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Thailand Board of Investment March 2012

Thailand Board of Investment March 2012. Thailand in Brief. Thailand in Brief. Population: 67 Million Labor Force: 39 Million. Import : Export, 2010 - 2011. Per capita GDP(2011): US$5,112 Thailand is an upper middle income country. Unit: CA$ million. THAILAND is the world’s

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Thailand Board of Investment March 2012

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  1. Thailand Board of Investment March 2012

  2. Thailand in Brief

  3. Thailand in Brief Population: 67 Million Labor Force: 39 Million Import : Export, 2010 - 2011 Per capita GDP(2011): US$5,112 Thailand is an upper middle income country Unit: CA$ million

  4. THAILAND is the world’s • 19th largest manufacturer • 33rd largest exporter • 35th largest economy • And the 2nd largest economy in ASEAN

  5. Economic Projections 2011-13 Note: US$1=Bt30.49 and CA$1=Bt30.84 in 2011 Source: Bank of Thailand, Inflation Report January 2012, as of Feb 4,2012

  6. Rankings and Infrastructure

  7. The World Bank Ranks Thailand the 3rd Easiest Place in Asia to do Business and 17th in the World

  8. Thailand: Ranked by UNCTAD as the 10th most attractive destination in the world

  9. Expected Change in Manufacturing Competitiveness in 5 Years MOVING UP Source: Deloitte and US Council on Competitiveness- 2010 Global Manufacturing Competitiveness index; Deloitte Touche Tohmatsu, Oct 6, 2011

  10. 6 international airports Over 50 Industrial Estates, Zones and Parks

  11. Easy and Improving Transport Rail: 4,346 km rail links to Malaysia, Singapore; Mass Transit Master Plan (2010-2029) expansion plan for 508 km 2010-2029, while 122.8 km is scheduled to complete this year(2012) Transnational RR linking China and SE Asia, covering 615 km at 200km/hr

  12. Market Potential

  13. ASEAN Connection • Thailand • 67 million population • GDP (2011) CA$342 billion • GDP/ p.capita CA$5,056 • ASEAN • +592 million pop. • CA$1.78 trillion GDP (2010) • ASEAN+3 • +2 billion pop. • (1/3 world pop.) • CA$8.9 trillion GDP • (16% of world GDP) Note: Exchange rate US$1 = Bt30.49 and CA$1=Bt30.84 in 2011

  14. ASEAN Economic Community (AEC) A Single Market & Production base AEC Transform ASEAN into a stable, prosperous and highly competitive region with equitable economic development, and reduced poverty and socio-economic disparities • Free flow of goods • Free flow of services • Free flow of investment • Free flow of capital • Free flow of skilled labor Source: Reaping the benefits of AEC & ,www.asean.org, as of December 2009

  15. An Expanding FTA Regime Thai-EU EFTA ASEAN-Korea ASEAN-EU JTEPA Thai-USA ASEAN-China ASEAN-Japan ASEAN-GCC Thai-India ASEAN-India ASEAN BIMSTEC Thai-Peru ASEAN-MERCOSUR Thai-Australia Thai-Chile ASEAN-CER Thai-NewZealand Entered into force Expected to be concluded Pending Starts negotiation

  16. Doing Business in Thailand

  17. Affordable Office Space US$ Total Occupation Costs Dollar / Square Foot / Year Source: CB Richard Ellis, Global Office Rents, Q1, 2011

  18. Wage Comparison Cities ranked according to gross value of index Source: UBS/Prices & Earnings March 2009 update August 2011

  19. Thailand and the BOI offer:

  20. Royal Decree No.530 Corporate income tax rate reduction (1/3) Reduction of corporate income tax rate from 30% of net taxable profit to • 23% for the accounting year starting from 1 January 2012. • 20% for the accounting year starting from 1 January, 2013. For SMEs a CIT rate between 15% and 23%* For MAI listed companies a CIT rate of 25%* * Depending on registered capital and length of time listed, and not including listed companies eligible for 20% rate.. Source: Royal Decrees, ww.rd.go.th

  21. BOI’s Current Foreign Equity Participation Policies • no restriction on foreign shareholding in manufacturing • 100% foreign shareholding allowed in many services • At least 51% Thai ownership is required for investment in agriculture, husbandry, mineral exploration and mining, and services in list 1 of the Foreign Business Act

  22. Tax Incentives Corporate income tax holidays up to 8 yrs Additional 50% reductions of corporate income tax for 5 yrs Import duty reductions or exemptions on machinery and raw materials Double deduction of public utility costs Deductions for infrastructure construction/installation costs Basic BOI Privileges and Measures • Non-Tax measures • Land ownership rights for foreign investors • One Stop Services Center (OSOS) • Work permit/visa facilitation for foreign experts and technicians One-Stop-Shop Visas & Work Permits are issued in 3 hours

  23. BOI Zoning and Incentives Zone: 1 2 3 Incentives: Lower Higher

  24. Zone-Based Incentives: Zone 1 Zone 2 Zone 3 From Zone-Based to Sectoral Approach Sector Matrix: Incentives to strengthen competitiveness • Strategic or Priority Activities • Maximum incentives regardless of location • Customized packages

  25. Examples of Priority Activities Agriculture and agro-industries R&D Software development Molds & Dies Biotechnology Alternative energy Manufacture of hi-tech products e.g. advanced ceramics Waste recycling & recovery

  26. Trade and Investment

  27. Thailand – S. Korea Trade 2002 – 2011 Source: MOC, as of March 9, 2012

  28. Principal Exports to S. Korea unit: Baht Billion Source: MOC, as of March 9, 2012

  29. Principal Imports from S. Korea unit: Baht Billion Source: MOC, as of March 9, 2012

  30. BOI Promoted Companies - South Korea

  31. South Korean Investment Applications Projects Source: BOI, as of March 9, 2012

  32. South Korean Investment ApplicationsTotals by Sector: 2005 – Feb 2012

  33. Target Industries

  34. Activities Eligible for Investment Promotion (1) Agriculture and Agricultural Products (2) Mining, Ceramics and Basic Metals (3) Light Industry (4) Metal Products, Machinery and Transport Equipment (5) Electrical Appliances and Electronics Industry (6) Chemicals, Paper and Plastics (7) Services and Public Utilities

  35. BOI Services

  36. BOI Support Services Investment Matchmaking Program 1-Stop for visas & work permits: work permits in 3 hours Industrial Subcontracting Services Vendors meet customers program (BUILD Unit) ASEAN Supporting Industry Database Interaction with other govt. agencies on behalf of investors Country desks Overseas offices 37

  37. 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: osos@boi.go.th 38

  38. Services at OSOS Staff from relevant agencies will also be available for consultations on a range of topics. Help investors with applications to make sure investors know what is required to: Register a company Apply for investment promotion privileges Obtain a foreign business license Tax registration Complete an environmental impact assessment Obtain utilities, etc. OSOS staff will also accept applications for things such as corporate name registration, corporate tax ID numbers, VAT registration, foreign business licenses, investment promotion incentives, etc.

  39. THANK YOU

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