Transcript THAILAND

THAILAND: Business
Opportunities
Chanin khaochan
Director- Frankfurt Office
Thailand Board of Investment
[email protected]
THAILAND: Partnership for growth in ASIA
THAILAND IN BRIEF
Capital Bangkok
Land Area 514,000 sq.km(> 6x)
Population 67.31 million(>6x)
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 %
Main Products of Thailand
• Agricultural
Products
•
•
•
 Services

Tourism Destination

World class Medical services & Medical Tourism

Thai Food / Thai Restaurant / Thai Spa-Massage
Rice (Top World Exporter)
Tapioca (No. 1 World Exporter)
Natural Rubber ( No. 1 World
Exporter)
• Food Products
•
Canned Pineapple (No. 1 World
Exporter)
• Industrial Products
•
Canned Tuna ( No. 1 World Exporter)
•
Hard Disk Drive(No.1 World Exporter)
•
White Shrimp (Top World Exporter)
•
Automobile & Parts ( 2.5Mil. Unit
(2012))
•
Sugar (No. 2 World Exporter after
Brazil)
•
•
Poultry (No. 4 World Exporter)
Electric appliance Products (
Refrigerator, Air-condition, Washing
M/C,….)
Value of Investment Promotion
Applications By Industry, 2003 – 2012
Agro
Euro billion
Minerals
Fashion
Auto
E&E
Chemical
Services
37.01
40
35
30
15.3
25
16.42
20
5
0
16.84
12.82
4.1
7.98
4.3
2.7
3.1
1.7
1.5
0.5
0.5
2.1
1.5
0.3
6.2
4.2
4.1
1.9
3.6
2
3.3
1.4
0.5
0.7
4.2
9.4
3.2
3.8
0.4
4
6.1
11.20
11.17
3
2.2
1.4
1.5
15.97
15.88
4.4
15
10
17.63
4.3
2.2
2.2
1.3
1.7
0.6
2.1
1
1.6
1.4
0.2
0.5
1.7
0.3
0.7
0.4
0.8
3.3
6.4
1.1
1.5
1.3
1
1.5
0.8
0.9
1.1
1.9
0.4
0.7
1
1.8
1.7
1.8
2.4
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Exchange rate: €1 = Bt39.96 in 2012
Source: BOI, as of Jan 17, 2013
0.3
Foreign Direct Investment
Applications
20
2011
16.2
16
2012
Euro Billion
+63.5%
12
9.9
9.4
8
4.9
4
0.6
1.3
1.2
0.8
0
Total
Japan
Exchange rate: €1 = Bt39.96 in 2012
Source: BOI, as of January 17, 2013
EU
ASEAN
0.2
0.6
USA.
0.030.3
Australia
Sectors of Opportunity
Agriculture
and food
processing
Biotechnology
Automotive
Target
Industries
Machinery
Mold & Die
Target
Industries
Alternative
energy
E&E
Food Industry
“Thailand: Kitchen to the World”
2011 THAILAND’S TOP FOOD EXPORT CATEGORIES
AND WORLD’S RANKING
World’s # 6 Rice & Grains
Exports
World’s # 1 Cassava
Exports
THAILAND:
12th in total food
exports
World’s # 2 Sugar Exports
World’s Top 15 Fruit
&Vegetable Exports
World’s $# 3 Fishery
Exports
Source: National Food Institute 2012
Strengths of Thai Food Industry
> 80% of raw materials used by the
food industry are locally sourced at
low prices
Abundant
Raw
Material
Skilled &
hard working
Workforce
Good
Quality & Safety
GMP and International Standard
Size of workforce now > 39.5 million
Good Manufacturing Practices is a
Minimum Daily Wage Bt300 (€7.5)
mandatory measure for 54 types of food
products
Source: Thailand Food Industry Outlook, Commercial Section, Royal Danish Embassy Mar 2011
Automotive Industry
“Thailand: Automotive Hub of Asia”
As of Feb 14, 2013
Thailand’s Automotive Industry
Overview
Thailand:
Target:
Output:
High local
content :
9th largest
To
14
automobile manufacture assemblers 80-90% for
producer in
with a
pick-up and
3,000,000
the world in units in 2017 combined 30-70% for
2012*
production
passenger
of more
car
than
2,000,000
in 2012
Source: OICA and TAI
Thailand: Auto Hub of Asia
• Largest auto producer in Southeast Asia,
#9th largest in the world in 2012
• World’s 2nd largest producer and market of pickup trucks
• Production in 2012~ 2.45 million units , domestic sale 1.44
million units, exports 1.03 million units to > 150 countries
• Strong Supporting Industry
–
635 suppliers of Tier 1 with combination of multinational,
JV and domestics companies
– 1,700 suppliers of Tier 2,3 mainly domestics companies
• High Local content : 80-90% for pick up and 30-70% for
passenger car
12
Total Car Production 2012
20,000,000
18,000,000
16,000,000
14,000,000
Units
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
China
USA
Japan
Germany
South
Korea
India
Brazil
Mexico
Thailand
Source: Adapted from OICA, 2013 (http://oica.net/category/production-statistics/)
Canada
Thailand Automotive Industry Growth
units
3,000,000
Year 2012
Production
=
2,453,717 Units
Domestic Sale =
1,436,335 Units
Export
=
1,026,671 Units
2,500,000
2,453,717
2,000,000
1,645,304
1,500,000
1,125,316
928,081
1,000,000
589,126
750,512
584,951
459,418
1,394,029
1,287,346
1,188,044
703,405682,161 690,100
776,241 999,378
548,871
1,436,335
1,457,795
895,831
1,026,671
795,250
411,721
800,357
327,233
559,428389,100
500,000
144,065
626,026
735,627
533,176
631,251
363,156
262,189
409,362
682,161
538,962
218,330
296,985
440,715
535,563
322,053
14,000 42,200 66,700 158,130
152,836175,293180,554 239,440
0
130,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Production
Sale
Export
Estimate Production Capacity
Brand
2012
Add Capacity
2015
Toyota
700,000
200,000
900,000
Ford & Mazda
500,000
-
500,000
Mitsubishi
400,000
100,000
500,000
Isuzu
220,000
100,000
320,000
Honda
240,000
180,000
420,000
Nissan
220,000
150,000
370,000
Suzuki
135,000
65,000
200,000
GM
160,000
-
160,000
Others
80,000
-
80,000
TOTAL
2,675,000
795,000
3,470,000
Top 100 Global Suppliers 2010
Present in Thailand
Other Global Suppliers
Japanese Global Suppliers
2. Denso
4. Aisin Seiki
13.Yazaki
15.Sumitomo
16.Toyota Boshoku
18.CalsonicKansei
19.JTEKT
20.Hitachi
28.Toyoda Gosei
33.NTN
34.NSK
35.Mitsubishi
39.NHK Spring
40.Koito
41.TS Tech
43.Takata
46.Bridgestone
49.Tokai Rika
57.Showa
61.Mitsuba
66.Asahi Glass
72.Stanley
74. Akebono
Brake
82.Sanden
84. F-Tech
92.Alpine
94.Pioneer
98. Omron
28/29 Companies
1.
3.
6.
7.
Robert Bosch
Continental
Faurecia
Johnson
Control
8. ZF
11. TRW
12. Delphi
14. Lear
17. BASF
21. Valeo
22. Visteon
23. Autoliv
25. Mahle
27. Dana
31. BorgWarner
36.Teneco
44. Federal-Mogul
47. Michelin
50. GKN Driveline
52. Goodyear
56. Grupo Antolin
58. Bayer
59. TI Automotive
65. Draexlmaier
67.American Axle
73. Rieter Auto.
84. F-Tech
86. Hayes
Lammerz
93. 3M
29/71 companies
Thailand: Auto Hub of Asia
Need more suppliers capacity
to support
3 Million cars Year 2017
Want more machinery, Tooling,
Automation
Renewable Energy
Thailand’s Energy Policy
1
2
3
4
5
• Enhancing energy related industries &
business to be next generation value-creator.
• Securing country’s energy supply.
• Pricing energy right.
• Up-scaling RE mix to 25% in 10 years.
• Targeting energy intensity reduction by 25%
(based on 2010 level) within 20 years.
Source: DEDE (Renewable Energy Asia 2012), as of Sept 12, 2012.
Alternative Energy Development
Plan (AEDP) 2012-2021
AEDP 2012-2021, targeting to replace 25% of total fossil-fuel
consumption with RE at the end of 2021.
Renewable Energy ( 9,198
MW)
Solar power
2,000 MW
Wind power
1,200 MW
Hydro power
1,608 MW
MSW
Biomass
Biogas
160 MW
3,630 MW
600 MW
New forms of RE (3 MW)
Geothermal
energy
1 MW
Wave and
Tides
2 MW
Source: Ministry of Energy, as of April 2012
Economic transition from
labor intensive to
knowledge-based is creating
great demand
As of Mar 4, 2013
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
Thailand: Regional Medical Hub




World class hospital services, high-quality
medical treatment with Thai hospitality
Thai doctors study abroad, speak
international languages and are among
the best in the region
Supporting facility: Lab test services
Health tourism increased over 200% in last
few years, becoming the largest in Asia
FOREIGN PATIENTS TO THAI PRIVATE
HOSPITALS (2002-2011)
1,600,000
1,400,000
2008
1,334,565
2007
1,463,100
2006
1,261,048
2004
1,363,295
2003
1,325,186
200,000
1,356,000
400,000
1,103,095
600,000
973,532
800,000
1,249,984
1,000,000
630,000
Foreign Patients
1,200,000
0
2002
2005
2009
Source: Department of Export Promotion and The Board of Trade of Thailand as of Jan 8, 2012
2010
2011
Thailand Market for Medical Equipment and
Supplies for 2010-2015
1,500
1,400
Unit: (US$ million)
1,227
1,300
1,122
1,200
1,033
1,100
1,000
900
869
948
795
800
700
600
500
2010
2011
2012
2013
Source: Thai Medical Device Technology Industry Association, as of Aug 3, 2010
2014
2015
Target BOI Promotion in Life Science
Business
•
•
•
•
•
•
•
Medical supplies or medical devices
Medical food
Scientific equipment
Laboratories Services/Test
Research and development
Training Center
Biotechnology
•
•
•
•
Biopharmaceutical agent
Diagnostic kits for health, agriculture, food
Bio molecule and bioactive compounds
Biological substances analysis or synthesis
services
• Biological substances analysis and/or synthesis
services
As of Jan 31, 2013
Biotechnology:
BoI Eligible Activities
Seed & Plant R&D
Biotechnology
Biopharmaceutical agents
Diagnostic kits for health,
agriculture, food and environment
Biomolecule & bioactive compounds using
microorganisms, plant cells and animal cells
Raw materials and/or essential materials used in
molecular biological experiment
Biological substances analysis and/or synthesis services
Source: A Guide to BOI 2010
Service and support from
Government
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
Thailand and the BOI offer:
No restrictions
on foreign
currency
100% foreign
ownership
LIBERAL INVESTMENT
REGIME
No export
requirements
No local content
requirements
Trade and Service Office
Need Thai Partner
Doing Business in Thailand
Register company in Thailand within 1 day
Follow Foreign Business Act.
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
Tax Incentives
 Corporate income tax holidays up to 8
yrs
 Additional 50% reductions of
corporate income tax for 5 years
 Import duty reductions or exemptions
on machinery and raw materials
 Double deduction of public utility costs
 Deductions for infrastructure
construction/installation costs
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
WHY
THAILAND
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+6
•3.3 billion pop.
(>50% world pop.)
•US$12.25 trillion GDP
Note: * Thailand, Malaysia, Indonesia, Philippines, Singapore and Brunei only.
ASEAN - EU Snapshot
* IMF Forecast
ASEAN’s Macro-Economy
• GDP (2011): US$2,112.4
Bn* (€1,643 bn)
• GDP per capita:
US$3,376 (€2,626 bn)
• GDP Growth: 5.7% and
6.4% in 2011-2012
• Population: 600 million
EU’s Macro-Economy
•
•
•
•
GDP (2011): € 12,650 bn
GDP per capita: € 25,200
GDP Growth: 1.5% and -0.3% in
2011-2012
Population: 501 million
Source: European Economic Forecast 2013 & Eurostat
Source: Tilleke and Gibbins & IMF Forecast as of Feb 27, 2013
Exchange rate: US$1=Bt31.08 and €1 = Bt39.96 in 2012
Well developed Infrastructure
Chiang
Airport
Rai
Pai
Chiangmai Nan
Mae Hong Son
Phrae
Lampang
Mae Sariang
Sukhothai
Tak
Loei
Udon
Thani
Phitsanulok
Mae Sat
Sakon
Nakhorn
Khon
Kaen
Phetchabun
Buri Ram
Nakhon
Ratchasima
BANGKOK
U-Tapao
-
Hua Hin
Nakhon
Phanom
Roi Et
Ubon
Ratchathani
Chanthaburi
Chumpon
Ranong
• 37 commercial airports, including 6
international airports (Chiang Mai,
Chiang Rai, Phuket, Hat Yai, Udon
Thani, and Suvarnabhumi)
Samui
Surat Thani
Krabi
Phuket
Nakhon Si
Thammarat
Hat Yai
Trang
Source:www.otp.go.th
Pattani
Narathiwat
Betong
Map of basic infrastructure sites and industrial parks in and around Bangkok
304 Industrial Park
Amata Industrial
Estate
Asia Industrial
Estate
Gateway City
Industrial Estate
Hemaraj Land and
Development PLC
Laem Chabang
Industrial Estate
Map Ta Phut
Industrial Estate
Padaeng
Industrial Estate
Ping Thong
Industrial Estate
Rojana
Industrial Park
Wellgrow
Industrial Estate
International School
& University
Golf Course
Hospital
Modern Industrial Estates
Thailand has over 60 Industrial
estates, zones and parks nationwide
2013
2013
1
Singapore
11
Finland
2
Hong Kong
12
Malaysia
3
New
Zealand
13
Sweden
4
United
States
14
Iceland
5
Denmark
15
Ireland
6
Norway
16
Taiwan
7
United
Kingdom
17
Canada
8
Korea, Rep
18
Thailand
9
Georgia
19
Mauritius
10
Australia
20
Germany
Source: Doing Business 2013, October 25, 2012
The World Bank Ranks
Thailand among the easiest
places to do Business in
Asia and 18th in the World
Thailand: Highly Ranked
#3 in Asia Public Sector Efficiency
#4 in Asia for Corporate Governance
#8 worldwide as priority FDI host
country
#18 worldwide for Ease of Doing
Business
#4 Easiest Place in Asia to Do Business
Expat Experience 2011
Country
Rankings Thailand has been
Thailand
1
Canada
2
South Africa
3
Malaysia
4
Philippines
5
Australia
6
Spain
7
New Zealand
8
Belgium
9
United States
10
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
International
Source: Expat Explorer Survey 2011, HSBC as of Nov 28, 2011 (3,385 respondents)
US$/sq ft/annum
200
180
160
140
120
100
80
60
40
20
0
Affordable Office Space
173
117
105
99
Source: CBRE MarketView Asia Pacific Office, Q3 2012
64
49
48
47
29
24
100
90
80
70
60
50
40
30
20
10
0
Gross
Net
79.4
42.03 41.04
36.98 35.4
34.81
17.6
14.54 13.55
9.39
8.6
7.32
6.82
Se
ou
l
D
ub
ai
Ta
ip
Si
ei
ng
ap
or
H
on
e
gK
K
on
ua
g
la
lu
m
p
Sh ur
an
gh
ai
Be
iji
ng
Ba
ng
ko
k
D
elh
Ja i
ka
rt
a
M
an
ila
M
um
ba
i
ky
o
17.9
To
Wage Levels (CA$)
WAGE COMPARISON INDEX 2011
Cities ranked according to gross value of index
Source: UBS/Prices & Earnings, August 2011
Total Tax and Social Security Contributions
as Percentage of Gross Wages
25
Sydney
Shanghai
20
15
KL
Singapore
Taipei
Jakarta
Mumbai
10
Delhi
Bangkok
5
0
Source: UBS Prices and Earnings 2009
ASEAN Corporate Income Tax
2013
30%
25%
20%
15%
10%
5%
0%
Singapore
Source: KPMG
Thailand
Vietnam
Malaysia
Indonesia
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
(54)
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
ASEAN SUPPORTING INDUSTRY
DATABASE (ASID)
www.asidnet.org
• Information and profiles of companies
in supporting industries and
manufacturers of parts and components
in 10 ASEAN countries
One Start One Stop Investment Center
More Convenience,
less time,
more efficiency!
18th Floor, Chamchuri Square Building
319 Phayathai Road, Pathumwan
Domestic Call: 0 2209 1100, Inter. Call: (66 2) 209 1100
Email: [email protected]
57
THANK YOU
Frankfurt
• Thailand Board of Investment
• Bethmannstr 58, 60311 Frankfurt am Main Germany
• Telephone: (49 69) 92 91 230 Fax: (49 69) 92 91 232
• Email: [email protected]
BOI OFFICE IN GERMANY
Mr. Chanin Khaochan
Director
Thailand Board of Investment, Frankfurt Office
Bethmannstrasse 58,
60311 Frankfurt am Main, Germany
Tel.: +49 69 929 1230
Fax: +49 69 929 123 20
Email: [email protected]
Website: www.boi.go.th
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