“BUSINESS OPPORTUNITIES IN THAILAND” European Press Visit to Thailand BOI 14th May 2008 Mr. Luca Vianelli, Director Thai – Italian Chamber of Commerce
SUMMARY •
EU Investments Analysis
•
Emerging Trends
•
Thailand Next Business Opportunities
EU Investments Analysis
EU investments analysis
BOI approved applications - Overall 2003
2004
2005
2006
2007
Number Number Value of of (Millions) Projects Projects
Value (Millions)
Number Number Value of of (Millions) Projects Projects
Value (Millions)
Number of Projects
Value (Millions)
Total Investment
841
฿285,582
1,227
฿600,729
1,254
฿571,243
1,220
฿373,508
1,342
฿744,491
Total Foreign Investment
563
฿212,589
734
฿317,292
782
฿325,827
751
฿266,643
836
฿505,612
Total EU Investment
62
฿24,913
75
฿30,430
108
฿32,732
104
฿13,337
136
฿51,198
EU vs. Total Investment
7%
9%
6%
5%
9%
6%
9%
4%
10%
7%
EU vs. Foreign Investment
11%
12%
10%
10%
14%
10%
14%
5%
16%
10%
EU investments analysis
BOI approved investments ฿800,000
Millions Baht
฿744,491
฿700,000 ฿600,729
฿600,000
฿571,243 ฿505,612
฿500,000 ฿400,000 ฿300,000 ฿200,000
฿373,508 ฿285,582
฿317,291
฿325,827 ฿266,643
฿212,589
฿100,000 ฿24,913
฿30,430
฿32,372
฿0
2003 Total Investment
2004
2005
Total Foreign Investment
฿51,198 ฿13,337
2006
2007
Total EU Investment
EU investments analysis
BOI approved projects 1,400
1,342 1,254
1,227
1,220
1,200
1,000
841
836
800
600
782
734
751
563
400
200
108
75
62
136
104
0
2003
2004
Total Projects
2005
Total Foreign Projects
2006
2007
Total EU Projects
EU investments analysis
EU Approved Applications by Sectors 2003
2004
2005
2006
2007
Number of Projects
Value (Millions)
Number of Projects
Value (Millions)
Number of Projects
Value (Millions)
Number of Projects
Value (Millions)
Number of Projects
Value (Millions)
1 - Agricultural Products
7
฿831
10
฿899
6
฿2,512
11
฿1,008
4
฿529
2 - Mineral and Ceramics
2
฿259
1
฿2,374
3
฿4,023
2
฿142
5
฿7,528
3 - Light Industries
8
฿989
13
฿1,171
22
฿1,798
20
฿3,848
17
฿2,777
4 - Metal Products and Machineries
6
฿1,385
11
฿1,816
19
฿2,976
15
฿1,314
24
฿10,201
5 - Electric and Electronics Products
11
฿1,450
14
฿12,940
27
฿6,375
19
฿3,586
30
฿2,925
6 - Chemical and Paper
6
฿16,010
9
฿5,636
14
฿7,775
10
฿2,115
13
฿1,650
7 - Services
22
฿3,990
17
฿5,593
16
฿6,423
27
฿1,324
42
฿25,521
TOTAL
62
฿24,913
75
฿30,430
107
฿31,882
104
฿13,337
135
฿51,132
EU investments analysis
EU approved investments by sectors
Millions Baht
฿25,000
฿20,000
฿15,000
฿10,000
฿5,000
฿0
2003
2004
2005
2006
1 - Agricultural
2 - Minerals/Ceramics
3 - Light Industries
5 - Electric/Electronic
6 - Chemicals/Paper
7 - Services
2007 4 - Metal/Machinery
EU investments analysis
EU approved projects by sector 40 35 30 25 20 15 10 5 0 2003
2004
2005
2006
1 - Agricultural
2 - Minerals/Ceramics
3 - Light Industries
5 - Electric/Electronic
6 - Chemicals/Paper
7 - Services
2007 4 - Metal/Machinery
EU investments analysis
Top 10 EU investment projects - 2007 Unit: Million Baht
Total Investment
Sharholder
Act. Code
Glow Energy Public Co.,Ltd.
7,755
Thai, Netherland
7.1.1
Electric Power; Steam
Thai Wind Energy Co.,Ltd.
6,563
Thai, Denmark
7.1.1
Electric Power from Wind Power
Canadoil Pipe Ltd.
6,000
Thai, Spain
2.11
Steel Pipe
Siemens VDO Automotive Co.,Ltd.
4,540
Germany
4.8
National Wind Power Co.,Ltd.
4,425
Thai, Denmark
7.1.1
Electric Power from Wind Power
Thai Wind Power Co.,Ltd.
3,570
Thai, Denmark
7.1.1
Electric Power from Wind Power
Canadoil Asia Ltd.
1,270
Thai, Spain
4.19
Fabricated Fitting
Canadoil Asia Ltd.
1,055
Thai, Spain
4.19
Pressure Vessel
Magotteaux Co.,Ltd.
1,050
Belgium
2.12
Grinding Ball
800
Thai, Spain
4.3
Company Name
Canadoil Pipe Ltd.
TOTAL
37,028
Products
Piezo Common Rail Injector
Cladding & Overlay Products
EU investments analysis
Top 10 EU investment projects - 2006 Unit: Million Baht
Total Investment
Sharholder
Act. Code
Smartrac Technology Ltd.
2,100
The Netherlands
5.5
Transponder Device
Hoya Lens Thailand Ltd.
1,800
The Netherlands
3.8
Optical Lens
Vinythai Public Co.,Ltd.
893
Thai, Belgium
6.5
PVC Resin
Greiner Bio-One Co.,Ltd.
588
Austria
3.9
Blood Collection Tube
Adavance Agro Public Co.,Ltd.
500
Thai, Finland, Switz.,
6.14
Printing Item
Thai Tank Terminal Ltd.
480
Thai, The Netherlands
GKN Driveline (Thailand) Ltd.
400
Germany
4.8
Drive Shaft Units
Panasonic Motor (Thailand) Co.,Ltd.
367
Thai, The Netherlands
5.3
Motor for Air Conditioner
Pongpara Codan Rubber Co.,Ltd.
360
Thai, Japan, Denmark
4.8
Rubber Parts for Automotive
Kloeckner Pentaplast (Thailand) Ltd.
315
Germany, U.S.A.
Company Name
TOTAL
7,803
Products
7.1.4 Loading/Unloading Facility
6.9.2 PVC Shrinkable Film
Emerging Trends
Emerging Trends
Worldwide Investments Trends • In 2007 BOI Approved Applications surged to a record high of 744 billions Baht • In 2007 Approved Foreign Applications beat a record of more than 500 billions Baht • Japan is # 1 Thailand investor: over 3,000 Projects approved and more than 1,250,000 Million Baht invested since 1970 • U.S.A. and EU follow and then Singapore and Taiwan
Emerging Trends
European Union Investments Trends: Overall • EU projects and investments hit a record in 2007 • EU projects and investments doubled in the last 5 years • 2007 EU number of projects is 30% higher than 2006 • 2007 EU investment value is almost 4 times higher than 2006 • 9 EU projects in 2007 have over 1 billion baht value (only 2 in 2006 ) • In the last 2 years more than 60% of the EU approved applications are from new investors (and 40% are expansion projects)
Emerging Trends
European Union Investments Trends - Sectors
• The Services sector has been always the preferred EU choice • The services sector records an impressive growth in 2007 • The #2 EU sector is Electric & Electronics Products (30 projects) • The Software activity in 2007 hits with 15 projects (only 4 in 2006)
Thailand next business opportunities
Thailand Next Business Opportunities
Services, more and more! The Services and Public Utility Industry activity collected the highest FDI
List #3 of Foreign Business Act should be unlocked to be wide open to foreign business opportunities (shares majority)
Advanced and sophisticated Services could be next wave
Thailand Next Business Opportunities
Thailand as Medical Hub • 400 private Hospitals and over 1000 public in Thailand • In 2006 Thailand treated over 1 Million foreign patients • In 2010 target is 2 millions of foreign patients and revenue of over US $ 2 Billions • Medical device and disposable market value is more than US $ 1 Billion and it is expected to grow 10% every year
Thailand Next Business Opportunities
Thailand is the Kitchen of the world • #1 Rice, Cassava products and Tapioca exporter worldwide • #1 Canned tuna, Seafood, and Pineapple exporter worldwide • #2 Sugar exporter worldwide • #3 Palm Oil producer worldwide • Among top 10 worldwide chicken meat exporters
Biomass and Environment
Higher added value of the export
Thailand Next Business Opportunities
Biomass and Environment Enormous organic waste produced by agricultural activities
Biogas
Bio-fuels
Renewable energies
Carbon Credits
Thailand Next Business Opportunities
Sugar: EU demand & Thailand offer - 1 EU Sugar market (all kinds) has been closed to imports for long time losing competitiveness (20 M tons/year market) EU needs to cover a gap of 6 M tons/ year of High Quality Sugar EU now allows ONLY to LDC’s Sugar free access to EU market LDC worldwide can not afford such demand because of the Quantity and Quality Thailand has the best High Quality Sugar outside EU and a huge export quota available (5,8 M tons for export in 2008)
Thailand Next Business Opportunities
Sugar: EU demand & Thailand offer - 2 Thailand does not export to EU because of the high custom duties EU should allow non LDC to export to its market a fixed quota a year of Sugar (all kinds) Europeans Companies could co-invest with Thai manufacturers in the high sugar quality refinery process Thailand could enter to EU market maximizing the added value of its sugar export
Thailand Next Business Opportunities
Taxes and Red Tape The Finance Ministry approved an increase in tax waivers for individual taxpayers to cover the first 150,000 baht in income, up from 100,000 baht previously. Corporate taxes, now set at maximum of 30%, would be cut to improve the competitiveness of local companies relative to other countries in the region. VAT is expected to remain at 7% for the near future. Since July 2008 to establish a Newco in Thailand will be easier than ever (only 3 shareholders against 7)
The friendliest environment ever to establish a Company in Thailand
Thailand Next Business Opportunities
For further requirements please contact us:
Thai-Italian Chamber of Commerce 1126/2 Vanit II Building, 16th Floor Room 1601B New Petchburi Rd., Makkasan, Rajthevi, Bangkok 10400, Thailand Tel: (+66) 2 253 9909 Fax: (+66) 2 253 9896 Email: assistantsg@thaitch.org lvianelli@mda.it