Economic Outlook and Business Opportunities in Thailand by
Economic Outlook and Business Opportunities in Thailand by Mr. Arin Jira, Vice Chairman, Federation of Thai Industries (FTI) 28 March 2014 At SOFOFA, Santiago, Chile
Thailand : Economic Outlook in 2013 and 2014 2013 (%) 2014 (%) GDP Growth 2. 9 3. 0 -4. 0 Export of goods and services 4. 2 6. 0 Import of goods and services 2. 3 4. 6 -2. 8 1. 3 2. 1 -3. 1 3. 8 0. 3 1. 9 -2. 9 Private Investment Public Investment Inflation q. The World Bank ranks Thailand 18 th out of 189 countries, according to the 2014 Doing Business Report.
Thailand : 2 nd Largest Economy in ASEAN GDP US$ 385 billion (2013) GDP per capita US$5, 647 45% Industry 43% Services 12% Agriculture q. Population : 67 million q. Labor Force: 40. 2 million Sources: BOI, NESDB q. Growing Economy q. Strong Export and a Vibrant Domestic Consumer Market q 2 nd Lowest corporate income tax in South East Asia (20%)
Thailand: the Crossroads of ASEAN 10 Countries, One Single Market GDP in 2015 US$ 2. 3 trillion Popula 607 -tion million FDI US$ 111 billion GDP 5. 7% (2011) Growth 6. 4% (2012) 5. 2% (2013) Source: BOI ASEAN’s GDP to double to US$ 4. 7 trillion in 2020.
Thailand’s Extensive Free Trade Agreement Networks Thai-EU BIMSTEC ASEAN Thai-Peru Thai-Chile ASEAN-Korea ASEAN-China ASEAN-Japan ASEAN-India ASEAN-CER Thai-India JTEPA Thai-Australia Thai-NZ RCEP 11 FTA Agreements Under In Effect Negotiation Finalized Source: Ministry of Commerce
Thailand Investment Promotion Policy No foreign equity No restrictions on restrictions in foreign currency manufacturing sector remittances and promoted service sector Liberal Investment Policy No export requirements Source: BOI No local content requirements
Thailand’s Attractive Investment Incentives Tax Incentives: q Import duty exemptions/ reduction q. Corporate Income Tax/ Exemption for 3 to 8 years. q. Additional 50% reduction of corporate income tax for up to 5 years q. Double deductions for infrastructure construction /installation costs. Non-Tax Incentives: q Land ownership rights foreign investors q. Work permit & visa facilitation
Activities Eligible for Investment Promotion 8
Target Industries: q. Automotive q. Agriculture & food processing q. Machinery q. Chemicals q. Biotechnology q. Alternative energy q. Electrical/Electronics (E & E) q. Healthcare sector q. Creative Industry
Trade and Investment Relations between Thailand Chile 2012 (million US$) 2013 (million US$) Total Trade 978. 43 886. 16 Export to Chile 628. 25 619. 06 Import from Chile 350. 18 267. 10
Trade and Investment Relations between Thailand Chile Main exports: automobiles & auto parts, canned and processed seafood, rubber products, canned & processed fruits, textile & garment, electronic & electrical appliances, and construction materials. Main imports: fresh & chilled seafood, natural minerals (copper), pulp & paper, fertilizer & pesticide, chemicals, wine and fruits.
Trade and Investment Relations between Thailand Chile üChilean Investments in Thailand 1) Sigdo Koppers S. A. 2) SQM Company (fertilizer) 3) CFR Pharmaceutical S. A.
Thank You
- Slides: 13