MEDICAL DEVICE DISTRIBUTION
Medical Device distribution in Thailand is 100% in the hands of Thai companies. If you are a foreign company, you have three possible ways to distribute your products.
- Opening a local subsidiary.
- Using the traditional model manufacturer-importer.
- Using an independent third party as license holder, managing a network of distributors.
In Thailand, a locally based company registered with the Thai government can be in charge of registering and importing a foreign product like medical device, cosmetic or dietary supplement.
The Thai company must have a general import license, while each product requires a product-specific import license. Such requirements are not manageable by a foreign company.
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AN INDEPENDENT THIRD PARTY CAN BE YOUR MEDICAL DEVICE DISTRIBUTOR IN THAILAND
Foreign medical product companies not willing to set up their own subsidiary (with a great investment in terms of resources and finance), choices are reduced by two. 1) trusting a local distributor with their product registration information; 2) signing a contract with an independent third party acting as your Thai legal agent .
In the traditional way, you won’t be required to invest money. The distributor will place orders, will register the products and will manage its Customers by keeping your Company in the dark about everything. Your Company will stick to the distributor; will not know customers name, and changing distributor in case of under-performance will be extremely risky. You can have more information reading this article: http://khagroup.asia/exporting-without-investment-impossible/
Employing a Thai third party as local agent to register your medical devices with the Thai FDA will garantee your Company the full control of local operation. Registration will be held in your name; you’ll be allowed to change distributors and you’ll know who your product’s end users are.
Kha Bangkok, as your local representative, can also liaise with the Ministry of Public Health and take charge of adverse event reporting and recalls.
Kha Bangkok, part of Kha Group, is your in-country representative in Thailand.
OPPORTUNITIES FOR MEDICAL DEVICE IN THAILAND
Thailand’s medical device market was $1.259 billion in 2016 and grew up to 10% in 2017. In 2016, imports of medical devices increased 10.4%; exports of medical devices increased 7%, reflecting steady growth in Thailand’s healthcare sector despite the global and domestic economic downturn. As a market leader, manufacturers from North America supply approximately 25% of the market for medical devices.
There are over 160 local manufacturers of medical devices; most are lower-end devices such as disposable test kits and syringes, as well as latex products including surgical gloves and catheters. Over 80% of domestic production is for export purposes.
The best opportunities for medical device distribution are those related to surgical equipment, respiratory devices and oxygen therapy. As well, orthopedic implant devices, heart valves, neurosurgical devices, rehabilitation equipment and accessories, and dermatological devices are popular.
The market growth in the next few years will be driven by demand for upgrades and expansion of existing health care facilities and medical devices, as well as replacement of accessories. Leading private hospitals have been investing to reinforce their position in the market.
In such a scenario a strategy based on occasional sales can be easily replaces by a strategy based on an organized and systematic entrance of your brand for Medical Device Distribution in Thailand.
Kha Group has its own internal regulatory and can perform Thai FDA registration, license holding and distribution (sales and post sales) for you.The logistic partnership with Siam Trade Development allow you to have only one referent for the entire chain in Thailand.