MARKET RESEARCH OF CONSTRUCTION IN

THAILAND

I. Major Construction Development Projects In Thailand and

Progress Status

According to information from National Economic and Social Development Council

(NESDC), over the next 3 years, a large number of government infrastructure development
construction projects that have received cabinet approval and that are at progress stage can
move forward effecting accelerate growth in the market. Table 1 and 2 demonstrated major
ongoing and new large-scale infrastructure construction projects in Thailand.

Table 1: Progress of Ongoing-Mega Projects Investment in Thailand

Investment % Construction
Completed
Ongoing Infrastructure Projects Value (Billion Progress (End of
Year
THB) 2018)
1. Mega projects in EEC: Dual track railway:
10.2 89.5 2019
Chachoengsao-Klong19-Kaeng Koi
2. Railway container depo at Laem Chabang port
2.9 98.8 2019
(phase 1)

3. Dual track railway: Jira to Khon Kaen 26 82.1 2019

4. Mass Transit System: Red Line (Bang Sue-

88 90.2 2020
Rang Sit)

5. Suvarnabhumi airport expansion 14 81.8 2020

6. Mass Transit System: Green Line (Mochit-

58.4 92.9 2020
Saphanmai-Khu Khot)
7. Mega projects in EEC: Motorway from Pattaya
17.8 87.1 2020
to Map Ta Phut

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 Investment % Construction
Completed
Ongoing Infrastructure Projects Value (Billion Progress (End of
Year
THB) 2018)
8. Regional airport development (In Yala,
3 50 2020
Maesod and Sakon Nakorn)

9. Motorway: Bang Pa-in to Nakhon Ratchasima 76.6 49.3 2021

10. High speed train: Bangkok to Nakhon

179.4 10 2023
Ratchasima (Thai-Chinese cooperation)
11. Mass Transit System: Orange Line (Thailand
109.5 24.6 2022
Cultural Center to Min Buri)

12. Motorway: Bang Yai to Kanchanaburi 49.1 12.7 2021

13. Mass Transit System: Yellow Line (Lad Phrao

51.8 14.9 2021
to Samrong)
14. Mass Transit System: Pink Line (Khae Rai to
53.5 14.7 2021
Min Buri)
15. Dual track railway: Nakhon Pathom to Hua
20 19.6 2021
Hin
16. Dual track railway: Hua Hin to Prachuab Kiri
10.2 16.4 2021
Khun
17. Dual track railway: Prachuab Kiri Khun to
17.2 14.3 2021
Chumporn

18. Dual track railway: Map Kabao to Jira 30.9 14.1 2023

19. Dual track railway: Lop Buri to Paknampho 22.7 7.1 2022

Source: Complied by Krungsri Research (Dec 2018)

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Table 2: Timeline of New Mega Projects Investment in Thailand

Investment Approving
Feasibility
New Projects of Infrastructure Value and Construction
Study
Development (Billion Bidding Period
Period
THB) Period
1. Dual track railway: Denchai-Chiang
85.3 2017-2018 2019 2020-2025
Rai-Chiang Khong
2. Dual track railway: Khon Kaen to
26.7 2017-2018 2019 2020-2023
Nong Khai
3. Dual track railway: Hat Yai to Padang
6.7 2017-2018 2019 2020-2022
Besar
4. Mega projects in EEC: High speed
train for Bangkok to Rayong
179.4 2017 2018 2019-2025
(connecting 3 airports: Donmueng-
Suvarnabhumi -U Tapao)
5. Mega projects in EEC: U-Tapao
215.0 2017-2018 2018 2019-2023
international airport
6. Mega projects in EEC: Map Ta Phut
86.0 2017-2018 2018 2019-2024
deep sea port phase 3
7. Mass Transit System: Orange Line
(Bang Khun Non to Thailand Cultural 120.5 2017-2018 2018 2019-2025
Center)
8. Mass Transit System: Purple Line
128.2 2017-2018 2018 2019-2024
(Tao Pun to Rat Burana)
9. Mass Transit System: Dark Red Line
6.6 2017 2018 2019-2022
(Rangsit to Thammasat University)

10. Light rail in Phuket 30.2 2017 2018 2019-2022

11. Light rail in Chiangmai 107.2 2017-2018 2018 2019-2024

12. Light rail in Nakhon Ratchasima 13.6 2017-2018 2018-2019 2019-2024

13. Light rail in Khon Kaen 13.9 2017 2018 2019-2023

14. Motorway: Rama III Road to Dao

31.2 2017 2018 2019-2021
Khanong and Western Outer Ring road

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 Investment Approving
Feasibility
New Projects of Infrastructure Value and Construction
Study
Development (Billion Bidding Period
Period
THB) Period

15. Motorway: Katu to Patong in Phuket 13.9 2017 2018 2019-2023

16. Motorway: Nakhon Pathom to Cha-

77.8 2017-2018 2019 2020-2023
am
17. Mega projects in EEC: Laem
Chabang deep sea port development 84.0 2017 2018 2019-2025
phase 3
18. Mega projects in EEC: Maintenance
repair and overhual (MRO) at U-Tapao 4.3 2017 2018 2019-2022
airport
19. Regional airport development
2.3 2017 2018 2019-2020
(Khon Kaen)
20. Regional Airport (Chiang Mai,
17.5 2017-2018 2018-2019 2019-2024
Nakorn Srithammarat and Trang)
21. Regional airport development
1.2 2017 2018 2019-2020
(Krabi)
22. Rest area of motorways (Pattaya -
Mabtaput, Bang Pa In-Nakorn
5.2 2017-2018 2019 2019-2020
Ratchasrima and Bang Yai -
Kanchanaburi)
23. Pier development (Tha Chang, Tha
0.2 2017-2018 2019 2019-2022
Tien, Samui island)
24. Dual track railway: Paknampho to
62.8 2017-2018 2019 2020-2024
Denchai
25. Dual track railway: Jira to Ubon
37.5 2017-2018 2019 2020-2024
Ratchathani
26. Dual track railway: Chumphon to
24.3 2017-2018 2019-2020 2020-2024
Surat Thani
27. Dual track railway: Surat Thani-Hat
Yai-SongKhla 24.3 2017-2018 2019-2020 2020-2024

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 Investment Approving
Feasibility
New Projects of Infrastructure Value and Construction
Study
Development (Billion Bidding Period
Period
THB) Period
28. Dual track railway: Denchai to
59.9 2017-2018 2019-2020 2020-2023
Chiang Mai
29. Dual track railway: Banpai-
68.0 2017-2019 2019-2020 2020-2025
Mukdahan-Nakhon Panom
30. Mass Transit System: Red Line
(Bang Sue to Hua Mak and Bang Sue to 50.1 - 2017-2019 2020-2026
Hua Lamphong)
31. Mass Transit System: Red Line
(Taling Chan to Siriraj and Taling Chan 17.7 2017-2018 2019 2020-2024
to Salaya)

32. Motorway: Bangkok to Mahachai 40.1 2017-2018 2019 2020-2023

33. Motorway: Hat Yai to Malaysian

34.1 2017-2018 2019 2020-2022
border

34. Motorway: Ruangsit to Bang Pa In 25.1 2017-2018 2019 2020-2022

35. Motorway: Northern expressway

17.6 2017-2018 2019-2020 2020-2022
(Kasetsart-Nawamin road: N2)
36. Donmueng Airport Development
37.6 2017-2019 2019 2020-2025
Phase 3
37. Rest areas for trucks 2 areas
0.5 2017 2018-2019 2020
(Burirum and Khon Kaen)
38. Dry port development at Khon Kaen 1.8 2017-2018 2019 2020-2021
39. Logistics centers in regional (main
8.1 2017-2018 2019-2020 2020-2027
cities)
40. Logistics centers in regional
8.3 2017-2019 2020-2021 2021-2027
(border towns)
Source: Complied Krungsri Research (April 2019)

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II. Contact Lists of M&A Consultant Companies

The following information is the contact details of consultant companies in Thailand who have
extensive experience in Merger and Acquisition activity.

1. KPMG Phoomchai Business Advisory Ltd.

48th - 50th Floor, Empire Tower 1 South Sathorn Road Yannawa,
Address
Sathorn, Bangkok 10120
Contact Person Mr. Hyokyung Bae ( Deal Advisory Manager)
Tel (66-2) 677-2000, (66-83) 178-8281
Email hbae@kpmg.co.th
Homepage https://home.kpmg/th/en/home.html
Business Type Business Consultant
Total Revenue THB 846,600,534 (2018)

Business today is under more pressure than ever to deliver

better, lasting results for stakeholders. At KPMG, we think like an
investor, looking at how opportunities to buy, sell, partner, fund or
fix a company can add and preserve value.
Today’s deals do not happen in a vaccum. So from your
Note business strategy to your acquisition strategy, your plans for
divestments or for raising funds, or even your need to restructure,
every decision must be made in light of your entire business, your
sector, and the global economy.

Our teams of specialists combine a global mindset and local

experience with deep sector knowledge and superior analytic
tools to help you navigate a complex, fragmented process.
From helping to plan and implement strategic change to
measurably increasing portfolio value, we focus on delivering
tangible results. The kind of results that let you clearly see what you
gained from the deal at hand, and what you want to bring to the next
deal down the road. Real results, achieved by integrated
specialists.

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2. The Boston Consulting Group (Thailand) Ltd.
37th Floor, U Chu Liang Building Rama IV Road, Silom Bangrak
Address
Bangkok 10500 Thailand
Contact Person Ms. Kanwara Thongsuk (Consulting Team Lead)
Tel (66-2) 667-3000
Email thongsuk.kanwara@bcg.com
Homepage www.bcg.com
Business Type Business Consultant
Total Revenue THB 1,086,884,449 (2018)

Note
Boston Consulting Group partners with leaders in business and
society to tackle their most important challenges and capture their
greatest opportunities. BCG was the pioneer in business strategy when it
was founded in 1963.
To succeed, organizations must blend digital and human
capabilities. BCG’s diverse, global teams bring deep industry and
functional expertise and a range of perspectives to spark change through
leading-edge management consulting as well as data science, technology
and design, digital ventures, and business purpose. We work in a
uniquely collaborative model across the firm and throughout all levels of
the client organization to deliver results that help our clients thrive.

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3. Pricewaterhousecoopers Consulting (Thailand) Co., Ltd. (PwC)
15th Floor, Bangkok City Tower 179/74-80 South Sathorn Road
Address
Sathorn, Bangkok 10120
Contact Person Ms. Chalida (Associate Director)
Tel (66-2) 844-1000
Email chalida.kohsuwan@pwc.com
Homepage www.pwc.com/th/en/consulting.html
Business Type Business Consultant
Total Revenue THB 635,631,732.61 (2018)

Note

In Thailand, PwC has had a presence for 60 years. Our client base
includes some of the largest Thai and multinational companies, as well
as government institutions. Our close interaction with both economic
and state bodies allows us to keep up with the fast-changing business
environment. We have more than 2,000 people working for our
Bangkok-based office.
We believe that sound governance and transparency form the
bedrock of leadership, and we are committed to serving with integrity
and good sense. At PwC, we measure our success by yours.

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4. PKF Advisory (Thailand) Co., Ltd.
28th Fl., Sathorn Square Office Tower, 98 North Sathorn Road, Silom,
Address
Bangrak, Bangkok 10500 Thailand
Contact Person Ms. Worawaran (Consultant)
Tel (66-2) 108-1591 Ext.315
Email worawaran.k@pkf.com
Homepage www.pkfthailand.asia
Business Type Business Consultant
Total Revenue THB 21,881,106.90 (2018)

PKF Thailand is a professional services firm headquartered in

Note the heart of the financial district of Bangkok and is a member of PKF
International’s global family of legally independent firms. Formed in
2012 by seasoned former second-tier and Big 4 partners, PKF
Thailand has worked relentlessly to establish itself as the firm of
choice for both international and local clients alike.
Our unique combination of traditional, hybrid, and unique
service offerings allows us to deliver exceptional support, insight and
value at every stage of your business’s development cycle. From
feasibility all the way through to divestment, and all the expert advice
and support our clients need in between, PKF Thailand is committed
to building solid, long-term relationships with the clear objective of
helping our clients thrive.

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5. Deloitte Touche Tohmatsu Jaiyos Co., Ltd.
AIA Sathorn Tower, 23rd - 27th Fl., 11/1 South Sathorn Road, Yannawa,
Address
Sathorn, Bangkok 10120
Contact Person Ms. Kanlayawan (Financial Advisory)
Tel (66-2) 034-0000 Ext.12656
Email klekhyananda@deloitte.com
Homepage www2.deloitte.com
Business Type Business Consultant
Total Revenue THB 409,206,909 (2018)

Note

Deloitte is a leading global provider of audit and assurance,

consulting, financial advisory, risk advisory, tax & legal, and related
services. With more than 150 years of hard work and commitment to
making a real difference, our organization has grown in scale and
diversity—approximately 312,000 people in 150 countries and
territories, providing these services—yet our shared culture remains the
same. Our organization serves four out of five Fortune Global 500
companies.

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III. Real Estate Market Trends and Prospect

According to Bank of Thailand, the real estate sector accounts for 6-8% of the country’s gross
domestic product (GDP). The sector is related to construction, construction materials, furniture
production industry, consumer electronics, finance, furnishing and decorations, and so on. The real
estate sector can be divided into three main market; office building, residential and commercial
building.

Resident Sector

Based on CBRE’s Real Estate Market Outlook 2019, tighter mortgage regulation and
recent increase in interest rates from the Bank of Thailand will pose challenges for
condominium developers. The outlook for residential market has become more unclear due
to rising supply, uncertainty about domestic customers’ demand and fears about the
sustainability of foreign demand.

In Q2 2019, Bangkok condominium market expected to be continue slow down

mainly due to Thailand’s weakened economic and new Loan-to-Value (LTV) measure. The
number of foreign buyers have decreased from Thai baht appreciation. The weakened of
Chinese Yuan currency from the ongoing US-China trade war and tighter capital controls from
Chinese government on getting money out of China have directly affect the Chinese demand
on condominium unit in Thailand. In terms of supply side, there were 33,544 units under-
construction in the downtown area, increasing by 10% from 30,508 units in the last quarter.
Midtown or suburban condominium units that are under-construction, totaled 117,774 units
in this quarter. The number have decreased by 9% from the last quarter. Midtown or
suburban condominium can still find opportunities along with the new mass-transit lines
while downtown condominium will feed through slower sales rate.

The total supply of apartment units in Q2 2019 survey is 9,791 units. The number of
apartment supply is relatively small compared to the existing condominium units. The future
supply of apartment units has remained limited with only 459 units under construction.
Apartment market in Bangkok is facing challenge by rented condominium units.

According to National Statistical Office Thailand and Real Estate Information Center, the
statistics of real estate construction in Thailand from 2016 to 2018 will be demonstrated as follow:

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Table 3: Resident Construction in Thailand during 2016 to 2018

Measure: Units

2018
Sub- Detached
Region Condominium Apartment Town house Duplexes
total house
Total 336,597 127,103 443 90,963 102,358 15,730
BMR
(Bangkok
187,442 97,319 226 55,812 27,153 6,932
Metropolit
an Region)
Central 73,218 17,462 73 24,372 25,552 5,759
North 29,377 5,535 80 2,756 19,783 1,223
North-East 20,623 2,569 40 1,175 16,628 211
South 25,937 4,218 24 6,848 13,242 1,605

2017
Sub- Detached
Region Condominium Apartment Town house Duplexes
total house
Total 291,473 108,118 532 78,932 91,546 12,345
BMR
(Bangkok
155,921 80,233 266 47,186 22,278 5,958
Metropolit
an Region)
Central 63,773 17,177 86 20,516 22,087 3,907
North 25,547 4,940 88 2,860 16,992 667
North-East 23,948 1,691 68 2,153 19,563 473
South 22,284 4,077 24 6,217 10,626 1,340

2016
Sub- Detached
Region Condominium Apartment Town house Duplexes
total house
Total 300,195 122,323 461 85,176 81,775 10,460
BMR
(Bangkok
Metropoli 166,630 90,077 259 51,111 20,392 4,791
tan
Region)
Central 63,335 18,986 51 22,358 18,357 3,583
North 25,361 5,936 92 3,236 15,476 621
North-
24,014 2,411 41 2,346 18,861 355
East
South 20,855 4,913 18 6,125 8,689 1,110
Source: National Statistical Office Thailand and Real Estate Information Center

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Office and Commercial Sector

More than 80% of rentable office properties in Thailand are located at Bangkok and
Metropolitan Region. The rentable space is specially clustering in the Bangkok Central Business
District (CBD- Silom, Sathorn, Lumpini, Sukhumvit, Phayathai) where it is well served by
communication link, including the mass transit system and expressway. However, the continued
development of mass transit systems gave opportunities for real estate developers to expand their
projects around the CBD and in the suburbs, in areas such as Bangna and Ratchadapisek. Demand for
office space in Bangkok comes from both Thai and multinational companies that have set up offices in
Thailand. Bangkok office supply remained stable at 8.93 million square meters in Q2 2019 since there
was no new office completion in this quarter. The start of construction in three office projects (Oasis
Tower, Summer Point and Bangkok Life Assurance) has contributed to the rise of 1.1 million square
meters in future office supply.

According to National Statistical Office Thailand and Real Estate Information Center, the
statistics of real estate construction in Thailand from 2016 to 2018 will be demonstrated as follow:

Table 4: Office and Commercial Construction in Thailand during 2016 to 2018

2018
Education
Hotel /
Hospitality / Entertainment
Category Resort Office (㎡) Factory (㎡)
(㎡) Communit (㎡)
(unit)
y (㎡)
Total 3,487 1,249,154 422,296 525,502 7,444,107 32,371
BMR
(Bangkok
200 946,256 332,821 172,458 2,871,510 1,609
Metropolit
an Region)
Central 898 146,057 40,507 106,455 3,404,906 13,858
North 341 41,526 4,938 64,135 352,329 10,670
North-East 355 67,198 614 112,515 518,281 4,078
South 1,693 48,117 43,416 69,939 297,081 2,156

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 2017
Hotel / Education /
Hospitality Entertainment
Category Resort Office (㎡) Community Factory (㎡)
(㎡) (㎡)
(unit) (㎡)
Total 3,377 1,242,031 303,481 674,483 6,705,623 32,088
BMR
(Bangkok
162 913,816 227,307 384,840 2,815,777 3,496
Metropolitan
Region)
Central 1,266 179,807 50,732 152,149 2,730,279 20,008
North 703 43,300 2,772 33,221 261,806 2,530
North-East 459 37,614 7,850 65,029 526,561 4,378
South 787 67,494 14,820 39,244 371,200 1,676

2016
Hotel / Education /
Hospitality Entertainmen
Category Resort Office (㎡) Community Factory (㎡)
(㎡) t (㎡)
(unit) (㎡)
Total 2,594 1,247,404 468,019 460,083 6,250,395 113,723
BMR
(Bangkok
172 866,341 407,720 247,015 2,382,154 12,697
Metropolita
n Region)
Central 579 124,599 417 63,787 2,892,426 59,451
North 201 64,453 9,544 51,489 226,332 17,639
North-East 195 133,113 16,874 16,874 362,170 2,123
South 1,447 58,898 33,464 80,918 387,313 21,813
Source: National Statistical Office Thailand and Real Estate Information Center

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IV. Construction Market in Thailand

According to National Economic and Social Development Council (NESDC), the

construction sector accounted a value of 1,264.4 billion baht in 2018, which increased 4.3
percent from previous year. Through 2019, the forecasted growth rate will be low around 3.5-
5 percent since various mega projects have been waiting for government approval. However,
in 2020 and 2021, growth rates forecasted strengthen to hit 5-7 percent and 7.5-9.5 percent
respectively because of better progress on a number of new large-scale infrastructure
projects and rising investor confidence among real estate developers.

The construction sector can be split domestically into public construction sector and
private construction sector, with investment in the two occurring at a ratio of around 57:43.
The average of growth rate of public construction sector during 2015 to 2018 was
approximately 3.9 percent per year. In 2018, this sector grew by 3.2 percent to 707.3 billion
baht. This expansion was driven by various large-scale infrastructure projects, which
mentioned in Table 1 and 2. Around 80 percent of total value of public construction projects
is concerned with infrastructure development, with the remainder being accounted for by
construction of government building and housing for civil servants. Large companies enjoy
advantages in contracting for public construction projects due to their experience, expertise,
financial efficiency, and ability to exploit specialist techniques and technologies. SMEs tend to
operate as sub-contractors.

The average of growth rate of private construction sector during 2015 to 2018 was
around 1.7 percent per year. Compared to the public sector, the private sector saw better
growth of 5.8 percent in 2018, which lifted the total value of private sector construction to
557.1 billion baht. The contributed factor is the expansion of public transport network in
Bangkok Metropolitan Region. Residential property accounted roughly 56 percent of total
private construction value. The rests are 10 percent by industrial property, 10 percent by
commercial property and 24 percent from other projects such as hotels and hospitals. Large
operators, which focus on private projects, will typically tend to enjoy undertaking projects
with high total value. It contrasts with SMEs contractors, which usually get simple and
straightforward projects.

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Figure 1: Public and Private Construction Investment (at current prices)

Source: National Economic and Social Development Council (NESDC)

Figure 2: Forecasted Construction Investment from 2019 to 2021

Source: National Economic and Social Development Council (NESDC)

According to data supplied in 2018 by the Department of Business Development, there

were around 80,000 construction operators and contractors legally established as companies
in Thailand. However, only 55 companies are large operations, which generate half of the total
value in construction market. Top 3 largest construction companies in Thailand are Italian
Thai (ITD), Ch. Karnchang (CK) and Sino-Thai (STEC), which enjoy a combined 24 percent
market share of construction market value. The key 10 operators market share by total
revenue will be demonstrated in Table 5.

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 Table 5: Key Operators Market Share by Total Revenue

Market Share (% of
Public Works: Private
Rank Company revenue in listed
Works
companies)
1 Italian Thai (ITD) 32 72:28
2 Ch. Karnchang (CK) 16 48:53
3 Sino-Thai (STEC) 15 78.5:21.5
4 Uniq Engineering (UNIQ) 7 100:0
5 Nawarat (NWR) 5 85:15
6 Christiani&Nielsen (CNT) 4 17:83
7 Syntec Construction (SYNTEC) 4 3:97
8 TTCL (TTCL) 4 0:100
9 Power Line Engineering (PLE) 4 53:47
10 Pre-Built (PREB) 2 0:100
Source: Bloomberg, DBD and company annual report, complied by Krungsri Research

Report and written date: 31 October 2019

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