Health, beauty businesses ‘ to continue strong growth in 2016’
The medical and beauty businesses will continue to be the growth champions next year, followed by telecommunications and cosmetics, according to the University of the Thai Chamber of Commerce.
A study by the university released yesterday also identified sunset businesses with dismal growth prospects, including handicrafts with no designs or creativity, dyeing, textiles with no designs or innovation, and dried vegetables and fruits.
Other sunset businesses are traditional retail, rubber trading, small-scale rice milling, printing, trading in used computers and mobile phones, agricultural-equipment trading, and middleman services for agricultural products.
"Rising concerns for healthcare and beauty will continue to encourage the growth of the medical and aesthetics businesses, while the 4G development and the government’s promotion of the digital economy will greatly support the growth of telecommunications," said Thanavath Phonvichai, director of the university’s Economic and Business Forecasting Centre.
The economy next year is projected to expand by 4 per cent on expected strong growth of exports (4 per cent), domestic consumption (3.7 per cent), investment (6.2 per cent), industry (3.6 per cent), agribusiness (0.7 per cent) and inflation (1.4 per cent).
The government’s economic stimulus package and infrastructure development under the Thailand Future Fund, and the country’s moving towards Asean integration and the seamless market, should also help encourage the growth of many businesses.
However, there are still some risk factors that might handicap the economy and some businesses next year – sinking oil prices, concern over the safety and production standards of some goods, high cost of production, and climate change, which could lead to smaller harvests and weaker consumer confidence.
Saowanee Thairungroj, president of the university, said the medical and beauty businesses would continue to be the growth leaders for the fifth year running because of the ageing population, changing lifestyles and strong interest in beauty and health.
High acceptance, quality services and reasonable prices will also drive the growth of the medical and beauty businesses.
Other businesses that are expected to show significant advances next year are cosmetics and healthcare products, tourism-related businesses, insurance, food and beverages, especially health products, logistics and transport, bazaars and markets, construction and construction materials, herbs, medicine, supplement trading and alternative energy.
To keep growing, businesses need to learn to adapt to the seamless market by trading more with other countries in the region, expanding overseas, especially to neighbouring countries, and adopting new innovations and creativity, she said.
