Thailand is one of Asian countries that has significant economic presence with GDP or gross domestic product ranking in the continent’s top ten. The chemical innovation Thailand, petrochemical industry, accounts for around 5% of the GDP. It has a long history of development and growth.
It is crucial to learn about the country’s economic background, policies, trends, and also the challenges that impact the chemical industry in Thailand. About 69 million people are living in Thailand. It makes the country the second biggest economy in Southeast Asia, right behind Indonesia.
The Economy of Thailand
Thailand became the second biggest economy in Southeast Asia with a GDP per capita of USD 5,900. This fact places Thailand in the fourth rank in the continent, behind some other countries like Singapore, Brunei Darussalam, and Malaysia.
Based on petrochemical industry in thailand, the domestic demand that is relatively large has enabled the sector of petrochemicals to capitalize on the scale of economies. The largest chemical as well as petrochemical complex of Thailand is located around 200 km on the east of Bangkok, in a location named Map Ta Phut in Rayong province.
It is one of the biggest as well as the best developed complexes of petrochemical in Asia. The government of Thailand decided to develop the domestic petrochemical and natural gas industries in order to reduce the energy imports and the impact of price fluctuations of global crude oil.
The First Wave of Chemical Innovation Thailand
The first wave of petrochemicals was between 1980 and 1989. The country initially relied on the important products and raw materials. During those years, the production of domestic petrochemicals was driven by the import substitution as well as the indigenous natural gas’s increasing value.
At the time, investments and the domestic market were served by the industry and made through the private and public sector cooperation. The feedstocks used were propane and ethane that are based on gas. And the products were some basic commodities including derivatives and olefins.
The Second Wave of Thailand’s Petrochemical
The second wave was between 1989 and 1995 also between 1995 and 2004 during the liberalization. When the sector of petrochemical shifted the strategic focus to exports from domestic consumption, The Thai government started moving forward with the second wave of petrochemical innovation.
The private sector directly participated in the petrochemical innovation and the manufacturing activities related to petrochemical. A petrochemical company was established somewhere in 1989, followed by another similar company in 1990. Both of them produced the raw materials.
Those raw materials were needed for downstream and intermediate industries. The manufacturing base of Thailand grew in order to replace the imports for various products. Between 1995 and 2004, petrochemical companies began increasing the exports.
The Third Wave of Petrochemical in Thailand
This third wave started in 2004 and is still going until now. The government of Thailand has developed a master plan that focuses on increasing asset integration, competitiveness, and also strategic alliances.
—Chemical innovation Thailand is a wonderful sector you need to consider. However, it is crucial to conduct research about this sector before you start making any decision about expanding to the Thailand market.