wesgro 2014 08 thailand briefing
DESCRIPTION
South African Trade with ThailandTRANSCRIPT
Jodie Posen, Economist
20 August 2014 An inspiring place to do business
Presentation Overview
• Thailand: A Snapshot
• Western Cape Trade with Thailand
• An analysis of sub-sectors
• Wine• Confectionaries• Sauces and condiments
• Questions and Answers
An inspiring place to do business
Thailand: A snapshot
An inspiring place to do businessSource: IMF, 2014; BMI, 2014, Deloitte, 2014
ECONOMIC INFORMATION
Population (July 2013) 67,448,120 (20th)
Capital Bangkok
Government Constitutional monarchy administered by military junta
Urban Population (2011) 34.1% of total population
Life expectancy 74.05 years
Literacy rate 93.5%
Unemployment rate 0.7% with 14% population below poverty line
InfrastructureKey Ports: Bangkok, Laem Chabang, Map Ta Phut, Prachuap Port, Si Racha
Thailand: A snapshot
An inspiring place to do business
Source: IMF, 2014; BMI,, 204
ECONOMIC INFORMATION
VAT 7% (rise to 9% in 2015 Oct)
Company Tax 20%
GDP Growth (2013e) 2.9%
GDP (2013 est.) USD387.3bn
Inflation (2013 est.) 1.7%
Interest rate 2.75%
Labour Force (2013est) 39.210 million
Doing Business in...(2013 ranking) 18
Main Industries
Automobiles and automotive parts (11%), financial services (9%), electric appliances and components (8%), tourism (6%), cement, auto manufacturing, heavy and light industries, appliances, computers and parts, furniture, plastics, textiles and garments, agricultural processing, beverages, tobacco
Thailand: A snapshot
An inspiring place to do business
Source: SeaRates, 2014
WORLD BANK DOING BUSINESS RANKING, 2013
TOPIC RANKINGS THAILAND 2013 RANK
Starting a Business 85
Dealing with Construction Permits 16
Getting Electricity 10
Registering Property 26
Getting Credit 70
Protecting Investors 13
Paying Taxes 96
Trading Across Borders 20
Enforcing Contracts 23
Resolving Insolvency 58
OVERALL RANKING 18
PORT-TO-PORT TRANSIT TIMES FROM CAPE TOWN
TERMINAL DISTANCE TRANSIT TIME
Bangkok Terminal 11874 km 19 days 1 hour
• Ease of doing business: Indicate better, usually simpler, regulations for businesses
• Thailand is the 2nd largest economy in Southeast Asia, after Indonesia
• Thailand ranks midway in the wealth spread in Southeast Asia as it is the 4th richest nation according to GDP per capita.
Western Cape Trade with Thailand, 2004-2013
An inspiring place to do businessSource: Quantec, 2014
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Exports (ZARm)
99.022769
176.89383
4
94.2839
135.61288
6
109.64715
5
87.425165
79.110485
76.371372
160.19041
4
136.68670
7
Imports (ZARm)
449.06325
5
500.23863
8
1208.5966
99
1294.0551
98
2296.4827
84
2088.8873
63
1727.9551
98
1571.2906
15
4299.5396
78
2929.5968
Trade Balance (ZARm)
-350.04048
6
-323.34480
4
-1114.3127
99
-1158.4423
12
-2186.8356
29
-2001.4621
98
-1648.8447
13
-1494.9192
43
-4139.3492
64
-2792.9100
93
-4500
-2500
-500
1500
3500
Va
lue
(Z
AR
m)
RANK TOP 10 EXPORTSVALUE 2013
(ZARm)
% SHARE
1 Waste or scrap of paper or board of mechanical pulp 22.87 16.73%
2 Grape wines alcoholic grape must nes 17.43 12.75%
3 Oranges fresh or dried 10.19 7.45%
4 Grape wines nes fortified wine or must pack < 2l 8.35 6.11%
5 Organic composite solvents paint varnish remover etc 7.71 5.64%
6 Ferrous waste or scrap nes 6.72 4.92%
7 Beauty makeup and suntan preparations nes 6.51 4.76%
8 Poultry-keeping machinery nes 4.98 3.64%
9 Tuna skipjack bonito prepared/preserved not minced 4.41 3.23%
10 Manganese ores concentrates iron ores >20% Manganese 4.33 3.17%
TOTAL EXPORTS 136.69 100%
Western Cape Trade with Thailand, 2013
An inspiring place to do business
RANK TOP 10 IMPORTSVALUE 2012
(ZARm)
% SHARE
1 Sardine, brisling, sprat prepared/preserved,not minced 1 090.72 37.23%
2 Tuna, skipjack, bonito, prepared/preserved, not minced 387.26 13.22%
3 Rice, semi-milled or wholly milled 364.09 12.43%
4 Blends of complex petroleum hydrocarbons 294.71 10.06%
5 Aluminium casks, drums, boxes etc, capacity <300 litre 77.32 2.64%
6 Crustaceans, molluscs, etc, prepared or preserved 43.29 1.48%
7 Plastic table and kitchen ware 31.35 1.07%
8 Sheath contraceptives 30.39 1.04%
9 Polystyrene, except expansible in primary forms 24.39 0.83%
10 Refined sugar, in solid form, nes, pure sucrose 24.14 0.82%
TOTAL IMPORTS 2 929.60 100%
Source: Quantec, 2013
An inspiring place to do business
SUB-SECTOR REVIEW
• Beverages/Wine• Confectionaries• Sauces and Condiments• Beauty products• Other Food Preparations• Meat
Thailand Beverage Sales, 2010-2017
An inspiring place to do businessSource: BMI, 2014
2010 2011 2012 2013 2014 2015 2016 2017
Spirits (USdm) 21363.1 23198.1 23778 24763.8 25462.9 26850 28645.3 30598.4
Beer (USDm) 6265 6947.9 7205.9 7995.8 8642.2 9554.6 10668.6 11907.8
Soft drinks (USDm) 3404.5 3860.2 4187 4491 4790.4 5259.2 5862.5 6543.4
Wine (USDm) 2344.9 2783.6 3358.4 3888.2 4331.7 4917.3 5622.2 6410
Carbonated soft drink (USDm)
1383.7 1552 1586.4 1689.6 1777.5 1916.8 2089.3 2278.3
Bottled water (USDm) 464.4 522.8 588.6 632.3 676.8 748.4 842 946.2
Coffee (USDm) 384.9 409.8 410.8 428.1 442.6 466.6 497.7 532.7
Fruit/Vegetable juice (USDm) 229.53 264.83 303.41 326.58 347.87 383.57 430.92 484.12
Tea (USDm) 24.7 26.5 27.6 28.8 29.6 31.3 33.6 36.1
2,500
7,500
12,500
17,500
22,500
27,500
32,500
Valu
e (U
SDm
)
Thailand Global Wine Trade, 2005-2012
An inspiring place to do business
Source: Trademap, 2014
• Thailand’s global wine imports increased by 10% from 2011 to 2012• SA was Thailand’s 6th largest import market for wine.
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
Imports (ZARm)
272.9924 232.07147
318.78673
387.84213
499.78241
Exports (ZARm)
109.42089
114.26111
154.53254
209.53829
270.53262
Trade Balance (ZARm)
-163.5715
1
-117.8103
6
-164.2541
9
-178.3038
4
-229.2497
9
-250
-50
150
350
550V
alu
e (Z
AR
m)
South Africa’s Exports of Wine to Thailand, 2013
An inspiring place to do businessSource: SAWIS, 2014
• 90% of exported wine to Thailand from SA is bulk wine, not packaged wine
• Red wine is the largest wine category, making up 53% of exports
• Bulk White wine was the fastest growing wine category, growing at 34% from 2012 to 2013
Packaged Bulk Packaged&Bulk
Packaged Bulk Packaged&Bulk
TOTALS WHITE WINE (L) TOTALS RED WINE TOTAL
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000Q
uant
ity (L
)
Thailand Wine Sector Highlights
An inspiring place to do business
• As estimated 10% of the population drinks wine. Wine drinkers in Thailand are between 25-55 years of age. Red wine dominates and holds a 70% market share in the retail market.
• Thai consumers favour red wine; however, both red and white wine are popular among foreign tourists and expatriates.
• The most popular varietals for red wines are Cabernet Sauvignon, Shiraz, Merlot, and Pinot Noir respectively. Chardonnay and Sauvignon Blanc are well known in the white wine category.
• In 2013, Siam Winery maintained the most significant share of 34% in terms of total volume sales of wine, with it’s popular South African brand Mont Clair remaining a star import. Pernod Ricard (Thailand) Ltd was 2nd biggest player with a share of 19%, followed by Ambrose Wine with a share of 19%.
• A significant number of wine drinkers in Thailand lack a thorough knowledge of wines, so low to medium-priced level wines (below US$40) retail hold the biggest market share of about 70%.
• Factors driving wine sales: lower percentage of alcohol content (compared to spirits),health benefits of moderate wine consumption, Changed generational preferences, Increased tourism.
South Africa’s Global Exports of Selected Products, 2011-2013
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Value in 2011 Value in 2012 Value in 2013
Wine of fresh grapes 5407.25831 5973.23994 8342.61632
Beauty, make-up & skin-care preparations; sunscreens, manicure or pedi
959.55999 1274.53589 2313.60508
Food preparations, nes 1162.21902 1236.2514 1753.60295
Sauces mixed condiments & mixed seasonings 449.32434 533.23488 1098.34015
Sugar confectionery (incl white choc), not containing cocoa
226.09309 245.64725 746.23098
Chocolate and other food preparations containing co-coa
249.75007 321.41473 529.24408
Meat of bovine animals, fresh or chilled 83.87081 119.53988 351.96512
50015002500350045005500650075008500
Value
(ZAR
m)
Source: Trademap, 2014
South Africa’s Exports to Thailand of Selected Products,2011-2013
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Value in 2011 Value in 2012 Value in 2013
Wine of fresh grapes 17.78947 18.63108 26.10066
Beauty, make-up & skin-care preparations; sunscreens, manicure or pedi
0.02157 1.1123 6.53957
Meat of bovine animals, fresh or chilled 0 0 1.77653
Food preparations, nes 0.02157 0.03271 0.28809
Sauces mixed condiments & mixed seasonings 0 0 0.11523
Sugar confectionery (incl white choc), not containing cocoa
0 0 0
Chocolate and other food preparations containing co-coa
0 0 0
3
8
13
18
23
28
Value
(ZAR
m)
Source: Trademap, 2014
Thailand’s Imports of Selected Products,2011-2013
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Value in 2011 Value in 2012 Value in 2013
Food preparations, nes 2755.41204 3984.39274 7364.03381
Beauty, make-up & skin-care preparations; sunscreens, mani-cure or pedi
2350.79148 3356.1459 5008.31046
Chocolate and other food preparations containing cocoa 602.99401 997.01624 1157.9933
Sugar confectionery (incl white choc), not containing cocoa 431.38387 560.02013 654.79226
Sauces mixed condiments & mixed seasonings 445.96634 523.8212 613.46142
Wine of fresh grapes 318.78673 387.84213 499.78241
Meat of bovine animals, fresh or chilled 69.3099 92.76282 124.36703
5001500250035004500550065007500
Value
(ZAR
m)
Source: Trademap, 2014
Summary of Selected Products
An inspiring place to do businessSource: Trademap, 2014
• Annual growth in the value of beauty products exported from South Africa to Thailand was 286%p.a. between 2009 and 2013
• Annual growth in the value of sauces and condiments exported from South Africa to Thailand was 107%p.a. between 2009 and 2013
• Annual growth in the value of Wine exported from South Africa to Thailand was 68%p.a. between 2009 and 2013
• This is mainly due to the low base of exports for most of these products, excluding wine.
• Thailand’s global imports of all of these products grew above 14%p.a. between 2009 and 2013- indicating growing export opportunities.
Thank you | Dankie | Enkosi