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TRADE AND INVESTMENT

Trade

The EU is Thailand's third largest trading partner and UK exports to Thailand have averaged around £600 million for each of the last five years. 2008 got off to an encouraging start with Rolls Royce securing two aero-engine orders from Bangkok Airways and Thai International worth US$550 million. This has since been followed by another even larger (US$500 million) order from Thai International. In tandem, the UK continues to be an increasingly important market for Thailand, and two-way trade not only exceeded £2.6 billion for the first time in 2007 but last year may see this breaking through the £3 billion barrier. The overall trade position remaining strongly in Thailand’s favour (3.5:1) and the latest trade figures continue to reflect this trend:

UK trade in goods with Thailand 2003-2008 (£ million)

UK - Thailand trade statistics 2008 (Jan/May) (£ million)

(Source: DBERR Statistical & Analysis Directorate, Strategy Unit)

Investment

Outward

From 2002-2008, the UK has consolidated its position as the leading EU investor in Thailand with 157 projects submitted (ie one every two weeks), of which 133 (85%) were approved. Most are SME manufacturers such as Triumph Motorcycles, whose UK operation has remained in place but whose Thai manufacturing presence (two plants have opened in the last 5 years and a third shortly to come on line) has facilitated increased global sales/market share.

Other British investors include Boots and Tesco, who have invested £400 million and £1.5 billion respectively over the past ten years establishing their largest operations outside the UK; Standard Chartered, which owns a local bank; and BG, which is the biggest UK investor in the Energy Sector. These are just a few of the members of the 679-strong British Chamber of Commerce Thailand (BCCT), which is the fastest-growing (80% increase in membership over the past 10 years), most active (110+ events per annum) and oldest foreign chamber.

British investment projects submitted to BOI 2003-2008 (Million Baht)

(Source: International Affairs Division, Board of Investment (BOI))

Inward

Thai outward investment - which has never been large and has historically focussed on both the ASEAN region and China (most of the 100 or so wealthy Thai families who dominate the local business environment have Chinese roots) - has been limited to no more than 20-30 companies (i.e. CP Group, Landmark, Thai Beverages etc). The most recent high-profile investments include the purchase of Manchester City FC and the Park International Hotel by the former Prime Minister Thaksin Shinawatra and the TCC Group respectively, although Thaksin has now sold Manchester City to a Middle East consortium.

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