DEFENSE EQUIPMENT

Thailand

Overview                    

Thai Defense Budget                         Unit: Million US$

            Defense Budget GDP        Defense Budget in % to GDP              Annual Inc/(Dec)            

2004       2,182 182,690                               1.19%                                               -1.72%            

2005       2,257 199,861                               1.13%                                                 3.42%            

2006       2,387 216,283                               1.10%                                                 5.78%            

2007(e)   3,194 235,317                               1.36%                                               33.82%

 

Exchange Rate 36 36 36 36

Note: All figures in US$ millions.

Since the September 19, 2006 military coup in Thailand, there has been some uncertainty as to the priorities of the new coup government and how the government budget will reflect this. Prior to the coup, the Ministry of Defense budget for 2006 was about $2.38 billion, of which about 70 percent is allocated for personnel and administrative expenses, while only 5-10 percent is likely to be invested in new defense equipment, subject to needs and requirements.  We expect 2007’s budget to be around $3.2 billion, and is targeted to be allocated in the first quarter of 2007.

With an improved military budget, the ability of the Thai defense forces to upgrade its military hardware and procure new equipment has been enhanced and will continue to improve under the Thai Government’s long-term, 2006-2014 defense forces modernization plan. The following are priority items on the operations agenda: UN peacekeeping missions, humanitarian assistance, counter terrorism, disaster relief, protection against illegal smuggling, and protecting the territorial waters and natural resources.

Best Prospects/Services      

•           To name a few major procurement projects: multi-role helicopters, upgrades and purchases of new fighter jets, air defense systems, command and control (C4I) systems, UAVs, frigates, off-shore patrol vessels (OPVs), training simulators, search and rescue (SAR) aircraft.

Opportunities Return to top

Within the framework of the Thai defense forces modernization plan, four key   development areas have been set: forces restructuring, military education, “package” procurement concept, and research and development (R&D) capability. Implications of the plan differ for each branch of Thai military, providing more opportunities for foreign suppliers to participate.

Resources

Ministry of Defense  Supreme Command Headquarters

Foreign Affairs Division, Office of Policy Office of Policy and Plans, Directorate of and Planning, Tel: 662-225-7414, Fax: Join Operations, 662-226-1839 Tel: 662-575-6203, Fax: 662-575-6067

Email: dfadmod@N0SPAM.bkk3.loxinfo.co.th Email: opp_j3@N0SPAM.yahoo.com

Royal Thai Army Royal Thai Navy

Policy and Plans Division Research and Development Division Directorate of Logistics Naval Operations Department Tel: 662-297-7424, Fax: 662-297-7420 Tel: 662-475-5533, Fax: 662-475-7968

Email: s_wongmark@N0SPAM.yahoo.com Email: phuvanont@N0SPAM.hotmail.com

Royal Thai Air Force Defense Space Technology Center

Policy and Plans Division Ministry of Defense Directorate of Operations Tel: 662-225-7414, Fax: 662-226-1839 Tel: 662-534-1457, Fax: 662-534-1378

Email: chainarong_kaew@N0SPAM.yahoo.com Email: pap_do@N0SPAM.yahoo.com

Kitisorn Sookpradist, Commercial Specialist US Embassy Bangkok GPF Witthayu Bldg. A, Suite 302 93/1 Wireless Rd., Pathumwan, Bangkok 10330 Tel: 662-205-5090, Fax: 662-255-2915

http://www.BuyUSA.gov/thailand/en or BuyUSA.gov/asianow/southeastasia_home.html