Healthcare Resource Guide - Thailand

Thailand

Country Stats

Capital: Bangkok
Population: 71.6 million
GDP: $505.9 billion (2021)
Currency: Thai Baht (THB)
Language: Thai

Healthcare - Thailand

Explore healthcare export opportunities and the regulatory environment in Thailand.

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Executive Summary

According to a study from IQVIA, in 2019, 3.5 million medical travelers visited Thailand and generated a revenue of $820 million. Thailand has 62 Joint Commission International (JCI)-accredited hospitals of which 52 are private hospitals. Thailand has the fourth largest number of JCI-accredited hospitals in the world, behind only the United Arab Emirates, Saudi Arabia, and Brazil. Many private hospitals also have an international liaison department with multilingual staff to assist patients.

The 2021 Global Health Security (GHS) Index, conducted by John Hopkins Center for Health Security ranked Thailand fifth out of 195 countries with capabilities to prepare and respond to epidemics and pandemics. The country has three public healthcare schemes dependent upon an individual’s employment status and other circumstances:

The civil service welfare system for civil servants and their families
The social security program for private employees
The universal coverage scheme available to all Thai nationals

Although Thailand’s public healthcare system offers high-quality treatment and care, public facilities are often busy and may require a long waiting time for appointments and to receive treatment.

Thailand’s pharmaceutical market was valued at approximately $6.4 billion in 2021. Thailand’s pharmaceutical industry is Southeast Asia’s second-largest pharmaceutical market after Indonesia. The U.S.A. had approximately 30 percent market share of the imported pharmaceutical products or approximately $515 million in 2021. Factors that contribute to the expansion of the pharmaceutical market include the rise in non-communicable diseases (e.g., heart disease, diabetes, and cancer); an aging population; a universal healthcare system; the developing medical tourism business; higher foreign investments; and a favorable climate for clinical drug trials.

In 2021, the value of Thailand’s medical device market was approximately $6 billion. Thailand is heavily dependent on importing high-tech medical devices. In 2021, Thailand imported approximately $3 billion in medical devices, with U.S. imports comprising $759 million. Domestic production consists mostly of low-technology products. To cope with the Covid-19 pandemic, local manufacturers increased their personal protective equipment (PPE) production. Increased production and export of PPE such as nitrile surgical gloves and surgical masks were a major driver of Thailand’s medical device exports which grew 22 percent over the previous year.

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Market Entry

American healthcare product manufacturers should consider working with qualified local distributors or representatives to enter the Thai market. Local agents can provide access to an established marketing network and in-depth knowledge of regulations. A critical role of local representatives is providing after-sales service support and developing and maintaining strong personal relationships with customers. In Asia, relationships play a crucial role in business and influence customers’ procurement decisions. A good partner should be able to estimate appropriate price points to bid successfully on government contracts.

An agent’s role generally includes product marketing and product registration with Thailand’s Food and Drug Administration (FDA). Product registration is compulsory before any importation of medical devices, pharmaceuticals, and food supplements.

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Current Market Trends

According to a forecast from KPMG, healthcare spending in Thailand may reach $24.6 billion in 2023, or 4.8 percent of GDP. An increase in healthcare expenditure is due to Thailand’s rapidly aging population. A large percentage of the elderly have been diagnosed with at least one non-communicable disease, with almost half diagnosed with hypertension, followed by diabetes, heart disease, stroke, and cancer. Non-communicable diseases account for 74 percent of deaths. Aside from coronavirus-related efforts, the government is expected to continue to pursue its goal of establishing Thailand as the medical hub of Asia. Key healthcare drivers include expanding health insurance coverage with increased benefits, large-scale development of hospitals and other healthcare facilities, initiatives to increase private sector participation in the healthcare system, and government support for online medical services and smart technology.

Leading medical schools and private hospitals are increasingly using next-generation sequencing (NGS) technology, which includes whole-exome and whole-genome sequencing. NGS plays a vital role in many medical fields, leading to more accurate disease diagnosis and therapeutic and preventive strategies. In 2021, the Thai government started the first phase of the Genomics Thailand Initiative, a five-year $150 million project to sequence the genomes of 50,000 Thai individuals and build infrastructure to harness genomic information. In 2019, the government founded the National Biobank of Thailand to conserve and promote efficient use of bio-resources, including the human genome, plant, microbes, and animal cell lines.

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Best Prospects

International-standard medical devices, products, and services to healthcare facilities that cater to international medical tourists
Integrated Hospital Information Systems (HIS)
Consultancy in managing retirement living facilities
Niche products targeting the Thai and foreign elderly’s day-to-day life including health and dietary supplements, food and beverage, assisted living (home) furniture, and e-health
Education and training for hospital administrators in facilities management, health informatics, and other programs to upskill healthcare practitioners

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Market Size

Healthcare spending (including investment)	$21.3 billion
… as percent of GDP	3.79% (2019) https://data.worldbank.org/indicator/SH.XPD.CHEX.GD.ZS?locations=TH

Hospitals, Procedures, Healthcare Professionals

Thailand is home to 38,512 facilities that offer some form of healthcare services. About 35 percent of these are state-funded such as public health centers, district public health offices, community, and general hospitals. The remaining 65 percent are private ventures such as private clinics and hospitals. 98.3 percent are primary healthcare providers (9,800 public health and district health promotion centers and 24,800 private clinics). The remaining 664 (two percent) are secondary and tertiary healthcare providers, comprising 294 (one percent) managed by the government, Ministry of Public Health, local administrative bodies, state enterprises or Bangkok Metropolitan Administration, and 370 private hospitals (one percent).

Number of hospitals	1,356
…Public	13,364
…Private	25,000 private clinics 370 private hospitals
Number of hospital beds	166,310
… available beds per capita	2.41 beds: 1,000 population
…of which in general hospitals	125,871
Physicians	67,125
…of which surgeons	5,197
…of which internists	12,861
…of which pediatricians	5,801
Dentists	16,697

Demographics

Population	70,076,097
Life expectancy men/women	74.39 / 80.6
Infant mortality (per 1000 live births)	7.1
Percent of population older than 65	12.57%
…projection, 2030	23.39%
Annual deaths	8.021 deaths per 1,000
…caused by Cancer	84,073 in 2020
…caused by Stroke	50,273 in 2020
Prevalence of Heart Disease and Diabetes	Heart disease patients of 350,922 in 2019 Diabetes, over 5 million

Sources: WHO, World Bank, Institute for Population and Social Research, Mahidol University, Medical Council of Thailand, Statista, CIA World Factbook, Thailand Ministry of Public Health

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Main Competitors

Thailand imported approximately $3 billion of medical devices in 2021 of which $759 (25 percent) were from the United States, followed by China, Germany, Japan, and Ireland, respectively. Local manufacturers of medical devices are primarily single-use devices such as disposable test kits, syringes, surgical gloves, and catheters. Over 65 percent of domestic production is for export. The Thailand pharmaceutical market size was $6.4 billion in 2021.

Thailand’s pharmaceutical industry is the second largest in Southeast Asia after Indonesia. Although imported branded drugs make up a significant portion of the pharmaceutical market’s value, multinationals have encountered tremendous challenges in entering a government-dominated healthcare system where pricing is the primary factor. The largest sources of imported pharmaceutical products into Thailand in 2021 were China, Germany, the United States, Belgium, and India. Imports from China account for the highest percentage of imported medicines.

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Current Demand

High lung and heart disease incident rates prompt hospitals to enhance their medical equipment, thus increasing the demand for general radiography devices like electro-cardiographs, ultrasound, and x-rays. Under Thailand’s universal health coverage, these digital imaging devices are cost-effective and easily accessible to Thai patients. There are also emerging opportunities for digital innovations, as the country has increasingly used robotic surgery, artificial intelligence, 3D printing, implantable devices, telemedicine (including sensor-based remote health monitoring devices), and health information technology systems.

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Registration Process

In 2021, the Thai Food and Drug Administration revised its medical device regulations to align with the regional ASEAN Medical Device Directives (AMDD). According to the new guidelines, medical devices are classified into four Classes – I, II, III, and IV, based on risks.

Classification of Medical Devices

Device Class	Risk	TFDA Timelines	Validity	Total Fee
I	Low Risk	200 days	5 years	US $105
II	Low to Moderate Risk	250 days	5 years	US $1,080
III	Moderate to High Risk	250 days	5 years	US $1,080
IV	High Risk	300 days	5 years	US $1,775

The registration requirements of the device vary with its class. The Class I sterile and measuring devices require submission of testing reports for placing these devices on the market. Class II, III, and IV devices require submission of a technical dossier, as per the ASEAN Common Submission Dossier Template (CSDT) format.

Importers and distributors of medical devices are responsible for registering the products with the Thai FDA. If a foreign manufacturer has appointed multiple distributors, each distributor must register the product to obtain an import license.

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Reimbursement

Thailand’s Universal Healthcare Coverage (UHC) system has had a positive impact on the Thai population. Ranked sixth globally on the Global Health Security Index for its robust healthcare ecosystem, UHC entitles every citizen to essential preventive, curative, and palliative services. Universal health care is provided through three programs: the civil service welfare system for civil servants and their families, Social Security for private employees, and the universal coverage scheme, which is available to all other Thai nationals. Nevertheless, UHC remains limited in covering costly lifelong specialized treatments for non-communicable diseases (NCDs) and chronic illnesses. Some private hospitals participate in the UHC and Social Security programs. Generally, upper-middle class patients pay for quicker access to services, facilities that are equipped with more advanced medical equipment, and rooms with more amenities at private hospitals.

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Barriers

Dealing with the regulatory requirements can be challenging for foreign companies that wish to export to Thailand. Therefore, it is essential to seek experienced local partners and distributors familiar with product registration.

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Trade Events

Medical Fair Thailand 2023 (medical devices)
Date: September 13-15, 2023
https://www.medicalfair-thailand.com/

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U.S. Commercial Service Contact Information

Name:        Ms. Kornluck Tantisaeree
Position:     Commercial Specialist
Email:    ktantisa@trade.gov
Phone:       +66 2 205 5242

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