This document provides an overview of Thailand as an investment destination, highlighting key facts about its economy and industries. Some of the main points covered include: - Thailand has a population of 67 million with a GDP of $385 billion and exports of $225.4 billion in 2013. Major industries are automotive, electronics, agriculture, and tourism. - Thailand offers attractive investment incentives like tax exemptions, import duty reductions, and land ownership rights to promote foreign investment. The Board of Investment provides various support services to investors. - Major US companies have invested successfully in Thailand, especially in automotive, electronics, machinery, and agricultural processing. Emerging industries of interest include biotechnology, alternative energy, and aerospace.

1. Ms. Ajarin Pattanapanchai
Deputy Secretary General
Thailand Board of Investment
E-mail: Ajarin@boi.go.th
Thailand: A Prime Destination for
Doing Business in Southeast Asia
Mr. John F. Kwant
Vice President, Government Affairs – Asia Pacific
The Ford Motor Company
E-mail: jkwant@ford.com
Date: May 21, 2014
Presented by:

2. Thailand: A Prime Destination for
Doing Business in Southeast Asia
Outline:
• Facts & Figures
• Why Thailand
• BOI Investment Promotion Policy
• US Investment
• Investment Opportunity

3. Thailand’s Fast Facts
Thai population 67 million (2013)
Thailand’s GDP
US$385 billion (2013)
US$5,647 per capita GDP
Thai GDP by sector
Agriculture: 12%
Industry: 45%
Services: 43%
Thai labor force 39.13 million (2013)
Thai exports US$225.4 billion (2013)
Thai imports
US$219.0 billion (2013)
Source: NESDB as of Feb 17, 2014 and Pocket World in Figures 2014 Edition

4. 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
*Source: Economist Pocket Facts

5. Top 10 Exports in 2011 – 2014 (Jan-Feb)
2011 2012 2013
2014
(Jan-
Feb)
Growth
(yoy)
Motor cars, parts and accessories 17.5 24.2 25.2 4.3 10.35
Computer parts 17.5 20.1 18.4 3.3 17.09
Precious stones and jewellery 12.7 13.9 10.4 2.1 91.90
Refine fuels 10.4 13.6 13.2 1.8 -2.58
Plastics resin 9.1 9.0 9.3 1.7 12.78
Chemical products 8.5 9.0 9.4 1.6 4.44
Rubber 13.1 9.2 8.5 1.6 -5.51
Rubber products 8.6 8.9 8.8 1.5 7.17
Machinery and parts 6.3 6.6 7.0 1.2 13.70
Electronic integrated circuits 8.1 7.1 7.5 1.1 14.65
Others 117.3 120.4 118.5 20.0 4.06
Total 229.2 242.0 236.1 40.2 8.54
Unit: $ Billion
Source: www.moc.go.th as of Mar 27, 2014 Exchange rate: A$1=Bt29.27 in Q1, 2014

6. WHY THAILAND

7. Highly Ranked
UNCTAD Ranks Thailand 8th as a
top prospective host economy 2013-
2015
World Bank Ranks Thailand among
the easiest places to do Business in
Asia and 18th in the World

8. “Over the past 6 years, Thailand has suffered
bouts of political unrest on top of the global
financial crisis and severe flooding. Nevertheless,
the economy maintains solid economic
fundamentals that support its resilience, with high
international reserves, relatively low inflation, a
moderate amount of government and external
debt, and a strong manufacturing base.”
Asian Development Bank Outlook 2014

9. 275
249
201
166 164
105
83
71
47
36 34
-
50
100
150
200
250
300
Prime Office Occupancy Costs
A$/sq ft/annum
Source: CBRE Prime Office Occupancy Costs, Q3/2013 as of December 18, 2013
Note:US$1=Bt30.73 and A$1=Bt29.69 in 2013

10. Wage Comparison
92.4
54.8
49.6
42.8
33.3
21.5 20.9
17 14.6
8.5 8 7.9 7.6
0
10
20
30
40
50
60
70
80
90
100
Tokyo
Seoul
Dubai
H
ong
K
ong
Taipei
K
uala
lum
purShanghai
BeijingBangkokM
um
bai
M
anila
Jakarta
Delhi
WageLevels(US$)
Gross
Net
4
Cities ranked according to gross value of index. New York = 100
Source: UBS/Prices & Earnings update September 2012

11. Low Corporate Income Tax 2013
Source: KPMG ASEAN Tax Guide, as of 2013
17
20 20
25 25 25 26
30 30
35
0
5
10
15
20
25
30
35
40
Percent
Singapore Thailand Cambodia
Vietnam Malaysia Indonesia

12. Top Destinations for
Expat Experience 2013
by HSBC
1.Thailand
Source: Expat Explorer Survey 2013, HSBC
Thailand offers Best Expat Experience
and a Low Cost of Living
Thailand has been chosen
as the best country in the
world for
Overall Expat Experience
& Overall Quality of Life

13. 13
• Thailand has 8 intellectual property-related laws, all of
which are consistent with international standards:
• Copyright Act of 1994
• Patent Act of 1979, as amended by the Patent Act
(No.3) of 1999
• Trademark Act of 1991, as amended by the Trademark
Act (No.2) of 2000)
• Act for the Protection of Layout-Designs of Integrated
Circuits 2000
• Trade Secret Act of 2002
• Protection of Geographical Indication Act of 2003
• Plant Varieties Protection Act of 1999
• Traditional Medicine and Practice Act of 1999
IPR Framework

14. 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 of 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

15. GMS
Infrastructure
Development
Source: NESDB as of Jan 20,2009
North-South Corridor
North-Eastern Corridor
East-West Corridor
Southern Corridor
Central Corridor
Southern Coastal Corridor

16. Free Trade Agreement
Note: * Thailand, Malaysia, Indonesia, Philippines, Singapore and Brunei only.
ASEAN
•+570 million pop.
•US$1.3 trillion GDP (2007)
ASEAN+3
•+2 billion pop.
(1/3 world pop.)
•US$9trillion GDP
(16% of world GDP)
ASEAN+6
•3.3 billion pop.
(>50% world pop.)
•US$12.25 trillion GDP
Thai-Peru
Thai-Chile

17. ASEAN Economic Community(AEC) 2015
AEC A Single Market &
Production base
Source: Reaping the benefits of AEC & ,www.asean.org, as of December 2009
• Free flow of goods
• Free flow of services
• Free flow of investment
• Free flow of capital
• Free flow of skilled labor
Transform ASEAN into a
stable, prosperous and
highly competitive region
with equitable economic
development, and reduced
poverty and socio-economic
disparities

18. 18
Investment Promotion Policy

19. BOI’s Liberal Investment Regime &
Attractive Investment Incentives
Policy
100% foreign
ownership
No local content
requirements
No export
requirements
No restriction on
foreign currency
Tax
Import duty exemptions/
reductions
Corporate Income Tax/
Exemption up to 8 years
50% reduction of corporate
income tax for up to 5 years
Double deduction on
utility costs
Deductions for qualifying
infrastructure costs
Non-Tax
Land ownership
rights
Work permit &
visa facilitation
with in 3 hrs.

20. 20
Overseas offices
Country desks
1-Stop for visas & work permits:
work permits in 3 hours
Interaction with other govt. agencies
on behalf of investors
Industrial Subcontracting Services
Global Sourcing program
(BUILD Unit)
Intensive information
ASEAN Supporting Industry Database
BOI SUPPORT
SERVICES

21. 21
US Investment

22. U.S Investment Applications
Totals by Sector: 2005 – 2014 (Q1)
Sector Projects US$ Million
Agriculture 35 257
Minerals and Ceramics 4 57
Light Industry 42 64
Auto and Metal Processing 82 3,142
Electrical and Electronics 101 1,601
Petrochemicals, Chemicals 73 2,774
Services and Infrastructure 94 224
TOTAL 431 8,119
Source: BOI, as of Apr 10, 2014 Note: US$1=Bt32.66 in Q1, 2014

23. Success Stories of US Companies

24. Sectors of Opportunity
Target
Industries
Agriculture and food
processing
Automotive
Machinery
Aerospace
Target
Industries
Biotechnology
Alternative
energy
E&E

25. Thailand’s Automotive Industry Overview
Source: TAI
(2013 produced
2.46 mil.units
exports 1.13
mil.units to 150
countries)

26. World’s Automotive Production 2013
(Units of production)
World’s Production: 87.24 Million (+3.6%)
Thailand : 2.46 Million (+4.3%)
#9 in Worlds’Automotive Production
#1 in ASEAN for Automotive Production
Source: OICA as of Mars, 2014

27. Brand 2012 Add Capacity 2015
Toyota 700,000 200,000 900,000
Ford & Mazda 500,000 - 500,000
Mitsubishi 400,000 100,000 500,000
Isuzu 220,000 100,000 320,000
Honda 240,000 180,000 420,000
Nissan 220,000 150,000 370,000
Suzuki 135,000 - 135,000
GM 160,000 - 160,000
Others 80,000 - 80,000
TOTAL 2,675,000 730,000 3,405,000
Estimate Production Capacity
Forecasted by

28. 50. GKN Driveline
52. Goodyear
56. Grupo Antolin
58. Bayer
59. TI Automotive
65. Draexlmaier
67. American Axle
73. Rieter Auto.
84. F-Tech
86. Hayes Lammerz
93. 3M
28
2. Denso
4. Aisin Seiki
13. Yazaki
15. Sumitomo
16. Toyota Boshoku
18. Calsonic Kansei
19. JTEKT
20. Hitachi
28. Toyoda Gosei
33. NTN
34. NSK
35. Mitsubishi
39. NHK Spring
40. Koito
41. TS Tech
43. Takata
46. Bridgestone
49. Tokai Rika
57. Showa
61. Mitsuba
66. Asahi Glass
72. Stanley
74. Akebono Brake
82. Sanden
84. F-Tech
92. Alpine
94. Pioneer
98. Omron
Japanese Global Suppliers
28/29 Companies 29/71 Companies
Other Global Suppliers
1. Robert Bosch
3. Continental
6. Faurecia
7. Johnson Control
8. ZF
11. TRW
12. Delphi
14. Lear
17. BASF
21. Valeo
22. Visteon
23. Autoliv
25. Mahle
27. Dana
31. BorgWarner
36. Teneco
44. Federal-Mogul
47. Michelin
Top 100 Global Suppliers Active in Thai Automotive Industry
Strength of Thai Automotive Industry

29. Thailand Aerospace Industry
 Asia overtook North America as the largest aviation market in
2009 and will account for 30% of air traffic by 2014, while
North America will slip to 23% of the total.
 Full support from the government: Maximum tax incentives
from BOI
 A capable and efficient skilled work force.
 Many universities provide aerospace engineering degree
 Civil Aviation Training Center provide training for high skill
personnel of aircraft maintenance and repair services
 Other support industries are widely available: stainless steel
and aluminum fabrication, fiberglass and polymer supply
29

30. Major Companies in Thailand
For Parts Manufacturing & MRO

31. • Thailand is the 13th Export Rank in the World
• Thailand is the world’s largest producer of HDDs,
# 2 for Air conditioner
• A leading country in the manufacture of Integrated
Circuits and White Goods
• Strong supporting industries for electrical appliances
Compressors, motors, plastic and metal parts
Source:*E&E Intelligence Unit, as of Mar 10
Electronics & Electrical Industry
Major Industrial Sector of Thailand

32. Thailand’s E&E Exports 2012
19,387
6,983
3,450
2,279
1,987
1,462
1,233
1,166
1,025
981
924
894
893
780
607
0 5,000 10,000 15,000 20,000 25,000
PCB
Washing Machine
Motor
Wire & Cable
Part of Telephone
Compressor
Power Supply
Colour TV
Teleprinter & Telephone
Refrigerator
Circuit Breaker
Radio Broadcast
Product
Air Conditioner
US$
Million
Source : MOC

33. Incentives for Software Development
Animation
Cartoons and characters
Computer-generated
imagery
Web-based applications
Interactive applications
Games
 Wireless location based service
content
 Visual effects
 Multimedia video conferencing
applications
 E-learning content via broadband
& multimedia & computer-aided
instruction
1. Enterprise Software (transaction processing, business
solutions)
2. Embedded Software (mobile phones, microchips)
3. Digital content, including:
Max. Incentives: Duty-free machinery and 8 years
income tax exemption (including revenue from ASP )
Software Content

34. Benefit
- In 1st fiscal year, have one operating company in another
country; a second within 3rd year; a third within 5th year
- Have annual expenses in Thailand of Bt15 million, or have
invested at least Bt30 million in Thailand
- By end of 3rd year, 75% of ROH personnel to be qualified
staff, and 5 persons earning at least Bt2.5 million annual salary
and benefits per person
- All companies must be real operating companies with a
physical presence and staff
For portion of income from
OVERSEAS OPERATIONS
0% CORPORATE
INCOME TAX
for 15 years
Key Conditions
Benefit
For portion of income from
LOCAL OPERATIONS
10% CORPORATE
INCOME TAX
for 15 years
Regional Operating Headquarters
Benefit
In addition to conditions for
income from overseas and
local operations:
- Income generated from
services to overseas
companies must be at least
50% of total revenues
For income of
EXPATRIATE EMPLOYEES
15% PERSONAL
INCOME TAX
for 8 years
Key Conditions

35. (38)
Supports for US Investors
BOI Office New York
61 Broadway, Suite 2810,
New York NY 10008 USA
Tel: (212) 422 9009
Fax: (212) 422 9119
E-mail: boiny@aol.com
nyc@boi.go.th
BOI Office Los Angeles
611 North Larchmont Blv.
3rd Floor
Los Angeles, CA 90004 USA
Tel: (323) 960 1199
Fax: (323) 960 1190
Email: boila@sbcglobal.net
U.S. Desk @ BOI Headquarters
555 Vibhavadi-Rangsit Rd.
Chatuchak, Bangkok 10900 Thailand
Tel: (66 2) 537-8111 Fax: (66 2) 537-8098
E-mail: head@boi.go.th

36. Mr. John F. Kwant
Vice President, Government Affairs – Asia Pacific
The Ford Motor Company
E-mail: jkwant@ford.com
Experience in Doing Business in
Thailand

37. Q & A
Supports for US Investors
BOI Office New York
250 Greenwich St., 34th Fl.
New York, NY 10007 USA
Tel: +1 (212) 422-9009
E-mail: nyc@boi.go.th
BOI Office Los Angeles
611 North Larchmont Blvd. 3rd Fl.
Los Angeles, CA 90004 USA
Tel: +1 (323) 960-1199
Email: boila@boi.go.th
U.S. Desk @ BOI Headquarters
555 Vibhavadi-Rangsit Rd.
Chatuchak, Bangkok 10900 Thailand
Tel: +66 2553-8111
E-mail: head@boi.go.th
www.boi.go.th
www.ThinkAsiaInvestThailand.com