WHY THAILANDKorbsiri Iamsuri

Director, New York OfficeOctober 6, 2014

Thailand’s Fast FactsThai population 67 million (2013)

Thailand’s GDPUS$385 billion (2013)US$5,647 per capita GDP

Thai GDP by sector

Agriculture: 12%

Industry: 45%

Services: 43%Thai labor force 39.13 million(2013)

Thai exports US$225.4 billion (2013)

Thai imports US$219.0 billion (2013) Source: NESDB as of Feb 17, 2014 and Pocket World in Figures 2014 Edition

Strategic Location• Preferential market access to China,

India, and ASEAN – the economic powerhouse of more than 625 million people

• Member of the ASEAN Free Trade Area (AFTA) – $1 trillion in intra-ASEAN trade

annually

• Control of the only land route from Asia to Malaysia and Singapore

Highly Ranked

UNCTAD Ranks Thailand 8th as a top prospective host economy 2013-2015

World Bank Ranks Thailand among the easiest places to do Business in Asia and 18th in the World

5.815.875.94

6.176.21

6.66.64

7.137.24

7.577.597.657.847.98

10

0 2 4 6 8 10 12

United Kingdom (15)Poland (14)

Malaysia (13)Maxico (12)

Thailand (11)Japan (10)

Singapore (9)Brazil (8)

Canada (7)Taiwan (6)

S.Korea (5)India (4)

United States (3)Germany (2)

China (1)

Index score (10=High, 1=Low)

2013 Country Manufacturing Competitiveness Index Rankings

Source: 2013 Global Manufacturing Competitiveness Index by Deloitte Touche Tohmatsu Ltd. And the U.S. Council on Competitiveness

* ( ) = rankings

213

128106 105

7455 51 47

31

0

50

100

150

200

250

Prime Office Occupancy CostsUS$/sq ft/annum

Source: Asia Pacific Office Market View, Q1, 2014 as of May 28, 2014

Wage Comparison92.4

54.849.6

42.833.3

21.5 20.9 17 14.68.5 8 7.9 7.6

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Kuala

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Beijing

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GrossNet

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Cities ranked according to gross value of index. New York = 100Source: UBS/Prices & Earnings update September 2012

Thailand’s corporate income tax is the 2nd lowest in SE Asia

Source: Bank Of Thailand as of August 2012

Corporate Income Tax Rates

Free Trade Agreement

Note: * Thailand, Malaysia, Indonesia, Philippines, Singapore and Brunei only.

ASEAN•+625 million pop. (2013) •US$2.4 trillion GDP (2013)

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

Thai-Peru

Thai-Chile

ASEAN Economic Community(AEC) 2015

AEC A Single Market & Production base

Source: Reaping the benefits of AEC & ,www.asean.org, as of December 2009

• Free flow of goods• Free flow of services• Free flow of investment• Free flow of capital• Free flow of skilled labor

Transform ASEAN into a stable, prosperous and highly competitive region with equitable economic development, and reduced poverty and socio-economic disparities

Top Destinations for Expat Experience 2013

by HSBC

1.Thailand

Source: Expat Explorer Survey 2013, HSBC

Thailand offers Best Expat Experienceand a Low Cost of Living

Thailand has been chosen as the best country in the

world forOverall Expat Experience& Overall Quality of Life

Expat Experience Survey

Source: HSBC’s Expat Explorer Survey 2013

Thailand has been chosen as one of the best countries in the world for expats to

live

Country 2013 Rankings

Thailand 1

Bahrain 2

China 3

Cayman Islands 4

Australia 5

Singapore 6

India 7

Taiwan 8

Spain 9

Brazil 10

12

Infrastructure• 7 international airports In 2013, 50.9 million passengers, 1.27 million tons of

cargo Suvarnabhumi Airport – Capacity: 45 million

passengers and will expand to 60 million within 3 years, 3 million tons of cargo per year

• Over 70,000 km Highway Systems• 6 Deep Sea Ports & 2 International River Ports Capacity over 10 million TEUs Laem Chabang Sea Port – Capacity: 10.8 million

TEUs, with additional 8 million TEUs expansion e-Customs facilities

• 4,346 km Rail links to Malaysia & Singapore• 60 Industrial Estates

Competitive Workforce• 61 public and private engineering institutes, accredited by the Council

of Engineers• More than 18,000 engineering graduates and approximately 87,000

general science and technology graduates per year• 39.62 million in labor pool

15

• 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

IPR Framework

Exceptional Investment Incentives

• Tax Incentives– Corporate income tax holidays up to 8 years– Import duty reductions or exemptions on machinery and raw materials– Double deduction of public utility costs – Deductions for infrastructure construction/installation costs

Exceptional Investment Incentives• Non-Tax Incentives

– Land ownership rights for foreign investors

– Permission to bring in foreign experts and technicians

– Work permit/visa facilitation– No restrictions on foreign currency

remittances– No export requirement– No foreign equity restrictions in

manufacturing sectors and promoted services sector

– No local content requirement

Key Industries

Automotive – The Southeast Asia Leader• Largest auto producer in Southeast Asia • 9th largest producer in the world in 2013• More than 2.46 million vehicles produced in 2013• #1 producer of one-ton pickup trucks• #2 only to the U.S. in pickup truck production• Strong supporting industries with over 2,300 suppliers

Electronics & Electrical Industry

• The Silicon Valley of Asia

– The world’s largest producer of HDDs

– Home to the largest HDD multinationals

– More than 40% of global production

Electronics & Electrical Industry• $47 Billion in exports

• A leader in integrated circuits and white goods

• Strong supporting industries for electrical appliances compressors, motors, plastic and metal parts

Aircraft Part Production & Maintenance• Bangkok’s airport is 15th busiest in the world• GE made Thailand its Asian base for aerospace tubing and ducting

components. Other US companies include: – Chromalloy, Ducommun Technologies , Primus International and

Triumph• Ancillary industries provide developed and available suppliers:

– Stainless steel and aluminum fabrication, fiberglass application technology, and polymer supply

Agro-basedWorld’s No.1 producer of natural rubber, cassava & tapioca, canned tuna

• Over 10,000 companies– including Nestle, Cargill, Unilever, Jelly Belly and Dole

• Exports to surpass $33 billion in two years

• 80 percent of raw materials sourced locally

Food Processing• One of the world's top

exporters of processed food

• Thailand leads the market in:– canned tuna– frozen seafood– canned pineapple– rice – chicken

26Overseas offices

Country desks

1-Stop for visas & work permits:work permits in 3 hours

Interaction with other govt. agencies on behalf of investors

Industrial Subcontracting Services Global Sourcing program

(BUILD Unit)

Intensive information

ASEAN Supporting Industry Database

BOI SUPPORT SERVICES

Success Stories of Canadian Companies

www.ThinkAsiaInvestThailand.com