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
Economic Outlook and Business Opportunities in Thailandby Mr. Arin Jira, Vice Chairman, Federation of Thai Industries (FTI)28 March 2014At SOFOFA, Santiago,Chile
Thailand : Economic Outlook in 2013 and 2014
The World Bank ranks Thailand 18th out of 189 countries, according to the 2014 Doing Business Report.
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
Private InvestmentPublic Investment
-2.81.3
3.80.3
Inflation 2.1-3.1 1.9-2.9
Thailand : 2nd Largest Economy in ASEAN
GDP US$ 385 billion (2013)GDP per capita US$5,647
45% Industry
43% Services
12% AgriculturePopulation : 67 millionLabor Force: 40.2 million
Sources: BOI, NESDB
Growing EconomyStrong Export and a Vibrant Domestic Consumer Market2nd Lowest corporate income tax in South East Asia (20%)
Thailand: the Crossroads of ASEAN
10 Countries, One Single Market in 2015
GDP US$ 2.3 trillion
Popula-tion
607 million
FDI US$ 111 billion
GDP Growth
5.7% (2011)6.4% (2012)5.2% (2013)
Source: BOIASEAN’s GDP to double to US$ 4.7 trillion in 2020.
Thailand’s Extensive Free Trade Agreement Networks
Source: Ministry of Commerce
11 FTA Agreements
In EffectUnder
NegotiationFinalized
ASEAN
ASEAN-KoreaASEAN-ChinaASEAN-JapanASEAN-IndiaASEAN-CERThai-India
JTEPAThai-Australia
Thai-NZ
Thai-Peru
Thai-Chile
RCEP
BIMSTEC
Thai-EU
Thailand Investment Promotion Policy
Liberal Investment
Policy
Source: BOI
Thailand’s Attractive Investment Incentives
Tax Incentives: Import duty exemptions/ reductionCorporate Income Tax/ Exemption for 3 to 8 years.Additional 50% reduction of corporate income tax for up to 5 yearsDouble deductions for infrastructure construction /installation costs.
Non-Tax Incentives: Land ownership rights for foreign investorsWork permit & visa facilitation
Activities Eligible for Investment PromotionActivities Eligible for Investment Promotion
8
Target Industries:
AutomotiveAgriculture & food processingMachineryChemicalsBiotechnologyAlternative energyElectrical/Electronics (E & E)Healthcare sectorCreative Industry
Trade and Investment Relations between Thailand and 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 and 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 and Chile
Chilean Investments in Thailand1) Sigdo Koppers S.A.
2) SQM Company (fertilizer)3) CFR Pharmaceutical S.A.
Thank You