XM603 (G3) Investment Thai-Loa - 16012010

1. Air Conditioner Market Study : Thailand 2. Thailand Information Overview 4. Laos Diamond Diagram 5. Thailand Diamond Diagram 1. Laos Information Overview Content XMBA 25, Group 3 Thammasat University 6. Summary and Conclusion 3. Investment in Thailand

4. 2. Thailand Information Overview Top 10 Industry in Thailand http://www.bangkokbiznews.com/1000top/industryresult.php?sector_id=3005 Trade and Service Direction in the region are ¼ of International Trade Danang Port Tanjung Pelapas Port Kunming Kuala Lumpur Bangkok Hanoi Guangzhou Guangxi Singapore Laemchabang Port Suvarnabhumi Airport Chiangrai Jinghong

5. 4. Laos Diamond Analysis -. Government have IPD department to encourage foreign investment as one stop service and financial support -. Government protect investors & securities of investors -. Foreign investors can rent the land for long time, contract farming agreement -. Low labor cost and skill -. Basic structure still poor (Logistic, public utility) -. Benefit from MFN, GSP, NTR (Top10 poorest country) -. Small market size -. Land link & high stability of political -. Law & government service efficiency are low -. Unstable of currency -. Lack of data base for planning and management -. Plentiful of nature resource -. Agriculture and Agricultural industry -. Land lock  Land link -. Vietnam, China have interested to invest in Laos -. Energy industry has high capability -. Link between supply chain are clear. -. Low demand in country (small populations) but area is link to South China, Cambodia and Vietnam which are the potential market Government Strategy, Structure and Rivalry Factor Conditions Related & Supporting Industries Demand conditions

6. 5. Thailand Diamond Analysis -. Government have a main support program to investors as BOI, also provide six branch in foreign country -. Expand basic structure to support southern seaboard investment in the future -. Government condition -. Strength basic structure : good logistic, port of eastern seaboard, public utility -. High skill and educated labors among ASEAN country -. Politics still low stability -. Land connect to many country (Myanmar, Malaysia, Laos and Cambodia) -. FTA among related country (AFTA, India, Japan, China, Korea) -. Continuous development for potential industry (automotive, electronics component & appliances, hard-disk, renewable energy, bio-tech) -. Set foundation for future industry (knowledge base industry) and southern seaboard -. Encouragement of Travelling industry -. Malaysia and Vietnam government benefit from FDI -. Improvement of service and regulation that support investment -. Encourage of research and development industry and people with cooperation from research and education institutes -. Origin mark , made in Thailand has a good reputation in global market -. ASEAN market has high potential after global recession, expansion in Asian country Government Strategy, Structure and Rivalry Factor Conditions Related & Supporting Industries Demand conditions

7. 6. Summary and Conclusion -. Focus on Agriculture and Agricultural Industry refer to the plentiful of nature -. Agribusiness in Thailand has high potential -. Use benefit from contract farming Agreement -. Use as land link to Vietnam and South China market -. Singapore make Campus for Research Excellence and Technological Enterprise (CREATE) and support Clean Technology R&D about solar-energy -. Singapore is world Top10 in Growth Competitive Index (GCI) and Business Competitive Index (BCI) -. Van der Horst Energy (VDHE) , renewable energy Company set up Warehouse and Corporate HQ in Singapore, focus on Renewable energy investment from Singapore -. Major investment from Singapore are Service and Electronics component and appliance, encourage on investors from Singapore Laos Thailand

8. Appendix : Laos Land Link Route 9 East Side Communication Routes of Thai, Laos, Vietnam and China Mae Khong River Bridge 2 (1.6 km .) Thailand and Laos use loan from JBIC 4 , 753.7 million Yen. Constructed in 2004-2006 finished in end of 2006. 6

9. Appendix : Laos Investment Promotion Zoning -. Zone I : Tax exception 7 years then 10% -. Zone II : 5 years Tax exception, 3 years 7.5% then 15% -. Zone III : 2 years Tax exception, 2 years 10% then 20%

10. Thank You!