Today: February 12, 2016, 5:21 pm

Thailand defence market: Expenditure over $6 billion in 2013
Future of the Thai Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 - a new market research report on 2014-04-24 20:13:01
Expenditure in the Thailand defence market increased at a CAGR of 5.14% during the review period and valued US$6.1 billion in 2013. The focus of the Thai government will be on the modernization of its armed forces, the arms race with other Asian countries, and border security. Key drivers in the industry include the modernization of the armed forces, the arms race with other Asian countries, and border security.

Even though Thailand has an offset policy in order to enhance its domestic defense capabilities, it accepts indirect offsets as an eligible activity. Furthermore, the nation allows counter-purchase, according to which foreign suppliers can buy non-defense related goods such as fruits and rice in exchange for defense equipment. Additionally, a lack of multipliers within Thailand´s offset policy fails to encourage foreign OEMs to provide technology transfers or jointly develop defense equipment with the country. Consequently, foreign suppliers are not incentivized to invest into the Thai defense sector and, as a result, the domestic defense sector is unable to gain access to military related technology. With the country failing to attract investors into its defense sector, the Thai military industry is unable to be part of the global supply chain for multinational defense companies.

The Thai government fulfills most of its defense needs by importing military equipment from foreign countries such as Ukraine, Russia, Germany, France, and Spain. The overall exports of the country during the period 2008-2012 were negligible, resulting in poor inflow of foreign investment. During the forecast period, defense exports are expected to remain low as a result of less joint development and collaboration programs, and low levels of defense exports are expected to remain the key challenge for the Thai defense industry.

The Thai defense budget, which stands at US$6.1 billion for 2013, is lower than most of its neighbors - the Philippines is one of the few countries with a lower defense budget - and this relatively small defense budget size frequently deters investors from venturing into the country. Moreover, the Thai government has also made offsets mandatory for all defense procurements exceeding US$10.5 million. In an attempt to encourage domestic defense development, the Thai government awards additional significance to direct offsets; however, due to the lack of sufficient investment and a shortage of skilled Thai labor, foreign OEMs are unable to transfer sophisticated technology to domestic defense companies. The combination of the factors outlined above reduces the attractiveness of the Thai defense industry for foreign OEMs.

Click for report details: ..

Browse all Defence Market Research Reports ..

Browse all Defence Company Profile Reports ..

Browse all Latest Market Research Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Press Information

Published by
Mike King
London: +44 (0) 203 086 8600

# 619 Words
Related Articles
More From Finance
Arizona Real Estate Stats 2015
COMMENTARY by Tom Ruff of The Information Market Permission is granted only to ARMLS® Subscribers for reproduction with attribution [..] Announces New Trader Counsel Services
LONDON - Jan. 25, 2016 - British financial news source has announced that it will now be offering the [..] Offers Free Advice For Getting Completely [..]
Everyone has some degree of debt to deal with. Some folks have a lot of it, and they need to [..]
Offshore Processing slashes credit card processing costs [..]
High risk and high volume merchants engaged in unconventional trades, such as Adult Content, Adult Goods, Online Casinos, Online [..]
Real-Estate-Yogi Offers Free Advice to Returning Veterans [..]
Veterans of the United States are returning from active duty and need places to live. It is up to lenders [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.