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Thailand

Defence to Thailand

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(Last updated: 31 Jul 2007)

Trends and opportunities

The market

New defence focuses are being created by Thailand’s economy becoming better integrated into the other economies of the region and more dependent on exports. A considerable amount of work will be required to develop a reformed organisation and structure to meet the needs of a modern and efficient defence force.


Capital acquisitions decisions are driven by operational readiness requirements and border policing. A primary focus of the Royal Thai Army is to exercise greater control over the poorly demarcated borders of the north and northeast to combat drug cultivation and smuggling activities.


Maritime capability is being developed, to counter the perceived vulnerability of shipping into the Gulf of Thailand to hostile forces, through greater attention to equipment.


The Royal Thai Armed Forces is endeavouring to encourage the development of industrial and technical infrastructure to support military capability. This will present opportunities for Australian businesses willing to:

  • Establish manufacturing facilities in Thailand
  • Pursue workforce skill–development processes

Opportunities

Opportunities in Thailand resulting from major defence projects include:

  • Maritime products – ranging from naval vessels to vessels for ports, harbours and the fisheries departments
  • Upgrading existing equipment and facilities to improve performance and operational reliability
  • Privatisation of maintenance activities
  • Logistics systems
  • Communications equipment and systems

The Thai military is upgrading its tactical mobility by improving vehicle and helicopter readiness. They are also interested in remote sensor and surveillance equipment, and command and central communication system.

Competitive environment

Many products mirror the requirements of the Australian Defence Force (ADF) and other government agencies, and are being pursued by the same companies who currently supply to the Australian market. This presents many opportunities for sub-contractors and small and medium enterprises (SMEs) to participate as partners with the prime contractors.


The experience gained by prime contractors and sub-contractors in Australia with Thai Government agencies, positions them to aggressively pursue similar business with the Royal Thai Armed Forces.

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Tariffs, regulations and customs

Sales to the military are free of tariffs and import duties.


A key regulation is that the Thai military cannot deal directly with a foreign supplier. Foreign suppliers must engage a local agent to represent them.


Australian suppliers should confirm with the Strategic Trade Policy Operations Section of the Department of Defence, Canberra that their product can be exported from Australia.

Industry standards

American military standards are generally used, as most of the military equipment used by The Royal Thai Armed Forces has been purchased through a US Original Equipment Manufacturer. However, this should not deter suppliers, particularly if its equipment has met standards for use within the Australian Defence Force.

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Marketing your products and services

Market entry

Australia has strong bilateral military relationship with Thailand. You should use the advantages of this relationship in your marketing program by seeking Austrade’s help and support in establishing contacts within the Royal Thai Armed Forces and the advice of the Defence Attaché.


In Thailand, you will be judged on adherence to commitment above anything else. If you make a commitment to supply samples, quotations, or product information, always keep the commitment.


Making regular visits to Thai military departments will familiarise you with key contacts/decision makers. Continue to build depth into your network by:

  • Attending social functions arranged by relevant government bodies and chambers of commerce
  • Regularly promoting your company and products to your existing network
  • Providing product knowledge to military colleges and relevant government departments

Ensure corporate literature and marketing collateral is of high quality. Bear in mind the language differences and ensure the communication is clear and concise. Include the following information in product brochures:

  • Manufacturing details
  • Specification of products
  • Product dimensions
  • How products can be obtained
  • What the applications are, for particular products
  • Distinguishing features that make your products superior to others
  • Benefits of using your products

You can build a strong, long-term relationship by preparing to support your products and after sale services in the following ways:

  • Providing education and training
  • Providing a maintenance program
  • Making regular visits to monitor the success of products

There are no news publications on the Thai defence industry, however, you may find useful information in publications such as ‘Jane’s Weekly’ or other defence magazines from Europe or USA such as ‘Defence News’ and ‘The Armed Forces Journal’.

Distribution channels

Finding a knowledgeable and well-connected local agent with experience in the Thai defence industry and product application is encouraged.


Don’t rely on building a single relationship within the Thai military, as positions are rotated each year and you may lose your contacts.


Currently in Thailand, e-business in defence is not conducted online. However, it is advisable for a company to have a website to promote their products and services.

Transport

Most electronic components and instrumentation are transported by airfreight. Other heavier equipment and high-volume equipment is shipped by sea freight.


Shipping time to Thailand from Australia takes two weeks and shipping frequencies are twice weekly from major ports.


Payment is usually by irrevocable letter of credit.

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Links and industry contacts

Defence–related resources

Defense Technical Information Center - www.dtic.mil/
Department of Defence, Canberra - www.defence.gov.au
The Ministry of Defence - www.mod.go.th
The Royal Thai Air Force - www.rtaf.mi.th
The Royal Thai Army - www.rta.mi.th
The Royal Thai Navy - www.navy.mi.th/newwww/eindex.php

Government, business and trade resources for Thailand

Ministry of Commerce – www.moc.go.th
Ministry of Foreign Affairs – www.mfa.go.th
Royal Thai Customs Department – www.customs.go.th
Stock Exchange of Thailand – www.set.or.th/en/index.html
Thai Chamber of Commerce – www.tcc.or.th
Thailand Board of Investment – www.boi.go.th
Tourism Authority of Thailand – www.tourismthailand.org
World Trade Organization – www.wto.org
Yellow Pages – www.yellowpages.co.th

Media 

The Bangkok Post – www.bangkokpost.com
The Nation – www.nationmultimedia.com
Thailand.com – www.thailand.com 
Bangkok.com – www.bangkok.com

Australian resources

Australian Embassy Bangkok – www.austembassy.or.th
Australian-Thai Chamber of Commerce – www.austchamthailand.com

Service providers

Qantas freight – www.qantas.com.au/freight/dyn/menu
British Airways Air Cargo – www.baworldcargo.com
Airports of Thailand PLC – www.airportthai.co.th
Thai Airways International – www.thaiairways.com 


Thai International Freight Forwarders Association
Email: ifffa@a-net.net.th

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Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

  • Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
  • Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
  • Administers the Export Market Development Grants scheme.
  • Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
  • Provides advice to the Australian Government on its trade and investment development activities.
  • Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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