Transcript Standard Presentation

Thailand
Board of Investment
THAILAND OF INVESTMENT
Mr. Korn Dabharansri
Deputy Prime Minister
India
August 2003
Thailand
Board of Investment
Relationship Between
India and Thailand
• Indian Business That Have Come
to Thailand Have Prospered
Pulp and Paper
Jewelry
Hotels
Software
• Dipak Jain and Narayana
Murthy Named to Thai Prime
Minister’s Eminent Person’s
Advisory Board
Free Trade Agreement
Thailand
Board of Investment
• Process Began a Year Ago When
H.E. Thaksin Shinawatra
Visited India
• Work Has Continued and I am
Meeting with Indian
Government to Finalize Details
• FTA is Expected to be Signed
When H.E. Atal Behari
Vajpayee Pays State Visit to
Thailand in October
FTA– Early Harvest
Thailand
Board of Investment
• FTA Will Begin With So-Called
“Early Harvest” of Around 100
Items
Tariffs on these items will be
gradually reduced
Goal is zero percent tariff by
2010
• Remaining Items to Be Phased
In, Following Negotiations
Benefits of FTA
Thailand
Board of Investment
• Bi-lateral Trade in 2002 was Just
Over US$1 billion.
+32% from 2001
• Our Goal is to Double bi-lateral
Trade by 2004
Thai Economic Overview
Thailand
Board of Investment
• 2002
Despite Global Uncertainty, Thai
GDP Expanded By 5.2% in 2002
• 2003
Early projections for 2003 were 3.54.5%, due to concerns about impact
of war in Iraq
Ministry of Finance projects 5.1%
growth this year
Many in government expect growth
to be 5.5-6%, both this year and next
Thailand
Board of Investment
All Segments of
Economy Growing
• Domestic
Capacity utilization at 70%
• Exports – Our Traditional
Engine of Growth
Turnaround started in 2nd half of
last year
+18% in 2003 (Jan-June)
Full-year projection raised to
US$76.8 billion, a 10.8% increase
from last year, and a new record
for the country
Strong Across The Board
Thailand
Board of Investment
• International Reserves Remain
Strong
• Baht Has Strengthened and is
Trading in Narrow Band
• Inflation Remains Low
• Clearly, We Are at The Start of
a New Growth Cycle
Foreign Investment
Thailand
Board of Investment
• Investment Figures Confirm
Economic Strength, as FDI is a
Leading Economic Indicator
• Target for 2003 is 200 Billion
Baht
First 6 months of the year, we
attracted 166 billion baht (+55%)
Clearly, then, we will surpass fullyear projection
Thailand
Board of Investment
Importance to Thailand
of Indian Investment
• BOI Figures (1993-2003)
• India Ranks #14, With 34 Billion
Baht of Investment, Ahead of:
Australia
Switzerland
Belgium
Italy
• Over That Period, Indian
Investors Have Created More
Than 12,000 Jobs for Thais
Thailand
Board of Investment
Restructuring the
Thai Economy
• In the Past, Exports Were Our
Traditional Engine of Growth
While that strategy worked very well,
during 80s, it left is vulnerable to
external events
• To Protect Our Economy From
External Shocks, We Have Placed
Great Emphasis on Strengthening
Economy at Grass Roots Level
Retraining of rural poor
Improving financing options
A Rising Tide Lifts All Boats
Thailand
Board of Investment
• We Have Offered Hope to Those
That Had None
Revolving Fund
OTOP
People’s Bank
• By Enabling Villagers to Utilize
‘Local Knowledge’
Increase household income
Stimulate domestic consumption
Increase economic activity
Supporting SMEs
Thailand
Board of Investment
• Established an SME Bank to
Ensure Promising Enterprises
Have Access to Necessary
Capital
• Lowered Corporate Income Tax
on SMEs from 30% to 20%
• Offered Additional Tax
Incentives for Companies to List
on Market for Alternative
Investments (MAI)
Finance Sector Reform
Thailand
Board of Investment
• To Solve Problem of NPLs from 1997
Crisis, We Transferred NPLS to
State-Run Asset Management
Corporation (TAMC)
More Than 500 Million Baht of Debt
(70%) Has Been Resolved
The balance should be cleared by the
end of this year
• As a Result, Banks Are Once Again
Lending
Profits Are Up 140% in First Half
Bureaucratic reform
Thailand
Board of Investment
• Government Undertook First
Revision of Thai Civil Service in
More Than a Century
• New Ministries Created
• Departments Combined to
Improve Efficiency
• Staff Retrained to Function in
“New Bureaucracy”
Open Door Policy
Thailand
Board of Investment
• While Strengthening Domestic
Economy and Reforming our
Finance Sector, We are Also Looking
to Open Markets
FTA With China
Working Towards FTAs with
Australia, Bahrain and USA
Our Objectives are to Provide Thai
Manufactured Products with
Maximum Opportunities
AFTA
Thailand
Board of Investment
• Thailand Has Also Been One of
the Driving Forces in ASEAN
and the ASEAN Free Trade Area
(AFTA)
Progressive implementation
• Once Implemented, AFTA
Presents a Unified Market of
More than 500 Million
Privatization
Thailand
Board of Investment
• As You Probably Aware,
Thailand is Selling Stakes in
Many State-Owned Enterprises
PTT – Listed on Stock Exchange
(SET) and is one of the largest
capitalized firms
Soon to come are privatization of
Airport Authority
Port Authority
Telephone Organization
Tobacco Monopoly
Thailand
Board of Investment
Thailand: The Heart of Asia
Thailand
Board of Investment