THAILAND

Recovery slowed by the slump in tourism

B2

MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP
USD543.7bn (World ranking 22, World Bank 2019)
Population
69.6mn (World ranking 20, World Bank 2019)
Form of state Constitutional Monarchy
Head of government Prayut Chan-o-cha (PM)
Next elections 2023, General election
  • Moderate public debt and acceptable fiscal deficits
  • Appropriate monetary policy management
  • Solid commercial banks with high level of provision and capital
  • Manageable external debt burden
  • Regional trade hub
  • Well diversified economy
  • Strong tourism sector
  • Chronic political instability since 2006, with the overthrow of the elected government in a military coup in May 2014
  • Asset quality of specialized financial institution is weaker than that of commercial banks
  • Dependence on Chinese trade links

Trade structure by destination/origin

(% of total)

Exports Rank Imports
China 17%
1
26% China
United States 12%
2
15% Japan
Japan 8%
3
7% Malaysia
Malaysia 5%
4
5% United States
Viet Nam 5%
5
4% South Korea

Trade structure by product

(% of total)

Exports Rank Imports
Computer Equipment 9%
1
8% Crude Oil
Cars And Cycles 6%
2
6% Electrical Apparatus
Engines 5%
3
5% Electronic Components
Telecommunications Equipment 5%
4
5% Iron and steel
Electronic Components 5%
5
5% Telecommunications Equipment
The payment behavior of Thai companies is fairly good, but regulations are limited when it comes to late payments.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings



Although domestic courts are fairly independent, the rule of law perception has margin for improvement, as procedural delays and costs may be an issue and enforcing court decisions can be challenging. Overall, use of the courts should be avoided and conducting pre-legal collection action is advisable.

Collecting debt from insolvent debtors is often extremely difficult, especially when the debt is not secured.

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Contact Mahamoud Islam

Senior Economist for Asia

mahamoud.islam@eulerhermes.com 

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