Transcript Document

Updated Information on
Trade and Investment Opportunities in Thailand:
Automotive Industry Part 1
Ms.Bussarakum Sriratana
Director
Thailand Board of Investment, Frankfurt Office
Thai Economy Overview
Thailand’s Global Economic Ranking
18th largest Tourist Receipts
19th largest Economy by Purchasing Power
20th largest Manufacturing Output
25th biggest Trader of Goods
27th largest Industrial Output
30th biggest Exporter as % of World Exports
35th largest Service Output
36th largest Economy
Source: The Economist’s Pocket World in Figures, 2008
Thailand Economy at a Glance
Population (2007)
ASEAN Population
Literacy Rate
Minimum Wage (1 Jun. 08, Bangkok)
GDP (2007)
GDP per Capita (2007)
GDP Growth (2007)
GDP Growth (2008)*
Export Growth (2007)
Corporate Income Tax
Withholding Tax
Value Added Tax
* Estimated
USD 1 = THB 33
EUR 1 = THB 50
65 million
570 million
95%
EUR 4.06
EUR 162 billion
EUR 2,455
4.8%
4.5-5.5%
18.10%
10-30%
10-15%
7%
Top 15 Exports
Item
Computer and accessories
Motor cars, parts and accessories
Refine fuels
Precious stones and jewelry
Rice
Rubber
Electronic integrated circuits
Polymers of ethylene, propylene, etc
Iron and steel and their products
Rubber products
Chemicals
Machinery and accessories
Airconditioner and accessories
Frozen and preserved seafoods
Electronic equipment and accessories
Unit: M.Euro (Euro 1 = Baht 50)
Source: Ministry of Commerce
2004
7,377
4,416
1,421
2,126
2,167
2,749
3,929
2,496
1,992
1,560
1,657
1,342
1,599
1,814
1,478
2005
9,489
6,206
1,900
2,587
1,860
2,974
4,769
3,358
2,310
1,882
2,115
1,690
1,747
2,006
1,766
2006
11,316
7,247
2,776
2,797
1,964
4,110
5,352
3,428
2,681
2,345
2,610
2,017
1,749
2,261
1,910
2007
11,919
8,303
2,814
3,703
2,384
3,887
5,559
3,590
3,153
2,518
2,701
2,978
2,205
2,180
2,527
2008 (Jan-Jul)
6,922
5,202
3,305
2,937
2,642
2,629
2,532
2,276
1,954
1,712
1,668
1,606
1,484
1,368
1,234
Top 20 Export Markets
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
U.S.A.
JAPAN
CHINA
MALAYSIA
SINGAPORE
HONG KONG
AUSTRALIA
INDONESIA
VIETNAM
NETHERLANDS
UNITED KINGDOM
PHILIPPINES
S. KOREA
INDIA
GERMANY
TAIWAN
U. ARAB EMIRATES
18
19
20
CAMBODIA
ITALY
FRANCE
2005
2006
2007
2007
(Jan.-Jul.)
2008
(Jan.-Jul.)
13,606
12,058
7,348
4,658
6,161
4,941
2,542
3,179
1,896
2,220
2,242
1,646
1,812
1,222
1,606
2,177
942
14,814
12,479
8,920
5,039
6,372
5,457
3,305
2,524
2,338
2,463
2,588
1,956
2,032
1,374
1,772
2,562
1,121
13,240
12,404
10,205
5,371
6,557
5,908
3,947
3,274
2,614
2,619
2,449
1,998
2,044
1,834
1,980
2,295
1,517
7,533
7,091
5,430
3,026
3,228
2,999
2,161
1,839
1,330
1,465
1,396
1,119
1,138
1,044
1,096
1,454
793
7,544
7,513
6,469
3,946
3,894
3,882
2,867
2,453
2,047
1,565
1,391
1,350
1,264
1,210
1,159
1,103
989
736
997
1,038
940
1,136
1,085
934
1,273
1,137
515
783
647
829
794
706
Unit: M.Euro
(Euro 1 = Baht 50)
Source:
Ministry of Commerce
Most Attractive Economies for the Location of FDI
2009
1
China
11
Thailand
2
India
12
France
3
United States
13
Malaysia
4
Russian Federation
14
Indonesia
5
Brazil
15
Singapore
6
Vietnam
16
Italy
7
United Kingdom
17
Ukraine
8
Australia
18
Japan
9
Mexico
19
Canada
10
Poland and Germany
20
Republic of Korea
Source: UNCTAD World investment Prospects Survey, 2007-2009
2007-
WORLD BANK
Ease of doing business 2009
1
Singapore
12
Japan
2
New Zealand
13
THAILAND
3
United States
20
Malaysia
4
Hong Kong
23
Korea
5
Denmark
61
Taiwan
6
UK
83
China
7
Ireland
92
Vietnam
8
Canada
129
Indonesia
9
Australia
140
Philippines
10
Norway
165
Laos PDR
Source: World Bank, as of Sept 2008
Promising Countries for Overseas Business Operations
Medium-Term (next 3 years)
Rank Country
1
China
2
India
3
Vietnam
4
Thailand
5
U.S.
6
Russia
7
Korea
8
Indonesia
9
Brazil
10
Taiwan
Includes production, sales, R&D,
outsourced operations
Long-Term (next 10 years)
Rank Country
1
China
2
India
3
Russia
4
Vietnam
5
U.S.
6
Thailand
7
Brazil
8
Indonesia
9
Korea
10
Malaysia
Includes production, sales, R&D,
outsourced operations
Source: JBIC FY 2006 Survey: Outlook for Japanese FDI (18th Annual Survey)
Global Competitiveness Index 2007-2008
1
United States
11
Korea
2
Switzerland
12
Hong Kong
3
Denmark
14
Taiwan
4
Sweden
21
Malaysia
5
Germany
28
Thailand
6
Finland
34
China
7
Singapore
48
India
8
Japan
54
Indonesia
9
United Kingdom
68
Vietnam
10
Netherlands
71
Philippines
Source: World Economic Forum, October 2007
Number of Surveyed Companies Looking to Strengthen or
Expand in ASEAN-4
250
238
Thailand
Vietnam
Indonesia
Malaysia
Philippines
200
150
118
100
102
86
55
50
50
33
31
10
22
12
15
24
10
0
All Industries
E&E
Automobile
Source: JBIC 18th Annual Survey Report on Overseas Operations by Japanese Manufacturing Companies
5
The Automotive Environment
in Thailand
Automotives
Target: Top 10 auto producer by 2010, producing 1,800,000 units
• Auto sector 12% of GDP
• Largest auto producer in Southeast Asia
• World’s 2nd largest producer and market of pickup trucks.
• 16 assemblers with production of 1.3 mil. units in 2007: 36% exports
• Strong Supporting Industry
•
~ 1,800 suppliers of Tier 1, 2 ,3
High Local content : 80-90% for pick up and 30-70% for passenger car
Economic Growth and Car Consumption
Rank Country
1
2
3
4
5
6
7
8
9
10
GDP
Growth
(%)
USA
5.0
Japan
1.3
Germany
3.0
United Kingdom
3.0
France
3.1
Italy
2.7
Canada
4.3
Korea
9.0
Thailand
4.5
Belgium
4.1
GDP per Population Persons
Domestic
Capita
(M. per Car
Demand
(US$) Persons)
(Units/yr)
36,200
278
2.1 17,440,000
24,900
126
2.5 5,940,000
23,400
83
1.9 3,620,000
22,800
59
2.2 2.810,000
24,400
59
2.2 2,550,000
22,100
57
1.8 2,480,000
24,800
31
2.2 1,630,000
16,100
47
4.0 1,130,000
2,800
62
10.0
700,000
25,300
10
2.2
550,000
World Automobile Demand 2005 & ASEAN’s Free Trade Network
North America
20.0 M.Vehicles
S.Korea
1.2
Europe
21.0 M.Vehicles
China 5.8
5.9
ASEAN Japan
&
India
Free Trade
1.5
Network
ASEAN
17.6 M.Vehicles
2.1
Austria &
New Zealand
1.1
Unit: Million Vehicles
Total 66.0 Million Vehicles In 2005
Source: Japan Automobile Manufacturers Association
http://www.jama-english.jp/asia/publications/voice/20060828.pdf
Projection 2010:
- China 9.0 Millions
- India 1.9 Millions
- ASEAN 2.6 Millions
Thailand : The Automotive Hub of Asia
China
Population 1,285 million
Production 2005: 5.7 million
Dom. Sales 2005: 5.7 million
Biggest Share: Passenger Car
India
Population 914 million
Production 2005: 1.6 million
Dom. Sales 2005: 1.4 million
Biggest Share: Passenger Car
Thailand
Population 64 million
Production 2005: 1.1 million
Dom. Sales 2005: 0.7 million
Biggest Share: Commercial
Vehicle (1-ton Pick up)
Japan
Population 127.1 million
Production 2005: 10.7 million
Dom. Sales 2005: 5.9 million
Biggest Share: Small &
Compact Passenger Car
Korea
Population 47.6 million
Production 2005: 2.5 million
Dom. Sales 2005: 1. 1 million
Biggest Share: Passenger Car
Asia-Pacific Vehicle Production Capacity 2005-2010
Million Units
8.00
2005
2008
2010
7.00
6.00
5.00
4.00
3.00
2.00
1.00
In
di
a
T
ha
ila
nd
T
ai
w
In an
do
ne
si
M a
al
a
P ys
hi
i
lip a
pi
ne
s
V
ie
tn
am
A
us
tra
lia
or
ea
K
C
hi
na
0.00
Production in 4 ASEAN
1,400,000
1,188,044
1,200,000
1,125,316
Units
1,000,000
Thailand
927,681
800,000
600,000
1,287,346
742,062
559,428
584,954
577,547
Indonesia
441,678
Malaysia
459,418
457,000
400,000
412,207
327,233
360,303
200,000
158,130
Philippines
0
1996
1997
1998
1999
2000
2001
2002
2003
Source: Japan Automobile Manufacturers Association
http://www.jama-english.jp/asia/asean/1996-2007_Production.pdf
2004
2005
2006
2007
Sales in 5 ASEAN
800,000
703,432
700,000
682,161
631,251
Thailand
487,176
Malaysia
433,341
Indonesia
119,963
Singapore
117,903
Philippines
625,978
600,000
589,126
533,176
Units
500,000
400,000
409,362
363,156
300,000
293,231
262,189
200,000
144,065
100,000
1996
1997
1998
1999
2000
2001
2002
2003
Source: Japan Automobile Manufacturers Association
http://www.jama-english.jp/asia/asean/1996-2007_Sales.pdf
2004
2005
2006
2007
Thai Automotive Industry Growth
Year 2007
Production
= 1,287,649 Units +8.4%
Domestics Sale = 631,251 Units -7.5%
Export
= 690,100 Units +28.2%
Units
1,400,000
1,287,649
Production
Sale
Export
1,188,044
1,125,316
1,200,000
928,081
1,000,000
Production
750,512
800,000
703,405
600,000 485,678
400,000
200,000
571,580 589,126
559,428
525,680
434,001
363,156
411,721
389,100327,233
0
1996
1997
1998
631,251
459,418
158,130
144,065
42,200
21,300
8,800 14,000
1995
626,026
584,951
533,176
409,362
296,985
262,189
218,330
239,440
180,554
175,293
130,000 152,836
66,700
1999
2542
2000
Source: Thailand Automotive Institute
http://www.thaiauto.or.th/Records/eng/records_menu_eng.asp
838,847
682,161 690,100
2001
2002
2003
538,962
440,715
322,053
2004
Domestic
Sale
456,614
Export
365,055
2005
2006
2007
2008
(JanJul)
Production Capacity in 2007
Passenger Cars 1-Ton Trucks Truck
Total
Toyota Motor
200,000
350,000
- 550,000
Mitsubishi
50,000
150,000
6,000 206,000
Isuzu Motors
200,000 20,000 220,000
General Motor
40,000
120,000
- 160,000
Auto Alliance
155,000
- 155,000
Nissan
36,000
98,400
5,000 139,400
Honda
120,000
- 120,000
Hino Motors
- 28,800
28,800
Thonburi
16,300
16,300
Yontrakij
12,000
12,000
BMW
10,000
10,000
Thai Swedish Assembly (Volvo)
10,000
10,000
Total
494,300
1,073,400 59,800 1,627,500
Source: Thai Automotive Institute
Production in 2007
Company
Domestic Export Total Prod.
Toyota
263,968 237,774
501,742
Mitsubishi
21,222 146,252
167,474
Isuzu
102,747 61,048
163,795
Honda
61,226 80,096
141,322
Ford & Mazda
19,693 115,333
135,026
General Motors
71,245 27,180
98,425
Nissan
41,459 22,064
63,523
Mercedes Benz
2,037
2,037
BMW
1,505
299
1,804
Volvo
610
54
664
Other
11,837
11,837
Total Production
597,549 690,100
1,287,649
Source: Thai Automotive Institute
Thai Automotive Industry Import & Export 2006-2007
Million Baht
2006
2007
% Change
Export
- Automobile
- Motorcycle
- Auto Part
514,511.20
248,787.30
10,153.90
255,570.00
573,277.25
269,085.88
7,607.42
296,583.95
11.86
8.56
-24.68
16.52
Import
- Automobile
- Motorcycle
- Auto Part
222,560.40
19,353.70
2,132.70
201,074.00
231,476.43
22,740.88
2,266.57
206,468.99
3.33
16.25
6.16
2.05
291,950.8
341,800.8
18.49
Export > Import
Source: Thai Automotive Institute
Export Markets in 2007
200,000
Type of CBU Export
1 ton P/U = 514,592 units
P Car
= 154,234 units
SUV
=
26,544 units
Truck
=
0 units
Total
= 690,100 units
183,849
180,000
160,000
134,111
139,361
133,345
140,000
116,938
120,000
100,752 100,752
100,000
80,000
77,710
58,322
66,857
55,671
60,000
41,059
40,000
20,000
62,934
57,456
10,711
15,342
6,016
0
0
2,651
0 0
Middle East
Africa
Europe
54
0
Asia
Oceania
1 Ton P/U
Passenger Car
SUV
4,478 9,371
1,000
01,400
Central
&South
America
Truck
Total
Others
2010 Target – World’s Top 10
 Total production of 2 million units
 Domestic sales of 1 million units
– 1-ton trucks – 700,000 units
– Passenger cars – 250,000 units
– Commercial Veh. – 50,000 units
 Exports of 1 million units
– 1-ton trucks – 800,000 units
– Passenger cars – 200,000 units
THAILAND OF INVESTMENT
www. boi.go.th
The perfect opportunity
Thailand—Each Piece Fits Perfectly.