Economic Outlook and Business Opportunities in Thailand by Mr Economic Outlook and Business Opportunities in Thailand by Mr. Arin Jira, Vice Chairman, Federation of Thai Industries (FTI) 28 March 2014 At SOFOFA, Santiago, Chile

Thailand : Economic Outlook in 2013 and 2014 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 Investment Public Investment -2.8 1.3 3.8 0.3 Inflation 2.1-3.1 1.9-2.9 The World Bank ranks Thailand 18th out of 189 countries, according to the 2014 Doing Business Report.

Thailand : 2nd Largest Economy in ASEAN GDP US$ 385 billion (2013) GDP per capita US$5,647 45% Industry 43% Services 12% Agriculture Population : 67 million Labor Force: 40.2 million Growing Economy Strong Export and a Vibrant Domestic Consumer Market 2nd Lowest corporate income tax in South East Asia (20%) Sources: BOI, NESDB

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) ASEAN’s GDP to double to US$ 4.7 trillion in 2020. Source: BOI

Thailand’s Extensive Free Trade Agreement Networks ASEAN-Korea ASEAN-China ASEAN-Japan ASEAN-India ASEAN-CER Thai-India JTEPA Thai-Australia Thai-NZ Thai-EU BIMSTEC ASEAN Thai-Peru RCEP Thai-Chile 11 FTA Agreements Under Negotiation Finalized In Effect Source: Ministry of Commerce

Thailand Investment Promotion Policy No restrictions on foreign currency remittances No foreign equity restrictions in manufacturing sector and promoted service sector No export requirements No local content requirements Liberal Investment Policy Source: BOI

Thailand’s Attractive Investment Incentives Tax Incentives: Import duty exemptions/ reduction Corporate Income Tax/ Exemption for 3 to 8 years. Additional 50% reduction of corporate income tax for up to 5 years Double deductions for infrastructure construction /installation costs. Non-Tax Incentives: Land ownership rights for foreign investors Work permit & visa facilitation

Activities Eligible for Investment Promotion

Target Industries: Automotive Agriculture & food processing Machinery Chemicals Biotechnology Alternative energy Electrical/Electronics (E & E) Healthcare sector Creative Industry

Trade and Investment Relations between Thailand and Chile 2012 (million US$) 2013 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 Thailand Sigdo Koppers S.A. SQM Company (fertilizer) CFR Pharmaceutical S.A.

Thank You