Thailand Country Report

13 45 N , 100 31 E Th a i l a n d i s in So ut hea s t A s ia , bor der ing the Andaman Sea and G ulf of Thai l a nd.

THE KINGDOM OF THAILAND T h e K i n g d o m of Tha ila nd is a CO NS TITUTIONAL M ONARCHY, wher e the Pr ime Mi ni ste r i s th e h e a d o f go v ernm ent a nd a her editar y monar ch is head of state. The judi c i a ry i s i n d e p e n d e n t of t he execut iv e a nd the legislative br anches. The K ing of Thai l a nd, Ki ng P h u m i p h o n A duny a det , is t he w orl d ’s longest r eigning monar ch, and has r eig ne d si nc e 1 9 4 6 . O n 2 2 M a y 2014, t he Tha i militar y over thr ew Pr ime Minister Yinglak Chi nna wa t’ s g o v e r n m e n t , r em o v ing m o s t ca binet member s, most of which ar e cur r entl y v a c a nt.

Arm y G e n e r a l Pra y a t C ha n- o cha was nominated and officially assumed the post of i n t e r i m p r i m e mins t er a f t er receiv i ng a r oyal end or sement.

C O U N T RY S I Z E : 513,120 s q k m

GD P PURCHAS ING POWER : $6 7 3 bi l l i on

TIM E DI F F EREN CE : + 12 ho urs

GD P PER CAPITA : $9,900

LA N G U A G E:: Tha i, Burmes e

GD P G ROW TH RATE : 2.9%

R E L I G I O N S:: Buddhis t, M us lim , C hr istian

LABOR FORCE : 39.38 million

P O P U L A T I O N : 67,741,401

POV ERTY : 13.2%

P O P U L A T I O N GR O WT H R AT E :: 0.35%

INFLATION RATE : 2.6%

E D U C A T I O N EX PEND ITU R E: 5.8% of G DP

CURRENCY: Thai Baht (TH B )

LI TE RA C Y RA TE : 93.5% o f people +15

EXCHANG E RATE : 30.59 p er US dol l a r

S C H O O L L I F E E X P E CT AN Cy : 13 y ear s

MINIMUM WAGE : $10/day, $1.2 5 /hour

HI V / AI D S P R EV A L ENC E : 1.1% in the wor ld W ORKING HOURS : 8hr /d ay, 48 /we e k LI FE EX P EC T AN CY : 74.18 y ea rs

CHILD LABOR : 8% of child r en a g e s 5 -1 4

S T A B I L I T Y C O U N T R Y

GDP GROWTH (IN MILLIONS $USD) 387.3 366.0 345.7

12

13

14

ECONOMIC LANDSCAPE A f t e r n at u r al d i s as t e r s c au s i n g a n e c o n o m i c c o l l ap s e i n 2 0 1 1 , T h ai l an d h o w e v e r h a s g ai n e d s t ab i l i t y o ve r r e c e n t y e a r s , w i t h a s t ab l e i n f l at i o n r at e o f 2 . 6 % . Th e U S d o l l a r h o l d s s t r o n g ag ai n s t t h e T h ai Ba h t a t 3 0 . 5 9 .

T h i s h as d e c r e as e d o ve r t h e y e a r s , a n d i s p e r c e i ve d t o b e i n a b e n e f i t as i t c o n t r i b u t e s t o s t r o n g d i r e c t f o r e i g n i n ve s t m e n t ( S E E A P P E N D I X 1 . 1 ) . P o l i t i c al up h e a v a l h a s l e ad t o s l o w d o w n i n e c o n o m i c g r o w t h , h o w e ve r l aw s an d m i l i t ar y e f f o r t s h a v e b e e n f o c u s e d o n d o m e s t i c f i r ms a n d s t a t e o w n e d c o m p an i e s , m ak i n g i t d i f f i c u l t f o r i n t e r n at i o n al c o m p an i e s t o c o m p e t e .

SOCIO-POLITICAL LANDSCAPE Thailand is vulnerab l e t o p o l i t i c al i n s t ab i l i t y as military leaders h i p s e i ze d p o w e r o n M ay 2 2 , 2014 after the exi l e o f f o r m e r P r i m e r M i n i s t e r Thaks in Shinawatra, an d h i s s i s t e r Y i n g l u c k , d u e t o accus atio ns of co rru p t i o n . A p o l i t i c al d i vi d e w as created between the “ R e d S h i r t s ” , t h e r u r al p o o r s upporting Thaks in, an d “ Y e l l o w S h i r t s ” , u p p e r middle clas s s upport e r s o f t h e m o n ar c h y. P r o t e s t s s parked fo r purging t h o s e l i n k e d t o T h ak s i n , an d to change the demo c r at i c s ys t e m t o p r e ve n t t h e i r return to power po s i n g a r i s k f o r c i vi l w ar . R e f o r m s under the military r e g i m e m ay h e l p b r i d g e t h e gap between the tw o s i d e s . T h ai ’s r e s t i ve s o u t h , and former Malay-I s l am i c r e g i o n , h as s u f f e r e d repeated accounts o f s e p ar at i s t vi o l e n c e , b u t has s ince been co n t ai n e d . T h e i n s t ab i l i t y o f T h ai po litics affects the e c o n o m y as f o r e i g n i n ve s t o r s relo cate to neighbo r i n g c o u n t r i e s w i t h m o r e s t ab l e enviro nments s uch as V i e t n am an d t h e P h i l i p p i n e s .

INFLATION RATE (ANNUAL %)

2.8 2.6

0.2

12

13

14

ENVIRONMENTAL LANDSCAPE Thailand’s climate i s t r o p i c al , h i g h b o t h i n t e m p e r at u r e an d hu m i d i t y , a n d do minated by mons o o n s . I n l at e 2 0 1 1 , f l o o d i n g i n t h e i n d u s tr i a l a r e a s o f Bangkok and its fi ve s u r r o u n d i n g p r o vi n c e s , c r i p p l e d t h e ma n u f a c t u r i n g s ecto r, and interrupt e d T h ai l an d ’s r e c o ve r y. T h e g o ve r n m e n t ap p r o v e d f l o o d mitigation projects w o r t h $ 1 1 . 7 b i l l i o n t o p r e ve n t s i m i l ar e c o n o m i c d a m a g e , and an additional $7 5 b i l l i o n f o r i n f r as t r u c t u r e . T h i s w as e x p e c t e d t o l e a d t o an eco nomic ups urge b u t g r o w t h h as r e m ai n e d s l o w d u e t o o n g oi n g p o l i t i c a l unres t and uncertai n t y. N at u r al r e s o u r c e s i n c l u d e t i n , r u b b e r , n a t u r a l g a s , tungs ten, tantalum, t i m b e r , l e ad , f i s h , g yp s u m , l i g n i t e , f l u o r i t e , ar a b l e l a n d .

I N

T H A I L A N D

T R A D E A G R E EM ENT S AN D TR AD E OR GAN IZATION S : G eorge W. Bus h and Prime M i n i s t e r T h ak s i n S i n aw at r a an n o u n c e d t h e i n t en t i o n to nego tiate a U S-Thailand f r e e t r ad e ag r e e m e n t o n O c t o b e r 1 9 , 2 0 0 3 , h o we v e r Mr. Thaks in was depo s ed in t h e 2 0 0 6 T h ai c o u p d ’e t at w i t h o u t h avi n g f i n i s h e d negotiating the agreement, p l an ar e i n p l ac e t o f i n i s h n e g o t i at i o n s at t h e e n d of 20 15

1 9 6 6 T R E A T Y O F A M I T Y AN D E CON OM IC R E L ATION S : : b i l a t e r a l

a gree ment that facilitates U . S . an d T h ai c o m p an i e s ’ e c o n o m i c ac c e s s t o o n e a nother’s markets .

: A d vo c ac y g r o u p t h at ai m s t o f o s t e r econo mic gro wth and trade t i e s b e t w e e n t h e U n i t e d S t at e s an d A s s o c i a t i o n of S outheas t A s ian Natio ns ( A S E A N ) 's t e n m e m b e r c o u n t r i e s : u n i t e d s t a t e s , Brunei, cambodia, indonesia, laos, malaysia, mynamar, phillippines, singapore, thailand, and vietnam

U S -A S E A N B US I NE S S COU N CIL

AS E A N ( A FT A):

The A s s o c i at i o n o f S o u t h e as t A s i an N at i o n s ai ms t o a cce lerate eco nomic growt h , s o c i al p r o g r e s s , an d c u l t u r al d e ve l o p m e n t th rough endeavo rs pro mo ti n g e q u al i t y an d p ar t n e r s h i p am o n g s t t h e S o u th e a s t Asia n Natio ns . The A s ian F r e e T r ad e A r e a i s a t r ad e b l o c ag r e e m e n t by t h e Asso ciatio n of So utheas t A s i an N at i o n s s u p p o r t i n g l o c al m an u f ac t u r i n g i n a l l AS E AN co untries .

Members : i n d o n e s i a , m a l a y s i a , p h i l i p p i n e s , s i n g a p o r e , a n d t h a i l a n d , b r u n e i darussalam, vietnam, lao, myanmar, and cambodia

The A s ia Pacific Ec o n o m i c Co o p e r at i o n i s a r e g i o n al e c o n o m i c f o r u m th a t leverages the gro wing i n t e r d e p e n d e n c e o f t h e A s i a P ac i f i c . I t ai m s t o crea te greater pros perity fo r t h e p e o p l e o f t h e r e g i o n b y p r o m o t i n g b al anc e d , inclus ive, s us tainable, inno vat i ve , an d s e c u r e g r o w t h b y ac c e l e r at i n g r e g i o n a l econo mic integration.

Members : a u s t r a i l i a , b r u n e i d a r u s s a l a m , c a n a d a , c h i l e , c h i n a , i n d o n e s i a , j a p a n , korea, malaysia, mexico, new zeland, paupa new guinea, peru, phillippines, russia, singapore, chinese taipei, thailand, united states, vietnam

T R A D E

AP E C:

4

The Generalized Sys t e m o f T r ad e P r e f e r e n c e s i s a p r e f e r e n t i al t r a d e a gree ment with the aim of i n c r e as i n g t r ad e b e t w e e n d e ve l o p i n g c o u n t r i e s i n th e framework o f the U N co n f e r e n c e o n t r ad e an d d e ve l o p m e n t .

G S T P:

The World Trade Or g an i zat i o n i s t h e o n l y i n t e r n at i o n al o r g an i z a t i o n d ea li ng with the global rule s o f t r ad e b e t w e e n n at i o n s . I t s m ai n f u n c t i o n i s t o ensure that trade flo ws as s m o o t h l y, p r e d i c t ab l y an d f r e e l y as p o s s i b l e .

Members : 160 member s tat e s

W TO:

EXPORTS (IN MILLIONS $USD)

222.6

229.5

228.5

BUSINESS ETIQUETTE

225.4

Sho w re s pe c t f o r t he ro yal f am i l y, n egative c o m m e nt s wi l l re s ul t i n a bad bu sin ess re l at i o ns hi p and m i g ht s park l e g al ac tion .

193.3

152.4

09

10

11

12

13

14

Buddha m us t be ac kno wl e dg e d i n t he gr eatest re s pe c t . The he ad i s c o ns i de re d sacr ed in Buddhi s m s o no t hi ng s ho ul d be passed over s o m e o ne s he ad, no r t o uc he d.

THE UNITED STATES IS THAILAND’S SECOND LARGEST TRADING PARTNER

The s o l e s o f t he f e e t are c o ns i de re d u n clean and s ho ul d ne ve r be us e d t o po i nt .

T h a i la nd h a s an open policy for fore i g n i n v estm en t, w hich is a key driver f o r i n d u stria liz a tion and econo mic gro w t h b y creating emplo yment and technol o g y t r a n sfer. It h as created incentives t o p r o m ote exp ort activities , and dr i ve i n t e rn a tional trade. It is a glo b al m a n ufa ctu ring hub as THA I EXPO R T S A R E VALUED A T 78.3% OF GD P, o r a r o u nd 225.4 billio n. It is 28 t h large s t e x p o rter. P rimary expo rt products fr o m T h a i la nd inclu de electronics , comput e r p a r t s, a utom obiles and parts , electr i c al a p p l ia nces, machinery, eq uipme n t , t e x t i les a nd fo o twear, fis hery pro du c t s , r i c e a nd rubber. The majo r buyers ar e C h i na , Ja p a n, US, Ho ng Kong and Malays i a.

Do no t pas s anyt hi ng wi t h t he l e f t h an d, an d ne ve r po i nt wi t h o ne f i ng e r.

COMMUNICATION C O U NT R Y CO DE ++6 6 T h a i la nd has a high quality telepho n e s y s t em , esp ecially in urban areas : T e l e p hones in us e: 6.391 millio n M o bile p hone us e: 84.075 millio n T h a i la nd is con nected to majo r s ubmar i n e c a b le system s with links thro ughout As i a, A u s tra lia , Middle Eas t, Euro pe, U S. W i r eless service is expanding rapidly: I n t e rn et u sers : 17.483 millio n I n t e rn et h osts : 3.399 million

Thai ’s avo i d any f o rm o f phys i c al c o n tact with t he o ppo s i t e s e x i n bus i ne s s de al i ng s u n til th ey have e s t abl i s he d a pe rs o nal re l at i o nsh ip.

Thai g re e t i ng s o f t e n i nvo l ve a “ wai ” , in wh ich hands are rai s e d as i f i n praye r and t h e h ead is bo we d. G e ne ral l y t he yo ung e r pe rs o n in itiates t he wai . The l o we r t he he ad i s bo we d, th e mor e re s pe c t i s s ho ws .

At bus i ne s s m e e t i ng s , wai t t o be asked to be s e at e d. Si t t i ng t o o s o o n m ay be con sider ed rude i f o l de r at t e nde e s are n’t al re ady seated.

H i e rarc hy i s i m po rt ant i n Thai So c i ety, wh en Thai pe o pl e m e e t s o m e o ne f o r t he f i rst time, it i s no rm al t o as k s e ve ral q ue s t i o ns t o establish whe re t he y f i t i n hi e rarc hy.

Thai pe o pl e pre f e r to bui l d per son al re l at i o ns hi ps be f o re di s c us s i ng bus i ness. In itial m e e t i ng s wi l l al ways t ake pl ac e o ver lu n ch or dri nks and e nt e rt ai nm e nt as part o f d evelopin g bus i ne s s re l at i o ns hi ps .

A bus i ne s s c ard s ho ul d be o f f e re d with th e ri g ht hand, Take t he t i m e t o re ad t he car d an d m ake a po l i t e c o m m e nt abo ut i t .

Bus i ne s s dre s s c o de i s c o ns e rvat i ve , Men wear dark s ui t s , whi t e s hi rt s and a t i e . Women wear pl ai n c o ns e rvat i ve dre s s e s o r s ui t s . If skir ts ar e wo rn, t he y s ho ul d be kne e l e ng t h o r l on ger . T h e s ho ul de rs s ho ul d al ways be c o ve re d. D o n ot we ar bl ac k as t hi s i s o nl y wo rn t o f uner als.

5

port of

port newark container terminal

long beach georgia ports authority

TRANSIT TIMES (v i a P o rt of B a ngko k) M O L ( MIT SU L O .S.K. LINES, LTD.): t o Lo n g B ea ch: 20 days t o N e wa rk: 31 d a y s t o S a v a nn a h: 35 d ays A L A N C IA : t o Lo n g B ea ch: 24 days t o N e wa rk: 25 days t o S a v a nn a h: 37 d ays H A P A N G L L O Y D:

INFRASTRUCTURE W ell ma int a ined ro a d net wo rk is a n im p ort an t link t o t he Asia n H ighwa y net wo rk, con n e c t in g t he bo rders o f Ca mbo dia , La o s, Ma la ys ia, an d My a nma r. It is 99% pa v ed, a nd a ct s a s a m ajor t ra de co nduit bet ween Singa po re, K u n m in g , Y a ngo n, a nd H o Chi Min Cit y .

There a re lo w lev els o f t ra de bure au c rac y, ef f icient po rt ha ndling, a nd cust o ms cle aran c e .

Minimiz ing shipping lea d t imes a nd cos t

t o Lo n g B ea ch: 23 days t o N e wa rk: 40 d a y s t o S a v a nn a h: 37 d ays

CONTAINER COSTS (v i a P o rt of B a ngko k) : t o Lo n g B ea ch: $4, 353.37 - $4,811.62 t o N e wa rk: $5,602.37 - $6,192.10 t o S a v a nn a h: $6,019.66 - $6,653.31

6

There is high q ua lit y po rt inf ra st ruct u re an d t ra nsshipment f unct io ns f o r o t her M e k on g co unt ries.

There a re sev en int erna t io na l wa t erw ay p ort s .

Mo st int erna t io na l t ra de f lo ws t hro ugh t h e P ort o f Ba ngko k a nd La em Cha ba ng ( SEE A P P E N DIX 1.3), who se ca pa cit y a nd f a cilit ies a re at t rac t ive t o int erna t io na l shipping lines. Suv arn ab h u m i Int erna t io na l Airpo rt is t he ma in int ern at ion al hub, in Ba ngko k, a nd is t he ma in a ir ca rg o h u b in Tha ila nd. Air f reight v o lumes in Tha ila n d are 6 t h highest in Asia a nd ha v e a n a t t ra ct iv e n u m b e r of o pera t o rs a nd f req uent f light s.

Supply cha ins f a ce rest rict io ns o n ra il f re ig h t as t he sect o r ha s been neglect ed.

NATURAL DISASTER OCCURRENCE 5% STORM

48% FLOOD

46.7% DROUGHT

ENVIRONMENTAL FACTORS: LEAD TIME PRODUCTION 1 4 exp ort d a ys ; 13 Impo rt days

HOLIDAYS: M ost B uddh ist ho lidays are in A pril a nd May an d mos t bus ines s peo ple g o o n v a ca tion during thes e months , the b e st tim e to do bus ines s is between Nov ember and March J anu a ry 01: New Years D ay M arch 04: M akhabucha D ay A pril 06: Ch akri D ay A pril 13-15: Songkran Fes tival D ays M ay 01: N a tional Labo ur D ay M ay 05: Coro natio n D ay J un e 01: Visakha Bucha D ay J uly 30: Asarnha Bucha D ay D ecem ber 10: Co ns titutio n D ay D ecem ber 31: New Years Eve

R ai n y s e as o n r u n s f r o m M ay t o O c t o b e r , w i t h S e p t e m b e r an d O c t o b e r b e i n g the height of Monsoon Season. Heavy Storms during the monsoon can c au s e d am ag e i n c l u d i n g fl o o d i n g a n d l an d s l i d e s . D e s p i t e t h e an n ua l s o u t h w e s t m o n s o o n , T h ai l an d i s s u b j e c t t o d r o u g h t , p ar t i c u l ar l y i n t h e n o r t h e as te r r e g i o n . I n J u l y 2 0 1 1 - w i d e s p r e ad f l oo d i n g i n 6 5 p r o vi n c e s r e s u l t e d i n 8 1 5 de a t h s , 2 1 , 0 0 0 s q k m o f f ar m l an d d am ag e d , a n d a n economic loss of 1,425 billion baht.

A n e ar t h q u ak e o c c u r r e d i n 2 0 0 4 c a u s i n g a T s u n am i o ve r t h e I nd i a n O c e a n .

I n T h ai l an d . P h ys i c al i n f r a s t r u c t u r e an d u t i l i t y s ys t e m s w e r e d e s t r o y e d .

T r an s p o r t an d c o m m u n i c a t i o n s s u c h as m ai n an d r u r al r o ad s , b r i d g e s , a n d d r ai n ag e s t r u c t u r e s w e r e d a m a g e d t o var yi n g d e g r e e . T h e d e s t r u c t i o n o f m a n y r u n - d o w n s t r u c t u r e s al o n g t h e b e a c h e s h ave p r o vi d e d o p p o r t u n i t i es t o r e b u i l d p o p u l ar t o u r i s t ar e as . T h ai ’s G o v e r n m e n t i s p r o vi d i n g a $ 1 0 0 - b i l l i o n in f r a s t r u c t u r e spending p r o g r am that includes u p g r ad i n g t h e n at i o n al r ai l n e t w o r k a n d opening links to Souther China. The T h ai g o ve r n m e n t ’s p l an t o u p g r a d e t h e n at i o n al r ai l w ay s ys t e m f o l l o w y e a r s o f f i n an c i al n e g l e c t .

7

A P P A R E L

THE INDUSTRY

US-THAILAND APPAREL IMPORTS (IN MILLIONS $USD)

The U S, J ap an, and the UK co mprise the p r i m ar y m ar ke ts for Tha i a ppa rel. It ac c ounts for ne ar l y 5 4 % o f a ll expo rt s.

TE XTI LE S A ND A PPA REL AR E AMON G THA I LA ND ’S TO P 3 0 E XPOR TS TO TH E US. The A SE A N e c onom i c i n t egra t io n co ming wi thi n 2 0 1 5 wi l l i nc r e ase t ra de wit hin i ts c ountr i e s , c aus i ng a decline in t he e x p or t m ar ke t wi th U S a nd EU. It s f o cus wi l l b e m or e he avi l y p l a ced o n expo rt s in Si ng ap or e , M ynam ar , and Ma la y sia SI ZE O F THE I ND U STRY: 2 , 3 8 8 ap p ar e l m i l l s 6 9 5 kni tti ng m i l l s 5 9 5 we avi ng m i l l s 3 8 9 d ye i ng and p r i nti ng mills 1 5 0 s p i nni ng m i l l s 1 6 m an-m ad e -fi b e r m i l l s (te x ti l e wor l d as i a. c om )

1073.3

1047.3

1018.7

12

13

14

T E X T I L E S

&

TEXTILE CAPABILITIES

8

Thai l and has a ful l y i nt egra t ed t ext ile a nd a ppa rel indust ry , a nd is o n e of t h e fe w c ountr i e s wi th c apa bilit ies t o supply t he ent ire t ext ile indust ry ch ain . F rom natur al and m an-m ad e f iber a nd y a rn ma nuf a ct uring t hro ugh wea v ing, k n it t in g , d ye i ng , p r i nti ng and fi nishing; t o t ext ile a nd a ppa rel design, pro duct io n an d s ale s .

Thai l and al s o i s r e nown ed f o r it s sericult ire a nd silk pro duct io n, which i s n at u rally e c o-fr i e nd l y and non-allergenic. Tha ila nd ha s a hist o rica l ba se in silk an d n at u ral and or g ani c c otton p r oduct io n, ho wev er t he indust ry ha s div ersif ied it s c om p an ie s to s up p l y s ynthe ti c and na t ura l f ibers.

I nnovati ve te x ti l e r e s e arch in Tha ila nd ha v e est a blished t he co unt ry a s a le ad e r in the te x ti l e and fas hi on indust ry . Dev elo pment s in t ext iles ra nge f ro m a nt i- b ac t e rial fab r i c s m ad e fr om p ol yest er mixed wit h co co nut cha rco a l po wder, a nt i - b ac t e rial, he r b -c oate d b e d s he e ts, so la r po wered ja cket s, hea rt ra t e mo nit o ring jac k e t s , an d c ol d we athe r g e ar .

Thai c om p ani e s p r od uc es wo v en a nd knit t ed clo t hing f o r men, wo men, a n d c h ild re n , i nc l ud i ng i nti m ate ap p arel; swimwea r, ca usa l, o ut do o r, a nd spo rt s clo t hin g ; f orm al and e ve ni ng we ar ; b r i d al a t t ire; high f a shio n a ppa rel; so cks; st o ckings, an d p an t y hos e ; and uni for m s

MANUFACTURING CAPABILITIES Thai m anufac tur e r s var y in siz e a nd ca pa bilit y . It ra nges f ro m la rge scale t o h an d m ad e c ottag e i nd us tr y. They o pera t e a s o rigina l eq uipment ma nuf a c t u re rs an d or i g i nal d e s i g n m anufact urers.

NU M B E R O F M A NU F A CTUR ER S BY SIZ E: F e we r than 5 0 e m p l oyees: 1,492 5 0 -2 0 0 e m p l oye e s : 6 9 7 M or e than 2 0 0 e m p l oyees: 339 Total num b e r of te x ti l e ma nuf a ct urers: 2,528

GLOBAL MANUFACTURING COMPETITIVENESS INDEX 2013

RANKING

COUNTRY

SCORE low(1-10 high

10

CHINA

10

17

S INGA PORE

6.64

24

T H A IL A ND

6.21

25

M A L A YSIA

5.94 source:

www.bo i.go .t h

GOVERNMENT & ORGANIZATION SUPPORT T h e T h a i g o v er n m e nt i s c onc e ntr ati ng on ma king t he indust ry mo re co mpet it iv e by e n c ou rag in g f u rt h e r i n n o v a ti o ns , m od e r ni zi ng te c hno lo gy f o r grea t er ef f iciency , a nd impro v ing t h e s k ill an d c o mp ete n cy o f t he nati on’s g ar m e nt an d t ext ile business. TH E TH AI TEXTILE IN STIT UT E w ork s w it h te xti l e a n d c l othi ng m anufac tur e r s t o impro v e t heir design, ma na gement , a nd b ran d n am e d e v e l o p m en t a n d to e s tab l i s h r e l ati ons hips wit h f o reign f irms. The TH AI TEXTILE ASS OC IAT ION w o rk s wi t h i n d us tr y and g ove r nm e nt to upgra de t he q ua lit y o f t ext iles, a ssist sma ll- s c ale an d c o t t a g e p r o d u ce r s , and p r om ote te x ti l e - ma nuf a ct uring ent erprises. TH AILAN D’ S DEPART M E N T OF E X P O R T P R O M O TI O N ai d s c om p ani e s i n keeping up t o da t e wit h int erna t io na l f a shio n t re n d s an d p ro d u ci n g m a t e r i al s i n g l ob al d e m and .

S t ra t eg i e s a r e i n p l ac e to e nc our ag e the indust ry ’ s dev elo pment s such a s Increa sing lo a ns t o s u p p ort e x p o r ti n g ca p a bi l i ty, e nhanc e d tr ai ni n g a nd educa t io n, st rengt hening t he t ext ile a n d ap p are l w o rk f o r c e. B u i l d i ng the s up p l y c hai n ne two rk by co mbining clo t h a nd y a rn pro ducers a n d g arm e n t s t o e n co u r a ge p r od uc e r s to us e r aw m a t eria ls f ro m Tha ila nd, Fo cusing o n v a lue- a dded p rod u c t s r e q u i r i n g d es i g n and hi g h-e nd te c hni qu es, a s well a s increa se t he ca pa bilit y o f ma nufac t u re rs t o

LABOR Un e mploy men t rate of 0.7%, one of the l o w e s t l e ve l s i n t h e w o r l d . D e s p i t e t h e i m p l e m e n t a t i o n o f a min imu m wage law (jus t under $ 1 0 / d ay o r $ 1 . 2 5 / h o u r ) , t h e c o u n t r y’s l ab o r m a r k e t i s r e l a tively free, allowing o ne of the lo w e s t u n e m p l o ym e n t r at e s i n t h e w o r l d . T h e l ab o r m a r k e t h a s h igh levels of participation, gende r e q u al i t y, an d g o o d h e al t h c ar e avai l ab i l i t y. T h e s i z e o f ski l led workers is s mall, however, inf l u e n c i n g p r o d u c t i vi t y g r o w t h . T h e r i s i n g c o s t o f l a b o r r e p resents a great market ris k to the ec o n o m y, as m i n i m u m w ag e h as i n c r e as e d s i g n i f i c a n t l y .

T h a i c o m p a n i e s c om p l y wi th al l i nte r nat io na l st a nda rds a nd req uirement s rega rding hu m an rig h t s , c h ild l a b o r , o v er ti m e and the e nvi r onm ent : M I NI M U M WA G E : 3 0 0 TB H, or $ 1 0 / d ay.

HO U R S : 8 h / d a y , 4 8 h/ we e k M A X I M U M WO R K D A YS: 6 C HI L D L A B O R : o ve r the ag e of 1 5 O VE R T I M E P A Y : s e t at 1 . 5 x nor m al r ate , a nd 3x o n ho lida y s

9

SUPPLIER LIST THONG THAILAND TEXTILE CO., LTD. WEBSITE: http://www.thongthaitextile.com/ 253 Bangkhuntien Rd Samadam Bangkhuntien Bangkok Bangkok NOTABLE CLIENTS: Levis, Adidas, Reebok SPECIALTIES / CAPABILITIES: Textile, Knitting, Dyeing and Garment manufacturing of mens and womens sportswear CAPACITY: 8 factories employing 4,000 workers, capacity of $13 million annually TRAVEL TIME TO PORT OF BANGKOK: 18 minutes

PARISA INDUSTRIES CO. LTD. WEBSITE: http://www.parisausa.com/ 1054 Sukhumvit 66/1, Bangchak, Prakanong, Bangkok 10260 NOTABLE CLIENTS: Target Stores, Tommy Bahama, Aft Apparel International Inc. SPECIALTIES / CAPABILITIES: Ladies Swimwear, and Lingerie CAPACITY: up to 50,000kg shipments TRAVEL TIME TO PORT OF BANGKOK: 15 minutes

HI-TECH APPAREL CO.,LTD. WEBSITE: http://www.hi-group.com/ 328 Prachauthit Rd., Thoongkru, Bangkok 10140 NOTABLE CLIENTS: Jockey, Hanes, Target, Perry Ellis, Calvin Klein SPECIALTIES / CAPABILITIES:Sportswear, Childrenswear, Underwear CAPACITY: up to 50,000kg Shipments TRAVEL TIME TO PORT OF BANGKOK: 22 minutes

THAI GARMENT EXPORT CO., LTD. WEBSITE: http://www.talgroup.com/ 50/5 Moo 4 Chaengwatanna Road, Pakkred, Nonhaburi 11120 NOTABLE CLIENTS: Brooks Brothers, Banana Republic, Dockers, J.Crew SPECIALTIES / CAPABILITIES: Outerwear, Shirts, Polos, Blouses, Pants CAPACITY: up to 50,000kg Shipments TRAVEL TIME TO PORT OF BANGKOK: 28 minutes

INTIMATE FASHION CO.LTD http://www.intimate.co.th/ 29 Wachiradumsatit 38, Sukumvit 101/1,Bangjak, Phakanong, Bangkok, 10260

10

NOTABLE CLIENTS: Maidenform, Hanesbrand, La Joila Sport USA SPECIALTIES / CAPABILITIES: Men’s and Women’s Underwear and Lingerie CAPACITY: 700 employees, up to 10,000kg Shipments TRAVEL TIME TO PORT OF BANGKOK: 17 minutes

INVESTMENT RISKS

INVESTMENT BENEFITS

Un sta b le p olitical enviro nment

H i g h I n t e r n at i o n al r e s e r v e s

La ck of in fras tructure improvement

R e l at i ve l y l o w i n f l a t i o n

S h orta ge of skilled wo rkers

M o d e r at e g o ve r n m e n t an d e x t e r n a l d e b t

P oor qu a lity of education

S t r o n g m an u f ac t u r i ng b a s e

S evere flooding and droughts

H i g h l y p ar t i c i p at i ve w o r k f o r c e

H igher labor co s ts than neighbo ring c o u n t r i e s

S t r o n g U S D ag ai n s t T h a i B a h t L o w u n e m p l o ym en t r a t e R e l at i ve l y f r e e l ab o r m a r k e t

Main gateway to emerging m ar k e t s i n S o u t h e as t A s i a w i t h e c o n o m i c p ot e n t i a l Stron g l o g i s t i c s n e t w o r k , w i t h t h e e x c e p t i o n o f ra i l w a y s F u l l y I n t e g r at e d t e x t i l e & ap p ar e l in d u s t r y H i g h l y c ap ab l e an d i n n o vat i ve t e x t i l e i n d u s t r y P o l i c y p r o m o t e s i n ve s t m e n t an d f r e e t r a d e 18th eas ies t co unt r y i n t h e w o r l d t o d o b u s i n e s s ( S E E A P P E N D I X 1 . 2 ) L o w l e ve l s o f t r ad e b u r e a u c r a c y E f f i c i e n t l e ad t i m e s

11

C I T A T I O N S & A P P E N D I X

APPENDIX 1.2

APPENDIX 1.1

WORLD BANK EASE OF DOING BUSINESS 2014

A.T. KEARNEY FOREIGN DIRECT INVESTMENT CONFIDENCE INDEX 2013

COUNTRY

RANKING

COUNTRY

RANKING

S I N G APO RE

1

SI N G APO RE

10

M AL AYS I A

6

TH AI L AN D

17

T H AI L AN D

18

I N DON E SI A

24

B RUN E I

59

M AL AYSI A

25

source:

www.doing business.org

APPENDIX 1.3

source:

w w w . b oi.g o .th

1. “Asia-Pacific Economic Cooperation - Asia-Pacific Economic Cooperation.”Asia-Pacific Economic Cooperation - Asia-Pacific Economic Cooperation. APEC, n.d. Web. 24 Feb. 2015. <http://www.apec.org/>.

2. “BOI : The Board of Investment of Thailand.” ○ BOI : The Board of Investment of Thail and.

N.p., n.d. Web. 25 Feb. 2015. <http://www.boi.go.th/index.php?page=index>.

3. Export.gov.”Doing Business in Thailand.” Export.gov. N.p., 18 July 2014. Web. 24 Feb. 2015.

4. “Major Shippers Country: THAILND.” Major Shippers Country: THAILND. OETEXA, n.d. Web. 25 Feb. 2015. <http://otexa.trade.gov/msrcty/v5490.htm>.

5. Panjiva. “Fi nd and Evaluate Manufacturers around the World.” Panjiva. N.p., n.d. Web. 24 Feb. 2015. <http://www.panjiva.com/>.

6. Phillip, Bruno. “Unrest In Bangkok Reveals Thailand’s Deep Social Divide.”Worldcrunch.com.

World Crunch, 6 Dec. 2013. Web. 25 Feb. 2015.

7. Thailand Country Monitor. Rep. N.p.: IHS Global, 2014. Print.

8. Thailand Country Profile. Rep. N.p.: MarketLine, 2014. Print. PESTLE. 9. Thailand Country Profile. Rep. N.p.: MarketLine, 2014. Print. Key Facts and Geographic Location.

10. “Thailand | Economic Indicators.” Thailand | Economic Indicators. Trading Economics, 2015.

Web. 16 Feb. 2015. <http://www.tradingeconomics.com/thailand/indicators>.

11. “Thailand Information.” FITA: Federation of International Trade Associations. Export Enterprises S.A., Dec. 2014. Web. 24 Feb. 2015. <http://fita.org/countries/thailand.html>.

12. “Thailand | Lead Time Actual Data - Historical Charts.” Thailand | Lead - Full Time Employment - Actual Data - Historical Charts. Ieconomics, n.d. Web. 25 Feb. 2015. <http://ieconomics. com/lead-time-thailand>.

13. “Thailand: Textile Industry Profile.” Textile World Asia. N.p., n.d. Web. 25 Feb. 2015. <http:// www.textileworldasia.com/Issues/2007/March-April/Country_Profiles/Thailand-Textile_ Industry_Profile>.

14. Thailand.” Welcome to the CIA Web Site — Central Intelligence Agency. CIA, n.d. Web. 20 June. 2014. https://www.cia.gov/library/publications/the-world-factbook/geos/th.html 15. “WORLD REGIONS AND TRADE ORGANIZATIONS.” Trade.gov. International Trade Administration, 16 Sept. 2014. Web. 25 Feb. 2015. <http://www.trade.gov/mas/ian/ referenceinfo/tg_ian_001874.asp>.

16. Youngblood Coleman, Denise, Ph.D. Thailand Country Review. Rep. Houston: Country Watch, 2014. Print.

13

COUNTRY STABILITY

M ORGAN MCCART Y FASM 4 2 0 -0 1 G LO BA L S OURCI N G AN D I MPORT BUY I N G P RO F ES S OR GR ACE CAN EPA