The Post-COVID future of outsourcing and the positive effects on the Food Industry in Thailand
As we look around us in the news or on social media sites, we have found that we are looking at a situation worldwide that has strongly affected the economies around the world, but also has provided many with the opportunities in rebuilding the foundations in how we do business in this “New Normal”.
Having the opportunity to become a Global Leader in both manufacturing and trade this past year due to the ongoing trade war between the USA and Chinese government, it has given Thailand the ability to step in and provide critical supply chain services and manufacturing. Since the pandemic and subsequent lockdown, Thailand has since continued to move forward by taking positive steps forward and is one of the safest countries in the world. As the country has continued to overcome each hurdle presented to them, they have done a good job in finding ways to assist ailing industries and investors. The Thai Government appears to have successfully contained the situation up to this point with no local transmission for more than (3) months. However the economic situation is one of the most difficult and important issues as in the region with a forecast of 8% recession looming ahead. This would indicate the biggest recession in the recent history, within the Kingdom of Thailand, which for the most part is due to the adverse effect on Tourism and related sectors.
Although this pandemic has been a destructive factor in countries who are highly dependent on tourism, other industries and businesses are not facing the same problematic situations as other industries. These industries will thrive even as we face new perspectives in how we look at sourcing and supply chain opportunities such as, for example, in the food industry.
Due to its central location in SEA, the skilled workforce, natural resources, and quality control, the food sector has all the strengths to remain intact and create opportunities to grow as buyers and sellers seek long-term opportunities. In the International Marketplace, the Kingdom of Thailand features many well-known companies which are primarily based in the food sector. The Kingdom is also the world leader for international exports of canned tuna, pineapple, corn, and coconut milk as well as having a leading position for rice, sugar, shrimp, and ready to eat meals sold worldwide. The recent surge in demand for the very popular fruit Durian in both China and Japan has shown an excellent example of opportunities surrounding things that are specifically Thai.
As a result of this demand, manufacturing and supply chains have stayed open with international demand to import food products increasing by 6% compared to last year and now representing roughly 22% of the country’s total exportation. The income from food exports represent more than 30 billion USD in 1/5 of the country economy.
The Ministry of commerce anticipates a stable growth in this area as we continue to move forward in this post COVID period. Food processing is chosen as a key industry to be promoted with strong investment supported by the government. The Food and Consumer Consumption Industries including all areas involved in export will be one of the highest areas for the national economic strategy while also continued investment to become the pinnacle of innovation in this sector and focused center of Asia. The increasing investment allocated to the food sector despite the current economic situation is proof of the trust and opportunity existing in this industry both for those within Thailand and Worldwide.
With travel limitations still in place for many as countries look to find solutions for safe international travel, it is more important than ever before to have a local presence who can provide the essential knowledge and experience to assist companies as well as investors to profit efficiently from the current opportunities. Growing demand overseas for numerous products in the food sector and consumables from Thailand can only be truly successful when a trusted value minded “Sourcing Consultant” is protecting your investment. With years of practical experience in this area both in Thailand and in France, Khun Gael of Sousaben can act by using his expertise in both supplier evaluation and selection of the highest quality of products procured in a cost-effective manner. In order to secure the supply and protect investment, RWT International Law is pleased to be in partnership with Gael and his team. If you are looking to expand your business or even start something new in a existing service line the Khun Gael Bensousen, Senior Director of Sourcing, can provide you with a free consultation about any specific area of including distribution, sourcing, planning strategies, and timeframes. With the opportunities expanding exponentially in this and other industries, the time is now to be proactive and use the resources of RWT Partnerships to your advantage no matter if you are a new or existing client.
Please feel free to contact Kevin Harrington, International Business Consultant at RWT for more information or at firstname.lastname@example.org with Attn: Kevin in the subject line and start your future today!