Opportunities in Thai water, wastewater markets attracts foreign investments

SINGAPORE, Dec. 13, 2009 -- According to new analysis from Frost & Sullivan, the water and wastewater treatment market in Thailand is emerging as a favored destination for engineering consultant services and is expected to grow...

SINGAPORE, Dec. 13, 2009 -- The water and wastewater treatment market in Thailand is emerging as a favored destination for engineering consultant services and is expected to grow substantially on the back of rising demand from municipal and industrial sectors. The growing population and increasing concerns about water scarcity are driving the government to encourage water and wastewater treatment (WWWT).

New analysis from Frost & Sullivan (http://www.environmental.frost.com/), Market Growth Opportunities of Water & Wastewater Markets in Thailand, finds that the market is likely to earn revenues of $177.3 million by 2015.

"The Thailand government has established comprehensive measures for WWWT development and management," says Frost & Sullivan Consultant Melvin Leong. "It has invested massive and continuous budget outlays for irrigation projects to ensure adequate water supply for the country."

While government backing and stringent implementation of regulations are expected to buoy the supplier market, the limited local capability to produce high technology has opened the market wide open to foreign imports of products and services. Approximately 80 percent of the WWWT equipment in Thailand is from foreign participants Japan, the United States, and Europe.

The upturn in the industrial sector has driven up the demand for WWWT facilities. Advanced WWWT technology will find considerable business opportunities in high-growth industries such as automotive, electronic and electrical, paper and pulp, as well as steel. Further, heightened environment consciousness and the need to develop a global standard for environment protection are making a solid case for the WWWT market.

Despite these considerable prospects, participants may experience shrinking profits because maintaining attractive pricing without compromising on product quality and offering after-sales support in this intensely competitive market may not be feasible.

In addition, the occasional turbulence in the political situation may slow down the overall economic growth in Thailand. In such a scenario, suppliers tend to rely heavily on government subsidies for the constructions or refurbishments of treatment plants.

Another solution to the price problem is cost cutting by both local and foreign suppliers. This option is unpopular among participants and can be avoided through foreign-local business partnerships and joint ventures, as they can reduce financial risks and losses.

"At present, there are limited partnerships between companies in Thailand's water and wastewater projects and most participants bid independently for public and private projects," adds Leong. "Strategic partnerships among these companies are expected to create better business models in the supply of services, products, and maintenance or after-sales activities."

If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Market Growth Opportunities of Water & Wastewater Markets in Thailand is part of the Environmental Growth Partnership Service program, which also includes research in the following markets: bottled water markets in Vietnam. water and wastewater market in Australia, Indonesian building construction market, and South Korean building construction market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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