-spreading variant. This is likely to delay the government’s efforts in re-opening the countr... Read more

12 Apr 2021

Tourism

Receipts for Domestic Travel Projected to Fall by more than THB130 Billion as Third Wave of COVID-19 Hurts 2Q21 Domestic Travel (Current Issue No.3209)

The third wave of COVID in 2Q21 presents bad news for travel-related businesses that had begun to bounce back following the latest resurgence of COVID-19 towards the end of last year. According to the Ministry of Tourism and Sports, the number of Thais travelling in the country during February 2021 ... Read more

5 Apr 2021

Industry

Value of Enterprise HDD Exports Set to Grow 2-5% in 2021, Driven by Cloud Computing Trends (Current Issue No.3208)

Thai HDD exports overall are projected to record steady contraction in terms of volume and value during 2021, pressured by disappointing consumer HDD shipments, resulting from a transition towards the SSD technology. It is projected that the volume and value of consumer HDD shipments will shrink wit... Read more

2 Apr 2021

Industry

National EV Strategic Plan: A Stepping Stone for the Thai Automotive Industry, but Markets and Integrated Supply Chain are Prerequisites (Current Issue No.3206)

On March 24, 2021, the National Electric Vehicle Policy Committee set a new target for Thailand’s electric vehicle production, with the objective of promoting the country to become one of the world’s important production bases for zero-emission vehicles (ZEVs). Under this challenging target, 100 per... Read more

31 Mar 2021

Industry

Thai Lithium-ion Battery Industry Set to Thrive in line with xEVs, Though Thailand Needs to Upgrade its Position from being only an Assembly Base (Current Issue No.3203)

The Thai lithium-ion battery industry is set to post steady growth ahead, thanks to increased investment from mainstream auto makers to accommodate growth in the production of their electric vehicles (xEVs) in Thailand and from entrepreneurs in the Thai energy industry, who have seen business opport... Read more

26 Mar 2021

Tourism

Domestic tourism to improve during 2021 Songkran festival, provided that the outbreak is kept under control (Current Issue No.3202)

KResearch views that the overall trend for domestic travel will see improvement during the 2021 Songkran festival. However, the festivities will differ markedly from those that took place in the era before COVID-19, as Thailand continues to be on high alert for signs of local transmission. For this ... Read more

25 Mar 2021

Real Estate and Construction

Sales of construction materials stores to grow by 0.2%-1.9% in 2021, boosted by public construction spending (Current Issue No.3201)

KResearch projects that sales of construction materials stores may improve slightly from the previous year, by approximately 0.2-1.9 percent in 2021, or an estimated market value of THB 803-817 billion. These figures are predominantly supported by the Thai government’s continuous investment in const... Read more

25 Mar 2021

Trading

February Exports, Excluding Gold, Grew 4.0%...Growth Not in Sight for 1Q21 Shipments (Business Brief No.3918)

The global economy is projected to recover at a faster rate than prior estimate during 2021. Due to the progress on COVID-19 vaccine rollouts and growth seen in the US economy, buoyed by its massive economic stimulus package, the global economy is set to rebound to its pre-pandemic levels in 2021, a... Read more

19 Mar 2021

Trading

Global market shows recovery signs; bright prospects for Thai exports in 2021 with annualized growth of 4.5% (Current Issue No.3198)

Thailand’s latest export figure in January 2021 grew at a mere 0.3 percent YoY. Excluding gold, exports rose by 6.3 percent YoY, which reflected the recovery of Thailand’s trading partners, thanks to the commencement of COVID-19 vaccinations which have started to rejuvenate global economic activity,... Read more

16 Mar 2021

Industry

Thailand’s xEV market to grow by at least 69 percent in 2021; share of domestic xEV sales to account for more than half of total automobile sales in less than 10 years (Current Issue No.3196)

KResearch projects that the sales of Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) in 2021 will likely amount to 48,000-50,000 units, or growth of 63-70 percent YoY. Such innovative vehicles are set to become the standard models for numerous car brands, providing the f... Read more

15 Mar 2021

Agriculture

Rice exports in 2021 to remain stable at 5.8-6.0 million tons amid ongoing challenges; jasmine rice best performer in export markets (Current Issue No.3195)

KResearch views that Thailand’s rice exports in 2021 will likely remain steady at around 5.8-6.0 million tons, or an estimated growth rate of 1.3-4.8 percent YoY. This rate is higher than the total growth of demand for rice in the global market, which stands at 1.7 percent. Jasmine rice exports to t... Read more

12 Mar 2021

Industry

Consumers Are Willing to Pay More for Eco-Friendly Products and Services if Prices Do Not Exceed 20% of Regular Prices (Current Issue No.3194)

KResearch is of the view that although Thais have increasingly attached importance to environmental problems, their decision to purchase eco-friendly products and services may depend on many factors. These include whether such products and services help address environmental issues, or not, and thei... Read more

25 Feb 2021

Industry

Thai Chip Packaging Business, 2021: Growing 5.2%, Thanks to 5G Adoption and Recovery in Global Automotive Market (Current Issue No.3193)

The COVID-19 pandemic has significantly bolstered global demand for microchips. This is because it has triggered changes in the business sector and prompted consumers to increasingly use digital technology in their businesses and daily life while also accelerating the transition towards 5G technolog... Read more

25 Feb 2021

Agriculture

Mild drought expected in 2021 though off-season rice may see decline in prices (Current Issue No.3192)

This year’s dry season (January – April 2021) is expected to be mild and will likely be less severe than 2020, based on the slight drop in dam levels by 7.3 percent YoY. So far, this decrease has been limited to reservoirs in western Thailand, whereas other regions are seeing higher water levels tha... Read more

23 Feb 2021

Trading

January Thai Exports, Excluding Gold, Continued to Grow in line with the Global Economy (Business Brief No.3913)

Thailand’s outward trade posted steady growth over-month in January 2021 as the global economy began to recover. Excluding gold, Thai exports increased 6.3 percent, suggesting stronger demand for Thai products abroad, in particular automotive accessories, which surged 18.8 percent YoY, against the 0... Read more

18 Feb 2021

Services

Wider Generation Gap Prompts Businesses to Place More Emphasis on Specific Needs of Consumers (Current Issue No.3190)

The economic recovery of Thailand’s trading partners should see further improvement from the previous year as they continue to adjust to the COVID-19 pandemic. Many countries still rely on importing goods from Thailand, especially IT products, which have steadily displayed signs of accelerated growt... Read more

17 Feb 2021

Industry

Myanmar politics present high risk to auto production over the long term; faltering demand could see Thailand’s car exports to Myanmar grow by only 2% in 2021 (Current Issue No.3189)

Following the coup d’ètat in Myanmar, investors’ concerns towards the unrest and upcoming government actions have intensified. The automotive industry has already dealt with frequent changes in policy and regulations over the past few years. From KResearch’s viewpoint, Myanmar was until recently an ... Read more

28 Jan 2021

Industry

Fishery product export 2021: New COVID-19 wave to have short-term impact; while rising cost and intense competition may cause contraction of -5% to 0% (Current Issue No.3184)

KResearch assesses that the new wave of COVID-19 outbreak in Thailand may affect trade partners’ confidence in food safety in the short run. Subsequent challenges for Thai fishery product exporters will likely be limited consumer demand and fierce competition in the fishery market as rivals prepare ... Read more

27 Jan 2021

Industry

Non-alcoholic beverage market projected to reach THB 200 billion in 2021; functional and specialty beverages outperform the market (Current Issue No.3182)

The COVID-19 situation, both domestic and international, continues to be fraught with uncertainty as purchasing power comes under pressure and consumers tend to spend more cautiously. Moreover, the COVID-19 prevention and control measures in Thailand include restrictions regarding on-premise dining ... Read more

27 Jan 2021

Real Estate and Construction

Extension of Transfer and Mortgage Fee Reductions for Residential Properties: Good News for Property Market Amid Numerous Risks in 2021 (Current Issue No.3183)

The residential property market has been facing a challenge once again since the beginning of 2021 due to the resurgence of COVID-19. In 2020, it was adversely affected by the COVID-19 pandemic as evidenced by substantial contractions in the residential property business indicators.... Read more

22 Jan 2021

Trading

Thai Exports, 2021: Numerous Challenges Foreseen, but Growth Projected at 3.0% after Contracting 6.0 in 2020 (Business Brief No.3908)

The COVID-19 pandemic continues to persist worldwide, including in Thailand. In spite of this, hopes for COVID-19 vaccines, lesser stringent lockdown measures than the previous round of the pandemic and economic stimulus measures introduced by many countries helped support Thai exports in December 2... Read more

20 Jan 2021

Tourism

Domestic Travel, 2021: The Only Hope Hinges on Concerted Effort from All Parties to Combat COVID-19 (Current Issue No.3180)

Domestic travel is imperative in driving Thailand’s tourism in 2021. Unfortunately, it has slowed down again since the beginning of 2021 due to the resurgence of COVID-19. As a result, the Center for COVID-19 Situation Administration (CCSA) has reimposed stringent COVID-19 restrictions, especially i... Read more

14 Jan 2021

Industry

Thai Auto-Tire Makers Facing US Anti-Dumping Duties: Long-term Cost Cuts Needed to Maintain Competitiveness (Current Issue No.3179)

On December 30, 2020, the US Department of Commerce announced affirmative preliminary determinations in the antidumping duty (AD) investigations of passenger vehicle and light truck tires (passenger tires) from Thailand, Taiwan, South Korea and Vietnam. It preliminarily determined that exporters fro... Read more

8 Jan 2021

Agriculture

Brighter outlook for Thai agriculture in 2021 boosted by favorable weather conditions, but prices may be at risk (Current Issue No.3178)

KResearch assessed that the Thai agriculture in 2021 is set to have brighter outlook, with farm income projected to increase in the range of 1.0 to 1.5 percent YoY. This growth is attributable to an expected rise in farm output by 2.0 to 2.5 percent YoY due to higher levels of rainfall influenced b... Read more

25 Dec 2020

Services

Restaurants 2021: High risks and challenges remain amid fragile growth; investors advised to maintain caution (Current Issue No.3175)

KResearch views that the business environment for restaurants in 2021 is still fraught with risks as in the preceding year, as a new wave of local COVID-19 transmission, fierce competition among businesses and the yet-to-recover purchasing power will affect any recovery of restaurants in 2021 to var... Read more

23 Dec 2020

Trading

Thai Exports, November 2020: Contracting at Slower Rate…But COVID-19 Pandemic in US and EU Set to Pressure 2021 Shipments (Business Brief No.3902)

Thailand’s outward trade exhibited improving signs in November 2021 despite soaring COVID-19 infections in the US and Europe. November shipments shrank only 3.65 percent YoY, against the 6.71 percent YoY contraction reported for October 2020. Excluding oil-related products, gold and arms, November ... Read more

17 Dec 2020

Agriculture

Southern Rubber and Oil Palm Growers May Lose about THB6.6 Billion in Income from December 2020 to March 2021 due to Flooding (Current Issue No.3171)

KResearch assesses that southern rubber and oil palm growers may lose approximately THB6.6 billion in income due to the impact of flooding from December 2020 to March 2021. A shortfall of around 0.58 million tons in both rubber and oil palm outputs is expected after floods have wrecked havoc on rubb... Read more

9 Dec 2020

Tourism

Inbound Tourism, 2021: Growth Projected to Be Limited, But Set to Pick Up in 2H21 if COVID-19 Eases and Vaccine is Ready Current Issue No.3166)

Thailand’s inbound tourism in 2021 has begun to see positive news, regarding significant progress on the COVID-19 vaccine development, and its planned use with people in many countries by the end of 2020. In addition, Thailand has signed an advance agreement with a pharmaceutical firm to secure supp... Read more

9 Dec 2020

Real Estate and Construction

Construction Costs, 2021: Accelerating Amid Volatile Iron Prices, Labor Shortages and COVID-19 (Current Issue No.3168)

The construction industry has experienced a sudden spike in costs at construction sites due to operational adjustments to cope with the coronavirus (COVID-19) pandemic. Such costs include transportation, accommodation and personal protective equipment for workers. KResearch is of the view that COVID... Read more

9 Dec 2020

Services

Private hospitals 2021: Revenue to recover amid challenges and heightened competition (Current Issue No.3167)

Under the assumptions of no second wave of local COVID-19 outbreak, the government’s gradual easing of travel restrictions to allow for more international travelers and no escalation of domestic political situation, KResearch projects that the revenue and profit of listed private hospitals will make... Read more

9 Dec 2020

Industry

Air Conditioner Exports: Product Restructuring Needed to Brace for Competition from Key Rival Vietnam and Technological Transition (Current Issue No.3169)

Thai air conditioner exports are set to face numerous challenges ahead. These include competition from new rivals like Vietnam in the inverter air conditioner segment (normal model), plus the fact that consumers in emerging markets have increasingly purchased inverter air conditioners, and this has ... Read more

4 Dec 2020

Industry

Food and beverage exports 2021: Growth projected at 1-5%; adjustment to ‘New Normal’ represents the most urgent issue (Current Issue No.3165)

KResearch projects that the total value of Thai food and beverage exports for 2020 will stand at USD 24.9 billion, equivalent to growth of 3.0 percent YoY as the COVID-19 crisis has driven up demand for food products among Thailand’s trade partners. Moreover, Thai manufacturers have been able to mai... Read more

23 Nov 2020

Trading

Thai exports recovery stumbles in October, contracting further by 6.71 percent YoY; projection for full-year 2020 remains at -7.0 percent (Business Brief No.3898)

Despite indications that the global economy would continue to recover in October 2020, Thai export figures for the month plunged by 6.71 percent YoY to USD 19.37 billion. Regardless, upon exclusion of products related to oil, gold and munitions, exports fell by 4.89 percent YoY, only a slight contra... Read more

20 Nov 2020

Real Estate and Construction

Housing market in 2021 past its trough, yet rife with challenges (Current Issue No.3163)

In the final stretch of 2020, the Thai housing market has started to receive some good news with regard to progress in the development of COVID-19 vaccines, and Thailand’s better-than-expected economic performance in 3Q20., based on data provided by the Office of the National Economic and... Read more

18 Nov 2020

Industry

From Trump to Biden: Thai auto parts exporters should hasten to adjust their strategies to cope with several major changes in the US (Current Issue No.3161)

Entering 2021, the Thai auto parts industry may have to contend with new challenges that have emerged in the US, one of its primary importers. Of late, the US has announced the suspension of GSP privileges, which included many auto parts that are produced in Thailand. For this reason, Thai auto part... Read more

16 Nov 2020

Agriculture

Concentrated Latex: Key Feedstock to Meet the Need for Rubber Glove Production (Current Issue No.3160)

KResearch is of the view that concentrated latex prices in Thailand will likely bounce back over the short term or during the remainder of 2020 through to 2021 to a range of THB53-58/kg. The recovery will be supported by steady demand growth seen in rubber gloves, especially rubber medical gloves. T... Read more

2 Nov 2020

Trading

US moves to cut Thailand’s GSP privileges for the second time in 2020, working against US-bound exports in 2021 (Current Issue No.3157)

It is now apparent that Thailand will continue to lose its tariff privileges in penetrating the US market. In 2020, Thailand’s GSP tariff privileges have been revoked twice, totaling approximately USD 2.2 billion, or 45 percent of export value for products that benefit from GSP (Total Thai exports c... Read more

2 Nov 2020

Industry

Indonesia Set to Become Thailand’s Rival in BEV Production (Current Issue No.3156)

Electric vehicles (EVs) have increasingly made their presence felt within ASEAN, in particular investment in EV production in Thailand and Indonesia. Currently, Thailand has an edge over Indonesia in terms of EV manufacturing, thanks to the government’s clear policy of supporting the EV industry. Si... Read more

30 Oct 2020

Real Estate and Construction

Precast construction: The solution to current and future industry challenges (Current Issue No.3155)

The construction industry is set to face monumental changes in the near future. Given recent labor shortages, Thai construction business, which is labor-intensive, may need to consider an alternative approach that requires less manual labor through a greater reliance upon new construction technology... Read more

28 Oct 2020

Industry

Key Industries May Recover at Different Paces in 2021, Though Most of Them Unlikely to Resume Growth at Pre-COVID-19 Levels (Current Issue No.3153)

Under assumptions that there is no serious resurgence of the coronavirus (COVID-19) pandemic in Thailand, which allows the relevant authorities to gradually relax international travel restrictions, and the majority of people in Thailand receives COVID-19 vaccines in late 2021 while the domestic poli... Read more

27 Oct 2020

Tourism

Domestic travel market in the final stretch of 2020; Thais have travel plans but also worry over COVID-19, the economy and politics (Current Issue No.3152)

After the government managed to successfully contain the spread of COVID-19 and issued stimulus packages like the ‘We Travel Together’ campaign to boost domestic tourism, the number of Thai tourists traveling domestically markedly increased. Based on data provided by the Ministry of Tourism and Spor... Read more

26 Oct 2020

Services

Global Supply Chain Management Shifts to Just-in-Case System to Cope with Uncertainties Surrounding Global Supply Chain Disruption (Current Issue No.3151)

As global supply chains have been stalled by the coronavirus (COVID-19) pandemic, industrial sectors around the world are now aware of the weaknesses arising from the just-in-time inventory management strategy. Amid increased risks stemming from the resurgence of COVID-19 and trade war, the world’s ... Read more

22 Oct 2020

Trading

Thai exports in Sep. 2020 shrink 3.9%, with contraction of 7.0% expected for full-year 2020 (Business Brief No.3892)

Thai exports in September 2020 stood at USD 19.6213 billion, or a contraction of 3.9 percent YoY, amid a rise in global demand compared to the previous month. Thai exports over the first nine months shrank 7.3 percent YoY, with the lone bright spot being export growth in electronic products and elec... Read more

8 Oct 2020

Industry

5G Smartphone Market, 2020: Taking Some Time to Reach Mass Market (Current Issue No.3147)

Due to increased competition in the telecom sector and a staggering investment in 5G networks at more than THB10 billion, Thai telecom operators are now accelerating the expansion of their 5G user bases by inducing more consumers to use 5G smartphones, which will in turn help boost the uptake of 5G ... Read more

1 Oct 2020

Industry

Issues regarding the policy to promote the use of domestic steel (Business Brief No.3146)

For the past several years, Thailand’s steel industry has encountered challenges that stem from price competition against steel imports from China due mainly to steel oversupply in the global market. Since 2014, Chinese steel manufacturers have cleared out their excessive stock via exports to market... Read more

30 Sep 2020

Services

Cloud solutions service…key driver of B2B digital market amid COVID-19 crisis, growing 19% in 2020 (Current Issue No.3145)

The COVID-19 pandemic has prompted many businesses to rely more on the use of digital technology in their operations, leading to dramatic changes across the operational landscape of business-to-business (B2B) digital market, from solely focusing on elevating efficiency and creating new business chan... Read more

29 Sep 2020

Services

Retail Business, 4Q20: Contracting Only 7.2%, Thanks to Government’s 3,000-Baht Cash Handouts (Current Issue No.3144)

KResearch views that the government’s 3,000-Baht cash handout program (50 percent of all spending is subsidized by the state, but not exceeding THB3,000), effective October – December, 2020, for 10 million people has conditions that differ from other previous stimulus measures such as the “Chim-Sho... Read more

24 Sep 2020

Industry

Mooncake Market 2020: Turnover set to contract by 15.8%, reflecting grim economic conditions (Current Issue No.3141)

KResearch expects the mooncake market for 2020 to be valued at an estimated THB800 million, or a contraction of 15.8 percent YoY, as the market has suffered a severe setback from deteriorating purchasing power as a result of COVID-19. This projected fall in market value is attributed to fewer partic... Read more

24 Sep 2020

Trading

August Exports Contracted Slower than Expected at 7.9%, but Close Attention Must be Paid to Global Economic Risks (Business Brief No.3886)

Thailand’s outward trade contracted 7.9 percent YoY in August 2020. As a result, 8M20 exports shrank 7.8 percent YoY. Excluding oil, gold and arms exports, Thai shipments, however, contracted 14.1 percent YoY in August 2020, accelerating over the 13.0 percent YoY shrinkage reported for July 2020. Au... Read more

22 Sep 2020

Trading

Stringent Controls on Myanmar’s Border May Have Short-term Impact on Border Trade, but 2020 Cross-Border Exports to Myanmar Projected to Fall below THB100 Billion due to COVID-19 (Current Issue No.3138)

Thailand is facing hurdles in transporting goods across the border to Myanmar again after a recent announcement by Myanmar to tighten its cross-border controls as part of its COVID-19 prevention and control measures. Such controls include a requirement for truck drivers from Thailand via Chiang Rai’... Read more

18 Sep 2020

Industry

Eco-friendly food and beverage packaging market may reach THB13-16 billion in 2025 (Current Issue No.3137)

The packaging waste crisis is worsening in line with an increase in consumption, the growth of convenience food and the massive expansion of food delivery services during the period of semi-lockdown measures to counter the spread of COVID-19. More than half of all packaging waste comes from food and... Read more

17 Sep 2020

Services

Cross-Border Data Flows: Helping Thailand Attract Investment during the Digital Era, but Efforts Must Be Accelerated to Find Partners (Current Issue No.3136)

Presently, cross-border data flows are imperative for business growth and global trade in the digital economy era. Business organizations now view that they have to rely on cross-border data flows in order to better understand market conditions and customers, as well as for international trade and s... Read more

16 Sep 2020

Industry

Ministry of Commerce Bans Imports of E-Waste ... Eyeing imports of Used Electronics as They May Turn into Waste (Current Issue No.3134)

The Ministry of Commerce has issued a Notification on the ban of electronic waste (e-waste) imports per HS Codes 84 and 85, specifically for Commodity Code 899, or the ban of e-waste imports under the Basel Convention, effective September 15, 2020. Currently, Thailand’s imports of electronics classi... Read more

2 Sep 2020

Agriculture

Precipitation and Rice Output need to be Monitored in 1-2 Months (Current Issue No.3132)

We, at KResearch, are of the view that ongoing flooding in many of the northern and northeastern provinces of Thailand may not significantly affect the overall agricultural output, especially rice grown during the rainy season, because the rice harvesting season has yet to arrive. This coupled with ... Read more

27 Aug 2020

Industry

FTA backs automotive industry, establishing links to global supply chains and boosting cars and auto parts exports and investment (Current Issue No.3129)

Presently, automobile and auto parts manufacturers, especially Japanese brands, are progressively moving away from production processes that emphasize keeping costs low, like lean production, to production that leans more towards agile supply chains in order to quickly respond to potentially volatil... Read more

24 Aug 2020

Trading

Thai Shipments Contracted 11.4% in July…2020 Exports Projected to Shrink 12.0% Amid Risks to Global Economy (Business Brief No.3881)

Thailand’s outward trade was USD18,819 million, shrinking 11.4 percent YoY in July 2020. Excluding oil, gold and arms shipments, Thai exports, however, contracted 13.0 percent YoY. Gold exports reverted to growth of 37.2 percent YoY in July in line with global gold prices, while industrial product a... Read more

5 Aug 2020

Services

Food delivery businesses set to expand due to intensifying competition post-COVID-19; while big operators set sight on shaping their platforms into ‘Super Applications’ (Current Issue No.3128))

The COVID-19 pandemic and resulting stringent countermeasures issued by the Thai government have resulted in temporary closures and limited business operations. Restaurant business, in particular, was for a time left with two options: takeaway and food delivery via mobile application, which has now ... Read more

24 Jul 2020

Industry

Sustainable business management: mechanism to steer the economy and society towards the future (Current Issue No.3127)

Based on the Environmental Performance Index (EPI) for 2020, Thailand is ranked at no. 78 in the world, moving up from no. 121 in 2018 – which is better in comparison to countries of similar ranking in 2018, such as China and the Philippines. In consideration of the various indicators, Thailand has... Read more

24 Jul 2020

Trading

1H20 Exports Contracted 7.1% after June Shipment Shrank 23.2%...2H20 Shipments Projected to Shrink Faster than in 1H20 amid Slower Global Economic Recovery (Business Brief No.3877)

Thailand’s outward trade recorded a steep contraction for the second consecutive month in June 2020. As a result, 1H20 exports shrank 7.1 percent YoY. June shipments were valued at USD16,444 million, shrinking 23.2 percent YoY due to the unfolding coronavirus (COVID-19) pandemic and lockdown measure... Read more

24 Jul 2020

Agriculture

Gluten-free Flour Should be Promoted as Product Champion to Add Value to Cassava by over 8.2 Times in 2027 (Current Issue No.3126)

Gluten-free flour can be promoted as a product campaign via cassava processing, based on a new knowledge like bioeconomy. Bioeconomy is a new model for the economy, with the aim of adding value to agricultural products. As Thailand has a plentiful supply of cassava, processing cassava into various ... Read more

8 Jul 2020

Industry

Extension of Relief Measures for SMEs Keeps Economic and Financial Systems Intact (Current Issue No.3123)

The coronavirus (COVID-19) pandemic has adversely affected both the business sector and households, with SMEs being the major casualty. For this reason, financial assistance measures are geared towards SMEs during 1H20. Since a debt moratorium, which is one of those important measures, is due to exp... Read more

25 Jun 2020

Trading

‘New Normal’ to pose challenges for Thai cross-border food logistics businesses until COVID-19 risk dissipates (Current Issue No.3121)

Border trade is an important product distribution channel for Thailand to neighboring countries (Myanmar, Lao PDR, Cambodia, Malaysia, Singapore, Vietnam and southern China). Border trade shipments represent 30 percent of Thailand’s total export value from all cross-border channels combined. During... Read more