Arms Market in Thailand is One of the Fastest Growing in Southeast Asia

06 Maret 2012

BTR3E1 from Ukraine and Mi-17V5 from Russia (photo : Thaifighterclub)

TSAMTO, In Bangkok, opens March 5 International Exhibition and Conference on Defense and Security, "Defense & Security-2012", in which will be attended by over 250 companies from 30 countries, including seven Russian companies.

Such a broad representation of foreign companies at the exhibition in Bangkok due to the fact that the arms market in Thailand is one of the fastest growing in the South-East Asia.

According to TSAMTO (calculation of the standard four-year period), total imports of arms of Thailand in 2004-2007.amounted to 355 million dollars in 2008-2011. - 1.715 billion dollars. To date, the number of orders on imports of Thai weapons for delivery in 2012-2015. amounts to 2.41 billion dollars.

The main feature of the arms market in Thailand is that the group of the world's biggest arms suppliers are pressed exporters from the second and even third-tier.

In particular, in the field of aviation technology in the arms market in Thailand is now dominated by Sweden, a strong position in the segment holds armor Ukraine. It would seem so long ago have settled the question of purchasing diesel-electric submarines from the German Armed Forces, the newly revised. For individual segments of the arms strong position on the arms market in Thailand is occupied China, Singapore, Indonesia and Brazil.

Position of the main suppliers of the arms market in Thailand

The period 2004-2007

Total imports of arms of Thailand in this period TSAMTO estimated to be worth 355 million dollars, including 141 million dollars in 2004, 30.6 million dollars in 2005, 94 million dollars in 2006 and 89 million dollars in 2007.

The first place for the period 2004-2007. in the Thai market is France - 80 million dollars (22.56% of total imports). Second place is occupied by the United States - 77.5 million dollars (21.85%). The third and fourth places are shared by Singapore and China - with 70 million dollars (19.74%).

The small volume deliveries during this period carried out in Sweden, Germany, UK, Netherlands and New Zealand.

The period 2008-2011

Total imports of arms of Thailand in this period TSAMTO valued at 1.715 billion dollars, including 157 million dollars in 2008, 300 million dollars in 2009, 486 million dollars in 2010 and 772 million dollars in 2011.

The first place for the period 2008-2011. in the Thai market has taken Sweden - 531 million USD (31% of total imports). Second place was taken by Indonesia - 220 million dollars (12.83%).Closes the three leaders of Brazil - 180 million dollars (10.5%).

The following places over the period 2008-2011. in descending order took the United States (177.5 million dollars), Italy (150 million dollars), Israel (132 million dollars), Ukraine (USD 115 million), France (52 million dollars), China (47 million dollars), South Africa ( 30 million dollars), Russia (29.1 million dollars), an unknown provider (26.2 million dollars), Spain (20 mn) and Austria (six million dollars).

Orders for the import of arms for the period 2012-2015

At the moment TSAMTO estimates of orders of Thailand to import arms for the period 2012-2015. in the volume of 2.41 billion dollars. Of this amount, 614.4 million dollars accounts for Sweden (25.5%), 551 million dollars in the U.S. (22.9%) and about 380 million dollars in the Ukraine (15.8%).

In the category of "tender" (the provider has not yet determined) the volume of deliveries in 2012-2015. estimated at 300 million dollars.

Thailand, Russia

During Putin's visit to Thailand in October 2003 signed a bilateral Memorandum of Understanding between the Government of the Russian Federation and the Government of the Kingdom of Thailand on the logistic and technical support for the troops. This document is the first real step toward the establishment of military-technical cooperation between Russia and Thailand.

It is a framework agreement, which covers areas of both military and military-technical cooperation. It provides for exchange of information, expertise, training issues, and other forms of interaction. The document was signed for five years with subsequent prolongation. The memorandum is regarded by the parties as a necessary legal framework for bilateral cooperation.

An important impetus for the development of bilateral military-technical cooperation was reached during the visit of Vladimir Putin agreed on the settlement of Soviet-era debt to Thailand amounting to 36.5 million dollars. The document defines a mechanism for repayment of debt supply of goods or services for five years.

Until recently, Russia has not been able to penetrate the Thai market weapons. In this regard, a breakthrough can be called a contract for the supply of three Thai Mi-17V-5.

At the end of February 2011 at the airbase "Utapao" transport aircraft An-124-100 "Ruslan" were delivered to three of the Mi-17V-5.

The contract value amounted to 990 million baht (27.5 million dollars), including the costs of maintenance and training costs 50 million baht. Financing the purchase of Mi-17V-5 was carried out using funds previously allocated to the repair program 15 helicopters UH-1 "Huey" worth 999 million baht, which was later canceled.

Despite the fact that the North of Thailand purchased helicopters for transport version, they can be equipped with machine guns, Mag-58 or M-60. Currently NE Thailand are considering the purchase of 3 additional helicopters in Russia.

Ground forces in Thailand have decided to purchase three helicopters MI-17 Russian-made at the end of 2008. The contract was the first purchase of Russian helicopters NE Thailand. Previously used only American cars.

For the first time Russia has offered to Thailand to buy Mi-17 helicopters in 2005, but then the decision was not made.

The history of bilateral military-technical cooperation between Russia and Thailand began in 1994 when the Russian president's decree was given consent to the establishment of military-technical cooperation with Thailand.

In the period from 1994 to 2000. was prepared and delivered to the Thai side of the business for more than 20 proposals for cooperation in the sphere of military-technical cooperation on selected samples of military hardware, but they were not implemented, suggesting an extremely difficult task to penetrate new markets in the Russian arms.

At present, "Rosoboronexport" is working with Thailand at the request of the Thai side. We are talking about the possible purchase of small arms, anti-aircraft and helicopters. For Russia, Thailand, is of interest in terms of promotion of small submarines and missile boats.

For more information on the arms market statistics in Thailand, please visit TSAMTO in the sections "Arms Trade" and "Ongoing analysis." The materials are placed in the public domain.

(ArmsTrade)