Internship story – Andrea Zamparo

Above all, I wanted to thank

My parents who are the first persons who believed in me, without them none of my way could be possible.

Siam Shipping, all the team; NathanNicolas and Fadi; who offered me this wonderful opportunity to learn among them.

ECE-BBA INSEEC, to permitted me to accomplish this internship abroad for my education.

Alberto DEHAINAULT who gave me the contact to join him in this internship.

GOD.

 

School year 2019

 

ZAMPARO Andréa

Logistics’ lessons abroad
– an internship report –

From January 1st, 2018 To March 30th, 2018 , Bangkok, THAILAND

 

 Table of Contents

Introduction.

First part: Siam Shipping and its environment.

1/ History: from the beginning to nowadays.

2/ Structure and results of the company.

3/ Services proposed.

A/ International Freight Services.

B/ Removals.

C/ Customs clearance.

D/ Warehousing.

4/ SWOT.

A/ Strengths.

B/ Weaknesses.

C/ Opportunities.

D/ Threats.

Second part: role, missions and goals.

1/ Digital marketing and communication.

2/ Operational and sales.

3/ Partnership development.

4/ Organization chart.

Last part: my experience.

1/ Professional facet.

2/ Cultural facet.

Conclusion.

 

Introduction

Fashion, Cinema, Music or the National Basketball Association. These are where I always dreamt to work in. As a lot of people, I guess, to work in what we have interest is surely the best deal. So, when our dear business school of the BBA-ECE INSEEC presented us the three months period of internship abroad, I immediately thought about these sectors. But I must admit that I did not begin my applications as the school advised us, that is to say from May. Instead, I enjoyed my summer by working and I began to contact and search some potential employer during October. I was determined to find an internship which will correspond to my passions, and which will be located in an Anglo-Saxon country, because I wanted to improve my English level. I knew that I wanted not to go in some region as Asia or Africa, because of the population’s lack of English speaking.

None of this happened… I cannot numerate the number of mail I have done but I am still waiting for a reply … It is the hard reality of the market I guess. So logically, all my entourage as my friends and my family was beginning to worry about my advance. The school was also beginning to remember me that the deadline was almost, and over. During the same time, I was occupied with all the homework, groupwork and the exams to prepare, my lack of organization began to have a sort of impact. Fortunately, I began to get some Skype interview. I also decided to use the services of some specialized companies in the research of internship, known as job agencies. Then I received more calls, which permit me to be in a peaceful mindset to prepare the exams. The problem was that the companies which developed interest on me was not companies I wanted to work with, the proposal they gave me was not in a real harmony with my professional aims. So, we were by the end of November and I still was without a placement. Then, maybe by mercy, some friend proposed me to join them in the same internship. I was offered two interesting internships. On the one hand it was in Chile working in a sort of hostel, in the other hand it was at Bangkok with a very good friend in Logistics. I contacted the two companies and the last one was the first to propose me a Skype interview. Two days later I was accepted. A week later the work placement agreement was signed by the School, the Company and Me. This is how I get my internship with Siam Shipping.

Finally, I was going to a country where at the beginning I was not interest in, but time use reasons … I was going to the Kingdom of Thailand.

More than improving my English, an important thing I wanted; was to discover a new environment, with a new culture. By going to Thailand, I was guaranteed to fill this goal. But we do not have to forget that we, students, were going to do an internship above all. So, indeed, the aim of this “adventure”, if I can describe it as one, was to learn with professionals, to discover a job and a sector. I really wanted to improve my professional skills and knowledge. Also, I wanted to really discover this international aspect, that is to say the different way of work, and the routines of each person.

In this report you will be able to read about the company that gave me a chance to work for three months; Siam Shipping. I will present you their environment, their sector, their story. Then I will tell you about the responsibilities I was in charge of, the missions, my colleagues, my partners, the goals. And to finish I will give you my feelings about all these three months, from a professional point of view, about Siam Shipping but as well from a personal point of view of the everyday life, about the cultural choc.

 

First part: Siam Shipping and its environment

1/ History: from the beginning to nowadays

Siam Shipping was born from the collaboration between a young business student and a young worker in Logistics. Their names; Nicolas RHAME and Nathan Lelievre. The two are French and they met at Bangkok when Nicolas RHAME had to do an internship as we did. His mentor was Nathan Lelievre. They worked for as seller in a Logistics Corporation.

One day, bored by all the rules and the restrictions imposed by a corporate work, they decided to work together and to set up their own business, in that same sector of the Logistics. So, in 2008, Siam Shipping was born. Their aim is to accomplish all type of shipping, in Thailand and all around the world.

The business is settled in Bangkok, Thailand. “Siam” comes from the old name of the Kingdom of Thailand. So indeed, Nathan and Nicolas, decided to focus on the Thai market.

2/ Structure and results of the company

Currently, the company regroups fifteen employees which make it a medium size (SME). There are two websites of Siam Shipping, the original one opened to every demand and a more specific one, Siam Relocation, which is as its name told us, specialist for the international moving, especially for household goods and personal effects. Siam Shipping was made for BtoB when Siam Relocation was to answer to the BtoC. In reality, people are more often visiting the original website as siam-shipping.com so they receive quotation request for personal goods from both website.

As Siam Shipping is settled in Thailand and as Nathan and Nicolas are French, it was impossible due to the Thai policy to set their business alone. The company have to be at 51% Thai. Thanks to their network they got the possibility to start their business by being “sponsored” by a bigger Logistics company: Royal Tainer Co. LTD. But without losing their freedom of activities. It was a partnership; they were able to create Siam Shipping. So, they still work closely with Royal Tainer Co. LTD. and the “co-owner” is an accountant dedicated to the company.

That partnership offered to Nathan and Nicolas a head office located in downtown Bangkok, with idyllic location (near of the major port and airport) and a reliable co-worker which is one of the biggest actors in the Logistics sector. Thanks to its positive evolution, Siam Shipping was able to get contact with agents all around the world which permit them to be more and more able to satisfy their clients.

Now, Siam Shipping is categorized among the best in the sector in Thailand, which is the exchange pole of South East Asia, and with such results, and as they almost accomplish their principal aims in Thailand, the company is beginning to extend their business all over Asia. They opened a new platform Sino Shipping which is following the same strategy as Siam Shipping but over the Chinese market.

3/ Services proposed

Siam Shipping is an international freight forwarder. They can do anything to permit you to ship what you want. In logistics there are several types of shipping, so logically, different type of service. The company can do it at a world scale, so indeed they can also do it everywhere in Thailand. Furthermore, Siam Shipping can perform a shipping from A to Z, in other words they can do the shipping from a place to the delivery, that is what we call a door-to-door service.

A/ International Freight Services

If you need to ship something from a place to another, to import or to export.

The goods must be enough large to be ship, in general, Siam Shipping accepts a minimum of one cubic meter (CBM). Siam Shipping can provide trucking service, Air freight and Sea freight.

Air freight can only be done for shipping between 0-2 CBM. Its advantage is that it takes, in general, only around five-seven days. But it is more expensive than sea freight.

Siam Shipping also offer express services using companies as DHL or TNT which cost more but arrive around 3 days later at maximum.

Sea freight is the cheapest way to send goods. But it costs time, indeed according to the destination it takes on average around 35 days. There are different ways to ship goods by Sea freight:

  • Less than Container Loading (LCL sea freight); that is what we call “bulking”, the shipping has to be between 0-15 CBM. All will be load in a container with other shipping. It permits to fill a container and to get a better price when the customer does not have a huge shipping.
  • Full Container Loading (FCL sea freight); here the shipment will take an entire container. It exists three different types of container. The 20’ (15-30 CBM); the 40’ (30-60 CBM) and the 40’ High Cu (60-70 CBM).

Trucking services in general, they are used to get the goods from the original place to the port or airport and then to make the delivery on place.

None service is better than another, it is our job to calculate and propose the best solution to each request. Then prices could depend according to the customer’s budget, or availabilities of the goods. Indeed, the service is not obligatory a door-to-door service, it could be a port-to-port or door-to-port service for example.

B/ Removals

Usually it would be more the part of Siam Relocation but as I told you before, people often ask for relocation cases from the Siam Shipping website.

siam-relocation-logo

This type of service is made for people who wants to move from or to Thailand. Siam Shipping proposes free quotation. We estimate the situation and the costs. We give a proposal. If it corresponds to the customer, then we can organize a survey, to be more precise in the evaluation.

C/ Customs clearance

It is a major and maybe the most difficult part of the shipping process. That is the reason Siam Shipping can do it all to a private or a professional. With all its network of agents around the world, the company can help customers on every case.

D/ Warehousing

Some people have no problem to ship their product, but sometimes, the period cannot be link perfectly. So, the goods can arrive when the client is not available yet, in that case they cannot let the products at the customs clearance. Siam Shipping can provide a warehouse were the customer can wait and end all his task with a peaceful mind.

4/ SWOT

In that part, I will develop my thought and the environment of the company by doing a SWOT analysis.

A/ Strengths

Siam Shipping has different assets. The hard-working mindset of the team of entrepreneurs allows them to pursue their expansion and the development of the business.

The good knowledge of Thailand by the funders (7 years living).

The strong ally they have in Royal Tainer, they had established an important relationship with the company. They now have their own part on the new giant banner on the frontage of the building (cf. annexes).

B/ Weaknesses

As Thailand has a very National spirit, and as the company is Thai and the funders are French, Siam Shipping could be penalized more easily by the state government.

C/ Opportunities

Its location is an advantage because, Thailand is literally the platform of Logistics in South East Asia. Do not forget that Bangkok is considered as one of the best city of opportunities.

With their fast-growing activity, Siam Shipping is no longer focus on Thailand but on all the other countries of Asia. Moreover, when Sino Shipping does already exist. China who is the world biggest pole of Logistics of the world.

D/ Threats

By going onto several new markets, the original workers have to relocate their workforce in other project. So, they need to delegate to new faces. These needs to be as high as their recruiters to maintain their leading position on the Logistics markets in Thailand.

Second part: role, missions and goals

In this second part I will describe you the tasks and the missions I was assigned, how I was proceeding and working. I will also present you the team we were.

1/ Digital marketing and communication

As evocated earlier, the main strategy of Siam Shipping is based on qualitative logistics service at the best prices.

The task was not as much difficult. The aim was to publish content in relation with Logistics every day, sometimes we have to do text with better quality, so we can get more days to do it. Our internship supervisor gave us text in English or French. These texts were sort to reach the largest targets as possible. For example, one text could be about the importation of a car and the other about the importation of a truck. Then, with these texts we had to modify them, by creating a full new content.

The text’s work is the major part of the strategy, it is the one which needs a certain consistency and time. This task is very redundant, but it permits to develop our vocabulary and a certain brain logical.

As a part of the social network’s generation, we also managed the social network’s account of the company. We were in charge of creating content and answer to the customer’s feedbacks.

This communication mission was entertaining, because we were authorized to use our vision of the brand. Although, to manage an account with a lot of people is a little bit stressing. Create and share content we knew how to do, but the most delicate thing was to treat the bad feedbacks of the customer (even if there are not a lot). Lucky I was to know the job of seller!

In another way, but by being in charge of the communication we were obligated to be scheduled.

2/ Operational and sales

Surely my favorite part of the job. During the first days, our mentors created us business’ email to be ready to work. They immediately gave us responsibilities, they aimed us to sign the maximum of contracts we could, obviously we will get a commission on it (10% of the margin).

Our superior was receiving the quotation requests from the website or directly by email, then he forwarded them to us, the interns. We had to follow an established process. Before to be able to do a quotation, we had to get some important information as:

  • The weight;
  • The volume (CBM);
  • The picking place;
  • The Delivery place;
  • The type of goods;
  • If the customer wants us to pack his goods for him;
  • If the customer wants an insurance.

So, the first thing to do was to contact the client within the next forty-eight hours after receiving an email. If no answer within two days, we contact him again. If there is still no answer, we just have to wait another mail. When the customer reply with the answers we need we were able to quote. But in general, the client takes a time before understanding all the data we want… Indeed at, every single email the director was in cc. and of course he kept an eye on what we were doing.

If we had any question, or issue he was very easy to contact. He gave us the perfect advises and boost us to continue the hard work. For the first quotation (cf. annexes) he assisted us to avoid any mistake. A first month was ending. No contract signed but a lot of demands were pending. By dint of repetition the quotation making was easier and easier. We work closely with export and import service of Royal Tainer to get prices.

Then the first “serious” file arrived. He accepted the proposal I gave him, it was for a relocation. The man was from Mauritius and lived in Bangkok for ten years, but now he decided to go back to his mother land. It was mainly household goods by LCL sea freight from Bangkok to Mauritius. I went to his place several times to check and approve the goods and the packing. The transaction was concluded, the goods arrived in time at Port Louis, without a problem.

At the same time, I was on another file, this time was also a relocation, same situation, but to Indonesia. In Indonesia, the customs clearance could be more complicated than in other countries, so we decided to use the services of another International freight forwarder who have already a knowledge of this country. We decided to work with JVK. All was settled, I already done the survey with our Indonesian customer, he already paid the costs, we were planning a picking date. When our partner announced us an additional cost at the arrival of THB 10,000 which represents approximatively € 258. Then the client did not understand and claimed a refund, which we did. This failure showed me how rigorous we need to be in this job. My supervisor did not stop to tell me that nothing can be promised until the job cost is secured.

3/ Partnership development

These missions were affiliated with the new Chinese branch of the company: Sino Shipping.

The aim was to find trustful partners to work with on this new market. For that, we had a target and we needed to contact them (emailing). Then our supervisor could get in touch with the potential partner.

We get the opportunity to meet one of our target in Bangkok, because of their presence around the world.

The aim was to develop the Chinese branch Sino Shipping of the company.

We also were sent in convention in Bangkok. It could be for French, as an expats meeting, or it could be a meeting where we can see potential co-worker and even our rivals. We were here to talk at the maximum of people to develop relations and possibilities of common work. These meetings gathered a lot of people and furthermore, the buffets were always tasty.

It permits us to experience professional meetings for important stakes.

4/ Organization chart

As presented before, Siam Shipping was born under the structure of Royal Tainer Co. LTD. that is why the companies are closely linked.

Mr. Somchai is the director of Royal Tainer is in charge of everything and follows every customer’s files.

Nathan Lelievre is the founder of Siam Shipping, he works on every part of the business, but he is more focused on the sales part.

Nicolas Rahme is the co-founder, he is in charge of the whole marketing strategy. He publishes media content every day.

Apiwat, Nunthaphol and Wanna were our contacts to estimate the costs for an operation. But in fact, Siam Shipping has more than 30 employees, direct or indirect, al working in Bangkok office, ports and airports and in some cities accross Thailand.

 

Last part: my experience

Here is the last part. I will develop my personal point of view about Siam Shipping and my life experience in Thailand.

1/ Professional facet

Siam Shipping is a very fast-growing business. They benefited of an incredible shoot up thanks to their excellent strategy. A plan in the spirit of the times, where quality is omnipresent in our society.

Now they need to confirm their market position, and maybe become leader of the sector. This last is large and important, Siam Shipping does not have currently the necessary assets to compete with the biggest of the Logistics and they know that. By the way, they decided to focus more on the “smaller” files like the removal which is “easier” to treat. At the same time with their partnership with Royal Tainer Co. LTD. they are able to give them the “bigger” files which imply steady shipment of containers for important goods. For example, one day, I received a request by an important Indian group who wanted to export four containers by week of quartz. I was in charge of these clients, and when they decided to meet us, I present them to Mr Somchai, for Royal Tainer (I never received any news, so I guess that they did not find an agreement).

Nowadays Siam Shipping is established in the Thai Logistics Environment. The last objective they want to reach in Thailand is to institute a real durability. They want to be the leader in the sector of the relocation from and to Thailand. Which is possible if they continue their strategy.

The best strength of Siam Shipping is their flexibility. It is one of their motto, to always be able to adapt to each customer. In that way, they propose every service that a huge group of Logistics (like AGS for example) can propose. Their only weakness is their size, but thanks to their allies they can solve this issue. By focusing on the relocation segment, they can have a veritable recognition and be the number one of the area.

Although as they almost accomplish their missions in Thailand, the directors Nathan and Nicolas, have bigger ambitions. Since the first days they wanted to set up an international company able to help people from different countries. In 2010, only two years and a half later, they start their Chinese Branch, but with the increasing turnover results they want to hire at the maximum, and to offer lot of responsibilities as to develop the activity in countries as Vietnam, Indonesia, Malaysia …

To conclude my thoughts about Siam Shipping, from a student eye who saw form the indoors; I would say that the organization is well structure, boosted by a strong will of success. Nicolas and Nathan know what they do not like and are aware of what to do to reach their goals. Even with an amazing year 2017, Siam Shipping still got a huge potential. The customers are coming, and the company did not make use of all the clients they could pretend to have. Moreover, their business is openable to as much countries it exists, which always make it profitable.

I must talk about the organization of Siam Shipping. It is built with an innovative structure. This came from the “non-corporate” state of mind of Nicolas and Nathan. These two were efficient enough in their company, sometimes maybe too much. They were limited by this same organization, as with a classic structure, they had to respect their schedule. With days that look alike from 9 a.m. to 6 p.m.

So, when they created Siam Shipping, they decided to break off this classical vision of the business organization. By basing the strategy on the customer loyalty, they were no longer forced to go at an office. This last was only needed to welcome the customers. So now, this is easier, as the contact is processing by emails, Siam Shipping’s workers do not need to be at the office all day. They can meet customer either in Coffee or in office.

The key to succeed with such a structure is to have a confident relationship between all the workers. They need to know that they can trust their colleagues. This trust is passing by precision, which is, by the way, a fundamental word in Logistics. The work and the job are priority number one.

To me this structure was not a problem, as I was able to satisfy my customers, I reached my goals and signed several contracts for the company.

2/ Cultural facet

There is a common way of thinking which says that people in Asia (precisely in South Asia) are not as punctual we, westerners, can be. The major example is with trains. During a weekend I wanted to go to the North of Thailand, the historical part of the Old Siam Kingdom. The best way to travel into Thailand was trains; “the fastest and cheapest” (Internet says). But on every forum and blog I visited, people were saying that Trains cannot arrive or leave the railway station at the right time, indicated on the ticket. I took maybe 5 or more times the train, and I was never being victim by a late departure or arrival, it was more often ahead of time. One time I miss my train even if I was an hour before the departure at the station, but it was because of the misunderstanding of the Thai language …

At work, we have some issues with some Thai colleague, indeed, we needed to hurry them a little if we wanted to have some information at the right moment. Because, as I could had seen in France while I was working in a store, when the end of the day was planned at 6 p.m. Nunthaphol (or my French colleague) needs to go to toilet at 5:50 p.m. So, when we have an important customer who wants a quick quotation, it was difficult and problematical to make him wait, while we were waiting for our colleague Nunthaphol to reply. And it is the same in general with Thai workers, they are very strict on the schedule, and will not hesitate to go home when it is time. Indeed, it depends of each personality, I am just describing a generality. So, for this point, it is the same as in France.

The driving, this is something that if you are not aware and prepared, could get you scared in Bangkok, or in Thailand in general. First difference with our dear France, is that the vehicles are right hand drive. Then, you have to be aware of the motorbikes. They are everywhere. In Asia in general, motorbikes are a culture. For example, I know a little about Vietnam; in Ho Chi Minh city, there is over more than the half of the 8 million population that possess a motorbike. In Thailand, the roads are safer than in Vietnam thanks to the highly developed structures. Bangkok has gigantic highways, a sky train, a subway and a good network of buses. These last are the less developed way of transport, this is old buses, but you can go everywhere in Bangkok, a city of 1,500 km² of area. Anyways, the Thai circulation and roads structures does not have to envy ours.

The cost of life. This is clearly something that helped me to live a more than decent life in Thailand. €1 is approximatively equivalent to THB 38. You can find everything you want. With reasonable, cheapest or even higher prices than in our country. The automobiles (except “local” brands as Mitsubishi or Toyota) and the luxury brands for example are 10% to 50% more expensive than in France. But food, transport, sport centers, … life in general is cheaper. When I had to go to the office or to the downtown for example, I always took the taxi bikes (I told you that motorbikes are everywhere!), because it was always cheaper than a French bus ticket.

The food, a vital thing… As I stayed in a hotel for three months I needed to go outside to eat (I had no kitchen). As you should know Bangkok is a megalopolis, so you can find all kind of food. It could be French on the morning, Chinese for lunch, Lebanese for snack and Italian for dinner. All prices are available from the gastronomical menu to the coin plate on the street. I have to admit that I found in love with Thai food, for like €1 I was able to eat a delicious traditional dish in the street. Yes, the cleanliness conditions are not the same, but I am not sensitive about that.

Last important different aspect was the weather, the season was perfect, it was the beginning of the warm season. Every day the warm was on our shoulders. The only problem was the day time. Indeed, at the contrary of France, the Sunrise was early in the morning, around 6:00 a.m. when the sun was going down around 5:30-6:00 p.m.  So, when we worked during the day in room without a window during the day and you want to enjoy your afternoon and evening outside, is it a little disappointed and depressing. It was easy to lose our markers.

 

Conclusion

For three months I get the luck and the opportunity to learn in a totally different environment that I ever grow up. I learn about Logistics in a young company who showed me a different vision of the ethics of work, and who gave me responsibilities. I worked not as an intern but as a real import / export expert. I helped customers to find their own way. I get a new network, new skills and surely a different personality. I discovered a culture, and different ways of thinking about our society. I lived in other conditions.

Thanks to Siam Shipping I learned more than a simple job. Due to their human sized structure, I had the chance to discover different part of a business. Moreover, I could use more than my International business lessons. The internship was enriching on different levels, on my vision to work as on my vision of the world. Now I know how to secure a job cost, how to estimate a shipment, … I know how to adapt myself to professional situation, and how to react to the cultural differences. I am prepared to work with every people from all around the world.

With that “loose” organization structure, I had the time to discover a part of the history and to meet people from everywhere. We have talked and shared about our respective Nations and life experience (even if mine was logically shorter than them).

At the beginning I would not imagine leaving for Thailand, but finally I learned tremendously. My professional skills are developed in different fields when my culture is always more open. I do not think that I improved as I expected my English, but a little improvement cannot be denied.

This internship taught me how difficult is the Logistics sectors but also how open it is. In other words, I literally discover it, at the beginning I was not interested as much because I did not know anything about. Now I am aware of all the opportunities and how the mechanism function.

Now that I learned a little about Asia I really want to discover another part of the world which America is. That is why next year I am going to Chile and Canada. From the one hand learn more about the personalities of the world and in the other developed my language skills as Spanish and English.

I thank you for the time you took to read my thought about these three unforgettable months. I hoped you enjoyed reading my experience 

Andréa ZAMPARO

Freight forwarder in Koh Samui

how to ship from Koh Samui?

Ko Samui is an island in the Gulf of Thailand located belonging to the province of Surat Thani.

Located about 25 km from the coast, it is the second largest island in Thailand, with an area of 228 km² and a population of 62 500 inhabitants in 2012. It enjoys many tourist natural resources: white sandy beaches, coconut palms and coral .

Geography of Koh Samui

The island is located in the Gulf of Thailand, about 35 km northeast of the city of Surat Thani, the center of a small archipelago of 85 islands of which 6 are inhabited, which make up the National Park Mu Ko Ang Thong (the islands of the golden bowl). Ko Phangan, also very touristy, is a few kilometers further north.

Ko Samui has a massive shape (25 km x 21 km), rather circular. Its center, which rises to 656 meters, is covered with a hostile mountain jungle. The plains are connected by a single road of 51 km which essentially follows the coast.

The main town is Nathon, a fishing port and transport between various islands, on the southwest coast of Samui. It is also the seat of local government, and the economic heart of the island.

The name of each main beaches of the island is now linked to a clean city, due to the implementation of many hotels, restaurants and box nights in recent decades.

freight koh samui

History of Koh Samui

Nicknamed the “Pearl of the South China Sea“, the island has had only relatively late development. It was probably uninhabited until the sixth century and then settled by fishermen from Malaysia and Southern China. It appears on Chinese cards in 1687 under the name “Pulo Cornam”. The current name of Koh Samui remains mysterious. Perhaps it comes from the name of a local trees, mui, which means “safe harbor.” Ko is a Thai word meaning “island”. Until the late twentieth century, Ko Samui was a fishing community, self-sufficient and isolated, which stood little contact with Thailand. It possessed only dirt roads until the late 1980s and the arrival of the first tourists, and the crossing of the 15 km of the island required a day walking through the mountains jungle.

Administration of Koh Samui

Ko Samui is a district in the province of Surat Thani, subdivided into seven subdistricts. The entire island is a municipality (thesaban mueang). The district covers the whole island and some surrounding islands.

Economy of Koh Samui

The traditional activity is fishing and the exploitation of rubber and some 4 millions coconut trees.

The tourism industry is now its main economic activity. Its beautiful beaches have attracted a flood of tourists in the 1970s, initially hippie style when links with the continent were difficult. Building its own international airport in the 1990s, has linked the island to the rest of Asia with daily flights to Bangkok, Hong Kong or Singapore. But growth and economic prosperity of the island upset the culture and environment of Ko Samui, and were a source of conflict between indigenous and immigrants from the rest of Thailand. On the other hand, the number of new tourists caused an inflation of the price of land and the – little by little – destruction of many natural sites. Evidence of the emergence of Samui on the list of tourist destinations in scale, Queen Victoria (ship over 2,000 passengers), made a stop on the island during his world tour in 2008.

The construction of a stable broadband access in recent years has also made the island a potential implant site for IT companies, which tend to diversify the local economy. In addition, its climate and accessibility make it particularly attractive for foreign investors.

Transport network in Koh Samui

Several ferries connect Samui to the mainland. The songthaew (truck-bus close to the tuk-tuk) circulating on the coastal road, and private taxis are available throughout the island although these are criticized for their lack of reliability (random price and overload).

The international airport of Koh Samui (USM) is a private airport originally built by Bangkok Airways, which is still the main operator and was for a long time alone in proposing the link between the island and Thailand. It has no real buildings available to passengers, apart from the gift shop. It has two terminals: one for domestic flights and one for international routes.

The airport is located near the pier of the Big Buddha from where ferries depart to Ko Phangan. Fast ferries to Koh Tao and Chumphon leave from the pier in Maenam, 6 km north-west of the airport. Road freight is popular in Samui.

Accidents of Koh Samui

On 21 November 1990, a Bombardier Dash 8 (DHC-8-103) of Bangkok Airways crashed while trying to land in heavy rain and strong winds. The 38 passengers on board died.
June 23, 2000, the famous Slovak footballer Peter Dubovský died at 28 in a diving accident in this region.
August 4, 2009, flight 622 from Bangkok Airways, performed by an ATR-72 between Krabi and Ko Samui skidded off the runway, killing one of pilote.

Hospitals of Koh Samui

There are four private international hospitals in Samui:

  • Samui International Hospital on Beach Road north of Chaweng
  • Thai International on Lake Road in Chaweng
  • Bandon Hospital on the coastal road
  • Bangkok Hospital Samui Chaweng Noi

*The public hospital is located in Nathon. There are also many clinics and pharmacies, especially at Chaweng.

Climate of Koh Samui

Located in the province of Surat Thani, Samui has basically two seasons: most tropical warm year, with a brief rainy season. Unlike Phuket and most of southern Thailand, which has a six-month wet season from May to November, the climate of the island is relatively dry during the year, with a rainy season in novembre.

Tourist attractions in Koh Samui

  • Chaweng: The most popular beach of Koh Samui is a large white sand beach of more than 7 km long, it is also the most beautiful beach of the island because of the shallow water. Chaweng is lined with hotels right on the beach, boutiques, shops and restaurants.
  • Lamai is the second most popular beach of Koh Samui beaches are wilder and quieter than Chaweng, ideal for peace of mind.
  • Nathon is Koh Samui craft port towards Surat Thani, little lively.
  • Green Mango is the so Chaweng surrounded by many bars with animation at dusk
  • Big Buddha (Wat Phra Yai): a statue of sitting Buddha, covered with gold. It measures 12 meters high. This temple is in the north of the island.
  • The rock Grandfather and Grandmother (Hin Ta and Hin Yai) rocks in the shape of male and female genitalia.

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

Logistics development in Thailand

Measures to upgradeThailand’s logistics industry

In recent years, the Thai government has realized the importance of the enhancement of the capacity, competency and efficiency of the country’s logistics service providers, especially those offering transport and warehouse-management services. The objective is to boost the sector to develop ; to enable contribution to national economic growth by lowering production and delivery costs, as well as to enhance the country’s competitiveness.

With these objectives in mind, public and private agencies have shown interest in the development of logistics services that are related to various activities in a bid to support trade and the conduct of international business.

Multimodal transport operators (MTOs) have different tasks and responsibilities to those of international freight forwarders. The main duty of an MTO is to provide transportation of goods under a single contract but arrange with at least two different modes of transport. An international freight forwarder, on the other hand, might perform its duty as an agent or a principal, but it will run the activities separately. Although freight forwarders nowadays also provide door-to-door services, they may separate their transport into different modes, such as transport by sea or by land. Importantly, there is currently no law that supports their carrier status, especially where it comes to liability for damaged goods. When there is a problem, the civil and commercial codes on carriage of goods and the law on carriage of goods by sea shall be applied as appropriate.

MTOs are contractual carriers who are able to fulfil their role in multimodal transport, whether that involves transport by land, sea or air. MTOs have the status of carriers with laws to support their operations.

The government is considering allowing foreign investors to take a greater role in freight forwarding and MTO services, especially under the framework of the ASEAN Economic Community. As more players come forward, Thai operators -from shipping lines to freight forwarders – will have to adjust and develop their potential to cope with both the change and fiercer competition.

Opportunities for Thai MTOs in the international arena

Thai freight forwarders are capable of providing transport-management services and international supply-chain support to exporters and importers. However, there are still limitations on capital and expansion of their services.

International freight forwarders and MTO service providers need to develop the quality of their services in order to create a competitive advantage. Therefore, the following proposals should be considered as a matter of priority:

  • International freight forwarders and MTOs should develop an expertise in service provisioning that demonstrates superior service, punctuality and professionalism, in bid to gain the trust of their customers. Furthermore, they should be able to offer a complete range of transport services, and this variety should enable them to assist customers to deliver their goods on time, while saving them money. As well, they should provide consistent training for their staff, in bid to assure customer confidence from exporters, importers and other logistics users.
  • International freight forwarders and MTOs should develop wide-ranging networks, both domestic and international, through which they can coordinate transport services to best cater for the requirements of their customers. They should be able to offer end-to-end services that can add value to the transactions of both importers and exporters.
  • International freight forwarders and MTOs should have a substantial amount of working capital. Short- and long-term financial strength should be an operational standard, in order to build confidence among customers.
  • International freight forwarders and MTOs should become “one-stop service providers”, able to offer advice on import and export activities as well as providing other internationally-accepted information from easily-accessible databases. Their main activities should be grouped, such as customs procedures, transport. inventory management, data management and procurement, while supplementary activities such as cargo handling, packing, customer relationship management and so on, should be grouped separately.
  • International freight forwarders and MTOs should develop their technology capabilities, to align their services with those available internationally and to cater for the nature of their customers work. For example, tracking systems are not widely used by Thai enterprises, when compared to foreign firms, because of capital constraints and the need for such technologies to be mutually applied with distant operators. However, if Thai operators can develop advanced technologies on their home territory, this will help to improve customer satisfaction and enhance their competitiveness.
  • International freight forwarders and MTOs should provide educational programs to disseminate their knowledge to both customers and business partners. They should organize seminars on topics that are beneficial to their customers and their partners, and can help to strengthen the industry

Adjusting and developing Thailand’s logistics service providers will help to enhance the competitiveness of the country’s exporters, who face increasing foreign competition. Local operators must strive to improve their business conduct; to gain more efficiency and reduce their costs, while maintaining the highest service quality in order to satisfy the needs of their customers. Hence, logistics and supply-chain management has to become a primary strategy for building the capacity of Thai operators. Those operators who can best respond to the needs of their customers will be the winners in the coming market competition.

According to the guidelines for international trade, freight forwarders hold responsibility for delivering goods to destination countries. This is especially important for small firms that have to use consolidation services from freight forwarders in the case of less-than-a-container-load (LCL) consignments. But, as mentioned earlier, while the Multimodal Transport Act B.E. 2548 supports the status of MT0s, there is no law to clearly define the status of international freight forwarders. Due to this lack of legal status, freight forwarders receive no tax privileges and find difficulty in competing with other kinds of transporters. To help overcome this hurdle, the Thai International Freight Forwarders Association (TIFFA) has submitted a letter to the Ministry of Finance and the Revenue Department asking them to consider waiving the 7 per cent value-added tax on international freight forwarders’ services.

Thailand badly needs a law to clearly define the role of international freight forwarders in various capacities, such as agents or Non-Vessel Operating Common Carriers. Furthermore, the law should recognize the status of the Thai International Freight Forwarders Association and its role in supervising the ethics and service standards of international freight forwarders.

The Multimodal Transport Act applies to MTOs and shipping lines that provide international cargo services involving two or more modes of transport, obliging them to register their MTO licenses with the Merchant Marine Supervision Division of the Marine Department. The law has an objective to provide protection for shippers or transport service users.

Enforcement of the law should be improved to ensure that various parties strictly abide by its provisions. Exporters or shippers should be encouraged to familiarize themselves with the law, which exists to protect their interests.

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

International freight forwarder in Phuket

Shipping from and to Phuket

All Inclusive Rates for shipping from and to Phuket

Our door-to-door rates include:

  • Land transport costs (considering the departure from warehouse/factory to the port/airport of origin and from the port/airport of arrival to the warehouse/factory)
  • Local handling and transport costs at ports of origin and destination
  • Shipping & Exchanges
  • Delivery of management and documentation
  • Customs duties, without taxes charged on the international purchase of your stock.

You are looking for logistics and/or sourcing services ? You need a dedicated assistance ?
Our experts will answer you within 24h !

Door to door incoterm

We work with incoterm DAP (delivered to the site) for our door-to-door service. There is delivery of goods at the point agreed by the customer. All costs and insurances associated with the main transportation are included in our door-to-door rates, while import costs are not included.

Sending FCL or LCL door to door

In sea freight, you can choose 2 ways to ship your products. Usually it depends of the volume of the shipment, but it also relies on others factors such fragility or timing. Those two options are simply the FCL which is the Full container (20 feet or 40 feet) and LCL which is a shared container.

Road freight from Phuket:

The choice of road freight (or trucking) with Siam Shipping represents a reliable alternative to sea and air. Indeed, although this mode of transport allows you to get longer, it offers real security to your merchandise at much more attractive prices.

We offer a trucking service on an international platform. We accompany you to any destination for any destination. We also offer parallel services such as packaging or customs formalities.

Whether it is a standard or door-to-door shipping, our platform-form stands out for its high level of security and modernity, which is perfectly combined with national or international logistics operations. We consider every need of our customers, and we adapt our process according to your project to find the best solution for you, your time and your budget.

The trucking service of Siam Expedition is distinguished by its quality. Thus, you can be certain that your merchandise will arrive intact and in time, at the best price.

Information on road freight

To ensure the best success and the best development of your company, a good organization of logistics is essential. At Siam Shipping, we are aware. That is why we use all our network and our know-how to offer you a complete range of services that will perfectly meet your requirements in terms of quality and cost.

Network management

Our supply management services are a range of services that help you manage and consolidate all your transportation needs (multimodal, road, maritime, air or rail), as well as the needs of your supply chain. Supply. Our offer enables you to obtain the creation, management and realization of your logistics, guaranteeing you a wider and more complex transport network.

Transportation management

For medium and large sized shipments, our supply chain solutions, we can establish a transportation management that will improve the performance of your business, with competitive freight rates. Thus, your logistics needs will become simpler, more efficient and more profitable. We use an automated tool to manage the online order price, contact with the various service providers and contract management, shipment visibility and management reports.

The full LTL (Less-than-Truckload)

Trucking Siam Shipping offers logistics at regional, national or international level. We also offer optional options such as insurance or urgent mention. Our offer is distinguished with its personalized services, its listening salespersons and your qualified employees.

Complete truck loading services

If you need an immediate quantity of goods or relocate your premises, we have a fleet of trucks that are dedicated to your company’s expectations. For more information, do not hesitate to contact us, we will return you in the highest delay.

What does our door-to-door service include?

Complete delivery

Our door-to-door service includes all the necessary steps to ship the cargo, from its origin to the destination:

  • The collection of goods from the consignor’s warehouse or from the address indicated by the consignor. On the other hand, the management of the cargo remains your responsibility.
  • Sea, air or land freight.
  • Import and export taxes, but VAT and other taxes are not included.
  • The delivery of the goods, once unloaded, to the destination that you indicated to us.

door to door services thailand

Domestic and transborder rail freight forwarder

We are a freight forwarder and we also offer our services in all Asia. We can provide intermodal freight for all companies throughout ASEAN, our core business. This will allow companies to reduce costs and this offers an alternative to road transport.

The intermodal rail is also a long-term transport solution, it can be a real door-to-door service solution. It is also a more economical means of transport for companies, which will respond more rapidly to the growing need of the consumer.

Safety is also more important in this type of transport. Indeed, intermodal rail transport greatly reduces the risk of delay and / or theft of merchandise in the cargo. It is also considered a more environmentally friendly means of transport since it requires less fuel.

Intermodal transportation

Intermodal transport is a means of transport of goods that uses at least 2 modes of transport (trucking, rail or boats) without handling the freight. Thanks to these different means of transport one allows oneself to have the best characteristics of each transport used, this also brings savings for the sender. This brings a real scalable capacity for shippers, so if you need a door-to-door service, contact us to know more about our intermodal solutions.

Customs regulations on international move from/to Phuket

Household goods & personal effects

Some products can be imported into Thailand without any tax for the foreigner who imports them, but these personal effects are subject to specific conditions. If the person importing the goods has diplomatic status, holds a valid one-year Thai work permit, his goods enter within six months of his arrival in Thailand. If the above conditions are verified, only one ship or air can be authorized, and the shipper can bring his domestic appliances only free of duty. The rule is similar if it is a Thai national who wants to return his property and personal effects to Thailand. He must, however, prove that he has resided for more than a year in a foreign country and on a continuous basis. It is only by air and sea that goods can circulate, and each of the electrical appliances is exempt from duty.

siam-relocation-logo

Anyone not complying with the above rules will have to pay fines. This is the case for all returning Thailand or foreigners who import household appliances and personal property in Thailand. The amount varies according to the objects and is negotiable with the customs service. Siam Relocation will do everything possible to limit the price of these tax obligations to the maximum.

The sender is not obliged to be present in person during customs clearance at the port or airport, but we must despite all present his original passport and a work permit, also original, one year to the Thai authorities During clearance. The shipper must therefore already be in Thailand for the dispatch to be cleared from the customs. A returning Thai national must present his old and current passport.

Prohibited & restricted goods

Some goods are prohibited at the time of entry into Thailand. This includes firearms, ammunition, pornographic material and short wave radios.

Vehicles and move

Foreign diplomats may import a vehicle into Thailand free of duty. Indeed, the Ministry of Foreign Affairs of Thailand must send a letter verifying its status and request that the Thailand Customs authorize the duty-free importation. For other foreigners and Thai nationals importing a vehicle is a very difficult thing in Thailand. The procedures are very complex and very long to import his vehicle. The right to evaluate can reach up to 300% of the purchase value of the vehicle.

Pets on international move

There are special regulations for domestic animals in Thailand. Dogs, cats and birds can be imported without a quarantine period. For this you will need a health certificate dated less than 7 days and a vaccination card in progress.

Pets can be sent as cargo and the fee will be around US $ 4000 per animal. Prices vary depending on the type and size of the animal. No fee is charged if the animals are brought in excess baggage.

Phuket is one of the southern provinces (Changwat) of Thailand. Neighboring provinces are Phang Nga and Krabi, although Phuket is an island and its borders are not terrestrial. North of the island is Phuket International Airport.

Geography of Phuket

Phuket is the largest mainland province of Thailand located in the Andaman Sea, west of the Malay Peninsula. It is very mountainous, with a mountain range west side which aligned north to south. The mountains of southern Phuket extend 440 kilometers from the Kra Isthmus. The highest point of the mountain chain is the Khao Phra Phuket Mi, with an altitude of 1138 m; while the highest point on the island itself is Mai Tha Sip Song (Twelve Canes), at 529 m.s.n.m. About 70% of the island is covered with forests. The western coast has several sandy beaches, but the east coast is generally swampy. The southern end of the island is Laem Promthep, a place very appreciated to watch the sunsets.

The main tourist region of the island is the beach of Patong, which also concentrates most of the nightlife of Phuket, besides being the largest shopping center of the island. Other popular beaches are Karon, Kata and Nai Harn to Bang Tao.

The island was affected by the tsunami of December 26, 2004 that devastated much of the coasts of the Indian Ocean

Economy of Phuket

The exploitation of tin mines was an important source of income for the island since the sixteenth century. Many Chinese workers were employed in the mines, and their influence on Phuket culture can be felt even today. With the falling price of tin exploitation definitively ended. Currently, Phuket’s economy rests on two pillars: rubber plantations (Thailand is the world’s largest rubber Producer), and tourism. Since the 1980s Phuket is one of the major tourist attractions of Thailand. Most of the sandy beaches of the island were transformed into tourist centers, with Patong, Karon and Kata are the most popular.

Phuket-island

History of Phuket

The most significant fact in the history of Phuket was the attack by the Burmese in 1785. It is said that Sir Francis Light, a captain of the East India Company, sent a message to the local administration, warning that he had observed that Burmese forces were preparing for an attack. Kunying Jan, the governor’s wife, who had recently died, and her sister Mook, organized the defense of the island. After a month of siege, the Burmese were removed, the March 13, 1785 and the two women became national heroines, receiving the King Rama I, the honorary names Thao Thep and Thao Sri Sunthon Kasatri.

During the reign of King Chulalongkorn (Rama V), Phuket became the administrative center of tin production in the southern provinces. In 1933, the Monthon Phuket was dissolved and Phuket became a province.

The old names of the island include Ko Thalang and Junk Ceylan, an English Malay Tanjung Salang distortion (Cape Salang).

Religion in Phuket

Like most of Thailand, the vast majority of the population is Buddhist, but there is also a significant number of Muslims (17%).

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

Airports in Thailand

Thai airport infrastructure

An increase of international passenger numbers, combined with a strong domestic traffic, led Thailand to accelerate its program of investment in airport infrastructure.
Thailand is facing a slower growing number of traveler in the last 18 months, due to the recent political events. The figures show that while domestic traffic rose 16.1%, the increase was offset by a 5.6% decrease in international passengers. Overall, the six airports run by Airports of Thailand (AOT) experienced an increase of 37.8% in passenger numbers (each year) and a 25% increase in number of flights.

thai-airport

The pressure is felt on many provincial airports that have launched major modernization programs. This program should greatly open up certain cities, increase tourism and air freight and reduce the crowds on the Bangkok airport.

Suvarnabhumi should increase its capacity as Don Meuang – second air hub of the capital – with the construction of a new terminal that will be ready in December 2016. The airport primarily serves low cost airline flights, and this increase in air freight relieve Suvarnabhumi.

To know more about Bangkok main airport, check their website : Suvarnabhumi Airport

Regional focus

While the two largest airports in Bangkok are the main focus of these investments, the government also target secondary airports in order to strengthen regional networks, with facilities in Chiang MaiPhuket, Hat Yai and Chiang Rai.
AOT also seeks to enlarge Mae Sot airport, on the Burmese border, in anticipation of expected growth through special economic zone in the region. The Department of Transportation has announced an investment plan of 298 million baht for the project, which includes the acquisition of additional land for the expansion of the airport, with completion expected in 2018.

Thai airways, official national airline company of Thailand.

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

Ports in Thailand

Ports in Thailand

Thailand has a coastline of 3219 km with over 4,000 km of waterways. Major ports of Thailand :

  • Bangkok
  • Laem Chabang
  • Map Ta Phut
  • Rayong
  • Phuket
  • Songkhla
  • Sattahip
  • Si Racha

The development and management of all major ports in Thailand depend on the Port Authority of Thailand (PAT).

Port Authority of Thailand (PAT)

The Port Authority of Thailand (PAT) is a public company under the general supervision of the Ministry of Transport and Communications.

The main functions of PAT are:

  • The provision of services and facilities for ships and goods.
  • The conduct of dredging and maintenance of canals and ponds.
  • Supervise handling, movement, storage and delivery of goods
  • Co-operation and co-ordination with other government agencies and international ports.
  • The development of the organization to respond to economic changes

Current commercial ports

Klong Toey or Bangkok Port is the largest port in Thailand and can handle 1.5 million container / year. The depth of the Chao Phraya River basin is 8.5 meters.

Laem Chabang can handle about 6.9 million containers / year and the depth of the port is 12 meters. At present, four terminals are managed by private companies. Laem Chabang Port is Tungsukhla Sub-District, District Sriracha and Banglamung sub-district of the province of Chon Buri. The port covers an area of approximately 1026 hectares.

Regional ports

Below, the list of regional ports :

  • Chiang Saen Port, located along the Mekong River in Chiang Saen District, Chiang Rai Province, covers an area of about 1.2 hectares facing the Mekong River, opposite to the Democratic Republic of Laos and off the route 1290 (Rimkong road) connecting Chiang Saen and Chiang Khong districts. The port can handle 120,000 tonnes per year.
  • Chiang Khong Port, located in Chiang Khong Sub-District, Chiang Rai Province. The port aims to improve the efficiency of import-export services and promote border trade between the Republic of China, the Democratic Republic of Laos, Burma and Thailand. The port can handle 15,000 tons per year.
  • Ranong Port, located on the east bank of the river Kra Buri, Pak Num Sub-District, Muang District, Ranong Province, covers an area of approximately 51 hectares. Container terminal with a depth of 30 meters and a length of 150 meters is able to accommodate 12,000 containers per cargo ship at a time.

New deep water: Dawei

Thailand and Burma signed an agreement to develop the Dawei economic zone in 2008, followed by another agreement in 2012.
On January 30, 2015, Japan agreed to participate. It was revealed that they will participate in equal partnership to Thailand and Burma in cooperation for the development of the Dawei economic zone area and intend to provide technical and financial support for the project.

Among the benefits in the development of Dawei deep sea port are:

  • Development of a broad base for raw commerce and primary operations
  • Increased distribution of exports
  • Reduced transportation costs due to less dependence of the passage through the Strait of Mallacca
  • Industry Diversification
  • Regional Economic Expansion: increased demand and an optimized supply chain.
  • The expansion of the logistics network via new trade routes

freight services thailand

Port expansion in Thailand

The Port Authority of Thailand, as the lead agency, has implemented a port expansion plan by developing the second pool and inviting private sector participation on a Build-Operate-Transfer (BOT).

PAT, which currently manages five ports in Bangkok and provinces, signed a contract with consultants to study about the expansion of the port of Laem Chabang in Chon Buri. The study aims to put the port to international standards, but also to ecological standards. Through modern technology and the latest innovations, the port should offer faster services, reducing the waiting time for each vessel.

Laem Chabang has experienced two phases of development so far and is on the third phase of construction now. The third phase would raise the port’s capacity to a maximum of 18 million containers.

Completion is expected in 2019 and will respond to the rapid growth of international maritime commerce of Thailand. The expansion aims to transform Laem Chabang in main port in Mekong region, and ultimately compete Singapore.

Bangkok Port

At present, the Bangkok port handles 54% of total exports and imports of Thailand. The expansion project includes a new dock two kilometers long, 900 m wide and 15m deep to accommodate large vessels directly. It also plans to build twin rail tracks that link the northeast of the country directly to the port.

Through these major works, the Thai government is seeking to reduce logistical costs in order to increase global competitiveness.

Inland waterways

 The Department of the Navy Department of Transportation provides a development of inland logistics, which include the construction of a second cargo terminal at Ayudhya. The goal is to reduce costs and access to province.

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

Economy of Thailand

Economy of Thailand

THB currency thailand

According to the IMF, the economy of Thailand is considered as an emerging economies, heavily dependent on exports which account for over half of GDP, 654 billion of dollars in 2015. This same year, Thailand is the second largest economy in Southeast Asia, after Indonesia but ahead of Malaysia.

The recovery in Thailand since the Asian economic crisis of 1997, is expressed in particular by specializing in certain export sectors such as automotive, food processing, electronics that make return significant amounts of foreign currency as tourism. GDP growth of Thailand has been running for a decade between 2% and 8%, with high volatility, especially because of the consequences of tensions in the South of Thailand, the 2004 tsunami and political instability linked to shirts red and yellow shirts and the 2008 crisis.

History of Thailand

The metric system is compulsory in Siam since 1912.

In the 1980s and 1990s under the government of Prem Tinsulanonda, Japanese investment and the opening of the country allow some industrialization of Thailand, while in parallel the tourism plays a growing role in the country’s economic development. The average annual growth of 9.4% between 1985 and 1996, the country is now an Asian tiger.

The Asian economic crisis has greatly affected Thailand and its baht currency, the role of the high level of toxic assets from Thai banks was highlighted.

thailand-economy

Sectoral analysis

Agriculture in Thailand

Thailand is the largest exporter and one of the leading producers of rice, although the yield per hectare is low. In the late 1980s, the annual rice production was approximately 20.8 million tons, an annual increase of around 11.3 million tonnes compared to 1960.

Rubber, which comes mainly from plantations of the Malay Peninsula, is the second largest production country; Indeed, in late 1980, its annual production amounted to 860 000 tonnes. Thailand is the first world exporter of rubber.

The country also operates significantly its potential forest that covers 28% of its territory, including teak. Thus in 1992, the annual timber production was 37.6 million cubic meters, but the power is trying to significantly reduce those exports to anticipate deforestation’s problems.

The annual catch of shrimp, fish and shellfish, reaching 3.3 million tons in 1993, is a significant sector of the Thai economy. Commercial shrimp works well: throughout the country, more than 30,000 farms produced about 280,000 tons of shrimp in 2010 and exports to Europe, Japan and the United States reported more than $ 2 billion. But part of fishing which is used to feed shrimp in Thailand is regularly accused in the early 2010s to be made by migrant enslaved.

Mines in Thailand

Thailand was a major tin producers (21 000 tonnes in 1984). The price of this metal has fallen by 60% in the early 1980s, the Thai production did not exceed 4700 tonnes in 1993. The main mining production is now the brown coal (156 million tonnes), to which are added gypsum, zinc, tungsten, antimony, manganese and lead.

Energy in Thailand

Oil in Thailand

Recently Thailand discovered several oil deposits on its territory, operated by the national company PTT Public Company Limited (including Thai state is a shareholder at 51%), it produces 173,800 barrels per day ( in 2001) and 18.73 billion cubic meters of natural gas.

Electricity distribution in Thailand

Most of the electricity distribution network is in the city as in the country by overhead cables.

In 2016, electricity companies and the Thai telecommunications were instructed to bury electric cables become sometimes dangerous. The Thai Media Daily News, however advanced the complexity of the operation and ensures that the landfill will not be in a “near future”.

Industries in Thailand

In 2007, the industry contributed 43.9% of GDP, but employed only 14% of the workforce, especially in the food industry, textiles and electronics. Then comes the automotive, cement production, cigarettes and various chemicals and petroleum products. In 2009, car production has reached 930,000 units, twice more than in 2001.

Transport network in Thailand

The road network has improved in the 1970s, it covers almost 70 000 km of roads. The Thai railway network it about 4071 km of railways, operated by the state.

The river system through the Chao Phraya navigable over 80 km from its mouth, is an important inland waterway, providing passages on nearly 4000 km of waterways. The port of Bangkok and is one of the most modern in all of Southeast Asia.

Services in Thailand

In 2007, the service sector contributed 44.7% of GDP and employs 37% of the workforce. In the country, are present 3 general public banks, 5 specialized public banks, private banks 15 Thai and 17 foreign banks.

Tourism in Thailand

The tourism sector in 2015 represents about 14.5% of GDP, a very high rate compared to other countries in Southeast Asia. In 2001, the country has a tourist traffic of 10.1 million visitors in 2002 increased by 7.3% to 10.9 million. In 2007, 14 million tourists visited Thailand, the country is known for its seaside tourism especially in Phuket & Koh Samui, and its sex tourism. In 2011 despite floods, attacks in the Muslim south and the strong Thai baht, Thailand has again surprised by its resilience in the tourism market. Thailand recorded 19 million tourist arrivals in 2011, an increase of 19.9% yoy, according to the Ministry of Tourisme8. In 2015, Thailand welcomed nearly 30 million visitors, setting a new record.

Work in Thailand

The labor force in Thailand was estimated at 36.9 million in 2007, located at 49% in agriculture, 37% in services and 14% in industry. In 2005, women accounted for 48% of the workforce. Less than 4% of the workforce is unionized, but it is 11% in industry and 50% in public enterprises.

Business in Thailand

The Thai economy relies heavily on exports. Statistics show that exportation represented an average of 70% of GDP in 2006 and 2007, against an average of 23% from 1980 to 1986. The increased trade between China and Thailand, including through the China-Asean Free trade Agreement should expand trade between the two countries to the tune of $ 100 billion over the next three years, double what it is now.

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !

ASEAN Community

ASEAN Economic Community

« Economic Integration has arrived. We must make the most of it »

The 10 nations of ASEAN are putting the final touches on their creation of a single market and production base with a population greater than either the European Union or North America, and the Permanent Secretary of Thailand’s Ministry of Commerce, Chutima Bunyaphraphasara, says the Kingdom must now strive to make the best use of the new régional economic integration.

For much of the past decade, the leaders of Thailand’s *tic- and private-sector organizations have been preaching the benefits and opportunities promised by the implementation at the end of 2015 of the ASEAN Economic Community (AEC).

As that time arrived, the ASEAN nations had almost perfectly achieved their mission of forming a single market and production base, one of the four major elements of the AEC, by reducing tariff and non-tariff barriers, facilitating intra­regional trade, harmonizing standards, rules and regulations, liberalizing trade, services and investment and allowing a free flow of skilled labor.

The single big message from the Ministry of Commerce’s Permanent Secretary, Chutima Bunyapraphasara, is that the time has come; the benefits and opportunities are here for the taking, and it behoves all in Thailand who may enjoy them to make the best use of them.

Moreover, Thailand has a significant geographic advantage. Since the country is centrally located at the heart of ASEAN, Thai companies can conveniently trade with their counterparts in neighboring countries that share borders with Thailand, as well as investing in these countries. Thailand can also serve as a gateway to ASEAN for countries outside the region that wish to do business, export or invest in ASEAN.

“Thanks to our strategic location, Thailand can become a (trading and investment] gateway for our neighboring countries by utilizing the AEC program,” Chutima said.

Clearly, the benefits of economic integration have been growing for some years. ASEAN is already Thailand’s No.1 trading partner for both exports and imports. The Kingdom’s exports to ASEAN have grown consistently, year by year. Total shipments to ASEAN member countries exceeded $59 billion in 2014, accounting for 26 per cent of Thailand’s total exports.

In reality, the market for Thai companies has expanded from 69 million people in the past to 600 million people throughout the ASEAN region.

The new economic community obviously presents a jewel of an opportunity for Thai business operators to overcome constraints such as tabor shortages, higher production costs and lost trade privileges. They can now take advantage of ASEAN’s “single production base” by moving some of their production to neighboring countries where these issues are not a problem.

To ensure that the country fully utilizes the benefits of the AEC, the government has initiated many projects, including the enhancement of its trade and investment policies to better facilitate business, such as hastening the completion of the “National Single Window” project; investing in road and rail infrastructure to improve connectivity with neighboring countries; promoting border trade by removing obstacles and facilitating trade at border checkpoints; providing special tax and non-tax privileges to projects situated in Special Economic Zones; and enhancing the capabilities of Thai enterprises, especially small- and medium-sized enterprises. It has also assisted the development of human resources in various occupations in order to prepare them for the challenges of the AEC.

“The Ministry of Commerce has been working closely with other parties on these initiatives and we are confident that they will bring Thailand into the forefront of ASEAN and thus our vision of ‘Think ASEAN, Think Thailand’ will materialize,” Chutima said.

ASEAN-community

Challenges and Opportunities

Some of the main benefits of the AEC will be the ability of member countries and their businesses to complement their strengths and weaknesses and gain in local and global competitiveness.

“We can utilize benefits from the integration of Asean’s supply chain,” Chutima said. “As tariff and trade barriers are removed, importing raw materials from our neighboring countries will become more convenient than shipping them from outside the region. We can also bring in labor from neighboring countries to help meet our needs because we are entering an ageing demography. We can also bring in management and know-how from neighboring countries if they excel in particular fields.

“At the same time, we can utilize the transport infrastructure which has been developed to help bring down the costs of our business sector and enhance the competitiveness of our exported goods in Asean and other global markets,” she said.

The 10 Asean member countries have finalized their ninth package of commitments under the Asean Framework Agreement on Services. They are now moving Onto the 10th package, although the completion schedule for this package has been postponed by two years to 2017.

Nevertheless, the member countries have already given priority to the logistics sector, among other sectors, and have opened up their markets in accordance with earlier commitments. This is because of the importance of logistics as a trade facilitator that helps to boost trade and investment and promotes the single market principle.

Logistics is now one of the major service sectors on which the Ministry of Commerce has focused its promotional efforts, along with other industries such as tourism and healthcare services. The AEC will present distinct opportunities for Thai logistics service providers. They will be able to expand their operations by establishing warehouses, distribution centers and transport services in other Asean countries.

So far, Thailand has not undertaken to open up its logistic sector more than what is stipulated in current domestic laws. However, Chutima said the sector could be opened up ahead of the AEC’s framework because of its important influence on the competitiveness of Thai goods.

“In the meantime, we can unilaterally open up our logistics sector to support our policy of becoming a trading hub of the region,” she said.

Chutima said that Thai logistics service providers still needed to enhance their competitiveness to some the country’s mission of becoming a regional trading hub. A study commissioned by the World Bank has shown that the Kingdom has relatively high logistics costs – 14.1 to 14.7 per cent of gross domestic product, compared to 8.2 per cent of GDP in the United States and 7.2 per cent in the European Union. Thailand is ranked 35th on the World Bank’s Logistics Performance Index, which rated 160 countries around the world. It is lower down the index than two other Asean members – Singapore and Malaysia. The Logistics Performance Index indicates three areas that Thailand should tackle urgently: customs procedures, infrastructure and the competency of its logistics service providers.

Chutima said the government had already announced massive investments in infrastructure projects and was currently making a big effort to improve its customs procedures. On the matter of enhancing the competitiveness of logistics service providers, she said the private sector, especially the Thai International Freight Forwarders’ Association, should take a leading role.

“The government sector is very pleased to lend our support if there is a concrete plan proposed to us, since it is our policy to work closely with the private sector,” she said.

The Ministry of Commerce’s Departments of International Trade Promotion and Business Development implemented several projects to help Thai logistics service providers in 2015, she said. These including training and advisory services to help with organizational management and cost reductions; organizing seminars to disseminate knowledge on various topics such as innovations, “green logistics” and ISO standards; appraising organizations’ capacity to achieve ISO standards; holding international conferences on connecting logistics to facilitate the AEC; organizing an Excellent Logistics Management Award; helping local logistics service providers to meet and build networks with overseas governments and their foreign counterparts; and providing space for logistics firms to showcase their services at international trade fairs such as BIG+BIH and THAIFEX in Bangkok.

Further information, visit the official website : ASEAN

ASEAN-Oppotunities

SIAM Shipping - Dedicated freight forwarder in Thailand

Due to our attractive pricing & dedication, many customers trust our services and we thank them. Stop overpaying the services and save money with our tailored package matching will all type of shipment, from small volume to full container, let us find the best and most cost-effective option.

Communication is important, that's why we strive to discuss through the most suitable way for you !