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