Overview of Thailand

1
Overview of Thailands Economyand Business
Climate
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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
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German Project Approvals 2002- 2006
47.55/THB
Sector Project Mil
Agriculture 6 18.49
Minerals/ Ceramics 5 87.42
Light Industry 8 11.35
Auto/Metal Processing 14 37
EE 16 16.52
Petro/Chemical 10 36.69
Services/Infra. 24 38.97
Total 83 246.44
Netherland 18
Switzerland 14
Germany 20
United Kingdom 23
Belgium 6
Italy 6
France 13
5
World Banks Ease of Doing Business
GLOBAL RANKINGS
Thailand
Source World Bank Study Doing Business in 2007
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Thailand Rated 3 Most Attractive FDI Location in
Asia by UNCTAD (2005-2008)

• UNCTAD survey of worlds 325 largest
  transnational corporations
• Asian region has most positive FDI prospects
• Overall, Thailand ranked 9 in world

UNCTAD Global Investments Prospects Assessment,
Sept. 2005
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JBIC FY 2006 Survey

• When asked about profitability for each region,
  including Japan, the percentage of companies
  answering higher was greatest for Thailand
• In EE, 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 US146/mth
• Avg. Monthly office rent US11.67/sqm
• Thailands 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

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Increasing Labor Productivity
Ministry of Labor
10
Number of days to incorporateand register new
firms
Low Level of Bureaucracy
Thailand
Source World Bank Group www.doingbusiness.org
11
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

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Free Trade Agreements
Strong Market Potential

• 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.
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Thai Graduates by Major
Major 2004 2005
Humanities and Social Sciences 229,561 232,704
Science, Technology, and Engineering 77,329 82,415
Health Science 12,942 17,105
Technology and Business Computer (vocational) 9,085 15,037
TOTAL 319,832 332,224
Source Commission on Higher Education includes
BA, MA, and post-graduate degrees
16
Thai Graduates in Science, Technology, and
Engineering
Source Commission on Higher Education includes
BA, MA, and post-graduate degrees
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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