THAILAND GROUP 8 SECTION 1 Harini-DM15118 | Rukmani-DM15144 | Priyanka Patel-DM15138 | Pavithra-DM15134 Sandra-DM15148 | Amal-DM15105 | Pradeepta-DM15136 |Arshiya-DM15110

EVOLUTIONEVOLUTION

EVOLUTIONEVOLUTION

EASE OF DOING BUSINESS IN THAILAND  FACTORS THAT AID BUSINESS Openness to global markets Productive and Efficient Manpower Manufacturing Excellence Conducive business environment Investor protection Good quality exports Strong transport and infrastructure facilities  POLICIES THAT AID BUSINESS GROWTH FTAs with EU, ASEAN countries, U.S Non- tariff barriers or reduction in import tariff barriers Better regulatory policies Intellectual Property Protection  REASONS WHY INDIAN COMPANIES PREFER SINGAPORE Good infrastructure facility. Government invests heavily in developing the infrastructure. Inflation is as low as 3% and interest rates is at a reasonable 2.8%. Debt is well under control ensuring stable economic environment Labour costs are low especially in manufacturing sector. High good exports from India to Thailand EODBEODB

LPILPI LOGISTICS PERFORMANCE INDEX IN THAILAND According to World Bank Doing Business Report, Cost of exports and imports in Thailand is well below the regional average. Thailand has streamlined its customs procedures by using online processing and payment. In 2008, the country established national single window (NSW) that provides e-Customs service to facilitate international trade transactions. Logistics performance index ( 1=low to 5=high)IndiaThailand Efficiency of customs clearance Competence and quality of logistics services Ease of arranging competitively priced shipments Frequency with which shipments reach consignee within scheduled or expected time Ability to track and trace consignments Quality of trade and transport Overall PERFORMANCE COMPARISON

EVOLUTION OF INDUSTRIAL CLUSTERS INDUSTRYINDUSTRY PeriodIndustrial Sector Evolution Prior to 1945 Thailand opened up to pre-industrial era The Bowring Treaty, Harris Treaty, Roberts Treaty – gave sanctions to British & American traders Shift from agricultural –product focused trade to textiles and processed goods Shift from import-substitution to export-orientation – led to industrial development Manufacturing constituted 19.8% of GDP in the 1980s Large- scale industrial development e.g. – Eastern Seaboard Development Program Emergence of banking sector & services industry Slowdown in manufacturing sector – persistent deficit in the BoT of manufactured goods 2006 onwards Technological upgrades made for resource-based industries 2010 – political uncertainty & 2008 recession – caused decline in consumer & investor confidence Amendments in the Customs Act introduced SME Promotion Act & SME Promotion Committee established

FDI,FII and other Investments INVESTMENTSINVESTMENTS  Progressive FDI allowed in service industries – esp. financial & communication  Foreign equity participation limit of 25% lifted in banking & financial except insurance services  Board of Investment introduced a new FDI policy in 2000:  100% foreign shareholding in all activities allowed except the ones listed under List One  SMIs having an investment of more than 1 million Baht could avail of investment incentives  Businesses with investments of above 10 million Baht would need to obtain ISO 9000 quality certificates Increase in Thailand’s Outward FDI between , aimed at obtaining knowledge and technology access from abroad – shift from Inward FDI to outward FDI Outward FDI as a substitute to domestic investments and also as complementary to domestic investments

SingaporeThailandMalaysiaIndonesiaPhilippinesVietnam LPI4.19(1)3.31(31)3.48(27)3.01(43)2.69(65)2.89(53) CI5.61(2)4.54(37)5.03(24)4.53(38)4.29(59)4.18(70) CPI86(5)35(102)50(53)32(114)36(94)31(116) EODB Stages of developme nt Innovation driven Efficiency Driven Trans from efficiency driven to innovation driven Efficiency driven Trans from factor to efficiency driven Factor Driven Areas of Improvement Logistics in agriculture sector still lacks efficiency leading to high operational costs and unnecessary waste. Nation’s Rail system development and water transport system has not developed adequately. Thus, lower cost logistics has become intangible Comparison with other Countries COMPARISONCOMPARISON