Thailand: An Asian Hub, a World of Opportunities

Ms. Ajarin PattanapanchaiDeputy Secretary General

Thailand Board of Investment

THAILAND’s Fast Facts (2013)• Thai population:67 million• Thailand’s GDP: US$385 billion

Per capita GDP: US$5,647• Thai exports: US$225.4 billion• Thai imports: US$219.0 billion

THAILAND is the world’s• 17th largest manufacturer output• 28rd largest exporter (US$225.4

billion in 2013)• 2nd largest economy in ASEAN

ASEAN Snapshot Macro-Economic Basics (2013)• GDP (2013): US$2,399 Bn• GDP per capita: US$3,837• GDP Growth: 5.1%• Population: 625 million

people• Area: 4.44 million km2

Source: ASEAN Finance and Macro-economic Surveillance Unit Database (compiled/computed from data submission, publications and/orwebsites of ASEAN Member States' national statistics offices and relevant government agencies, and from the International Monetary Fund World Economic Outlook (IMF WEO) Database April 2014 as of August 2014

Free Trade Agreement

Note: * Thailand, Malaysia, Indonesia, Philippines, Singapore and 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

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

WHY THAILAND

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

“Over the past 6 years, Thailand has suffered bouts of political unrest on top of the global financial crisis and severe flooding. Nevertheless, the economy maintains solid economic fundamentals that support its resilience, with high international reserves, relatively low inflation, a moderate amount of government and external debt, and a strong manufacturing base.”

Asian Development Bank Outlook 2014

213

128106 105

7455 51 47

31

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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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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

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

Infrastructure• 7 international airports In 2009, 53.9 million passengers, 1.1 million

tons of cargoes Suvarnabhumi Airport – Capacity: 45 million

passengers and 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• Stability electricity supply• 60 Industrial Estates

GMS InfrastructureDevelopment

Source: NESDB as of Jan 20,2009

North-South Corridor

North-Eastern Corridor

East-West Corridor

Southern Corridor

Central Corridor

Southern Coastal Corridor

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• 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

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Investment Promotion Policy

No restrictions on foreign currency

100% foreign ownership

No export requirements

No local content requirements

LIBERAL INVESTMENT REGIME

Thailand and the BOI offer:

19Overseas 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

(20)

Tax IncentivesCorporate income tax

holidays up to 8 yrs•Additional 50% reductions of corporate income tax for 5 yrs may apply

Import duty reductions or exemptions on machinery and raw materials

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 facilitationOne-Stop-Shop Visas & Work Permits

are issued in 3 hours

Basic BOI privileges and Measures

Success Stories of Canadian Companies

Sectors of Opportunity

Target Industries

Agro and food processing

Automotive

Machinery

Aerospace

Target Industries

Biotechnology

Alternative energy

E&E & ICT

Medical devices

Outward Investment Promotion Policy

Create good network in targeted countries to decrease risk for Thai oversea investment

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Potential Outward Investment Business

(1) Agriculture and Food processing(2) Fashion : textiles, garments and jewellery(3) Automotive Parts(4) Construction(5) Services & Tourism : Restaurant, Hotel, Spa(6) Plastics processing

Thank you