THAILAND OF INVESTMENT Where success stories begin WWW.BOI.GO.TH
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Thailand: Where Success Stories Begin Ms. Pannee Chengsuttha Director Thailand Board of Investment Paris Office March 22, 2006 Milan, Italy 2
Thailand: Thailand: Where Success Stories Begin Where Success Stories Begin
• Why Thailand
• FDI Status in Thailand • Potential Sectors for Italian Investment • BOI Role and Services 3
Strategic Location to World Markets 1/Oct/03
US
1/Sep/04
China Japan India Bahrain
29/Dec/02
AFTA Peru Australia 1/Jan/05
New Zealand
Double Taxation Agreement with 51 countries including Italy (31 May 1980)
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Top 20 Ease of Doing Business 1
New Zealand
6
Australia
11 Ireland
16
Estonia
2
Singapore
7
Hong Kong
12 Iceland
17
Switzerland
3
United States
8
Denmark
13 Finland
18
Belgium
4
Canada
9
United Kingdom
14 Sweden
19
Germany
5
Norway
10 Japan
15 Lithuania
20 Thailand 5
Thailand #3 Most Attractive Business Location in Asia-Pacific 2005-2006 RANK OF FDI PROSPECTS IN ASIA Top 1
China
Top 2
India
Top 3 THAILAND Top 4
South Korea
Top 5
Malaysia
UNCTAD survey of world’s over 300 largest transnational corporations, FDI Experts and IPA Asia region has most FDI prospects
Source: UNCTAD 2005: Global Investment Prospects Assessment Report
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Liberal Investment Policy No restrictions on foreign currency remittances No export requirement No foreign equity restrictions in manufacturing sectors No local content requirement
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Excellent Industrial Location Electronics Automotive Food Energy & Petrochemical Rubber 8
Efficient Logistics Network Seaport - Land Transport – Airport Suvarnabhumi International Airport Donmuang International Airport
Laem Chabang Seaport
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Suvarnabhumi International Airport The Biggest and Newest International Airport in South East Asia
Located 30 Km East of Bangkok, 45 minutes from Eastern Seaboard and Laem Chabang Port Annual cargo capacity of 1.46 million tons 1st Phase: 76 flights/hour, 45 million passengers/year
Scheduled to open in 2006
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Investment Applications for BOI Promotion 2001-2005 €14.51bn €13.12
Continued Growth in 2005
bn
+11% 115%
€6.09 €4.98 €3.69 35%
22%
2002
2003
3.8
2001
Ex Rate: €1 = 48.56 THB
2004
2005
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Major Sources of Foreign Investment Applying for BOI Promotion (2001-2005) 514.6
500
Billion Baht with approximate Euro values
(€10.59 Bn.) 400
TOP 3 : Japan , EU, USA
300
142.9
200
(€2.94 Bn.)
117.7 (€2.42 Bn.)
100
0 Japan
EU
USA
12
Major Sources of EU Investment in Thailand Applying for BOI Promotion in 2005 No. of Projects
Total Investment
32
35
450
30
26
417,66
UNIT MILLION €
400 350
20
300
20
250
14
200 69,27
100
Ex Rate: €1 = 48.56 THB
13,9
6,15
0
Italy
Netherlands
Italy
Netherlands
Italy
Germ any
France
0
UK
50
France
5
Italy
10
109,88
150
7
UK
15
Germ any
25
TOP 3 : NL, UK, GER
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Italian Companies in Thailand Company Legor
Products Master alloy, metals and solders for gold and silver jewelry industry
Wegal Tricotel Warp Knitting
NOVAC
Trade and Investment Support Office 14
Legor to Set Up First Master Alloy Production Base in Asia
“Thailand is a strategic position to access other regional market” 15
Potential Sectors for Investment from Italy
Fashion and Jewelry
Auto Parts
Machinery and Equipment
High-value Added Services
Agro-based Products 16
Fashion Industry Designing the Future
Leather, Gems & Jewelry, Textiles & Garments
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Fashion Industry Southeast Asia’s Fashion Center } Fashion is 1 of 5 Thai Government priority sectors } Many renowned - branded garments, produced in Thailand for USA & EU Markets i.e. Brunet, Triumph, Victoria’s Secret, Marks & Spencer
} Many high-end branded jewelry & accessories such as Cartier and Christian Dior are produced in Thailand } Support Industries – 2500 garment firms, 450 dyeing, printing and finishing firms, 1300 weaving and knitting firms, 150 spinning companies, 18 synthetic fibre manufacturers
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Fashion Industry
Gem and Jewelry Capital of Southeast Asia
• Exports reach US$4.75 billion by 2008 • Leading exporter of colored gems • No. 2 exporter of fine jewelry after Italy • 50%-80% of World’s Rubies and Sapphires • Renowned expertise in Diamond cutting • Renowned for design and precision assembly 19
Garments and Textiles Investment Opportunities in Thailand
• Advanced Dyeing and Finishing Technology • State-of-Art Printing Technology • R&D and Technology for innovative and Functional fibre textile • Commercial fashion designers • Supply chain management technology and software • Expertise in Fashion Branding and Marketing for International Markets 20
Gems and Jewelry Investment Opportunities in Thailand
• Jewelry design and marketing • International Trading Companies • Diamond cutting • Gem and Jewelry products 21
Auto & Autoparts Industry Geared for Excellence
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Strengths of Thai Automotive Industry Detroit of Asia Competitive Manufacturing costs, good and low cost skill labors Close relationship between 2/3 tier to first tier manufacturers Capacity to manufacture a wide range of parts Geographical advantage – manufacturing base of major assemblers Market opportunities: continuous growth, 1 Ton pick up truck, higher local content - World’s Second Largest Production
760,000 units in 2005
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Auto-Parts Manufacturers in Thailand • Total auto-parts manufacturers: 1,637 - Large sized: 15 firms - Medium sized: 738 firms - Small sized: 903 firms
• Total employment: 90,000 • Source of raw materials - Domestic: 80% - Import 20%
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Investment Opportunities in Automotive Industries Investment Opportunities in Automotive Industries Passenger car engines
Mold and die production
Fuel injection pumps
Anti-lock braking systems
Transmission
Instrument clusters
Differential gears
R&D and design
Aluminum casting
Turbo chargers
Injection nozzles
Catalytic converters
Electronic systems Product testing centers
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Machinery and Equipment Towards Regional Manufacturing and Distribution Hub in the Region
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Machinery and Equipment Industry
Thailand provides: Skilled manpower for R&D and engineering 3 design activities Mature engineering supporting industry for outsourcing of parts and components Strategic gateway to the ASEAN Market Excellent infrastructure for conducting business 27
Machinery and Equipment Industry Investment Opportunities in Thailand
Machine Tools Plastic injection machinery Plastic extrusion machinery Packaging machinery Material handling equipment Robotics and factory automation equipment Specialized/process machinery or equipment for specific industries 28
HighValue Value--Added Added Services High Services Land ofat Smiles The The Land of Smiles Your Service
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Services Industry
Services Industry Investment opportunities include: - Testing and Certification Centers - Regional Operating Headquarters* - Trade and Investment Support Offices* - International Procurement Offices - Human Resource Development *Only non-tax incentives granted
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Thailand Kitchen of the World
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Thailand: World ’s Leader -Based Products Thailand: World’s LeaderininAgro Agro-Based Products Top five net food exporter in the world Total Export Value : €6 Billion per year Leading exporter of natural rubber, rice, cassava, sugar, seafood, canned tuna & canned pineapples World’s largest natural rubber producer
#2 Exporter of Sugar
Tapioca production: 5 million tons/year
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Investment Opportunities in Agro -Based Industry Agro-based Food Packaging Materials Cold storage and cold storage transportation Production of ready-to-eat food Products manufactured from Natural Rubber/Tapioca Trading Centers for Agricultural goods Production of farm Quality Standard and Inspection 33
What Thailand can offer : Privileges & Incentives Tax Incentives based on the location of factory Corporate Tax Holiday up to 8 years Exemption of import duty on Machinery and Raw Materials Additional incentives for Zone 3 : double deduction from Tax Income on utility and transport costs for up to 10 years
Non-Tax Incentives Land Owernership rights for foreign investors Permission to bring in foreign experts and technicians Work Permit and Visa Facilitation Take or remit foreign currency abroad
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The Office of Board of Investment (BOI) Government Agency under Ministry of Industry Roles
- Attract FDI into Thailand - Provide incentives to stimulate such investment
Services
- Facilitate entry and operations of investment in Thailand - Reduce initial investment costs - Provide business support services 35
Thailand Regional Center for Outsourcing Businesses
Thailand:
Board of Investment (BOI)
•
Provide information about subcontracting opportunities in Thailand
•
Provide assistance for foreign buyers wishing to buy from Thai suppliers.
•
Preparing investment manual containing technical details and marketing information, for prospective subcontractors
•
Linking sellers and buyers in related businesses
•
Maintain website
: www.asidnet.org
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How to contact us
* Royal Thai Embassy, Rome * Honorary Consul General, Milan * BOI Office in Paris Address: Ambassade Royale de Thaïlande 8, Rue Greuze, 75116 Paris, France Tel: +33 1 5690 2600 Fax: +33 1 5690 2602 E-mail:
[email protected]
BOI on the Internet : www.boi.go.th
* Mr. T. Furlan, MDA, Milan – BOI consultant Address: Viale Monza 1, 20125 Milano – Tel: +39 2 48194724 E-mail:
[email protected] -
[email protected]
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THAILAND OF INVESTMENT Where success stories begin WWW.BOI.GO.TH
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