Transcript Slide 1

Thailand: Growing Opportunities
Ms. Ajarin Pattanapanchai
Deputy Secretary General
Thailand Board of Investment
(1)
Thailand in General
Region:
Southeast Asia
Population: 65 million
Area Total: 514,000 km2
Coast Line: 3,219 km
Capital:
Bangkok
Religions:
Buddhism 95%
GDP per capita (2008) : $4,080
Agriculture: 11%
Manufacturing: 45%
Services: 44%
Thailand’s Global Economic Rankings
•33rd biggest economy
•31st biggest exporter
•31st biggest earner from services and income
•23rd largest surpluses
•18th largest manufacturing output
•36th largest services output
•16th largest air travel
•17th most tourist arrivals
Source: The Economist’s Pocket World in Figures, 2010
Strong Economics Fundamental
Economic Projections
2008
1) GDP growth (y-o-y)
2) Export growth, FOB value (y-o-y)
2.5%
15.9%
-2.3%
7-7.5%
-13.9% 24.5-27.5%
3) Import growth, CIF value (y-o-y)
26.5%
-24.9% 34.0-37.0%
4) Trade account (billion US. dollar)
0.1
19.4
11.0-14.0
5) Current account (billion US. dollar)
1.6
20.9
11.0-14.0
6) Inflation (billion US. dollar)
5.5%
-0.9
3.0-3.5
Source: Bank of Thailand July Inflation Report, as of July 28, 2010
2009
2010
Top 10 Exports in 2007 – 2010 (Jan-Jul)
Unit: US$ Billion
2009
2010
(Jan-Jul)
Growth
(%)
Computer and parts
16.02
10.78
32.3
Motor cars, parts, accessories
Precious stones and jewelry
Integrated circuits
Rubber
Refine fuels
Rubber products
Plastics resin
Chemical products
Iron, steel and their products
Others
Total
11.12
9.76
6.44
4.31
5.43
4.49
4.46
4.47
4.95
80.98
152.43
9.95
6.34
4.51
4.18
3.73
3.55
3.42
3.15
2.90
56.13
108.63
81.7
11.5
37.5
106.4
40.0
52.5
41.0
33.1
6.3
27.9
34.1
Items
Source: MOC, as of Aug 25, 10
Top 20 World Bank’s Ease of Doing Business
1
Singapore
New Zealand
11
12 Thailand
Starting a business
23
6
United Kingdom 93
Korea
Malaysia
Taiwan
China
Hiring and firing workers
5
United States
Hong Kong
Denmark
7
Canada
104
Vietnam
Registering property
8
Australia
126
Philippines
9
Norway
135
Indonesia
10
Ireland
159
Laos PDR
2
3
4
25
47
Japan
Source: World Bank Study: Doing Business in 2010
Criteria
Enforcing contracts
Access to credit
Closing a business
Dealing with licenses
Paying taxes
Trading across borders
Investor protection
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Consistent Improvement in
Investment Environment
Thailand Ranks: World Bank Ease of Doing Business
20
18
15
2005
2006
2007
13
12
2008
2009
Grant Thornton’s 2010 emerging markets opportunity
index
“Three major benefits that investors will gain when investing
in Thailand are incentives, a low cost of labor and land and
low levels of security threats for foreign investors”
HSBC : Thailand ranked as 3rd best country for an
expatriate stand of living
Political Economic Risk Consultancy (PERC):
survey of 1,373 senior expat executives within 12 countries
on bureaucracies in Asia, Thailand is ranked 3rd, in term of
bureaucratic efficiency
Infrastructure- Transportation
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STATE-OF-THE-ART INFRASTRUCTURE
Transportation
 National highway system: 64,000 km. connecting
all 76 provinces : Expanding connections into

Cambodia, Laos, Vietnam and southern China
7 international airports : total capacity to support
8,500 arrival and 9,300 departure passengers per hour
 Rail system: 4,346 km. linking to Malaysia &

Singapore
Bangkok Mass Transit : Sky train and Subway -Expansion
plan for 137 km. during 2006-2012
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INFRASTRUCTURE
Shipping
 6 deep sea ports and 2 international river ports
Including container, tank farms and liquid jetties
Automotives
e-Customs facilities
• Laem Chabang Port :
– 7 container terminals with TEU 7.4 million exist capacity,
expansion to TEU 10.8 million in 2011
– 3 Auto Yard with 2.9 million vehicles per year capacity
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GMS Infrastructure
Development
North-South Corridor
North-Eastern Corridor
East-West Corridor
Southern Corridor
Central Corridor
Southern Coastal Corridor
Source: NESDB as of Jan 20,2009
Strategic Location and Expanding Network of FTAs
Free Trade Agreement
Entered into force
 AFTA*
 ASEAN-China
 ASEAN-Japan
 ASEAN-India
 ASEAN-S.Korea
 ASEAN-Australia-NZ
 Thailand-Australia
 Thailand-NZ
 Thailand-India
 Thailand-Japan
Note: * Thailand, Malaysia, Indonesia, the Philippines, Singapore and Brunei only.
Source: BOI International Affairs & www.thaifta.com, as of Feb 05, 2010
Investment Promotion Policy
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Liberal Investment Policy
 No restrictions on foreign currency remittances
 No export requirement
 No foreign equity restrictions in manufacturing
sectors and promoted services sector
 No local content requirement
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Basic BOI privileges and Measures
Tax Incentives
 Corporate income tax
holidays up to 8 yrs
Non-Tax Incentives
 Land ownership
rights for foreign
investors
Additional 50% reductions of
 Permission to bring
corporate income tax for 5 yrs
in foreign experts
may apply in zone 3
 Import duty reductions or
and technicians
exemptions on machinery and  Work permit/visa
raw materials
facilitation
 Double deduction of public
One-Stop-Shop
utility costs
Visas & Work Permits
are issued in 3 hours
 Deductions for infrastructure
construction/installation costs
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Development of Thai Industry
Knowledge &
Technology
Productivity Driven
since 2003
Driven
Investment
Driven 1992
Labour
Driven 1980
Labour
Driven
1970
Investment Opportunities
in Major Sectors
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Thailand: World’s Leader in Agro-Based Products
 World’s No.1 producer of natural rubber, rice
 World’s top exporter of cassava & tapioca, sugar, frozen
seafood, canned tuna, canned pineapples, and chicken meat
Major Agricultural Waste
Sugar Cane
Tops and leaves,
Bagasse > 25.4
mil. tons/yr
Oil Palm
Fiber, Shell, Bunches
> 0.3 mil. tons/yr
Source: MOC, as of 29 January 2009
Tapioca
Slurry, Rhizome
> 1.4 mil. tons/yr
Rice
Husk, Rice Straw
> 27 mil. tons/yr
National Policy to Promote Renewable Energy
Target : To increase share of renewable energy to
8% by the year 2011 and 20% by 2022
Solar
Garbage
Biogas
Water
Wind
Biomass
Bio Diesel
Ethanol
Thailand: Auto Hub of Asia
• Largest auto producer in Southeast Asia, 14 largest
producer in the world, target to be top ten in next 4 years
• World’s 2nd largest producer and market of pickup trucks.
• 16 assemblers: production forecast for 2010~ 1.6 mil. units
55% exports
• Strong Supporting Industry
~ 2,300 suppliers of Tier 1, 2 ,3 with
combination of multinational, JV and
domestics enterprises
• High Local content : 80-90% for
pick up and 30-70% for passenger
car
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Electronics and Electrical Industry
• Thailand is the 13th Export Rank
• E&E exports 1/3 of total export value
• Thailand is the world’s largest producer of HDDs
• A leading country in the manufacture of Integrated
Circuits and White Goods (refrigerator, air-conditioning)
• Strong supporting industries for electrical appliances
Compressors, motors, plastic and metal parts
Source:*E&E Intelligence Unit, as of Feb 12, 09
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Services: The Land of Smiles at Your Service
Many opportunities exist in this
growing sector:
R&D and design
Printing
Tourism facilities
Film & Entertainment
Regional Operating Headquarters
Business Process Outsourcing
Logistics
Thailand: Regional Medical Hub


World class hospital services, high-quality medical
treatment with Thai hospitality
Health tourism increased over 200% in last few years,
becoming the largest in Asia
Statistic of foreign patients
2003 ~ 970,000
2004 ~ 1,100,000
2005 ~ 1,280,000
2006 ~ 1,300,000
2007 ~ 1,500,000
2008 ~ 2,000,000
Regional Operating Headquarter Incentives
if you provide services to companies outside of Thailand
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Business management, admin.
Sourcing raw materials, parts, finished products
Research & development
Technical assistance
Marketing and sales promotion
Human resources training
Business advisory services
Investment feasibility studies
Credit management
Other services approved by the Revenue Department on a
case-by-case basis
TOPLINE OF BENEFITS & CONDITIONS FOR REGIONAL
OPERATING HEADQUARTERS
Benefit
Benefit
For portion of income from
OVERSEAS OPERATIONS
For portion of income from
LOCAL OPERATIONS
0% CORPORATE
INCOME TAX
for 15 years
10% CORPORATE
INCOME TAX
for 15 years
Benefit
For income of
EXPATRIATE EMPLOYEES
15% PERSONAL
INCOME TAX
for 8 years
Key Conditions
Key Conditions
- In 1st fiscal year, have one operating company in
another country; a second within 3rd year; a third within
5th year
In addition to conditions for
income from overseas and
local operations:
- Have annual expenses in Thailand of Baht 15 million,
or have invested at least Baht 30 million in Thailand
- By end of 3rd year, 75% of ROH personnel to be
qualified staff, have 5 specialised professionals, and 5
top executives earning at least Baht 2.5 million in
annual salary and benefits each
- Must have registered capital over 10 million baht
- Corporate Income
generated from services
to overseas companies
must be at least 50% of
total revenues
- Personal income paid
from overseas office is
exempt
BOI Investment Services
BOI is a Full Service Investment Center
We provide comprehensive information on
opportunities in Thailand
Industrial Subcontracting assistance (BUILD)
Free sourcing assistance to your specifications
International standards
Investment Facilitation Unit
We assist you with other government agencies
Even with your utility connections
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Thailand’s first comprehensive investment center
Opens on November 23, 2009
Objectives
• Facilitate entry of new investors
• Assist businesses looking to expand
• Serve as a focal point for dealing with 21
relevant government agencies
Who can use services: Open to all businessmen
• Big and small
• Domestic or foreign
• BOI-promoted or not
THANK YOU
WWW.BOI.GO.TH
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