Thailand Business Guide - UK Trade & Investment

INTRODUCTION
WHY THAILAND? (CONTINUED)
Political situation
Thailand is a constitutional monarchy with
a parliamentary government. The King, a
highly revered figure in Thailand, is the
Head of State, while the Prime Minister is
the Head of Government.
Thailand has had a number of military coups,
most recently in September 2006. Civilian
rule returned in February 2008. Despite
frequent changes in government, Thailand’s
economy continues to grow and has
weathered the global economic crisis and the
political demonstrations in early 2010.
The recent political unrest has tested the
operating environment for businesses in
Thailand. Most companies are confident
their operations can continue uninterrupted
with adequate preparations in place, such as
business continuity plans and backup sites.
Political demonstrations, on occasion, have
disrupted infrastructure, such as the closure
of Bangkok’s international airport in 2008
and its Skytrain system in early 2010.
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Commercial opportunities
The UK enjoys a healthy trading
relationship with Thailand. From 2005 to
2009 two-way trade in goods and services
averaged £3.6 billion a year. In 2009 UK
goods and services exports to Thailand
increased by 14 per cent and 39 per cent
respectively compared to the previous year.
Although the balance of trade remains
in Thailand’s favour (1:2.5), the UK is
Thailand’s most significant European
investor and the second-largest European
exporter (after Germany).
Thailand takes a welcoming approach to
UK companies. British goods enjoy an
excellent reputation there, although they
must generally be cost-effective and have
good after-sales support.
There are a wide range of business
opportunities for UK companies in
Thailand. In particular, the country’s
economic growth has created openings
for UK firms in a number of infrastructure
sectors, including electrical power,
telecommunications and renewable energy.