The economy has diversified from agri-based in the late 1990’s to being one of the most diverse in the ASEAN region. The rapid development of an export-oriented industrial capability has been driven primarily by high-quality, labour intensive engineering-based manufacturing such as automotive components and computer accessories.

Thailand produced more than 1 million cars in 2006 for export and has become the 7th largest exporter of motor vehicles in the world! This was achieved despite the recent economic and security difficulties since the military coup in September 2006, precipitated by the sale of former Prime Minister Thaksin Shinawatra’s Shin Corp to the Singapore Government’s investment group Temasek. The interim Government in place until elections in December this year.

The UK is the largest EU investor in Thailand with its cumulative FDI exceeding £2 billion. Major investments from Tesco, Boots, Standard Chartered, British Gas, Triumph Motorcycles and a host of other engineering-based manufacturing companies have made Thailand an attractive business destination. It is not all hospitality and tourism.

The UK has also become an increasingly important market for Thailand with exports of nearly £2 billion in 2006. The UK took road vehicle exports of £330 million and £192 million of machinery (predominantly electrical machinery) alongside £800 million of miscellaneous manufactured goods, clothing, meat and meat preparations and office machinery. Not bad for a country considered as a tourist destination, with more than 750,000 UK visitors to the country last year!

Two-way trade exceeded £2.5 billion for the first time in 2006. UK exports to Thailand were £568 million in 2006 and have averaged £600 million per year over the past five years.

The UK’s top exports to Thailand in 2006 are headed by £66 million of electrical machinery, apparatus and appliances (and electrical parts) along with £39 million of specialised industrial machinery and £32 million of general industrial machinery and equipment. Other manufactured articles account for £42 million and there’s £78 million in food, beverages, medicinal and pharmaceutical products.