Transcript Thailand Investment Opportunity and Promising by Mr

Economic Outlook
and Business
Opportunities in
Thailand
by Mr. Arin Jira,
Vice Chairman,
Federation of Thai
Industries (FTI)
28 March 2014
At SOFOFA, Santiago,
Chile
Thailand : Economic Outlook in 2013 and 2014
2013 (%) 2014 (%)
GDP Growth
2.9
3.0-4.0
Export of goods
and services
4.2
6.0
Import of goods
and services
2.3
4.6
Private Investment
Public Investment
-2.8
1.3
3.8
0.3
2.1-3.1
1.9-2.9
Inflation
The World Bank ranks Thailand 18th out of 189 countries,
according to the 2014 Doing Business Report.
Thailand : 2nd Largest Economy in ASEAN
GDP US$ 385 billion (2013)
GDP per capita US$5,647
45% Industry
43% Services
12% Agriculture
Population : 67 million
Labor Force: 40.2 million
Sources: BOI, NESDB
Growing Economy
Strong Export and a Vibrant
Domestic Consumer Market
2nd Lowest corporate income
tax in South East Asia (20%)
Thailand: the Crossroads of ASEAN
10 Countries, One Single Market GDP
in 2015
US$ 2.3
trillion
Popula 607
-tion million
FDI
US$ 111
billion
5.7% (2011)
Growth 6.4% (2012)
5.2%
GDP
(2013)
Source: BOI
ASEAN’s GDP to double to US$
4.7 trillion in 2020.
Thailand’s Extensive Free Trade Agreement
Networks
Thai-EU
BIMSTEC
ASEAN
Thai-Peru
ASEAN-Korea
ASEAN-China
ASEAN-Japan
ASEAN-India
ASEAN-CER
Thai-India
JTEPA
Thai-Australia
Thai-NZ
RCEP
Thai-Chile
11 FTA Agreements
Under
In Effect
Negotiation
Finalized
Source: Ministry of Commerce
Thailand Investment Promotion Policy
No foreign equity
restrictions in
No restrictions on
manufacturing sector
foreign currency
and promoted service
remittances
sector
Liberal
Investment Policy
No export
requirements
Source: BOI
No local content
requirements
Thailand’s Attractive Investment Incentives
Tax Incentives:
 Import duty exemptions/
reduction
Corporate Income Tax/
Exemption for 3 to 8 years.
Additional 50% reduction
of corporate income tax for
up to 5 years
Double deductions for
infrastructure construction
/installation costs.
Non-Tax Incentives:
 Land ownership
rights for foreign
investors
Work permit & visa
facilitation
Activities Eligible for Investment Promotion
8
Target Industries:
Automotive
Agriculture & food processing
Machinery
Chemicals
Biotechnology
Alternative energy
Electrical/Electronics (E & E)
Healthcare sector
Creative Industry
Trade and Investment Relations between
Thailand and Chile
2012
(million US$)
2013
(million US$)
Total Trade
978.43
886.16
Export to Chile
628.25
619.06
Import from Chile
350.18
267.10
Trade and Investment Relations between
Thailand and Chile
Main exports: automobiles & auto parts, canned
and processed seafood, rubber products, canned &
processed fruits, textile & garment, electronic &
electrical appliances, and construction materials.
Main imports: fresh & chilled seafood, natural
minerals (copper), pulp & paper, fertilizer & pesticide,
chemicals, wine and fruits.
Trade and Investment Relations between
Thailand and Chile
Chilean Investments in Thailand
1) Sigdo Koppers S.A.
2) SQM Company (fertilizer)
3) CFR Pharmaceutical S.A.
Thank You