Thailand s Competitiveness

Transcription

1 Thailand s Competitiveness Dr. Atchaka Sibunruang Secretary General Thailand Board of Investment Thailand Focus 2011: Enhancing Thailand s Competitiveness Over the Next Decade Four Seasons Hotel, Bangkok March 29, 2011 (1)

2 Questions 1. Current competitiveness of Thailand (สกท. เป น ผ น าการเสวนา) 2. Thailand s growth strategy (World Bank เป น ผ น าการเสวนา) 3. What are needed to achieve the long term growth strategy? (ดร.สมช ย ส จจพงษ เป นผ น าการเสวนา)

3 1. Current competitiveness of Thailand

4 1. Current Competitiveness of Thailand 1.1 solid macroeconomic foundation 1.2 Cluster of many important business activities 1.3 Good investment environment 1.4 High quality of infrastructure

5 1.1 Solid Macroeconomic Foundation Dynamic economy US$330 billion economy with GDP growth rate of 7.9% in 2010, the fastest pace since 1995, and expected growth rate of 4 4.5% in 2011 Public debt to GDP ratio at comfortable level of 42.5% at the end of 2010 Healthy banking system with gross NPL US$10 billion, only 3.6% of total loans, at the end of due to the numerous reforms in the banking system since the 1997 crisis External stability current account surplus US$ 13.2 billion in 2010 with huge international reserves US$ 172 billion at the end of 2010 Inflation at manageable level, with headline inflation at 2.87% year-on-year in February 2011

6 1.2 Cluster of Many Important business activities (1/2) Food #1 exporter in Southeast Asia Natural rubber #1 producer in the world Rice #1 exporter in the world Hard disk drive #1 producer in the world Petrochemical #1 producer in Southeast Asia

7 1.2 Cluster of Many Important business activities (2/2) Automobile #1 producer in Southeast Asia & #12 producer in the world, assemble 1.64 million units in 2010 of which 0.9 million units were exported Tourism #1 in Southeast Asia in terms of foreign income earning, 15.8 million foreign visitors in 2010 and generating US$20 billion

8 1.3 Good Investment Environment Attractive FDI destination, #11 in the world according to survey of MNCs by UNCTAD Ease of doing business, #19 of 183 countries by World Bank Liberal investment policy hospitable country to live for expat

9 Thailand is 11 th most attractive FDI destination in the world # 11 Source: UNCTAD World Investment Prospects Survey

10 World Bank s Ease of Doing Business Singapore 11 Saudi Arabia 2 Hong Kong 12 Georgia 3 New Zealand 13 Finland 4 United Kingdom 14 Sweden 5 United States 15 Iceland 6 Denmark 16 South Korea 7 Canada 17 Estonia 8 Norway 18 Japan 9 Ireland 19 Thailand 10 Australia 20 Mouritius Source: World Bank & IFC Study: Doing Business in 2011 Criteria Starting a business Dealing with construction permit Registering property Access to credit Protecting investors Paying taxes Trading across borders Enforcing contract Closing a business (10)

11 Liberal Investment Policy No restrictions on foreign currency remittances No export requirement No foreign equity restrictions in manufacturing sectors No local content requirement

12 Hospitable Country to Live for Expat (1/2) #1 in Southeast Asia for Expat Satisfaction with Assignment Source: ASEAN Regional Business Outlook Survey 2010 by American Chambers of Commerce in ASEAN

13 Hospitable Country to Live for Expat (2/2) #1 in Southeast Asia for Expat Attempted to Extend their Time

14 1.4 High Quality of Infrastructure Hub of access to regional market Numerous industrial estates

15 Hub of access to regional markets North-South Corridor North-Eastern Corridor East-West Corridor Southern Corridor Central Corridor Southern Coastal Corrid Source: NESDB as of Jan 20,2009

16 Numerous industrial estates ( 38 I.E. in 15 Provinces) AMPHUN Northern Region I.E. PICHIT Pichit I.E. SARABURI Saraburi I.E.(Kaengkhoi) Nong Khae I.E. AYUTTHAYA Hi-Tech I.E. Bang Pa-in I.E. Saharattananakorn I.E. BANGKOK Bangchan I.E. Lat Krabang I.E. Gemopolis I.E. RATCHABURI Ratchaburi I.E. V.R.M. I.E. SAMUT SAKHON Samut Sakhon I.E. Sinsakhon Printing City I.E. Maharajnakorn I.E. PRACHUAP KHIRI KHAN Bang Saphan Steel I.E. PATTANI Halal Food I.E. (Pattani) SONG KHLA Southern I.E. (Songkhla) I-EA-T Owned 12 I.E. Joint Venture 26 I.E. KHON KAEN Khon Kaen I.E. CHACHOENGSAO Well Grow I.E. Gateway City I.E. TFD I.E. SAMUTPRAKARN Bangpoo I.E. Bangplee I.E. CHONBURI Hemaraj Chonburi I.E. Amata Nakorn I.E. Pin Thong I.E. Pin Thong I.E. (Laem Chabang) Laem Chabang I.E. Phanthong Kasem I.E. RAYONG Map Ta Phut I.E. Hemaraj Eastern I.E. Padaeng I.E. Eastern Seaboard I.E. (Rayong) Amata City I.E. Hemaraj Eastern Seaboard I.E. Asia I.E. RIL I.E.

17 2. Thailand s Growth Strategy

18 New Investment Promotion Policy The new direction approved on 25 January 2010 will encourage Investment for Sustainable Development Economic Development Social Development Sustainable Development Environment Protection

19 Investment for Sustainable Development Economic development Science, technology, & innovation Creative industry Biotechnology Social development Education & training Social development Environmental protection Pollution control Eco industrial town Renewable energy

20 3. What are Needed to Achieve the Long Term Growth Strategy?

21 What are Needed to Achieve the Long Term Growth Strategy? (1/2) Change system of wealth creation from those based on low cost of labor, to be those based on science, technology, innovation, and creativity Invest in the people by upgrading quality of education Continue Thailand s excellent track record of being friendly to foreign investors Establish Thailand at international business hub in the region.

22 What are Needed to Achieve the Long Term Growth Strategy? (2/2) Ensure that doing business in Thailand will be easier, simpler, and faster, through reviewing & simplifying burdensome laws and regulations Reap huge business opportunities from regional integration: ASEAN Economic Community, 9% of world population ASEAN + 3, 31% of world population ASEAN + 6, 50% of world population Hasten infrastructure development through facilitating involvement by private sector

23 Thailand Each Piece Fits Perfectly