The government plan to develop Thailand as a medical hub in Southeast Asia has encouraged Thai and Taiwanese medical equipment companies to co-invest to build a new factory here, aiming to establish an export base for a variety of products, including those that improve sleep.
Namwiwat Medical Corporation (Nam), a local sterilised medical equipment manufacturer and seller, on Thursday signed a memorandum of understanding with Zhubei-based Somnics Inc, which specialises in developing technologies for treating obstructive sleep apnea, a sleep-related breathing disorder.
The factory will be operated by a joint venture, located on 10 rai of land in Samut Prakan, said Viroj Chaiturdkiet, chief executive of Nam.
"We are discussing with the Board of Investment details of investment incentives in the medical business, which is being promoted by the government," he said.
The investment plan is expected to be concluded this month and the factory's construction should take about two years.
In the meantime, Nam and Somnics will import "iNap", an intraoral negative airway pressure device, produced by Somnics for sale in Thailand, said Mr Viroj. This medical device can treat snoring.
Both companies aim to rack up revenue from the healthcare sector in the country, with a total market value of 500-700 million baht a year.
Chung-Chu Chen, chief executive of Somnics, said his company decided to invest in Thailand because the government is promoting wellness tourism and supporting plans to make the country a regional medical hub.
"Thailand is our good choice. It will be an export base in Asean," he said.
Somnics also expects the growing tourism in Thailand to help drive demand for healthcare products.
Mr Viroj said Nam plans to sign two or three more business partnership deals within this year to benefit from the domestic healthcare industry.
His company expects its revenue to increase by 12-15% in 2024, partly driven by state budget spending which will boost people's purchasing power and the economy.
Nam earned 1.09 billion baht last year, with a profit of 176 million baht.