Overview of the Environmental Technologies Industry in Thailand
Overview of the Market for Environmental Technologies Thailand
Summary:
Thailand has a strong market for U.S. environmental goods and services, but the market is increasingly competitive, with strong players from Europe and Japan. Significant obstacles to market entry require patience, capability, commitment, and sound local partners.
Market:
Thailand’s pollution control equipment and environmental services market was estimated at $1 billion in 1995; and would reach $1.5 billion by the year 2000. Over the next 5 to 6 years, environmental infrastructure projects are estimated to reach a total contract value of $13 to 15 billion. However, due to the country’s 1997 economic crisis, the market is not expected to grow in 1998, and in 1999, growth will increase gradually.
High-speed industrialization, rising public awareness, strengthened legislation, and economic growth has already given U.S. environmental firms an significant advantage in the Thai market. Numerous privatization schemes have already emerged in water/wasted treatment, as well as solid and hazardous waste management. As a result, the public is now demanding changes in the governance structure that are intended to reduce corruption and strengthen democratic institutions. The recent adoption of the new constitution is one concrete example of this shift in opinion and the government’s efforts to respond to it.
Thai government has prioritized development in water supply, wastewater management, and sewerage development and planned to spend about $3 billion on major water projects during 1995-2000. The environmental investment potential in wastewater treatment is about $2.56 billion, and the needs will continue to grow. In addition, the Asian Development Bank is providing funds for waste/wastewater and solid waste treatment projects.
In air pollution control, major areas of opportunity lie in: air pollution monitoring, air pollution control in vehicles, and gasoline vapor recovery technology. It is estimated the Thai market spends about $90 million per year in this sector.
A total of $382 million dollars will be spent on solid waste management over the next five years. Key opportunities exist in the area of solid waste removal in Bangkok and in the Provinces and equipment for solid waste management.
Another environmental problem that needs to be addressed in Thailand includes thehazardousand industrial waste field. Major opportunities in this field consist of: central treatment, on-site treatment in industrial estates, and medical waste management.
The Thai environmental services field is wide-open to include: environmental impact assessment, pollution prevention and ISO 14000, corporate environmental strategy, environmental management systems, environmental auditing, and energy efficiency consulting. The environmental consulting and engineering sector in Thailand is estimated at $100 million.
A tremendous industrial expansion has caused rapid growth in energy demand. The Thai government plans to spend approximately $10 billion on new energy generating capacity from 1997 -2001. The major opportunities in this sector include: independent power producers program, small power producers program, renewable and alternative fuels, energy efficiency, and human resource development.
