investment opportunities in kazakhstan
TRANSCRIPT
Embassy of the Republic of Kazakhstan to the Kingdom of Thailand
INVESTMENT OPPORTUNITIES
in KAZAKHSTAN
16 February 2015Bangkok
2
BASIC FACTS
● Area: 2,724,000 km2, 9th largest● Distance: North/South: 1,700 km
West/East: 3,000 km● Bordering on (length of border): Russian Federation 6,467 km
Uzbekistan 2,300 kmChina 1,460 kmKyrgyz Republic 930 kmTurkmenistan 380 km
● Population: 17,353,700● Official language: Kazakh, Russian● Average temperatures: summer: +19°C (north) +28°C (south)
winter: -19°C (north) -2°C (south)
National Flag National Emblem
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Eurasian Economic Union(Armenia, Belarus, Kazakhstan, Russia)
Timeline:
● 10 October 2000 – Agreement on the establishment of the EurasianEconomic Community
● 6 October 2007 – Agreement on the establishment of the integrated customsterritory and the formation of the Customs Union between Kazakhstan, Russiaand Belarus
● 1 July 2010 – Kazakhstan is a member of the Customs Union (free trade)● 1 July 2011 – customs control in borders of Russia, Belarus and Kazakhstan
was canceled● 1 January 2012 – formation of Common Economic Space● 1 January 2015 – Eurasian Economic Union
KAZAKHSTAN IN THE EURASIAN ECONOMIC UNION
4
18.1 18.8
8.4
0
5
10
15
20
1999 2001 2003 2005 2007 2009 2011 2013 2014f
13.5
5.2
0.02.04.06.08.0
10.012.014.016.0
1999 2001 2003 2005 2007 2009 2011 2013 2014f
1.1
13.0
0.02.04.06.08.0
10.012.014.016.0
1999 2001 2003 2005 2007 2009 2011 2013 2014f
16.9
225.6
0.0
50.0
100.0
150.0
200.0
250.0
1999 2001 2003 2005 2007 2009 2011 2013 2014f
GDP per capita (ths.USD)GDP (bln.USD)
Inflation (%)
Gross International Reserves and Assets of the National Fund of RK
(bln.USD)
Free exchange
Unemployment rate from 1999 to 2013 decreased by 8%Inflation from 1999 to 2013 decreased by 13%
2.0
95.5
0.0
20.0
40.0
60.0
80.0
100.0
120.0
1999 2001 2003 2005 2007 2009 2011 2013
Unemployment rate (%)
14.6
22.7
0.0
5.0
10.0
15.0
20.0
25.0
1999 2001 2003 2005 2007 2009 2011 2013
Birth rate (per 1000 people)
99
717
0100200300400500600700800
1999 2001 2003 2005 2007 2009 2011 2013
GDP from 1999 to 2013 increased by 14 times GDP per capita from 1999 to 2013 increased by 12 times
17.1
2.6
0
5
10
15
20
2001 2003 2005 2007 2009 2011 2013
Government External Debt to GDP (%)
Government External Debt decreased by 14%
Exchange rate regime - floating
The total amount of gross FDI from 2005 to 2013 amounted to $184 billion.
Herewith, the average annual growth rate of gross FDI is 17.4%.
Average monthly nominal wage increased by 7.2 times
STABLE MACROECONOMIC INDICATORS AND HIGH GROWTH
Source: National Bank of the RK, Committee on Statistics of the Ministry of National Economy of the RK, IMF
GDP growth (%)
Average monthly nominal wage (USD)
2.7 4.6
0.02.04.06.08.0
10.012.014.016.0
1999 2001 2003 2005 2007 2009 2011 2013 2014f
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Kazakhstan in the world ranking for reserves
NATURAL RESOURCES
Kazakhstan in the world ranking for production
128
12
2
1411
1
710
5
1311
18
1013
1
11 12
3
9
18
12 11 10
Source: U.S. Geological Survey, Mineral Commodity Summaries 2014; BP Statistical Review of World Energy, June 2014; U.S. Energy Information Administration, Independent Statistics and Analysis; The Global Source, The Silver Institute; Thomson Reuters GFMS, Gold Survey 2013 Update 1. 6
Total USD: 183,921.8 million
46,730.125,4%
20,196.311%
6,691.93,6%
14,876.58,1%2,555.4
1,4%3,720.6
2%
10,892.95,9%
70,666.338,4%
3,866.42,1%
3,725.52%
CUMULATIVE FDI INFLOW BY SECTORS 2005– 2013
Professional, scientific and technical activities
Mining and quarrying
Manufacturing
Wholesale and retail trade; repair of motor vehicles and motorcycles
Financial and insurance activities
Construction
Service activities
Information and communication
Other
Transport and storage
Source: National Bank of the RK
7
1,463.37,2%
296.51,5%
684.83,4%
16,020.579,3%
738.53,7%
407.02%
586.32,9%
CUMULATIVE FDI INFLOW IN MANUFACTURING 2005– 2013
Total USD: 20,196.3 million
Metallurgy and manufacture of fabricated metal products, except machinery and equipment
Production of foodstuff, beverages and tobacco products
Production of computer, electronic and optical products
Production of rubber and plastic products, and non-metallic mineral products
Other sectors
Production of vehicles and equipment
Production of chemical products
Source: National Bank of the RK
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CUMULATIVE FDI INFLOW BY COUNTRIES 2005–2013
Source: National Bank of the RK
Main countries USD: 149.2 billionTotal USD: 183.9 billion
3.11.7%
4.32.3%
4.32.3%
5.22.8%
7.94.3%
9.65.2%
10.55.7%
10.65.8%
11.26.1%
11.46.2%
17.99.7%
53.228.9%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
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•SKD assembly of motor vehicles
•CKD assembly of motor vehicles
Production of car parts and accessories :
Manufacture of electric motors, increasing localization:Production of locomotives and wagons:
Production of equipment:
Production of helicopters: Production of combines and tractors:
Production of equipment:
Railway Machinery
Automobile Production
Machinery for Mining
Aviation Machinery
Machinery
Chemical Industry The production of chemical additives, sodium hexametaphosphate industrial gases, sulphuric acid, ammonia and ammonium nitrate:
The production of ethanol based on the processing of the industrial gases, the production of bioethanol from spent grain, mixing special chemicals for oil extraction and refining:
Professional training, production of generic products: Professional training, production of generics and original medicines:
Pharmaceutical Industry
MAJOR INVESTORS BY INDUSTRY2010-2014 2015-2019
SEZ
SEZ
SEZ
SEZ
SEZ
SEZ
SEZ
SEZ
SEZSEZCustoms privileges
Customs duties 0% on the import of:• equipment and its components,• spare parts,• raw materials and supplies.
State in-kind grants Land plots, buildings, machinery and equipment in property.
Tax benefits•CIT – 0 % 10 years•Land tax – 0% 10 years•Property tax– 0% 8 years
Investment reimbursement
Up to 30% of construction and installation works and equipment
Providing the land in the territory of the SEZ for a period of up to 10 years
Tax benefits
CIT – 0%Land tax– 0%Property tax– 0%VAT – 0% (on all goods completely consumed in the production process)
Exemption from customs dutiesfor goods imported into SEZ territory
Customs privileges
Simplified procedure for recruiting foreign workers
Other privileges
The "one window" principle for the investor and service support for investment
Information, consulting, organizational and other
assistance to the investor
Assistance in obtaining the required approvals and
permits
Support for investment project till the start of the
production
Provision of services to foreign investors and
representatives of Kazakhstan businessMigration benefits
The right to employ foreign labor without quotas and permitsVisa-free travel for citizens of 10 countries
INVESTMENT PREFERENCES*
Support for investors SPECIAL ECONOMIC ZONES
*for priority investment projects
Priority types of activities:1. Metallurgy2. Oil refining3. Food production4. Chemical industry5. Machinery industry6. Production of construction materials
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Metallurgical Complex1
1. Ferrous metallurgy2. Non-ferrous
metallurgy
3. Oil refining4. Petrochemistry
5. Manufacture of food products
8. Manufacture of motor vehicles
9. Electrical equipment10. Agricultural machinery
engineering11. Railway machinery
engineering 12. Mining equipment13. Oil producing
equipment; oil and gas refining equipment
6. Agrochemistry7. Production of
chemicals for industry
14. Production of construction materials
Oil refining Complex 2 Food processing Industry3
Chemical Industry4 Industrial Production5 Production of construction materials 6
PRIORITY SECTORS FOR INVESTMENTS
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Western Europe – Western China International Transit Corridor
Western Europe – Western China corridor on the territory of Kazakhstan (2,787 km)
THE REPUBLIC OF KAZAKHSTAN THE KINGDOM OF THAILAND
TRADE TURNOVER
• 2010 : 86.1 mln USD
• 2011 : 103.2 mln USD
• 2012 : 142 mln USD
• 2013 : 163.2 mln USD
• 2014 (Jan-Nov) : 128.4 mln USDSource: National Bank of the RK, Committee on Statistics of the Ministry of National Economy of the RK
INVESTMENTS 1991 – Sep 2014
From Kazakhstan into Thailand 11 mln USD
From Thailand into Kazakhstan 3.9 mln USD
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Embassy of the Republic of Kazakhstan to the Kingdom of Thailand
Office 804A, GPF Witthayu Towers, 93/1 Wireless Rd, Bangkok 10330
kazembassythailand.org
facebook.com/KZEmbassyTH
youtube.com/KZEmbassyTH
twitter.com/KZEmbassyTH
Thank you for your attention!