The document provides information about doing business in Thailand. It discusses NIDA Business School's MBA and other programs. It also describes NIDA's two centers for business innovation and competitiveness. Additionally, it provides facts about Thailand's economy, exports, imports, and competitiveness rankings. It discusses Thailand's infrastructure for business, tax incentives, and cluster initiatives to support priority industries. In summary, the document outlines educational programs, economic data, incentives, and industry development strategies to support doing business in Thailand.

1. Doing Business in Thailand
Danuvasin Charoen, Ph.D., PMP
Associate Professor and Associate Dean
NIDA Business School
National Institute of Development Administration
Bangkok, Thailand
danuvasin@gmail.com

2. NIDA Business School
• NIDA Business School has
• 6 MBA Programs ranging from junior management to
executive management and has double degree with Kelley
School of Business, Indiana University Bloomington
• 1 MS in Finance (CFA Partner)
• 1 Ph.D. Program.

3. NIDA Business School
• NIDA Business School has two excellence centers
• Center for Business Innovation
• Center for Enhancing Competitiveness (Affiliate with Prof.
Michael E. Porter at Institute for Strategy and
Competitiveness Harvard Business School)
Consulting and
training service NIDA-
Wharton ELS for
corporations
2013 have more than
50 millions baht or 2
million dollars
provides

4. Center for Business Innovation offers consulting and training
service for business community. CBI products are
• Executive Education Program
• NIDA-Wharton Executive Leadership Program
• Consulting Service
• Revenue over 50 million baht (about 2 million US dollars)

5. Center for Enhancing Competitiveness make
analysis on Thailand Competitive Ranking
5

6. Facts about Thailand
• THAILAND is the world’s 17th
largest manufacturer output
• 28rd largest exporter
• 24th largest economy by
purchasing power
• And the 2nd largest economy in
ASEAN

8. Fast Facts
GDP US$365 Billion (2014)
US$6,703 per capita
8.6%
Agriculture
39%
Industry
38%
Services
Population 67 Million
Labor Force 40.2 million
Sources: MOC, NESDB, Pocket World in Figures 2013 Edition

9. Thai Economic Structure
Source: MOC.go.th

10. Top 10 Exports
2011 2012
2012
(Jan-Feb)
2013
(Jan-Feb)
Motor cars, parts and accessories 16.98 22.91 3.02 3.82
Automatic data processing machines and
parts thereof
17.06 19.06 2.41 2.71
Refine fuels 10.09 12.90 2.10 1.85
Iron and steel and their products 4.99 7.05 0.76 1.68
Rubber 12.70 8.75 1.73 1.61
Polymers of ethylene, propylene, etc in
primary forms
8.80 8.53 1.30 1.50
Chemical products 8.29 8.52 1.27 1.48
Rubber products 8.39 8.41 1.37 1.37
Precious stones and jewellery 12.30 13.15 2.68 1.05
Machinery and parts thereof 6.11 6.24 0.96 1.03
Others 116.85 114.00 17.18 18.09
Total 222.58 229.52 34.78 36.20
Unit: US$ Billion
Source: www.moc.go.th as of April 4, 2013

11. Top 10 Imports
2011 2012
2012
(Jan-Feb)
2013
(Jan-Feb)
Jewellery including silver bars and gold 19.92 13.03 2.21 5.59
Crude oil 32.90 35.84 4.73 5.10
Machinery and parts 19.97 26.18 3.86 4.12
Electrical machinery and parts 13.35 17.01 2.37 2.66
Iron, steel and products 13.91 15.17 2.28 2.55
Parts and accessories of vehicles 6.53 12.61 1.54 2.34
Chemicals 14.82 14.77 2.18 2.23
Computers, parts and accessories 8.61 9.83 1.42 1.59
Other metal ores, metal waste scrap, and
products
8.95 8.13 1.24 1.45
Electronic integrated circuits 10.11 9.18 1.28 1.38
Others 79.72 85.86 12.23 14.24
Total 228.78 247.59 35.37 43.24
Unit: US$ Billion
Source: www.moc.go.th as of April 4, 2013

12. Thailand: Highly Ranked
#10 World Economic Freedom in Asia
Pacific (2013)
#4 in Asia for Corporate Governance
#8 World’s Most Attractive FDI
Destination (UNCTAD 2012-2014)
#18 worldwide for Ease of Doing Business
#4 Easiest Place in Asia to Do Business

13. Global Top 20 Destination Cities by International Visitors (2015)
Rank City
Visitor
(Million)
Rank City
Visitor
(Million)
1 London 18.82 11 Tokyo 8.08
2 Bangkok 18.24 12 Barcelona 7.63
3 Paris 16.06 13 Amsterdam 7.44
4 Dubai 14.26 14 Rome 7.41
5 Istanbul 12.56 15 Milan 7.17
6 New York 12.27 16 Taipei 6.55
7 Singapore 11.88 17 Shanghai 5.85
8 Kuala Lumpur 11.12 18 Vienna 5.81
9 Seoul 10.35 19 Prague 5.47
10 Hong Kong 8.66 20 Los Angeles 5.20
Source: MasterCard Global Destination Cities Index 2012 as of June 22, 2015

14. IMD Competitiveness Ranking

15. Source : IMD 2015
ASIA – PACIFIC REGION
Country Score
China Hong Kong 96.04
Singapore 94.95
Taiwan 85.41
Malaysia 84.11
New Zealand 81.81
Australia 80.45
China Mainland 76.99
Korea Rep. 73.92
Japan 72.83
Thailand 69.79
Philippines 60.15
Indonesia 59.91
India 59.48

16. Competitiveness Factor 2011 2012 2013 2014 2015
Economic Performance 10 15 9 12 13
Government Efficiency 23 26 22 28 27
Business Efficiency 19 23 18 25 24
Infrastructure 47 49 48 48 48
THAILAND’S OVERALL RANKING 2009 - 2014
60 COUNTRIES
Source : IMD 2009

17. IMD Competitiveness Ranking
6
10
15
9
12
18
23
26
22
28
20
19
23
18
25
46
47
49
48 48
-
10
20
30
40
50
60
2010 2011 2012 2013 2014
Economic Performance
Government Efficiency
Business Efficiency
Infrastructure

18. Thailand Brazil China India Korea Russia
OVERALL 30 56 22 44 25 45
Economic
Performance
13 51 4 16 15 43
Government
Efficiency
27 60 35 47 28 44
Business
Efficiency
24 51 27 33 37 54
Infrastructure 46 53 25 58 21 36
Source : IMD 2015
BENCHMARKING BRICs + 2

19. The Global Competitiveness Index
144 ECONOMIES
Over 100 INDICATORS
160 PARTNER INSTITUTES

20. The Global Competitiveness Index
Framework

21. The Global Competitiveness Index
Thailand 2009 - 2014
36
38 39 38 37
31 32
0
5
10
15
20
25
30
35
40
45
2009 2010 2011 2012 2013 2014 2015

22. Thailand GCI Ranking 2009 - 2014
2010 2011 2012 2013 2014 2015
Global
Competitiveness
Index 38 39 38 37 31 32
Basic requirements 48 46 45 49 40 42
Efficiency enhancers 39 43 47 40 39 38
Innovation and
sophistication
factors 49 51 55 52 54 48

23. Thailand GCI Ranking
38 39 38 37
31 32
48
46 45
49
40
42
39
43
47
40 39 38
49
51
55
52
54
48
0
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015
Global
Competitiveness
Index
Basic requirements
Efficiency enhancers
Innovation and
sophistication factors

24. Basic requirements (40.0%)
Rank 40 (Out of 144) Score 5.0 (1-7)

25. Efficiency enhancers (50.0%)
Rank 39 (Out of 144) Score 4.5 (1-7)

26. Innovation and sophistication factors (10.0%)
Rank 54 (Out of 144) Score 3.8 (1-7)

27. Thailand and Asia
Global
Competitiveness
Index
Basic
Requirements
Efficiency
Enhancers
Innovation and
Sophistication
Factors
Singapore 2 1 2 11
Japan 6 24 8 2
Malaysia 18 22 22 17
Korea, Rep. 26 18 25 22
China 28 28 32 34
Thailand 32 42 38 48
Indonesia 37 49 46 33
Philippines 47 66 51 47
Vietnam 56 72 70 88
India 55 80 58 46
Lao PDR 83 86 106 103
Cambodia 90 93 101 121
Myanmar 131 128 131 134

28. Doing Business
COMPARING BUSINESS
REGULATIONS FOR
DOMESTIC FIRMS
IN 189 ECONOMIES

29. What Doing Business Measure

30. Doing Business Rank
Doing Business
2015 Rank
Doing Business
2014 Rank
Change in Rank
26 28 2
The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

31. The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.
Topics DB 2015 Rank DB 2014 Rank Change in Rank
Starting a Business 75 68 -7
Dealing with Construction Permits 6 11 5
Getting Electricity 12 12 No change
Registering Property 28 28 No change
Getting Credit 89 86 -3
Protecting Minority Investors 25 21 -4
Paying Taxes 62 63 1
Trading Across Borders 36 33 -3
Enforcing Contracts 25 25 No change
Resolving Insolvency 45 44 -1

32. Top 5 problem factors for doing business in Thailand

33. Thailand and Asia Pacific
Economy Ease of Doing Business Rank
Singapore 1
Hong Kong SAR, China 3
Malaysia 18
Taiwan, China 19
Thailand 26
Vietnam 78
China * 90
Philippines 95
Brunei Darussalam 101
Indonesia * 114
Cambodia 135
Lao PDR 148
Myanmar 177

34. Infrastructure
• 7 International Airports
 In 2009, 53.9 million passengers, 1.1 million tons
of cargoes
 Suvarnabhumi Airport – Capacity: 45 million
passengers and 3 million tons if cargo per year
• Over 70,000 km Highway Systems
• 6 Deep Sea Ports & 2 International River Ports
 Capacity over 10 million TEUs
 Laem Chabang Sea Port – Capacity: 10.8
million TEUs, with additional 8 million TEUs
expansion
 e-Customs facilities
• 4,346 km Rail links to Malaysia & Singapore
• 60 Industrial Estates

35. Investment Budget Plan for Transportation,
2013-2020
ROAD (33.9%)
US$21.78 billion
RAIL(60.8%)
US$39.07 billion
MARINE(3.3%)
US$2.13 billion
AIR(1.93%)
US$1.24 billion
Total budget: US$64.2 billion
Source: The Office of Transport and Traffic Policy and Planning (BOI’s Overseas Office Meeting) as of Oct 31, 2012 US$1=Bt29.80 in Q1, 2013

36. “Logistics Shortcut”- Dawei & Laem
Chabang Ports
The linkage between Thailand’s
Eastern Seaboard and
Myanmar’s Dawei will provide
immense business opportunities
as the emerging Economic
Driver in the region.
With high potential to open the
Western gateway for the
existing production bases in
East Asia, the new trade and
transportation route will create
“Logistics Shortcut” for the
region and the supersized co-
production base will be an
important Growth Nodes
linking the GMS region to
global market.
Source: NESDB, as of July 10,2012

37. No restrictions on
foreign currency
100% foreign
ownership
No export
requirements
No local content
requirements
LIBERAL INVESTMENT
REGIME
Thailand and the BOI offer:

38. Activities Eligible for BOI Promotion
 Agriculture and Agro-Industries
 Mining and Mineral Processing
 Light Industries e.g. jewelry, shoe, garments
 Metal-Working Industries, including automotive
 Electrical and Electronics
 Chemicals and Petrochemicals
 Services and Public Utilities

39. (39)
Tax Incentives
Corporate income tax holidays up
to 8 yrs
•Additional 50% reductions of
corporate income tax for 5 yrs
may apply in zone 3
Import duty reductions or
exemptions on machinery and raw
materials
Double deduction of public utility
costs
Deductions for infrastructure
construction/installation costs
Non-Tax Incentives
 Land ownership rights for
foreign investors
 Permission to bring in
foreign experts and
technicians
 Work permit/visa
facilitation
One-Stop-Shop
Visas & Work Permits
are issued in 3 hours
Basic BOI privileges and Measures

40. CLUSTER INITIATIVE

41. What is a Cluster?
A geographically proximate group of
interconnected companies and associated
institutions in a particular field, linked by
commonalities and complementarities
(external economies)

42. Clusters and Competitiveness
Clusters Increase Productivity / Operational Efficiency
Efficient access to specialized inputs, services, employees,
information, institutions, training programs, and other “public
goods” (local outsourcing)
Ease of coordination and transactions across firms
Rapid diffusion of best practices
Ongoing, visible performance comparisons and strong incentives to
improve vs. local rivals
Proximity of rivals encourages strategic differentiation

43. Clusters and Competitiveness
Clusters Stimulate and Enable Innovations
Density enables recognition of innovation opportunities (e.g., unmet needs,
sophisticated customers, new combinations of services, or better technologies)
Presence of multiple suppliers and institutions to assist in knowledge creation
Ease of experimentation given locally available resources

44. Clusters and Competitiveness
Clusters Facilitate Commercialization and New Business
Formation
Opportunities for new companies and new lines of
established business are apparent
Spinoffs and startups are encouraged by the presence of
other companies, commercial relationships, and
concentrated demand
Commercializing new products and starting new companies is
easier because of available skills, suppliers, etc.

45. Clusters and Competitiveness
Clusters reflect the fundamental influence of linkages and
spill-overs across firms and associated institutions in
competition

46. Cluster Mapping in Thailand

47. BOI Zoning and Incentives
Zone: 1 2 3
Incentives: Lower Higher
Import Duty
Privileges Outside I.E Inside I.E
Zone 1 50% Reduction 50% Reduction
Zone 2 50% Reduction Exempt
Zone 3 Exempt Exempt
Corporate Income
Tax
Outside I.E Inside I.E
Zone 1 No Privilege 3 years
Zone 2 3 years 7 years
Zone 3 8 years 8 years
Objective:
Decentralization

48. Sectors of Opportunity
Target
Industries
Agriculture
and food
processing
Automotive
Machinery
Mold & Die
Target
Industries
Biotechnolo
gy
Alternative
energy
E&E

49. Chiang Mai Tourism Cluster

50. Bangkok Digital Content Cluster

51. Chantaburi Gem Cluster

52. Southern Marine Food Cluster

53. Past Competitiveness
• Low Cost Input
• Tax Incentive
• Large Market
• Location
• Foreign Direct Investment
• Industrial/Exporting Zones

54. Challenges
• Minimum wage has been increasing
• Many foreign firms have started to move out
• No Global/local Linkages
• Lack of Regional Integration
• Politics

55. Opportunities
• Skill and Innovation Upgrade
• Regional Integration (GMS or AEC)
• Institutions that create linkages between foreign and local firms
• Developing local suppliers
• Move from local cost and commodity input to high value added
products/services
• Cluster Policy

56. Conclusions
• Search for stability under “Thai road to democracy”
• “Business as usual” attitude traditional in Thailand: we
have seen it all before
• We need to upgrade skills and innovations. We can no
longer rely on “low cost”.
• In order to compete globally, there must be a linkage
between local and global firms.

57. Mba.nida.ac.th