1

Air Conditioner Market Study

: Thailand2. 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

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1. ADISAK IMPOL 5202010087

2. PANOM RINPOL 5202010152

3. NUNTAPON DAENGMUKDA 5202010277

4. JIRAPORN THAMCHEVEVONG 5202010202

5. WANIDA SADEE 5202010194

1. Laos Information Overview

Agriculture Industry Service Agriculture Industry Service

Thailand 65,905,410 $8,500 (2008 est.) 1.2% 11.4% 44.5% 44.1% 42.6% 20.2% 37.1% 92.6%

Indonesia 240,271,522 $3,900 (2008 est.) 8.4% 13.5% 45.6% 40.8% 42.1% 18.6% 39.3% 90.4%

Malaysia 25,715,819 $15,300 (2008 est.) 3.7% 9.7% 44.6% 45.7% 13% 36% 51% 88.7%

Vietnam 86,967,524 $2,800 (2008 est.) 4.9% 19% 42.7% 38.4% 55.6% 18.9% 25.5% 90.3%

Singapore 4,657,542 $52,000 (2008 est.) 2.3% 0% 33.2% 66.8% 0% 22.6% 77.4% 92.5%

Laos 6,834,942 $2,100 (2008 est.) 2.4% 39.2% 34.3% 26.5% 80% 68.7%20%

LiteracyLabour force by occupationGDP Composition by Sector

Country GDP per CapitaUnEmployment

Population

Source : https://www.cia.gov/library/publications/the-world-factbook/geos/la.html

Industry : Electricity & Mine, Travel, Agriculture (GDP growth rate 7.5%)Area 236,800 km2 (About half of Thailand) Resource : Wood, Rice, Corn, Tobacco, Tin, Gypsum, lead, Copper, steel, Zinc, Gold, …Government type : Communist stateTransportation : Road is mainly use but inconvenience, on development of China-Laos-Thai, Thai-Laos-VietnamTrain : NhongKai-Tanalaeng (WiangChan)Water : Use Khong River mainly, Port ; Tanalaeng, Kengkabao, Pak-sheAir : Domestic commercial air line, International ; Bangkok, Ho Chi Minh, Hanoi, Kunming

2. Thailand Information Overview

Revenues(Bt. Million)

1 Energy 1,777,069.772 Vehicles and Parts 1,334,108.673 Chemicals and Plastics 816,801.064 Building and Furnishing Materials 686,578.395 Electrical Products and Computer 679,208.786 Agribusiness 668,755.487 Electronic Components 555,370.408 Commerce 544,684.739 Food and Beverage 381,620.4310 Communication 324,851.07

Rank Sector

Top 10 Industry in Thailand

http://www.bangkokbiznews.com/1000top/industryresult.php?sector_id=3005

Danang Port

Tanjung Pelapas Port

Kunming

Kuala Lumpur

Bangkok

Hanoi

Guangzhou

Guangxi

Singapore

Laemchabang Port

Suvarnabhumi Airport

Chiangrai

Jinghong

Trade and Service Direction in the region are ¼ of International Trade

4. Laos Diamond Analysis

Government

Strategy, Structure and Rivalry

Factor Conditions

Related & Supporting Industries

Demand conditions

-. 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

5. Thailand Diamond Analysis

Government

Strategy, Structure and Rivalry

Factor Conditions

Related & Supporting Industries

Demand conditions

-. 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

6. Summary and Conclusion

Laos

Thailand

-. 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

Appendix : Laos Land Link

Route 9 East Side Communication Routes of Thai, Laos, Vietnam and China

Mae Khong River Bridge

2 16( . km .)Thailand and Laos use loan

from JBIC 4 ,7 537. million

Yen. Constructed in

-200420

06 finished in end of 2006.

Mae Khong River Bridge

2 16( . km .)Thailand and Laos use loan

from JBIC 4 ,7 537. million

Yen. Constructed in

-200420

06 finished in end of 2006.

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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%

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Thank You!