Sahara CCM

Date: 10/08/2013

Thailand
Country Profile
Thailand, the second-largest economy in Southeast Asia, is a constitutional monarchy with a parliamentary
democracy. The Thai economy, traditionally based on agricultural exports, has transformed dramatically over the
past few decades, with industry and services assuming a more prominent role. Industrial activity is concentrated
in the central region around the capital, Bangkok, which is also Thailand's political, commercial, industrial and
cultural hub. However, the government has aimed to decentralize Thailands industrial base through the creation
of investment promotion zones throughout the country.
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong
export industries, Thailand has achieved steady growth due largely to industrial and agriculture exports - mostly
electronics, agricultural commodities and processed foods. Exports account for more than two-thirds of its gross
domestic product (GDP). The Thai economy has weathered internal and external economic shocks in recent
years.

Thailand Economy
Key Economic indicators
Capital: Bangkok
Language: Thai
Population (2012): 66.79 million
Currency: Baht ()) (THB)
1 THB - 1.94INR
1 USD - 31.22 THB

Key industries: Tourism, textiles and garments, agricultural

processing, beverages, tobacco, cement, light manufacturing
such as jewellery and electric appliances, computers and parts,
integrated circuits, furniture, plastics, automobiles and automotive
parts; World's second-largest tungsten producer and third-largest
tin producer

GDP (PPP): $ 365.6 billion

Exports: $218.1 billion; textiles and footwear, fishery products,

rice, rubber, jewellery, automobiles, computers and electrical
appliances; Key export destinations: China (12%), Japan (10.5%),
US (9.6%), Hong Kong (7.2%), Malaysia (5.4%), Singapore (5%),
Indonesia (4.4%)

Inflation Rate : 3.1%

GDP (Real Growth rate) : 2.6%, 5
year compound annual growth%
GDP (Per Capita) : $10,000
Unemployment : 0.9%
Population below poverty line: 8.1%

Imports: $213.7 billion; Key import commodities: capital goods,

intermediate goods and raw materials, consumer goods, fuels;
Key import partners: Japan 18.4%, China 13.4%, UAE 6.3%, US
5.9%, Malaysia 5.4%, South Korea 4% (2011)

Debt : 44.2% of GDP

The government has taken steps to enhance regulatory efficiency and better integrate the economy into the
global marketplace. With no minimum capital requirement, starting a business requires only four
procedures. However, licensing requirements continue to be time-consuming. Labour regulations are
relatively flexible, but informal labour activity remains substantial. Monetary stability has been maintained
despite inflationary pressure. The government influences prices through subsidies and state-owned utilities.
Although economic fundamentals remain relatively solid, serious challenges require deeper institutional
reforms. Political instability continues to undermine the investment climate and hold economic activity far
below potential levels. The judicial system remains vulnerable to political interference, and property rights

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are not strongly protected. Systemic corruption further undercuts the rule of law and hampers stable longterm economic development.
Thailand is an attractive destination for foreign investment, with investment policies focusing on the
liberalization and promotion of free trade. Foreign investment - especially investment that contributes to the
development of skills, technology, innovation and sustainable development - is actively promoted. A variety
of tax and non-tax (i.e. special services, guarantees, approval and other protection) incentives are offered to
foreign investors in priority or promoted areas through the BOI. Non-tax benefits are available to all projects
receiving BOI promotion, regardless of location, type of production activity or conditions. Tax-based
incentives depend on location, the nature of the activities and whether output is intended for export or
domestic sale.
The FDI inflow for the year 2011 was about USD 9539 million and the stock FDI (Since 2008) is estimated to
be around USD 75,250 million. Indian FDI into Thailand is estimated to be around US$ 2 billion since 1970s.
Leading Indian companies in Thailand include the Tata group with Tata Steel having invested in the largest
Thai steel manufacturer Millennium Steel to create Tata Steel Thailand. The Aditya Birla group, Dabur, Lupin
and NIIT are among other major Indian companies doing business in Thailand Thai companies in India have
invested in the fields of Agro-processing, construction, automotive, engineering and banking have active
and growing business presence in India.
Inward Flow: USD 9539 Million (2011)
2,000.00
1,800.00
1,600.00
1,400.00
1,200.00
1,000.00
800.00
600.00
400.00
200.00
0.00

1,662.10

1,509.90
1,247.40
905.10

782.50 698.70
423.30

219.50

94.60

93.60

79.10

28.10

21.20

12.80

4.90

1,741.20

Infl ow in USD

Sector-wise distribution of Swiss-Indian collaborations

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Business Opportunities:
Travel & Tourism - Travel and tourism in Thailand is projected to post moderate growth over the
forecast period. The number of arrivals is expected to see strong growth, and remain the key source of
tourism receipts for the country. The Thai economy is expected to see moderate growth in GDP in the
forecast period, which should lead to the continuous growth of outbound tourism and domestic tourism.
Chained hotels are expected to expand the number of outlets by offering management services. In line
with expanding and growing service industry, Thailand Board of Investment (BOI) has outlined its
supports through tax and non-tax incentives for investments that promote tourism and strengthen
technological capacity for Thailand to achieve quality services to meet global standards and competitive
advantage in the service industry.
Thailand Board of Investment, the main government agency for promoting investment in Thailand is
actively promoting investment in activities that support Thailand tourism such as Yacht marinas, theme
parks, cultural centres, aquariums, open zoos, convention halls and international exhibition centres are
examples of activities supported by BOI. Other opportunities for investment in Thailand's tourism
infrastructure are movie town, hospitals, hotels, long-term accommodations for foreign retirees, and
short-haul air transport, tow boat or yacht renting, and ocean marina service.
Energy - With energy consumption expanding 6.2% for the past 25 years, and one of the fastest
growing economies in the world, Thailand is setting ambitious energy goals and guidelines that will
ensure an impressive growth path for the future. The country is one of the 10 largest petrochemical
sites in the world, and has a growing pipeline distribution system used by companies like Dow Chemical
and Exxon Mobil. Ranked 9th in the world for ease of utility set up, companies looking to invest in
Thailand can depend on a grid with reliable access to power.
Always looking forward, the Thai government recently instated the ambitious plan to increase the share
of energy from renewable sources to 20% by 2022. This policy will create 40,000 new jobs within the
renewable energy industry and capitalize on the countrys established strengths in industries such as
wind turbine production.

Specific Proposals: Description

Expected
Investment
Bangkok's premier 3 star hotel, situated in the heart of the Bangkok business district. A USD $19,000,000
newly built hotel with the concept of providing luxury and efficient service. All rooms
are equipped with all the modern technology that today's traveller requires. The hotel
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has 54 well designed rooms with very high occupancy. It also includes more than 10
shops. The Average room rates are 2000 THB per day
This Resort and Spa is located at Phuket commercial west coast and nestles into the
hillside wit amazing sea views. The Resort offers seven restaurants and bars,
featuring traditional Thai and Japanese food to fine French and Italian cuisine. It has
three swimming pools and several sunset viewpoints throughout the cliff side
complex. Size in square feet: 8,28,822.

Approx.
5,000,000,000THB

A beautifully decorated Boutique Hotel is located in central Bangkok in the Asoke area
and very close to the Skytrain and Underground train stations also close to major
hotels, shopping centres and entertainment centres such as the famous Soi Cowboy,
and as a result of the location the Hotel enjoys regular full occupancies, the hotel also
has an in-house travel agency desk which brings in additional rental income, seller will
also consider a 50/50 partnership potential buyers will have to sign a standard NDA
and provide proof of ability to purchase this Business.

Approx.
6,000,000 THB

Note: We are still evaluating opportunities for investment in Switzerland

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