Chiang Mai, Phuket set for clusters

The Industry Ministry plans to promote Chiang Mai and Phuket as regional medical hubs in line with the government’s policy of treating all medical services as a targeted cluster.

The move is likely to tap growing tourism in the two provinces, said Somchai Harnhiran, director-general of the Industrial Promotion Department.

“Chiang Mai and Phuket are two places visited by many foreign tourists each year, and this is igniting demand for medical treatment and healthcare services there,” Mr Somchai said.

Thai medical services are well regarded in terms of quality standards, technology and the warmth of Thainess, he said.

Demand for Thai medical services has been growing by 10% a year, with the domestic market worth 71 billion baht last year. Exports of medical equipment also rose by 2.9% from 2013.

Thailand has about 400 companies in the healthcare business, most of them in major cities.

The Industry Ministry has set aside 130 million baht in next year’s budget to support small medical business expansion.

“We’ll also support the whole cluster — medical equipment, medical services, wellness centres and spa treatment — for which Thailand has high potential to grow since we have strong skills in these sectors,” Mr Somchai said.

Moreover, tourists and other foreign patients can be expected to bring friends and relatives who will want to stay longer upcountry, eventually helping to generate more revenue for the country.

Anucha Meekiattichaikun, managing director of Hexa Ceram Co, which offers full dental and laboratory services in Chiang Mai, said the northern province in particular and Thailand in general stood ready to serve as a medical hub, particularly for dental services.

The company makes 500,000 dentures a year for domestic sale and export, he said.

Major export markets include Belgium, Norway and Germany.

“About 40% of our product is for the home market and 60% for export,” Mr Anucha said.

“We’re also looking to expand our market share in neighbouring Laos, Myanmar, Cambodia and Vietnam in the near future.”

The company plans an initial public offering on the Market f or Alternative Investment in 2017 to raise funds for expansion.