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THAILAND: Your Partner for growing market in ASIA
Chanin khaochanDirector- Frankfurt Office
Thailand Board of [email protected]
Capital Bangkok
Land Area 514,000 sq.km
Population 67.31 million
Work Force : 39 Million
Currency Baht
GDP 345 (Bil. US$) in 2011Per capita 5,112 $US/yr. (< 4x)
GDP Growth average 4 – 5 %
Unemployment Rate : < 1 %
Religion : Buddhism >80 %
Capital Bangkok
Land Area 514,000 sq.km
Population 67.31 million
Work Force : 39 Million
Currency Baht
GDP 345 (Bil. US$) in 2011Per capita 5,112 $US/yr. (< 4x)
GDP Growth average 4 – 5 %
Unemployment Rate : < 1 %
Religion : Buddhism >80 %
THAILAND IN BRIEF
Thailand: the Crossroads of ASEAN
ASEAN Economic Community Compared to
Population 607 million > Europe Union (507 Million)
GDP size $ 2.31 trillion ≈ UK ($2.44 trillion)(1/7 of EU’s $16.6
trillion) International trade$ 1.6 trillion = 6 times of Thailand
FDI $ 111.3 billion ≈ China ($ 111.7 Billion)
International tourists Ranked 2nd globally65 million = next to France
3
Year 2012 Population(Millions)
GDP(USD
Billion)
FDI(USD
Million)
Indonesia 241 878 19,853
Philippines
96 250 2,797
Vietnam 89 142 8,368
Thailand 70 366 8,607
Myanmar 55 55 2,243
Malaysia 29 304 10,074
Cambodia 15 14 1557
Lao PDR 6 9 294
Singapore 5 275 56,651
Brunei 0.42 17 850
Total 607 2,310 111,294
Statistics of AEC members in 2012
Source: UNCTAD 4
Thailand: the Crossroads of ASEAN
Seamless Connectivity
5
70 million
55 million
6 million89
million
46 million
47 million
15 million
29 million
241 million
96 million
35 million
106 million
5 million
70 million 607 million
GDP 2.31 Trillion USD
316 millionGDP 1.82 Trillion
USD
Thailand: The Connectivity and Logistics Hub of AEC
RR11
R1: Southern Economic Corridor (SEC)Bangkok – Aranyaprathet – Poipet –Pratabong – Phnom Penh-Ho Chi Minh –Vung Tau
R2: East-West Economic Corridor (EWEC) 1,320 kmMalamang – Mae Sot – Tak – Sukhothai– Phitsanulok – Khon Kaen – Mukdahan– Savannakhet – Lao Bao – Dong Ha –Danung
R3 North-South Economic Corridor (NSEC)
R3A: Via Lao: Chiang Rai – Chiang Kong – Huay xai – Luang Namtha –Bohan – Chiang Rung – Kunming (1,090 km)
R3B: Via Myanmar: Chiang Rai – Mae Sai – Takelek – Chiang Tung – Chiang Rung – Kunming
R2
R3A
R3B
6
Thailand: the Crossroads of ASEAN
Thailand's tourism sector will continue to play an important role in contributing to economic growth
Source: http://www.tourism.go.th/tourism/th/home/tourism.php?id=10
7.3 7.8 8.7 9.6 10.1 10.9 10.1 8.5 11.6 13.8 14.5 14.6 14.1 15.9 19.2 22.4
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
International visitor arrivals(unit in million)
CAGR 2009-2012 = 16.5%
Year
Key Projects: Suvarnabhumi Airport Phase II
Free Trade Agreement
Note: * Thailand, Malaysia, Indonesia, Philippines, Singapore anNote: * Thailand, Malaysia, Indonesia, Philippines, Singapore and Brunei only.d Brunei only.
ASEAN•+570 million pop.•US$1.3 trillion GDP (2007)
ASEAN+3•+2 billion pop.(1/3 world pop.)•US$9trillion GDP(16% of world GDP)
ASEAN+6•3.3 billion pop.(>50% world pop.)•US$12.25 trillion GDP
Automotive Industry“Thailand: Automotive Hub of Asia”
As of Feb 14, 2013
Thailand:9th largest automobile producer in the world in
2012*
Target: To
manufacture3,000,000
units in 2017
Output:14
assemblers with a
combined production
of more than
2,400,000 in 2012
High local content :
80-90% for pick-up and 30-70% for passenger
car
Source: OICA and TAI
Thailand’s Automotive Industry Overview
Brand 2012 Add CapacityAdd Capacity 2015
Toyota 700,000 200,000 900,000Ford & Mazda 500,000 - 500,000Mitsubishi 400,000 100,000 500,000Isuzu 220,000 100,000 320,000Honda 240,000 180,000180,000 420,000Nissan 220,000 150,000150,000 370,000Suzuki 135,000 65,00065,000 200,000GM 160,000 - 160,000Others 80,000 - 80,000TOTAL 2,675,000 795,000 3,470,000
Estimate Production Capacity
Need more suppliers capacity to support
3 Million cars Year 2017
Want more machinery, Tooling, Automation
Thailand: Auto Hub of Asia
• Thailand continues to industrialize, but is dependent
on foreign industrial machinery for immediate future.
• High demand for:– Food and farm machinery– Alternative energy/energy conservation machinery– Automotive production machinery– Mould & Die Industry–– Industrial AutomationIndustrial Automation– Logistic Equipment
Opportunities in Machinery
Thailand Import statistic : Metal Machinery + Machine Tool
Metal Processing Machine , Mold &Die and Machine Tool Import Statistic
china Germany Japan Korea SWITZERLAND Taiwan Total All Country2006 1,817,707,833 1,495,390,403 32,002,610,692 2,368,576,319 849,234,285 6,061,836,460 51,258,486,828 2007 2,013,176,041 1,603,814,384 19,889,696,940 1,268,607,820 983,916,342 5,329,174,346 37,439,804,438 2008 2,825,446,015 2,348,128,285 25,766,509,552 1,381,417,247 1,233,637,189 4,974,587,621 44,514,989,582 2009 2,050,544,011 2,633,764,639 15,905,290,950 1,150,087,837 566,954,034 3,221,480,293 29,183,766,912 2010 3,255,462,370 1,254,082,684 25,940,584,570 2,261,161,942 561,176,209 4,963,106,209 44,408,077,167 2011 3,756,059,469 1,857,269,893 35,231,926,169 2,021,352,004 1,076,860,821 6,501,652,246 57,135,090,325 2012 8,211,376,157 2,098,159,555 65,926,832,780 2,992,518,450 1,762,295,840 9,824,584,395 100,343,159,310
Plastic and Rubber Import statistic
2007 1,895,742,206 2,073,774,537 7,367,361,739 351,355,687 85,477,663 1,959,733,853 17,117,834,292 2008 2,337,398,315 2,397,286,534 7,188,024,311 709,528,202 74,967,138 2,055,538,286 17,167,123,104 2009 2,387,982,864 1,406,448,829 6,637,853,627 640,395,562 77,648,213 2,608,151,733 15,902,755,226 2010 3,254,251,665 1,797,187,769 6,926,650,103 417,844,714 237,138,967 2,810,064,542 17,930,852,116 2011 4,966,637,263 2,575,144,679 9,992,709,236 775,714 324,655,170 2,841,162,617 24,448,138,157 2012 7,865,882,052 3,098,172,373 20,227,147,487 1,031,151,416 126,172,355 4,170,073,961 40,302,632,841
Unit : Thai Baths
Source : www.customs.go.th
Why Thailand
19
ASEAN Corporate Income Tax 2013
0%
5%
10%
15%
20%
25%
30%
Singapore Thailand Vietnam Malaysia Indonesia
Source: KPMG
Sydney Shanghai
KLSingapore
Taipei JakartaMumbai Delhi
Bangkok
0
5
10
15
20
25
Source: UBS Prices and Earnings 2009
Total Tax and Social Security Contributions as Percentage of Gross Wages
Affordable Office SpaceAffordable Office Space173
117105 99
6449 48 47
29 24
020406080
100120140160180200
US$/sq ft/annum
Source: CBRE MarketView Asia Pacific Office, Q3 2012
WAGE COMPARISON INDEX 2011WAGE COMPARISON INDEX 2011
42.03 41.0436.98 35.4 34.81
17.9 17.6 14.54 13.559.39 8.6 7.32 6.82
79.4
0102030405060708090
100
Tokyo
Seoul
DubaiTaip
eiSing
apor
eHon
g Kon
gKuala
lumpur
Shangh
aiBeij
ingBan
gkok
Delhi
Jakar
taM
anila
Mumbai
Wag
e Le
vels
(CA
$)
GrossNet
Cities ranked according to gross value of index Source: UBS/Prices & Earnings, August 2011
ØThailand has over 60 Industrial estates, zones and parks nationwide
Modern Industrial EstatesModern Industrial Estates
(25)
IPR FrameworkIPR Framework• Thailand has 8 intellectual property-related laws, all of which are consistent with
international standards: • Copyright Act of 1994• Patent Act of 1979, as amended by the Patent Act (No.3) of 1999• Trademark Act of 1991, as amended by the Trademark Act (No.2) of 2000) • Act for the Protection of Layout-Designs of Integrated Circuits 2000• Trade Secret Act of 2002 • Protection of Geographical Indication Act of 2003• Plant Varieties Protection Act of 1999 • Traditional Medicine and Practice Act of 1999
Country Rankings
Thailand 1
Canada 2South Africa 3Malaysia 4
Philippines 5Australia 6Spain 7New Zealand 8Belgium 9United States 10
Expat Experience 2011Expat Experience 2011
Source: Expat Explorer Survey 2011, HSBC as of Nov 28, 2011 (3,385 respondents)
“For those looking for the best overall expat experience, our findings this year show Thailand as the top expat destination, being ranked as number one by our expats for ease of organizing healthcare, finding accommodation and the work environment. Last year this destination was ranked highly as a retirement hotspot so it’s great to see the country develop in terms of its economic appeal.
Lisa Wood, head of marketing at HSBC Bank
International
Thailand has been chosen as the best
country in the world for expats
to live
Market Access : Exhibition
Know Local customer
• service
• Training
• Loan Support
Service and support from Service and support from GovernmentGovernment
Roles of the BOIRoles of the BOI• Facilitating market entry—100% foreign ownership
in manufacturing and most services eligible for BOI promotion
• Reducing initial investment costs through provision of tax incentives
• Providing business-related services– Information – Site visits– Subcontracting development
• Facilitating business operations– Right to own land– Visas and work permits– Help Desk
Thailand and the BOI offer:
• Facilitating market entry—100% foreign ownership in manufacturing and most services eligible for BOI promotion
• Reducing initial investment costs through provision of tax incentives
• Providing business-related services– Information – Site visits– Subcontracting development
• Facilitating business operations– Right to own land– Visas and work permits– Help Desk
Roles of the BOIRoles of the BOI
Tax Incentives
ü Corporate income tax holidays up to 8 yrs§ Additional 50% reductions of corporate income tax for 5 years
ü Import duty reductions or exemptions on machinery and raw materials
ü Double deduction of public utility costsü Deductions for infrastructure
construction/installation costs
Roles of the BOIRoles of the BOI• Facilitating market entry—100% foreign ownership in
manufacturing and most services eligible for BOI promotion
• Reducing initial investment costs through provision of tax incentives
• Providing business-related services– Information – Site visits– Sourcing
• Facilitating business operations– Right to own land– Visas and work permits– Help Desk
• Facilitating market entry—100% foreign ownership in manufacturing and most services eligible for BOI promotion
• Reducing initial investment costs through provision of tax incentives
• Providing business-related services– Information – Site visits– Subcontracting development
• Facilitating business operations– Right to own land– Visas and work permits– Help Desk
Roles of the BOIRoles of the BOI
36
18th Floor, Chamchuri Square Building319 Phayathai Road, PathumwanDomestic Call: 0 2209 1100, Inter. Call: (66 2) 209 1100Email: [email protected]
More Convenience, less time,more efficiency!
More Convenience, less time,more efficiency!
One Start One Stop Investment Center
37373737
Mr. Chanin KhaochanDirectorThailand Board of Investment, Frankfurt OfficeBethmannstrasse 58, 60311 Frankfurt am Main, Germany
Tel.: +49 69 929 1230Fax: +49 69 929 123 20Email: [email protected]: www.boi.go.th
BOI OFFICE IN GERMANYBOI OFFICE IN GERMANY
THANK YOUTHANK YOU
Frankfurt• Thailand Board of Investment• Bethmannstr 58, 60311 Frankfurt am Main Germany• Telephone: (49 69) 92 91 230 Fax: (49 69) 92 91 232• Email: [email protected]
