Industry Horizon (April 2023)

Cassava: High prices remain on strong demand and high cost of fertilizer with investment focusing on the transition to low-carbon production.

Sugar and molasses: Overall outputs should rise to meet stronger demand, while investment in environmentally friendly downstream industries will increase.

Chilled, Frozen and Processed Chicken Industry: Yields will increase on price incentives, and strengthening demand, with increased investment to improve environmental standards and strengthen supply chain integration. 

 

Chilled, Frozen and Processed Seafood Industry: Strong competition on price, worsening access to inputs, and the higher cost of raw materials are dragging business performance; Players will need to invest for sustainable sources of inputs.

 

Automobile: Despite periodic chip shortages, output is expected to rise with an acceleration of investment in BEV, urged by government’s supporting programs.

 

Integrated circuit (IC): Chip shortages will persist through 2023, and despite increasing supply towards the end of the year, growth in export value will be only limited in 2023.

 

Digital services and software: Investment will accelerate in cloud computing to serve growing demand for platform-based services, supporting a strong revenue growth.

 

Medical Devices: The government’s plan to establish Thailand as a medical hub will help to support ongoing growth in income and investment.

 

Refinery: The industry is benefiting from recovery in domestic economic activity, particularly the rebound in tourism sector, and increased investment in clean energy.

 

Petrochemical: Growth will move in step with recovery of domestic economy and with investment to serve related industries.

 

Power Generation: Government policy and incentives will encourage operators to increase investment in clean energy.

 

Housing (BMR): Demand will slowly strengthen, and developers will continue to invest in new projects as they look to meet future improvements in the market. 

 

Retail Space (BMR): Operators will continue to invest in new projects to meet anticipated future demand especially from the rapid rebound in tourism sector.

 

Warehousing: An acceleration in domestic economic activity will support stronger demand, while operators will expand investment, especially in smart solutions.

Construction: Overall outlook is set to improve, with investment increasingly shifting to a greater focus on green building.
 

 

Hotel: Occupancy rates rebounding strongly on a surge in demand from overseas visitors, supporting an expansion in investment especially towards green hotels for sustainable growth

 

Private Hospital: Income will return to its pre-COVID-19 level and this will then support an expansion in investment to meet future demand. 

Air passenger services: With demand recovering strongly, operators will lay on more flights and open up new lines.

CBAM is expected to have limited impacts on Thai industry during the transition period; Yet, businesses and policymakers need to be well prepared.