The Thai government views the healthcare sector as a top priority for investment and continued growth in accordance with its Thailand 4.0 program. The Ministry of Public Health’s 2016–2025 Strategic Plan, “Thailand: A Hub of Wellness and Medical Services,” reaffirms this position. Therefore, this makes the medical industry to be very promising for foreign investors to do business in Thailand.
Other elements, such as a solid foundation of health-related sectors, rising demand for health services, and alluring investment incentives, among others, also play significant roles in strengthening Thailand’s position as the “Medical Hub of Asia.” While the government’s policies provide the strategic direction required for Thailand to strengthen its position as a regional medical hub, other elements also contribute significantly.
Thailand has developed into a medical center not only for ASEAN but also for Asia and beyond, with a strong healthcare infrastructure already in place and a global reputation for its highly skilled medical personnel and international standard medical services. Therefore, Thailand presents the ideal investment destination for a wide range of medical and healthcare service companies due to its favorable regulations from the government and the BOI.
What Makes Thailand Successful in the Healthcare Sector?
Aging Society of Thailand: Business Opportunity in Thailand
Leading Medical Tourism Hub in Asia: Business Opportunity in Thailand
Large Market for Medical Devices: Business Opportunity in Thailand
Growing Domestic Pharmaceutical Market: Business Opportunity in Thailand
Government Initiatives Supporting Business in Thailand
Board of Investment Incentive Policies for the Medical Industry
Success in Healthcare Sector
Thailand has already put in a lot of time and effort to make access to medical care and public healthcare easier. Additionally, government spending on healthcare has quickly increased, from less than 50% in 1995 to almost 80% presently. However, since 2002, Thailand has also had a universal healthcare system in place. As a result of this policy’s success, over 99% of the country’s citizens now have access to public healthcare.
In Thailand, there are more than 1,000 governmental hospitals and 300 private hospitals. Moreover, these facilities provide a wide range of services that include many different types of treatments. This makes it clear that the public healthcare system in Thailand likely serves practically the whole population.
The Aging Society of Thailand
Even though Thailand has a sizable healthcare industry, the country’s aging population will increase the need for healthcare services in the coming years. Additionally, Thailand is on the path to having an aging population, just like many other nations. It is because the proportion of people over 60 is one of the highest in the ASEAN region when compared to other nations. Furthermore, it is anticipated that by 2045, this share will be higher than that of other regions, including Europe and the US. Therefore, there is little doubt that Thailand’s aging population will continue to increase domestic healthcare demand in the coming years.
Leading Medical Tourism Hub in Asia
Millions of foreign patients get treatments from Thai hospitals due to cutting-edge medical facilities. Additionally, the number of foreign patients at Thai hospitals has been rising quickly. Also, Thailand features top-notch healthcare professionals and world-class medical facilities. Due to this demand, a large number of new medical businesses may be considering entering the Thai market.
Thailand has top-notch medical facilities and takes pride to have the greatest number of private hospitals in Asia. Additionally, a lot of hospitals and healthcare facilities have Joint Commission International (JCI) accreditation. Note that every region of Thailand is represented by the 64 organizations that are JCI-accredited as of December 2018. Bangkok, Nakhon Sawan, Chiang Mai, Chiang Rai, Khon Kaen, Udon Thani, and Phuket are among the provinces where JCI-accredited facilities are found.
However, the number of medical tourists coming to Thailand has been increasing because of:
- Reasonable costs of medical treatment
- High-quality medical and healthcare services
- Highly developed tourism infrastructure
- A global reputation for attentive and world-class services
Therefore, Thailand is growing to be a top medical tourism destination in Asia due to the high standard of medical care and reasonable cost of medical treatment. Please note that Thailand ranks 18th overall and 6th globally in the field of the medical tourism business, according to the Medical Tourism Index (MTI), a measure of a country’s desirability as a destination for medical tourists.
Large & International Market for Healthcare Devices
The eighth-largest market for medical equipment in the Asia-Pacific area is Thailand. At the end of 2020, Thailand is expected to have 538 local medical device manufacturers. Currently, there are two distinct categories of medical devices available on the market. For your information, they are consumable and diagnostic imaging equipment, such as simple medical supplies and patient aids, and the more advanced (and typically imported) devices.
However, the latter offers the greatest potential for prospects for investment from overseas firms. It is only because Thailand’s medical equipment sector is developing, providing both locals and foreigners with good business prospects. Additionally, Thailand is aiming to become the leading healthcare and medical business center in ASEAN by hosting the international expo and congress on medical devices, services, and general healthcare known as Medical Devices ASEAN (MDA).
For your information, the major medical and healthcare manufacturers in Thailand along with their specialties in production are as follows:
| Company | Products Manufactured |
|---|---|
| Nipro (Thailand) | Blood Tubing Set, PTA Balloon Catheter, Hypodermic Needles, and Syringe |
| Hoya Optics (Thailand) | Glass Molded Lenses, Preforms, Glass Polished Lenses, and Glass Lenses Pressed Blanks |
| Kawasumi Laboratories (Thailand) | Hemodialysis, Plasmapheresis, Blood Banking and Transfusion, and Infusion Therapy |
| Reckitt Benckiser Healthcare Manufacturing (Thailand) | Antiseptic, Sore Throat Medicine, Ingestion Remedy, and Immune Support Supplement |
| Meditop | Diagnostic Product, Cardiovascular Product, Ventilator, Renal Product Group, and Tester |
| GE Medical Systems (Thailand) | EP Recording, Maternal-Infant Products, Ultrasound, Radiography, Mammography, and Ventilator |
| Eyebiz Laboratory (Thailand) | Ophthalmic Lenses |
| Emerald Nonwovens International | Single Use Medical Devices, Surgical Gowns, and Specialty Drapes |
| Infus Medical (Thailand) | Bone Cement Mixing, Blood Transfusion Products, Apheresis Products, and Drainage Products |
S-Curve Businesses in Medical Industry in Thailand
One of the emerging S-curve businesses is the medical device industry. As a result, the government would support efforts to establish Thailand as a medical hub and a hub for the export of medical equipment and gadgets to the CLMV region and other ASEAN nations, where there is an increasing need for such equipment. Additionally, the aging population in Thailand opens up markets for medical products for the elderly.
Moreover, in-country and international medical device manufacture and distribution are still on the rise. This is because Thailand has developed into a natural market for medical equipment due to its reputation as a provider of high-quality, reasonably priced healthcare and as a regional medical center. However, in 2018, Thailand’s medical device imports increased in value from 557 million to 962 million USD. Additionally, the export value increased from 554 million USD to 843 million USD throughout the same time period. Therefore, this pattern shows the expansion of the local market and the significance of the nation as an export hub.
Growing Domestic Pharmaceutical Market in Thailand
One of the most successful pharmaceutical marketplaces in the Asia-Pacific area is Thailand. Furthermore, the market is anticipated to expand at a compound yearly growth rate of 6.2% under a favorable economic outlook. For these crucial reasons, the pharmaceutical businesses have doubled in size by the year 2020. Nevertheless, the main cause of this is Thailand’s aging population, which has increased the demand for medications. To add on to this, Thailand’s Universal Coverage Scheme (UCS) and the ongoing expansion of medical tourism are additional significant factors. Due to these reasons, nearly 20% of all domestic health spending is now spent on pharmaceuticals, the majority of which is dispersed through Thailand’s public and private hospital networks.
Despite a large number of domestic manufacturers, Thailand relies significantly on imports of pharmaceutical products. To illustrate practically, according to Krungsri Research (2018), the country imported pharmaceuticals worth 2.93 billion USD; 16% of which from China and 12% of which from the United State of America. Therefore, this reflects the fact that there is more room for enterprises wishing to produce and expand their sales in the Thai market. Moreover, for exports, the market is also sizable. Note that, Thailand’s export value stood at 884 million USD, mainly to the neighboring countries.
As of March 2018, there were 194 manufacturers of conventional medicines in Thailand and approximately 90% of these were accredited with the Good Manufacturing Practice (GMP) standards. For your information, this quality standard ensures that all finished pharmaceutical products are produced to a universally acceptable quality. Furthermore, Thailand has been involved in some primary pharmaceutical research and development, namely the ongoing development of vaccines for HIV and various strains of flu.
Government Initiatives for Medical Industry in Thailand
In late 2018, the Ministry of Science and Technology, in collaboration with the Ministry of Public Health and the Ministry of Education, unveiled the ‘Yothi Innovation District’. Moreover, with an anticipated thirteen medical institutions and two universities offering medical courses, it is envisaged as an area that will soon make Thailand the centerpiece of medical innovations. The area will be able to treat approximately 8,000 patients per day and will have more than 7,000 beds available. Additionally, the Strategic Plan is expected to invite more than 100 private organizations to invest in innovation creation and in the improvement of public-private partnerships. In addition, there will also be a number of policies articulated to support new medical experiments, create startups, and build online databases.
In addition to a continuous attempt to promote a variety of manufacturing activities such as those related to medical devices, pharmaceutical products, and medical food and supplements, the Thai government has placed greater emphasis on the promotion of medical services. Note that, this is part of an initiative to drive Thailand towards becoming the No. 1 medical hub of Asia with a full range of first-class services. To this end, the BOI has provided incentives to stimulate investment in four additional areas of medical services including Thai traditional medical centers, specialty medical centers, hospitals, and medical transportation services.
BOI Investment Incentives for Medical Industry in Thailand
For investment projects that support governmental development goals, the BOI provides a wide range of incentives. Additionally, corporate income tax is exempted as part of the tax incentives, along with import duties on machinery needed for the project and on raw materials or other crucial components used to make exported goods. However, in terms of non-tax incentives, the BOI also permits the hiring of foreign nationals, the taking or sending of foreign cash overseas, and the ownership of land for project purposes.
| Eligible Activities | Basic Incentive |
| Manufacture of high-risk or high-technology medical devices, (e.g. x-ray machine, MRI machine, CT scan machine, and implants) or medical devices that are commercialized from public sector research or collaborative public-private sector research If the projects include R&D and innovation If the projects do not include R&D and innovation | 8 years CIT exemption (no cap) 8 years CIT exemption |
| Active pharmaceutical ingredients | 8 years CIT exemption |
| Manufacture of other medical devices (except for medical devices made of fabrics or fibers) | 5 years CIT exemption |
| Manufacture of medicine | 5 years CIT exemption |
| Manufacture of medical devices made of fabrics or fibers, e.g. gowns, drapes, caps, face masks, gauze, and cotton wool | 3 years CIT exemption |
| Specialty medical centers | 8 years CIT exemption |
| Hospitals | 8 years CIT exemption |
| Traditional Thai medical public services | 5 years CIT exemption |
How Can We Help You?
If you are not from Thailand, the major assistance that you can get from us is our expertise in Thai legal, accounting, and taxation process along with decades of experience in the Thai market. Moreover, this will help you focus on your business plan rather than learning the Thai rules and protocols. Additionally, you get the following support from us:
- Fast Processing of your Applications
- We complete the Documentation on your behalf
- Assist in your Immigration and Work Permit Process
- Full support in your Payroll Management
- We have a specialized team for Accounting, Auditing & Taxation
Therefore, all you need to have is a brilliant idea, investment, and a trustworthy Thai Partner (if needed). All the other arrangements are completely on us. Additionally, our good, long and healthy relationship with Thai officials and authorities will help in speeding up your company registration process in Thailand.
So, are you thinking to tap the potential of the medicine, pharma, and healthcare market of Thailand? You can book a round of free consultations by emailing us at [email protected].
