CLMV competitiveness

2

Market- Rising purchasing

power- Organic Growth- Connectivity

Production- Young Labor

Force- Natural

Resources

- Production Network

OpportunitiesL

K

A

Exports

Investment

CLMVT is a major potential market for Thai economy.

Myanmar

Nominal GDP $64.3 bil

Real GDP Growth(5 Year Average)

27.96%

Total Population 53.4 mil

GDP per capita $4,800

Lao PDR

Nominal GDP $12.0 bil

Real GDP Growth (5 Year Average)

7.92%

Total Population 6.7 mil

GDP per capita $5,000

Vietnam

Nominal GDP 186.2 bil

Real GDP Growth(5 Year Average)

5.86%

Total Population 90.7 mil

GDP per capita $5,700

Cambodia

Nominal GDP $16.8 bil

Real GDP Growth(5 Year Average)

6.95%

Total Population 15.3 mil

GDP per capita $3,300

Source: World Bank, CIA, ASEAN

Thailand can easily access to CLMV as it is located in the center of the region.

3

4

Source: World Bank

During the past decade, CLMV economies have been growing rapidly.

Thailand and CLMV’s Population Pyramid in 2016

Source: World Bank

Thailand is transitioning to the aging society while CLMV’s labor forces are growing with younger population.

5

Thailand and CLMV’s Population Pyramid in 2050

Source: World Bank6

Thailand is transitioning to the aging society while CLMV people is younger and more vibrant.

* Exclude petroleum and petroleum productsSource: International Trade Centre

CLMV market has become more important asThai trading partners.

7

Thailand Export structure to CLMV*

Source: Bank of Thailand

CLMV market is more important in terms of Thailand’s outward investment.

8

Stocks of Thailand Outward Direct Investment (as of 2015 Q3)

Thailand’s Outward FDI in CLMV Countries

Source: Bank of Thailand

9

Food and beveragesCP, THAIBEV,

MITRPHOL, KSL, BETAGRO

CP, THAIBEV, MITRPHOL, KSL,

BOONRAWDCP CP, THAIBEV

Chemical, Plastics, Paper Products

DOUBLE A TOA

Mining and Petroleum PTT BANGCHAK, PTTEP PTT, PTTEP

Electricity

BANPU, RATCHABURI ELECTRICITY,

EGCO

EGAT

Construction SCG CK, SCG ITD, SCG SCG

Wholesale & Retail Trade

SAHAPAT CENTRAL GROUP

Financial Activities BBL, SCBBBL, SCB, BAY,KTB,

BBL,SCB, KTB BBL,SCB, BAY

Real Estate Activities DUSIT,BAIYOKECENTARA, AMATA,

PRUKSA

Others

TG, BANGKOKAIRWAYSBANGKOK HOSPITAL

TG TGTG, BANGKOK

HOSPITAL

Currently, most Thai firms investing in CLMV are large companies.

Source:

WEAKNESSES

Infrastructure shortage

Unskilled labor

Low purchasing power

High logistic cost

High electricity cost

Fair financial and banking system

Small domestic market

No marine borderline

However, CLMV still lack infrastructure and skilled labors.

10Source: Bolliger and Co.

OPPORTUNITIES

Developing infrastructure

Special Economic Zone

FDI openness policy

Production for domestic and export

Generalized Systems of Preferences(GSP)

Trans-Pacific Partnership Agreement (TPP)

Each government has promoted FDI by developing infrastructure and setting up Special Economic Zone.

11Source: Bolliger and Co.

THREATS

Unstable regulation

Skilled labor shortage

Language barrier

High competition

Ethnic minority conflict

Unstable regulation is the primary obstacle for doing business in CLMV.

12Source: Bolliger and Co.