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Overview of Thailand’s Economy and Business Climate

Overview of Thailand’s Economy and Business Climate. Consistent growth and productivity. Gross Domestic Product 5% in 2006* Foreign Direct Investment €6.47 billion 2006 €32.93 billion State Budget 2007** Current Account at 6-year high € 1.2 billion Capacity utilization a steady 73%

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Overview of Thailand’s Economy and Business Climate

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  1. Overview of Thailand’s Economyand Business Climate

  2. Consistent growth and productivity • Gross Domestic Product 5% in 2006* • Foreign Direct Investment €6.47 billion 2006 • €32.93 billion State Budget 2007** • Current Account at 6-year high €1.2 billion • Capacity utilization a steady 73% *Revised by NESDB **1.566 trillion baht €47.55/THB

  3. Strong Net Applications Value Billion Baht with appx. Billion € 704.5 €14.82 514.2 €10.81 656.1 €13.80 319.0 €6.71 264.7 €5.57 Annual Average €10.3 billion 2002 2003 2004 2005 2006 €47.55/bt Total investment applications

  4. German Project Approvals 2002- 2006 €47.55/THB Netherland 18% Switzerland 14% Germany 20% United Kingdom 23% Belgium 6% Italy 6% France 13%

  5. World Bank’s Ease of Doing Business GLOBAL RANKINGS Thailand Source: World Bank Study: Doing Business in 2007

  6. Ranking of FDI Prospects in Asia Top 1 China Top 2 India Top 3 THAILAND Top 4 Vietnam Top 5 South Korea Thailand Rated #3 Most Attractive FDI Location in Asia by UNCTAD (2005-2008) • UNCTAD survey of world’s 325 largest transnational corporations • Asian region has most positive FDI prospects • Overall, Thailand ranked #9 in world UNCTAD Global Investments Prospects Assessment, Sept. 2005

  7. JBIC FY 2006 Survey • When asked about profitability for each region, including Japan, “the percentage of companies answering “higher” was greatest for Thailand” • In E&E, within the ASEAN4, the response to “strengthen or expand” is largest in Thailand. • In automotives, “strengthen or expand” stronger in Thailand than any other region, including Southern China and North America.

  8. Quality at Low Cost • Ranked 127 in global “Cost of Living Survey* • A lowest cost destination within the region and the world • Avg. general industry wage US$146/mth** • Avg. Monthly office rent US$11.67/sqm** “Thailand’s assets include an entrepreneurial population, abundant natural resources and a wonderful lifestyle and, if these strengths are promoted and supported, the country will continue to be a great place to do business” Grant Thornton International Business Owners Survey 2006 *Mercer Human Resources Consulting **JETRO Survey March 2006

  9. Increasing Labor Productivity Ministry of Labor

  10. Enhanced Infrastructure • Transportation • National highway system: 64,000 km connecting all 76 provinces • Expanding connections into Cambodia, Laos, Vietnam and southern China • 7 international airports • Rail system: 4,000 km linking to Malaysia & Singapore • Citywide light rail • €3.8 billion expansion • Communications • Mobile phones: growing 8 million in 2006 to 39 million users, with a 60%+ market penetration rate • Wi-Fi and broadband access • Shipping • 8 deep sea ports • Including tanks farms and liquid jetties

  11. Rojana Industrial Park Amata Industrial Estate 304 Industrial Park Asia Industrial Estate Gateway City Industrial Estate Hemaraj Land and Development PLC Laem Chabang Industrial Estate Map Ta Phut Industrial Estate S + + + + + + + S Padaeng Industrial Estate S + S S S Ping Thong Industrial Estate S S S S Wellgrow Industrial Estate International School & University S S Hospital S S S Golf Course

  12. Strong Market Potential Free Trade Agreements • FTA Concluded • ASEAN • Australia • New Zealand • FTA under negotiation • Japan (scheduled to be signed in April 2007) • USA • Peru • Bahrain • BIMSTEC • EFTA • Korea • Early Harvest • China • India *Some FTAs are negotiated under ASEAN framework.

  13. Thai Graduates by Major Source: Commission on Higher Education; includes BA, MA, and post-graduate degrees

  14. Thai Graduates in Science, Technology, and Engineering Source: Commission on Higher Education; includes BA, MA, and post-graduate degrees

  15. Supportive Policies • Foreign Ownership • BOI allows foreign majority ownership in manufacturing • Majority foreign ownership is possible in many services • No export requirement • Attractive investment incentive package

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