Thailand has emerged as one of the most favoured destinations for Hong Kong exporters seeking to expand their markets.
Thailand offers an attractive business environment based on its large youth population, a rapidly growing middle class, advances in information technology and increasingly developed infrastructure.
Two local SMEs discovered these advantages during a recent visit to the Thai Consulate General in Hong Kong, organised by the HKTDC’s Transformation Sandbox (T-box) business support programme.
Baide Juye Group produces cosmetics and beauty products and intends to invest HK$10 million (US$1.3 million) to set up a production line in Thailand.
“We became a T-box member last year and took part in a T-box visit to the Indian Consulate in Hong Kong to learn more about the Indian market,” said Group President Mr Huang Shao-ju.
“This year's visit to the Thai Consulate-General allowed us to learn more about the requirements for setting up a cosmetics factory in Thailand, including how to obtain a licence from the Department of Business Development and the process of applying for a Foreign Business Licence.”
Andy Cheung, Director of garment manufacturer Ludwick Ltd, said that they had attempted to enter the Thailand before the pandemic, but lacked understanding of the local market. “We currently export our clothing products to Singapore, Malaysia, the Middle East and other places. Thai clothing is light and thin, which is our ideal sales market. This visit has enabled us to meet Thai representatives and learn about the details of entering the Thai market.”
With a population of more than 66 million, Thailand’s GDP exceeded US$500 billion last year, giving it a per capita GDP of US$7,300. The per capita figure increased 2% compared to 2022, reflecting the continued rise in local incomes, which will help drive consumption and overall economic development.
According to Consul General Chaturont Chaiyakam, under the Thailand 4.0 strategy, the country's manufacturing sector is moving up the value chain and leveraging the power of innovation and technology to transform the economy and improve livelihoods.
A priority development is the Eastern Economic Corridor, which will focus on smart electronics, new-generation automobiles, digital services, high-end medical and healthcare tourism, biotech and future food products.
On the trade front, Thailand encourages free trade and continues to launch incentives to strengthen its position as a preferred investment destination. These include a range of business tax exemptions and discounts for foreign investment projects.
Trade between Hong Kong and Thailand is flourishing. From January to July this year, total bilateral trade exceeded US$9.2 billion, representing an increase of 23% over the same period last year.
While the value of goods imported into Hong Kong (US$6.5 billion) exceeds those in the other direction (US$2.6 billion), exports from Hong Kong to Thailand are growing strongly, with a 74% increase in the first half of 2024 compared to a 10% increase in the value of imports.
Free of charge, T-box is open to all companies registered in Hong Kong and provides participants with a tailored package, including advice, workshops, market insights and networking opportunities. In the past four years, over 4,300 SMEs have participated in the three-month programme.
