Paralleling double digit growth in the economy for the past three years, and close to a S average over the decade, office automation equipment sales in Thailand have been boomir The largest categories of office automation (OA) equipment have included electronic machin (calculators, key punches, typewriters, computers, key telephones, mobile telephones, cornput systems, facsimile machines, data processing, data support services and local communicatiol exchanges) and accessories (stands, furniture, binders, laminators). Growth in office automatic equipment sales is expected to exceed 20% for 1989 - 90. This corresponds to projected grow in the USA, Europe and Japan of under 10%. On personal computers and related produci growth has exceeded 40% per year in recent years. In fact, Thailand is often referred to as
fastest growing OA market in the world.
Analysts expect this growth rate to continue for at least the next three years, and perhaf through to the end of the decade. These optimistic forecasts are based on projections draw from the new office space and plant construction planned to come on line qver this tim anticipated steady demand, and the ability of Thailand to continue to absorb this ne' investment.
All major principals are represented, either by distributors, joint-venture companies or fully owned subsidiaries. Some, like Kodak IBM and Philips, have been active in the Thai market for over 20 years through fully owned subsidiaries. Thailand has long-standing ties with the business communities of South Korea, Taiwan, Hong Kong and Singapore. Companies from these countries, especially in personal computers and telecommunications equipment, are well represented. As a result, in addition to being one of the fastest growing markets in the world, it is also one of the most competitive.
The government has yet to resolve issues surrounding protection of intellectual property rights, subscription to international copyright agreements arid breach of faith contract disputes. Pending resolution of government policy, a number of principals have avoided direct investment leading to technology transfer. At the same time, firms are pressing for the easing of government regulations on data communication.
A number of infrastructure problems, most notably the lack of available exchanges for both cellular and key telephones, is, to some extent holding back development of the market The waiting list for telephone lines is measured in years, not months. The government is taking a leading role in these latter concerns and is currently installing a nationwide network of fibre optic cable and microwave transmission/receiving towers, as well as state-of-the-art satellite data communication capabilities, in order to make Bangkok the service and information centre of the Indo-Chinese subcontinent, and to match many of the telecommunications features of Singapore.
Taxation on fully built-up electronic machines, running from 35 to over 70%, has restricted buyers to larger firms and to firms involved in international transactions. Following current GATT negotiations, analysts expect the government to lower taxes, possibly from between 20 to 35%. This will broaden the market, in all segments. most significantly in small- to medium-sized internationally competitive firms.
The industry suffers from a serious lack of skilled staff. Companies must be willing to invest in the use of expatriates (i.e. programmers, software and data support system developers) and overseas training of technicians, maintenance and repair people, as well as systems and applications installers.
A number of local firms have sought to build well-entrenched positions in the distribution of office automation equipment, through the development of applications and service staff, binding contracts with principals, extension into local manufacturing, and captive retail outlets.
The most powerful, Sahaviriya, although only eight years old, is projected to reach a turnover of 81 billion in 1990. Its total estimated market share in computers, peripherals and data communication devices is 15 to 20%. The company has taken a leading role in the development of standards for the Thai market, it has increased support staff to its 400 personnel and is currently building an extensive upcountry distribution network
THE THAI OFFICE AUTOMATION MARKET, 1990 : Thailand Investment article from Business Management Catagory THE THAI OFFICE AUTOMATION MARKET, 1990
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