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					            Updated Information on
Trade and Investment Opportunities in Thailand:
          Automotive Industry Part 1


              Ms.Bussarakum Sriratana
                       Director
    Thailand Board of Investment, Frankfurt Office
Thai Economy Overview
Thailand’s Global Economic Ranking
  18th largest Tourist Receipts
  19th largest Economy by Purchasing Power
  20th largest Manufacturing Output
  25th biggest Trader of Goods
  27th largest Industrial Output
  30th biggest Exporter as % of World Exports
  35th largest Service Output
  36th largest Economy
          Source: The Economist’s Pocket World in Figures, 2008
Thailand Economy at a Glance
  Population (2007)                        65 million
  ASEAN Population                       570 million
  Literacy Rate                                 95%
  Minimum Wage (1 Jun. 08, Bangkok)       EUR 4.06
  GDP (2007)                          EUR 162 billion
  GDP per Capita (2007)                  EUR 2,455
  GDP Growth (2007)                            4.8%
  GDP Growth (2008)*                       4.5-5.5%
  Export Growth (2007)                       18.10%
  Corporate Income Tax                      10-30%
  Withholding Tax                           10-15%
  Value Added Tax                                 7%

  * Estimated
  USD 1 = THB 33
  EUR 1 = THB 50
                             Top 15 Exports
 Item                                   2004    2005     2006     2007   2008 (Jan-Jul)
Computer and accessories               7,377   9,489   11,316   11,919           6,922
Motor cars, parts and accessories      4,416   6,206    7,247    8,303           5,202
Refine fuels                           1,421   1,900    2,776    2,814           3,305
Precious stones and jewelry            2,126   2,587    2,797    3,703           2,937
Rice                                   2,167   1,860    1,964    2,384           2,642
Rubber                                 2,749   2,974    4,110    3,887           2,629
Electronic integrated circuits         3,929   4,769    5,352    5,559           2,532
Polymers of ethylene, propylene, etc   2,496   3,358    3,428    3,590           2,276
Iron and steel and their products      1,992   2,310    2,681    3,153           1,954
Rubber products                        1,560   1,882    2,345    2,518           1,712
Chemicals                              1,657   2,115    2,610    2,701           1,668
Machinery and accessories              1,342   1,690    2,017    2,978           1,606
Airconditioner and accessories         1,599   1,747    1,749    2,205           1,484
Frozen and preserved seafoods          1,814   2,006    2,261    2,180           1,368
Electronic equipment and accessories   1,478   1,766    1,910    2,527           1,234

Unit: M.Euro (Euro 1 = Baht 50)

Source: Ministry of Commerce
          Top 20 Export Markets
No.                       2005     2006     2007         2007          2008
                                                    (Jan.-Jul.)   (Jan.-Jul.)
 1    U.S.A.             13,606   14,814   13,240        7,533         7,544
 2    JAPAN              12,058   12,479   12,404        7,091         7,513
 3    CHINA               7,348    8,920   10,205        5,430         6,469
 4    MALAYSIA            4,658    5,039    5,371        3,026         3,946
 5    SINGAPORE           6,161    6,372    6,557        3,228         3,894
 6    HONG KONG           4,941    5,457    5,908        2,999         3,882
 7    AUSTRALIA           2,542    3,305    3,947        2,161         2,867
 8    INDONESIA           3,179    2,524    3,274        1,839         2,453
 9    VIETNAM             1,896    2,338    2,614        1,330         2,047
10    NETHERLANDS         2,220    2,463    2,619        1,465         1,565
11    UNITED KINGDOM      2,242    2,588    2,449        1,396         1,391
12    PHILIPPINES         1,646    1,956    1,998        1,119         1,350    Unit: M.Euro
13    S. KOREA            1,812    2,032    2,044        1,138         1,264    (Euro 1 = Baht 50)
14    INDIA               1,222    1,374    1,834        1,044         1,210    Source:
15    GERMANY             1,606    1,772    1,980        1,096         1,159    Ministry of Commerce
16    TAIWAN              2,177    2,562    2,295        1,454         1,103
17    U. ARAB EMIRATES      942    1,121    1,517          793           989
18    CAMBODIA              736      940      934          515           829
19    ITALY                 997    1,136    1,273          783           794
20    FRANCE              1,038    1,085    1,137          647           706
Most Attractive Economies for the Location of FDI                    2007-
                         2009
    1   China               11    Thailand
    2    India                           12      France
    3    United States                   13      Malaysia
    4    Russian Federation              14      Indonesia
    5    Brazil                          15      Singapore
    6    Vietnam                         16      Italy
    7    United Kingdom                  17      Ukraine
    8    Australia                       18      Japan
    9    Mexico                          19      Canada
    10   Poland and Germany              20      Republic of Korea
    Source: UNCTAD World investment Prospects Survey, 2007-2009
                                        WORLD BANK
                                 Ease of doing business 2009
                            1          Singapore      12       Japan
                            2         New Zealand     13    THAILAND
                            3         United States   20      Malaysia
                            4          Hong Kong      23       Korea
                            5           Denmark       61      Taiwan
                            6             UK          83       China
                            7            Ireland      92      Vietnam
                            8           Canada        129    Indonesia
                            9           Australia     140    Philippines
                           10           Norway        165    Laos PDR
Source: World Bank, as of Sept 2008
Promising Countries for Overseas Business Operations
   Medium-Term (next 3 years)                        Long-Term (next 10 years)
Rank Country                                     Rank Country
1    China                                       1     China
2    India                                       2     India
3    Vietnam                                     3     Russia
4          Thailand                              4     Vietnam
5       U.S.                                     5     U.S.
6       Russia                                   6        Thailand
7       Korea                                    7       Brazil
8       Indonesia                                8       Indonesia
9       Brazil                                   9       Korea
10      Taiwan                                   10      Malaysia
Includes production, sales, R&D,                 Includes production, sales, R&D,
outsourced operations                            outsourced operations
    Source: JBIC FY 2006 Survey: Outlook for Japanese FDI (18th Annual Survey)
Global Competitiveness Index 2007-2008
   1     United States               11         Korea
   2     Switzerland                 12         Hong Kong
   3     Denmark                     14         Taiwan
   4     Sweden                      21         Malaysia
   5     Germany                     28         Thailand
   6     Finland                     34         China
   7     Singapore                   48         India
   8     Japan                       54         Indonesia
   9     United Kingdom              68         Vietnam
   10    Netherlands                 71         Philippines
   Source: World Economic Forum, October 2007
Number of Surveyed Companies Looking to Strengthen or
250
                 Expand in ASEAN-4
           238
                                           Thailand        Vietnam     Indonesia     Malaysia         Philippines
200


150
                 118
                       102
100                          86

                                  50                                                 55
50
                                                33    31          22                             24
                                                            10         12                  15          10    5
 0
                 All Industries                             E&E                            Automobile
      Source: JBIC 18th Annual Survey Report on Overseas Operations by Japanese Manufacturing Companies
The Automotive Environment
        in Thailand
                         Automotives
Target: Top 10 auto producer by 2010, producing 1,800,000 units

 • Auto sector 12% of GDP
 • Largest auto producer in Southeast Asia
 • World’s 2nd largest producer and market of pickup trucks.
 • 16 assemblers with production of 1.3 mil. units in 2007: 36% exports
 • Strong Supporting Industry
        ~ 1,800 suppliers of Tier 1, 2 ,3
 •   High Local content : 80-90% for pick up and 30-70% for passenger car
Economic Growth and Car Consumption
   Rank Country           GDP    GDP per Population Persons  Domestic
                        Growth    Capita        (M. per Car    Demand
                           (%)     (US$) Persons)             (Units/yr)
    1    USA               5.0    36,200       278      2.1 17,440,000
    2    Japan             1.3    24,900       126      2.5 5,940,000
    3    Germany           3.0    23,400         83     1.9 3,620,000
    4    United Kingdom    3.0    22,800         59     2.2 2.810,000
    5    France            3.1    24,400         59     2.2 2,550,000
    6    Italy             2.7    22,100         57     1.8 2,480,000
    7    Canada            4.3    24,800         31     2.2 1,630,000
    8    Korea             9.0    16,100         47     4.0 1,130,000
    9    Thailand          4.5     2,800         62    10.0    700,000
   10    Belgium           4.1    25,300         10     2.2    550,000
World Automobile Demand 2005 & ASEAN’s Free Trade Network


                                                    Europe                    S.Korea
          North America                         21.0 M.Vehicles                 1.2
          20.0 M.Vehicles                                                China 5.8
                                                                               ASEAN Japan 5.9
                                                                                       &
                                                                   India
                                                                              Free Trade
                                                                    1.5
                                                                                Network
                                                                              ASEAN
                                                                            17.6 M.Vehicles
                                                                                2.1

                                                                                Austria &
                                                                               New Zealand
                                                                                   1.1


 Unit: Million Vehicles           Total 66.0 Million Vehicles In 2005     Projection 2010:
                                                                             - China 9.0 Millions
                                                                             - India 1.9 Millions
 Source: Japan Automobile Manufacturers Association
 http://www.jama-english.jp/asia/publications/voice/20060828.pdf             - ASEAN 2.6 Millions
Thailand : The Automotive Hub of Asia

                                                                          Japan
                            China                                Population 127.1 million
                   Population 1,285 million                    Production 2005: 10.7 million
                 Production 2005: 5.7 million                  Dom. Sales 2005: 5.9 million
                 Dom. Sales 2005: 5.7 million                    Biggest Share: Small &
                Biggest Share: Passenger Car                     Compact Passenger Car




                                                                         Korea
                 India                                           Population 47.6 million
         Population 914 million                                Production 2005: 2.5 million
       Production 2005: 1.6 million                            Dom. Sales 2005: 1. 1 million
       Dom. Sales 2005: 1.4 million                           Biggest Share: Passenger Car
      Biggest Share: Passenger Car


                                        Thailand
                                  Population 64 million
                               Production 2005: 1.1 million
                               Dom. Sales 2005: 0.7 million
                               Biggest Share: Commercial
                                 Vehicle (1-ton Pick up)
Asia-Pacific Vehicle Production Capacity 2005-2010
Million Units
 8.00
                              2005   2008   2010
 7.00
 6.00
 5.00
 4.00
 3.00
 2.00
 1.00
 0.00                     hi sia
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                            Production in 4 ASEAN
    1,400,000


                                                                                                                          1,188,044
    1,200,000
                                                                                                              1,125,316
                                                                                                                                        1,287,346   Thailand
    1,000,000
                                                                                                    927,681
Units




        800,000
                                                                                          742,062
                                                                                                                                         577,547    Indonesia
                  559,428                                                       584,954
        600,000
                                                                      459,418
                                    457,000               412,207
        400,000
                                              327,233                                                                                    441,678    Malaysia
                          360,303
        200,000
                                                158,130
                          Philippines
             0
                   1996       1997       1998       1999       2000        2001      2002       2003     2004        2005        2006      2007




                          Source: Japan Automobile Manufacturers Association
                          http://www.jama-english.jp/asia/asean/1996-2007_Production.pdf
                                                Sales in 5 ASEAN
        800,000

                                                                                                                                   703,432     682,161
        700,000
                                                                                                                                                     631,251    Thailand
                                                                                                                         625,978
        600,000
                         589,126                                                                                                                     487,176
                                                                                                            533,176                                             Malaysia
        500,000
Units




        400,000
                                      363,156                                              409,362
                                                                                                                                                     433,341    Indonesia
        300,000
                                                                                293,231
                                                                   262,189
        200,000
                                                                                                                                                     119,963    Singapore
                                                   144,065
        100,000
                                                                                                                                                     117,903    Philippines
            -
                  1996         1997         1998         1999   2000         2001         2002       2003         2004         2005          2006        2007




                           Source: Japan Automobile Manufacturers Association
                           http://www.jama-english.jp/asia/asean/1996-2007_Sales.pdf
       Thai Automotive Industry Growth
                                                     Year 2007
                                      Production      = 1,287,649 Units +8.4%
                                      Domestics Sale = 631,251 Units -7.5%
                                      Export          = 690,100 Units +28.2%
   Units
1,400,000
                                                                                                                        1,287,649
                     Production                 Sale                Export                            1,188,044
1,200,000                                                                                     1,125,316


1,000,000                                                                                 928,081
                                                                                                                                    Production
                                                                                750,512                                         838,847
 800,000                                                                                              703,405    682,161 690,100
                                                                                           626,026
                   571,580 589,126                                    584,951                                                    631,251
 600,000 485,678
                                  559,428                      459,418                                                               Domestic
                                                    411,721                               533,176                      538,962       Sale
                     525,680
 400,000                               389,100327,233
              434,001                                                           409,362                    440,715                     456,614
                           363,156
                                            158,130                      296,985                    322,053                 Export
                                                               262,189
 200,000                        144,065                218,330                       239,440                                365,055
            21,300              42,200                               175,293 180,554
                   8,800 14,000                      130,000 152,836
                                               66,700
       0
            1995   1996   1997      1998     1999     2542   2000   2001     2002   2003     2004      2005     2006     2007      2008
                                                                                                                                   (Jan-
Source: Thailand Automotive Institute                                                                                               Jul)
http://www.thaiauto.or.th/Records/eng/records_menu_eng.asp
               Production Capacity in 2007
                              Passenger Cars 1-Ton Trucks Truck      Total
Toyota Motor                         200,000        350,000      - 550,000
Mitsubishi                            50,000        150,000  6,000 206,000
Isuzu Motors                               -        200,000 20,000 220,000
General Motor                         40,000        120,000      - 160,000
Auto Alliance                              -        155,000      - 155,000
Nissan                                36,000         98,400  5,000 139,400
Honda                                120,000              -      - 120,000
Hino Motors                                -              - 28,800    28,800
Thonburi                              16,300              -      -    16,300
Yontrakij                             12,000              -      -    12,000
BMW                                   10,000              -      -    10,000
Thai Swedish Assembly (Volvo)         10,000              -      -    10,000
Total                                494,300      1,073,400 59,800 1,627,500
Source: Thai Automotive Institute
                       Production in 2007
        Company          Domestic Export Total Prod.
        Toyota            263,968 237,774   501,742
        Mitsubishi         21,222 146,252   167,474
        Isuzu             102,747 61,048    163,795
        Honda              61,226 80,096    141,322
        Ford & Mazda       19,693 115,333   135,026
        General Motors     71,245 27,180     98,425
        Nissan             41,459 22,064     63,523
        Mercedes Benz       2,037              2,037
        BMW                 1,505     299      1,804
        Volvo                 610      54        664
        Other              11,837             11,837
        Total Production  597,549 690,100 1,287,649
Source: Thai Automotive Institute
    Thai Automotive Industry Import & Export 2006-2007
                                                                  Million Baht
                                         2006         2007       % Change
Export                                 514,511.20   573,277.25    11.86
  - Automobile                         248,787.30   269,085.88     8.56
  - Motorcycle                          10,153.90     7,607.42    -24.68
  - Auto Part                          255,570.00   296,583.95    16.52
Import                                 222,560.40   231,476.43     3.33
  - Automobile                          19,353.70    22,740.88    16.25
  - Motorcycle                           2,132.70     2,266.57     6.16
  - Auto Part                          201,074.00   206,468.99     2.05

     Export > Import                   291,950.8    341,800.8     18.49


   Source: Thai Automotive Institute
                      Export Markets in 2007
200,000                                                              Type of CBU Export
                         183,849                                     1 ton P/U = 514,592 units
180,000                                                              P Car     = 154,234 units
                                                                     SUV       =   26,544 units
160,000   134,111                         139,361                    Truck     =         0 units
                                    133,345                          Total     = 690,100 units
140,000
                      116,938
120,000
                                                             100,752 100,752
100,000
          77,710                                    58,322
 80,000                    66,857                                                 62,934
                                                55,671                   57,456
 60,000
      41,059
 40,000
                                                                                             10,711
 20,000         15,342                  6,016                                 4,478 9,371
                                                       0
                             54             0       2,651        0 0        1,000        01,400
      0
               Asia      Oceania     Middle East    Africa      Europe      Central         Others
                                                                            &South
                                                                            America
                           1 Ton P/U       Passenger Car       SUV       Truck      Total
2010 Target – World’s Top 10
 Total production of 2 million units
 Domestic sales of 1 million units
    – 1-ton trucks – 700,000 units
    – Passenger cars – 250,000 units
    – Commercial Veh. – 50,000 units
 Exports of 1 million units
    – 1-ton trucks – 800,000 units
    – Passenger cars – 200,000 units
             THAILAND OF INVESTMENT
www. boi.go.th      The perfect opportunity




   Thailand—Each Piece Fits Perfectly.

				
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