Distributing a product

Evolution of the sector

The presence of a local agent is indispensable; the main agencies of international advertising are operating in Thailand. The distribution of machinery and equipment is usually carried out by wholesale importers who take the responsibility of the after-sale service function. Department stores, supermarket chains and discount stores are present and the market segmentation is in full development. There are 3 market levels in Thailand : importing companies (small companies managed by Chinese people); big supermarkets (Central, Yahoan, Robinson), supermarket chains (Foodland) and convenience stores (Seven Eleven) and finally, a number of small stores managed by families. In Bangkok, the standard of living is nearly twice higher than in the rest of the country. One must notice the continuous emergence of the middle class, the purchasing power of which is continuously growing.

Market shares

The retail trade is one of the most important economic sectors in Thailand, in 2008, total retails sales are expected to reach U.S. $78 billion. (Source: MillwardBrown, Marketfocus Thailand, October 2007). During the last ten years Thailand's retail landscape, particularly in prime locations in Bangkok and other major urban centres, has changed dramatically. Traditional small independent retailers have gradually been replaced with modern and often foreign-owned, large retail chains. The traditional stores typically sell all basic items required for day-to-day living and are traditionally located in every small community throughout the country. Normally, these stores operate out of a shop house and do not use or have any electronic data processing in any sequence of their operations. The majority of modern trade stores and outlets are concentrated in the Bangkok metropolitan area. This concept includes department stores, discount stores or hypermarkets, convenience stores, specialty and category killer stores, and supermarkets. Thai consumer behaviour has also been dramatically changed and modern trade stores have gained very high popularity and quickly reached a high retail market share. As the number of discount stores continues to grow, the number of family shop houses and family-run department stores still operating has fallen. Some shop house operators have transformed their stores into 7-Eleven franchises, while others have installed air conditioning, brighter lighting and less-cluttered display units. Some have begun offering delivery services and off-premises sales of consumer products at weekend markets in order to survive in the intense competition. The Hypermarket and Supermarket shares are around 50% in Thailand.

Organizations in the retail sector

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Party of the International coffee agreement 2001

Main International economic cooperation

Thailand's foreign policy emphasizes a close and longstanding security relationship with the United States. It also strongly supports ASEAN's efforts to promote economic development, social integration, and stability throughout the region.

It has developed increasingly close ties with Indonesia, Malaysia, the Philippines and Singapore. Regional cooperation is progressing in economic, trade, banking, political, and cultural matters.Thailand continues to take an active role on the international stage. As part of its effort to increase international ties, Thailand has reached out to such regional organizations as the Organization of American States (OAS) and the Organization for Security and Cooperation in Europe (OSCE). Thailand has contributed troops to reconstruction efforts in Afghanistan and Iraq. As well as being a part of the Asian Free Trade Area (AFTA) and the ASEAN - China Free Trade Area, Thailand is now working closely with other ASEAN members to establish a free trade area with other countries such as India, China, Japan, Korea and the Closer Economic Relationship (CER) with Australia and New Zealand. For more information on the Foreign Trade membership of Thailand you can access the web site of the Thai Ministry of Foreign Affairs. The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).

Non tariff barriers

Most of the goods can be imported freely. However, certain products require the presentation of a license given by the Ministry of Commerce. This is the case for certain textile items and certain food-processing products. The licenses must be applied for one month before the goods shipment, they are valid for 6 months and can be extended only once. All food products, pharmaceuticals and cosmetics are subject to a license and must be registered and must seek authorisation of the Food and Drug Administration.

Customs duties and taxes on imports

Please consult the integrated tariff database.

Customs classification

Thailand uses the Nomenclature of the Harmonised System for the Designation and Codification of Goods. Most of the duties are ad valorem and are calculated on the CIF value at the customs office, or they are specific (calculated per unit, per volume or per weight).

Import procedures

Most of the duties are ad valorem and are calculated on the CIF value at the customs office, or they are specific (calculated per unit, per volume or per weight) or further, ad valorem duties and specific duties are cumulated.

For further information

Thai Customs
Thailand Ministry of Commerce

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

Sip Lo or "Ten Wheelers" are the mainstay of the transportation network in Thailand. These articulated trucks are the lifeblood of the factories up and down the country and to the chagrin of motorists who have to travel on the same often poor roads. There are hundreds of logistics companies in Thailand as well as freight and shipping companies whose main task is to get the raw materials and finished goods to and from the ports and airports.

Ports

The airline company Bangkok Air
The airline company ThaiAir
The airport of Bangkok
Thai harbour authority

Airports

Bangkok Airport Freight portal

Sea transport organizations

Ministry of Transport
Thailand Gateway

Air transport organizations

Department of Civil Aviation
Ministry of Transport

Road transport organizations

Ministry of Transport
Thailand Gateway

Rail transport organizations

Ministry of Transport
Thailand Gateway

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.

Identifying a supplier

Business directories

Business Directory
Business Directory
Thailand Business Directory
Thai Website directory
Modern Thailand.com directory

Manufacturers associations of the main industries

Thai Garment Manufacturers Association
Thai Textile Industry Association

Call Centre industry association

Thai Tanning Industry association
Trade organisation for Thai fiber, yarn and woven textile fabrics industry. 
Thai Furniture Industry Association
The Pharmaceutical Association of Thailand

Trade Agencies and their representations abroad

The Thai Chamber of Commerce

Enterprises federation

Thai contracting Association

Standards

National standards organizations

Thailand Industrial Standards Institute (TISI).

Integration in the international standards network

Thailand Industrial Standard Institute (TISI) manages and controls the technical norms as well as the programme of national certification in Thailand. It issues the right to use the TISI symbol on National products. In order to obtain further information, you can contact TISI. Thailand is a member of the PASC - Pacific Area Standards Congress and the ACCSQ - ASEAN Consultative Committee for Standards and Quality .

Classification of standards

The government of Thailand requires a compulsory certification of sixty products in ten sectors including: agriculture, construction materials, consumer goods, electrical appliances and accessories, PVC pipe, medical, LPG gas containers, surface coatings, and vehicles. Certification of other products is on a voluntary basis. Industrial products that have TISI’s certification are generally regarded as having high standards and good quality.

Online consultation of standards

The Thailand Industrial Standards Institute (TISI) website has a library which list online the Thai standards.

Certification organizations

The National Accreditation Council (NAC) of Thailand

Find out the standards and labelling requirements that apply to your products.

Intellectual Property

National organizations

Thailand is part of the Convention leading to the establishment of the World of Intellectual Property Organisation (OMPI/WIPO) and is the latest signatory of the Paris Convention for the Protection of Industrial Property (August 2008). It has also sign the Patent Cooperation Treaty in January 2008. The country has passed a huge number of bilateral agreements on the protection of industrial property.
In order to be protected in Thailand, patents must be registered in the country itself: the Patent Act no. 2 of 1992 protects letters patents over a period of 20 years and industrial design patents over a period of 10 years. Trademarks are protected by the Trademark Act of 1991. Protection can be renewed for additional 10 years. The institution responsible for the registration and protection of industrial property is the Trade Department in the Ministry of Commerce. Information on the regulation body, the Department of Intellectual Property, can be found its website.

Regional organizations

Thailand has signed the ASEAN Framework Agreement on Intellectual Property Cooperation.

International membership

Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)