THAILAND: Your Partner for growing market in ASIA

Transcription

1 THAILAND: Your Partner for growing market in ASIA Chanin khaochan Director- Frankfurt Office Thailand Board of Investment

2 THAILAND IN BRIEF Capital Bangkok Land Area 514,000 sq.km Population million Work Force : 39 Million Currency Baht GDP 345 (Bil. US$) in 2011 Per capita 5,112 $US/yr. (< 4x) GDP Growth average 4 5 % Unemployment Rate : < 1 % Religion : Buddhism >80 %

3 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 $ billion China ($ Billion) International tourists Ranked 2 nd globally 65 million = next to France 3

4 Thailand: the Crossroads of ASEAN Statistics of AEC members in 2012 Year 2012 Population (Millions) GDP (USD Billion) FDI (USD Million) Indonesia ,853 Philippine s ,797 Vietnam ,368 Thailand ,607 Myanmar ,243 Malaysia ,074 Cambodia Lao PDR Singapor e ,651 Brunei Total 607 2, ,294 Source: UNCTAD 4

5 Thailand: The Connectivity and Logistics Hub of AEC 55 million 35 million 47 million 89 6 million million 46 million 106 million 316 million GDP 1.82 Trillion USD 70 million 15 million Seamless Connectivity 607 million GDP 2.31 Trillion USD 96 million 29 million 5 million 241 million 5

6 Thailand: the Crossroads of ASEAN R3 B R3 A R 2 R 1 R1: Southern Economic Corridor (SEC) Bangkok Aranyaprathet Poipet Pratabong Phnom Penh-Ho Chi Minh Vung Tau R2: East-West Economic Corridor (EWEC) 1,320 km Malamang 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 6

7 Key Projects: Suvarnabhumi Airport Phase II Thailand's tourism sector will continue to play an important role in contributing to economic growth CAGR = 16.5% International visitor arrivals (unit in million) Year Source:

8 Free Trade Agreement 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 billion pop. (>50% world pop.) US$12.25 trillion GDP Note: * Thailand, Malaysia, Indonesia, Philippines, Singapore and d Brunei only.

9 Automotive Industry Thailand: Automotive Hub of Asia As of Feb 14, 2013

10 Thailand s Automotive Industry Overview Thailand: 9th largest automobile producer in the world in 2012* Target: To manufacture 3,000,000 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

11 Estimate Production Capacity Brand 2012 Add Capacity 2015 Toyota 700, , ,000 Ford & Mazda 500, ,000 Mitsubishi 400, , ,000 Isuzu 220, , ,000 Honda 240, , ,000 Nissan 220, , ,000 Suzuki 135,000 65, ,000 GM 160, ,000 Others 80,000-80,000 TOTAL 2,675, ,000 3,470,000

12 Thailand: Auto Hub of Asia Need more suppliers capacity to support 3 Million cars Year 2017 Want more machinery, Tooling, Automation

13 Opportunities in Machinery 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 Automation Logistic Equipment

14 Unit : Thai Baths 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 Country ,817,707,833 1,495,390,403 32,002,610,692 2,368,576, ,234,285 6,061,836,460 51,258,486, ,013,176,041 1,603,814,384 19,889,696,940 1,268,607, ,916,342 5,329,174,346 37,439,804, ,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, ,050,544,011 2,633,764,639 15,905,290,950 1,150,087, ,954,034 3,221,480,293 29,183,766, ,255,462,370 1,254,082,684 25,940,584,570 2,261,161, ,176,209 4,963,106,209 44,408,077, ,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, ,211,376,157 2,098,159,555 65,926,832,780 2,992,518,450 1,762,295,840 9,824,584, ,343,159,310 Plastic and Rubber Import statistic ,895,742,206 2,073,774,537 7,367,361, ,355,687 85,477,663 1,959,733,853 17,117,834, ,337,398,315 2,397,286,534 7,188,024, ,528,202 74,967,138 2,055,538,286 17,167,123, ,387,982,864 1,406,448,829 6,637,853, ,395,562 77,648,213 2,608,151,733 15,902,755, ,254,251,665 1,797,187,769 6,926,650, ,844, ,138,967 2,810,064,542 17,930,852, ,966,637,263 2,575,144,679 9,992,709, , ,655,170 2,841,162,617 24,448,138, ,865,882,052 3,098,172,373 20,227,147,487 1,031,151, ,172,355 4,170,073,961 40,302,632,841 Source :

15 Source : Unit: million Baths

16 Source : Unit: million Baths

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18 Unit: million Baths Plastic and Rubber Machinery Import Source :

19 Why Thailand 19

20 ASEAN Corporate Income Tax 30% % 20% 15% 10% 5% 0% Singapore Thailand Vietnam Malaysia Indonesia Source: KPMG

21 Total Tax and Social Security Contributions as Percentage of Gross Wages 25 Sydney Shanghai KL Singapore Taipei Jakarta Mumbai 10 Delhi Bangkok 5 0 Source: UBS Prices and Earnings 2009

22 US$/sq ft/annum Affordable Office Space Source: CBRE MarketView Asia Pacific Office, Q3 2012

23 WAGE COMPARISON INDEX 2011 Wage Levels (CA$) Tokyo Seoul Dubai Taipei Singapore Hong Kong Kuala lumpur Shanghai Cities ranked according to gross value of index Source: UBS/Prices & Earnings, August 2011 Beijing Bangkok Delhi Jakarta Manila Gross Net Mumbai

24 Modern Industrial Estates Thailand has over 60 Industrial estates, zones and parks nationwide

25 IPR Framework IPR 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 (25)

26 Expat Experience 2011 Country Rankings Thailand 1 Canada 2 South Africa 3 Malaysia 4 Philippines 5 Australia 6 Spain 7 New Zealand 8 Belgium 9 Thailand has been chosen as the best country in the world for expats to live 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 United States 10 International Source: Expat Explorer Survey 2011, HSBC as of Nov 28, 2011 (3,385 respondents)

27 Market Access : Exhibition

28 Know Local customer service Training Loan Support

29 Service and support from Government

30 Roles 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

31 Thailand and the BOI offer:

32 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 BOI

33 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 costs ü Deductions for infrastructure construction/installation costs

34 Roles 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

35 Roles 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

36 One Start One Stop Investment Center More Convenience, less time, more efficiency! 18th Floor, Chamchuri Square Building 319 Phayathai Road, Pathumwan Domestic Call: , Inter. Call: (66 2) osos@boi.go.th 36

37 BOI OFFICE IN GERMANY Mr. Chanin Khaochan Director Thailand Board of Investment, Frankfurt Office Bethmannstrasse 58, Frankfurt am Main, Germany Tel.: Fax: Website: 37

38 THANK YOU Frankfurt Thailand Board of Investment Bethmannstr 58, Frankfurt am Main Germany Telephone: (49 69) Fax: (49 69)