Executive Search in Thailand – 2020 Outlook
Thais turn to trucking technology
The Thai economy was forecasted to grow 2.8% in 2019 and 2020. Although GDP will remain as forecast, the ongoing trade war has triggered an export slump, resulting in a domino effect on other domestic sectors of the economy.
- A slow economic recovery in 2020 and expected 2.8% year on year GDP growth on the back of global economic slowdown and subdued domestic purchasing power.
- On private domestic demand, a slowdown is foreseen in private investment due to a fragile export recovery and feeble residential construction activities on the back of the tightening LTV measure.
- Similarly, private consumption in 2020 is expected to slow down due to stubbornly high household debt and more cautious lending by the commercial banks.
- Public investment in infrastructure projects and government stimulus measures are likely to be key factors in shoring up the Thai economic recovery in 2020.
The Bank of Thailand (BOT) cut interest rates from 1.5% to 1.25% in Nov 2019 and is looking to keep the interest rate at its record low level throughout 2020.
Reasons of the interest rate cut:
- Further downside risks from external and domestic demand factors
- Inflation rates are likely to miss the lower limit of the inflation target range (1%)
2020 Thai Market Opportunities
E Logistics Marketplace:
Over the past few years, the advent of digital technology has presented a new business model called “Electronic Logistics Marketplace, an online platform for producers and carriers to settle the prices and conditions for merchandise delivery.
E Logistics Marketplace will gather all delivery orders all over the country and create a market mechanism to promote an effective collaboration in truck sharing.
E Logistics Marketplace has become a new business model with excellent prospects as seen by the rapid growth of Uber Freight’s revenue, which surged 78% in the third quarter of 2019. It is seens as an attractive business model for Thailand and an opportunity for Thai carriers amid intensifying competition in the digital era.
Start-ups have begun venturing into the business which is expected to expand rapidly in Thailand within the next five years. This follows a boom in B2B e-commerce, which will persuade some manufacturers to increasingly adopt digital technology to ship their merchandise.
Foreign investment in Thailand.
Foreign investment remains strong, surging under the Foreign Business Act of 2542, surging 60% year on year to reach Bt200 billion in 2019.
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