Director-General of the Department of Business Development reveals that the Thai furniture business continues to grow. behind the tourists Bedroom hotel business The real estate business trend is improving. The demand for residences and houses has increased, resulting in 2022, the total production and sales of furniture in the country will reach 167 billion baht. Foreigners love sophistication. Beauty pushes export sales to 81.2 billion baht. Suggest entrepreneurs turn to producing furniture that is environmentally friendly: Green Furniture' to embrace the trend of caring about the environment.
Mr. Thotsapon Thansubut, Director-General of the Department of Business Development, said that the business analysis team Business Information Division The Department of Business Development has analyzed business trends worth watching in the third quarter of 2023 and found that one of the outstanding businesses Performance continues to be good in terms of revenue and profits. Future business growth trends including the arrival of both Thai and foreign investors. 'Furniture business' is a business that has become more prominent than many businesses that are currently popular. An important supporting factor is the economic recovery from both the service and tourism sectors. Especially the return of foreign tourists. and the real estate business that has an improved trend Demand for residences and second homes to support hybrid work workplace for high-income Thais and foreigners coming to live in Thailand; government policies such as reducing transfer and mortgage fees; Including residential businesses in regional provinces with significant sales growth, such as Chonburi and Rayong provinces that have benefited from the development of the Eastern Economic Corridor (EEC), resulting in real estate entrepreneurs rushing to expand their business to Supports urban expansion and employment Phuket Province is beginning to have foreign tourists coming to buy buildings for investment, etc.
Overall, residential ownership transfer units nationwide in 2022 increased by 14.3% to 392,858 units, including the construction and expansion of hotel businesses to accommodate more tourists coming into the country. And if considering the performance of the furniture business over the past 3 years, it is found that in 2020 the business had total income of 151,533.16 million baht, profit of 3,203.34 million baht, year 2021 income of 164,844.29 million baht (an increase of 13,311.13 million baht or 8.79%). Profit 2,928.07 million baht (decrease 275.27 million baht or 8.60%) Year 2022 income 166,576.23 million baht (increase 1,731.94 million baht or 1.05%) Profit 4,563.82 million baht (increase 1,635.75 million baht or 55.87%) It can be seen that the picture Including the operating results of the furniture business in 2020 - 2022, income is likely to continue increasing. with an average annual income of more than 160, 000 million baht, although the income has not increased significantly, the market value is considered to be high. If considering the profit performance in 2020-2022, there is some fluctuation. In 2021, the value decreased slightly.
while the overall picture of exports to foreign markets Currently, Thailand is the 25th largest furniture exporter in the world. Thailand has strengths in domestic raw materials such as wood, rattan, and rubber, etc., and a skilled and skilled workforce, according to the Information and Communication Technology Center. The Office of the Permanent Secretary, Ministry of Commerce found that the overall value of Thai furniture exports continues to increase. In 2022, there was a total export amount of 81,179 million baht, an increase of 5% from last year. The top 5 main markets include the United States, Japan, and China. Malaysia, Indonesia, and has expanded significantly in countries in Asia and in the ASEAN group such as South Korea, Malaysia and Indonesia. If the value of furniture exports from all over the world is included. Thailand has a market share of only 0.7%, which still has a lot of room to expand the export market.
As for the growth in the furniture business of Thai and foreign investors, it was found that in 2020 there were 399 businesses registered with a registered capital of 1,225.11 million baht. In 2021, 382 registered (decreased by 17 or 4.26%) with a capital of 1,052.56 million baht (decreased 172.55 million baht or 14.09%) and in 2022 there were 368 registrations (decreased by 14 or 3.67%) with a capital of 1,362.47 million baht (increased by 309.91 million baht or 29.45%). For the year 2023 (January - August) there were 315 registrations. (Increased by 42 cases or 15.39% compared to 2022 (January - August) with 273 registrations) Capital 759.42 million baht (Decreased 319.60 million baht or 29.62% compared to 2022 (January - August) with a capital of 1,079.02 million baht) with the majority of the furniture business being an investment by Thai people. There is an investment value of 48,017.18 million baht, accounting for 98.00% of the total investment in the business. While the highest foreign investment is China, worth 5,606.99 million baht (0.
However, there are currently 6,292 furniture businesses operating in Thailand as of August 31, 2023, accounting for 0.71% of the total businesses operating. and has a capital value of 60,970.43 million baht, accounting for 0.28% of all businesses operating in Thailand. Businesses are located in Bangkok, 2,377 businesses (37.77%), followed by the Central Region 1,971 businesses (31.32%), the Northern Region 532 businesses (8.46%), the Eastern Region 478 businesses (7.60%), the Southern Region 415 businesses (6.60%), the Eastern Region Northeastern region 381 cases (6.06%) and Western region 138 cases (2.19%)
In this regard, furniture business operators should adjust themselves to be in line with customer needs and trends in demand for various types of furniture in the world market, especially at present when the behavior of consumers and various business sectors Turn to pay more attention to the environment. cause a trend 'Green Furniture' and various environmental regulations for furniture products This is an important opportunity for businesses to adapt and develop products to meet the needs of customer groups in order to be able to compete in the global market. and for the sustainability of the business. The Thai furniture business has the opportunity to grow continuously in the long term
Source: Thai News Agency