Mr. Satit Sirirangkamanont Secretary General Thailand Board of Investment

1. Expanding Opportunities for U.S. Investments in Thailand30 November 2004American Chamber of Commerce in Thailand Mr. Satit Sirirangkamanont Secretary General Thailand Board of Investment

2. Thailand: An Investment Destination of Choice Updates on U.S. Applications to the BOI Improving efficiency of policies to strengthen industrial competitiveness Focusing on critical success factors Strategic industries Improving BOI facilitation services

3. BOI update: U.S. Investments in Thailand

4. Net Applications for BOI Promotion

5. 6 Target Sectors • Agro-Industry • Fashion • Automotive • Electronics and ICT • Energy • High Value-Added Services Designated a Target Sector November 29, 2004

6. Total Foreign and Domestic Net Applications By Sector

7. 5-Year Totals by Sector: 1999-2003 U.S. Investments Approved

8. 2004 Results of AmCham Outlook: Bullish on Thailand AmCham Thailand in 2004: • 76% expect profits to increase • 80% expect their businesses to expand • Availability of trained personnel significant area of strength • More than 100% increase in satisfaction • Increased satisfaction with • Personal security • Costs of labor, housing, and raw materials “Expansion plans for Thailand increased from 2003, whereas those for China, Vietnam and India fell.” - The Nation July 8, 2004 Six ASEAN American Chambers participated In the AmCham Outlook, an annual business confidence survey of members in the region.

9. Thailand Rated #4 FDI Location for Inflows 2004-2007 • Results of a 2004 survey of 87 international direct investment location experts. • Subsequent survey of transnational corporations ranked Thailand #3 in Asia for FDI inflows. Source: Prospects for FDI flows, TNC Strategies and Promotion Policies: 2004-2007,UNCTAD & Corporate Location

10. BOI direction: Strengthening Thailand’s Industrial Competitiveness Focusing on value-added, Focusing on sustainability

11. Tandem FDI and DDI investments to ensure balanced development and sustainability DDI Domestic Direct Investment FDI Foreign Direct Investment Thailand Competitiveness • Productivity • Skills, Technology, Innovation • Higher value-added industries • Industrial clusters Economic Growth Poverty Eradication • Production • Employment • Income • Provincial Clusters • Community Enterprises

12. New Policies in 2004 Energy-saving machinery or equipment for existing projects Alternative energy Hard Disk Drive (HDD) Semi-conductor Bleaching, dyeing and finishing Carbon black Film-making and entertainment Long-stay tourism New policies for the 3 Southern Provinces

13. Meeting needs of investors and the nation . . Attracting foreign and domestic investments in tandem Sustainable Competitiveness . Incentives based on Zones and Sectors . . Regional Development Focusing on Strategic Industries

14. Zones Zone and Sector Matrix: Incentives to strengthen COMPETITIVENESS Zone-Based Incentives: • Zone 1 • Zone 2 • Zone 3 Proactive efforts to build up and attract investments in Strategic or Priority Industries Maximum incentives regardless of zone or location. Example: mould and die production Lower incentives Higher incentives

15. Focus on critical success factors to develop industry competitiveness • Industry competitiveness and productivity: a different approach for each sector • Supply chain management • Manufacturing processes • Microelectronic design • Energy and renewable energy • Gasoline, diesel, natural gas, electricity • Ethanol, biofuel, biogas, biomass • Energy-co-generation, independent power plants for industry clusters • Logistics • Infrastructure, oil & gas pipelines • Low-cost airlines, shipping • Logistics providers • Distribution Centers • Supply chain management systems

16. Strategic Industries • Materials science • Nanotechnology Examples of Strategic Industries: • High-tech electronics • Biotechnology Mission: Proactively build up new growth and high growth industries and fill in the missing links and create backward and forward linkages. • Fill in missing links in industrial clusters • Build up local supply chains • Strengthen linkages

17. Development ofLocal Supply Chains • Work together with industry, associations • Work to develop Thai suppliers • Work to attract new foreign suppliers • BOI Unit for Industrial Linkage Development (BUILD), linkages with SMEs Downstream Electronics Products Backward Linkages Forward Linkages Example: Integrated Circuits Wafers

18. Development of Linkagesin Strategic Industries Industry R&D Production Universities Technology Research centers Provide incentives

19. Example: MekTec Manufacturing

20. Example of Priority Activity: International Procurement Offices (IPOs) Example: Isuzu (Thailand) Co., Ltd.

21. Example of Priority Activity: Regional Operating Headquarters (ROH)

22. Example: ExxonMobil Ltd. 7 countries supported:Singapore, Japan, Malaysia, Australia, U.S., Hong Kong, Thailand Employment: Thai 584, Foreign 41; more when fully functional

23. Example: Reuters Software (Thailand) Co., Ltd.

24. BOI update: Improving BOI Facilitation Services

25. Role of the BOI • Investment policy and incentive provider • Investment Projects Administration • Facilitation Services • Investment and industry monitoring

26. Creating an Enabling Environment for Investments • Continuous improvement in streamlining and efficiency • One Portal One Database, • Increasing ease of information access for investors • Online Applications and Raw Materials & Machinery Tracking System: January 1, 2005 • More after care services • More focus on getting feedback to improve BOI policies and services Backed by ISO 9001:2000 Certification

27. Increasing responsiveness to investors Strengthening Country Desks at BOI HQ: • United States • Europe • Japan + Korea • China + Hong Kong + Chinese Taipei • ASEAN + India

28. BOI Offices in the U.S. New York: 61 Broadway, Suite 2810 New York, NY 10008 nyc@boi.go.th (212) 422-9009 (moved from WTC) San Francisco: Coming Soon!

29. Thank You! BOI Headquarters www.boi.go.th head@boi.go.th