Transcript Slide 1

Thailand Business Environment
and Investment Policies
Mr. Yuthasak Kanasawat
Executive Director of Investment Strategy & Policy Bureau
Thailand Board of Investment
Seminar on Investment Opportunities in Thailand
5 September 2013
1
Presentation Outline
o Investment Overview
o Business Environment
o Investment Policies
Investment Overview
Value of Investment Promotion Applications by Industry
2003 – 2013 (Jan-Jul)
Agro
US$ billion
Minerals
Fashion
Auto
E&E
Chemical
Services
50
47.59
40
19.71
30
21.11
20
22.67
5.68
16.48
3.52
10.26
10
1.76
1.94
2.12
0
20.5
3
20.42
5.24
1.96
0.62
0.68
1.18
2003
3.98
1.94
0.4
4.69
4.21
1.72
1.31
2004
2005
12.1
4.07
4.88
0.47
5.12
14.36
3.86
2.79
2.7
5.51
2.55
1.78
0.59
0.850.39
1.96
2006
2.46
21.6
5
5.33
14.4
0
5.37
1.33
7.92
7.88
5.39
21.37
10.2
2.8
2.82
1.69
0.74
5.49
2.21
2.72
2.11
4.28
1.06
1.44
2.48
0.58
0.86
1.22
1.83
0.22
0.63
2.29
2.16
0.36
0.94
2.13
0.5
1.01
2.32
2007
2008
2009
2010
2011
Source: BOI, as of Aug 19, 2013 US$1=Bt31.08 in 2012
8.22
1.45
1.9
3.05
2012
0.86
1.25
5.21
0.38
0.65
2.83
2013
(JanJul)
Comparison of All Net Applications for Investment Promotion
Jan-Jul 2012 vs Jan-Jul 2013
Number of Projects
Amount Invested
Services 24US$ Billion
Number of
Projects
+0.68%
1,500
Chemical 20
1,200
1,184
296
1,192
E&E
322
900
600
203
106
178
300
12
3.3
Fashion
250
Jan-Jul 2012
Jan-Jul 2013
4
Agro
0
0
2.69
Minerals
51
31
46
18
163
10.2
16
8
254
294
16.6
4.41
Auto
164
+28.65%
21.4
4.02
0.41
0.41
1.37
Jan-Jul 2012
Source: BOI, as of Aug 19, 2013 US$1=Bt31.08 in 2012
0.86
1.25
5.21
0.38
0.65
2.83
Jan-Jul 2013
Foreign Direct Investment Applications
12
10.69
2012 (Jan-Jul)
2013 (Jan-Jul)
9.58
9
-10.3%
US$ Billion
6.79
6.15
6
3
1.00 0.99
0.37
0.56
0.850.54
0.41
0.53
EU
Hong Kong
0
Total
Japan
ASEAN
China
Source: BOI, as of Aug 19, 2013 US$1=Bt31.08 in 2012
FDI & OFDI of Thailand
Thailand outward FDI has been higher than inward FDI since
2011.
US$ Million
12,000
10,000
8,000
6,000
4,000
Thailand inward FDI (FDI)
2,000
Thailand outward FDI (OFDI)
0
2545
2546
2547
2548
2549
2550
2551
2552
2553
2554
2555
7
Source: Bank of Thailand
Investment Environment
GDP grew 6.5% in 2012 and forecasted by National Economic
and Social Development Board to grow 3.8 – 4.3% in 2013
25
%
19.1
20
15
10
12
6 5.3
5
9.2
5.9
3.9
6.6
4.4
3.8 3.2 2.7 3.7
0.4
5.4
3.1
Source : NESDB
0
0
1
1
2
3
Q3
/1
Q1
/1
Q3
/1
Q1
/1
Q1
/1
9
Q1
/0
-15
-7
Q1
/1
8
Q3
/0
-10
-4.2
9
8
Q1
/0
-5
Q3
/0
0
-5.2
-2.8
-8.9
2.8
Economic Forecast of Thailand
Forecasted
2013
Bank of Thailand
July 2013
4.2%
National Economic and
August 2013 3.8 – 4.3%
Social Development Board
Fiscal Policy Office
June 2013 4 – 5%
IMF
April 2013
5.9%
World Bank
Jan 2013
5.0%
Asian Development Bank April 2013
4.9%
2014
5.0%
4.2%
5.0%
Export fully recovered from the flood.
Export in US$ fully recovered from the flood, but slow down from high growth rate of
28.1% in 2010 and 14.3% in 2011 to only 3.2 % in 2012. Export is expected to grow
5% in 2013
US$ million
24,000
Export
22,000
Import
20,000
18,000
16,000
14,000
12,000
10,000
8,000
Source : Ministry of Commerce
Ja
n13
'J
ul
12
.J
an
12
Ju
l1
1
Ja
n1
1
Ju
l1
0
Ja
n1
0
Ju
l0
9
Ja
n0
9
Ju
lp
08
Ja
n0
8
Ju
l0
7
Ja
n0
7
6,000
Concern over exchange rate appreciation subsided
after baht depreciation since May 2013
Foreign tourists at recorded level 22.3 million in 2012
and will hit another recorded level again in 2013
Thailand will remain attractive investment location
According to survey of MNCs by UNCTAD in early 2013, Thailand was ranked the
8th most attractive FDI destination in the world.
Source: UNCTAD World Investment Report 2013
World Bank’s Ease of Doing Business 2013
Thailand is #3 for ease of doing business in ASEAN and #18 in the World
1
Singapore
11
Finland
2
Hong Kong
12
Malaysia
Starting a business
3
New Zealand
13
Sweden
4
United States
14
Iceland
Dealing with construction
permit
5
Denmark
15
Ireland
6
Norway
16
Taiwan
Access to credit
7
United Kingdom
17
Canada
Protecting investors
8
South Korea
18
Thailand
Paying taxes
9
Georgia
19
Mauritius
Trading across borders
20
Germany
10 Australia
Source: World Bank & IFC Study: Doing Business in 2013
Evaluation Criteria
Registering property
Enforcing contract
Resolving insolvency
Getting Electricity
(15)
Corporate Income Tax Rates
%
40
35
30
25
20
15
10
5
0
35
30
25
17
20
Source: www.fpo.go.th as of April 2012
25
25
30
26
20
Investment Policies
Vision of
Thailand Board of Investment
Your Partner for Sustainable Investment
Activities eligible for promotion
o Agriculture and Agricultural Products
o Mining, Ceramics and Basic Metals
o Light Industry
o Metal Products, Machinery and
Transport Equipment
o Electronic Industry and Electric
Appliances
o Chemicals, Paper and Plastics
o Services and Public Utilities
Basic BOI Privileges and Measures





Tax Incentives
Import duty reductions or
exemptions on machinery and raw
materials
Corporate income tax holidays up
to 8 years
Additional 50% reductions of
corporate income tax for 5 years
Double deduction of public utility
costs
Deductions for infrastructure
construction/installation costs
Non-Tax Incentives
 Land ownership rights for
foreign investors
 Permission to bring in
foreign experts and
technicians
 Work permit & visa
facilitation
 One-Stop-Shop: Visas
& Work Permits are
issued in 3 hours
Zone-Based
Incentives
Zone 1(6 provinces)
Zone 2 (12 provinces)
Zone 3 (58 provinces)—
Investment Promotion
Zone
(1) 36 provinces
(2) 22 provinces
Zone:
1
2
Incentives: Lower
3
Higher Incentives
Further Info on BOI Schemes
www.boi.go.th
• www.boi.go.th
• All BOI publications are available on
the website, including “Guide to
BOI”.
• Doctracking system on BOI website
Unbeatable Thailand
2012 (Mar. – Aug.)
“Unbeatable Thailand, Unparalleled Opportunities”
New Investment Campaign
Thailand, An ASEAN Hub, a World of Opportunity
Thailand’s Big advantages
o Strategic location
o Good infrastructure
o Economic fundamental
o Diversified economic
base
Thank You!