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9 Dec 2020


Air Conditioner Exports: Product Restructuring Needed to Brace for Competition from Key Rival Vietnam and Technological Transition (Current Issue No.3169)


            Thai air conditioner exports are set to face numerous challenges ahead. These include competition from new rivals like Vietnam in the inverter air conditioner segment (normal model), plus the fact that consumers in emerging markets have increasingly purchased inverter air conditioners, and this has led to pressure on Thai non-inverter air conditioner shipments. Moreover, there has been a technological transition towards smart inverter air conditioners with internet access in emerging markets. To ease those impacts, Thailand may need to overhaul its air conditioner production and export structures, and build export opportunities for products with promising prospects.                

              ​ Urgent strategy: Before Vietnam can expand the production capacity of its inverter air conditioners (normal model) to compete with Thailand's in global markets, Thailand must accelerate its efforts to create opportunities for Thai manufacturers of inverter air conditioners (normal model) to make greater inroads into the emerging markets so that they are ready to compete with their Vietnamese rivals and help offset a possible decline in demand for non-inverter air conditioners in the future.

            Long-term strategy: To facilitate the transition towards the era of IoT, Thailand should promote investment in the production of smart IoT inverter air conditioners along with creating opportunities for such Thai manufacturers to export products to developed countries.