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Investment Environment in Thailand
Thailand Board of Investment
2015
Outline
Thailand in Brief
Competitive
BOI Policy & Services
Investment Opportunities
Thailand in Brief
12th
Largest
Agriculture Output
16th
27th
Largest
Biggest
Exporter
Manufacturing
ASIA’s
Liberal
MarketEconomy
35th
33rd
Biggest
Economy
Largest Services
Output
24th
Biggest
Economy
by purchasing
power
Sources: Economist 2015Pocket World Figures
Output
GDP US$374 Billion (2014)
US$5,445 per capita
Population 65.1 Million
Labor Force 38.58 million
Sources: NESDB as of March 10, 2015
Fast Facts
GDP growth to rebound up to 3.0-4.0% in 2015
Sources: NESDB as of May 18, 2015
Thailand’s Bilateral FTAs
Source: Thailand’s FTAs, Agriculture Trade and Prospect on the ASEAN Economic Community, July 20, 2012
Competitive
20%
20%
20%
20%Expat
Great
Lifestyle
CIT
CIT
CIT
CIT
20%
20%
20%
CIT
20%
CIT
CIT
Low
Cost
CIT
Office
Space
20%
20%
20%
CIT
20%
CIT
Low Cost
of
CIT
CIT
Living
20%
20%
20%
20%
CIT
CIT
CIT
CIT
20%
20%
20%
CIT
20%
CIT
20%
CIT
CIT
CIT
Industrial
Estates
Highly Ranked
UNCTAD
Thailand 8th top prospective host
economy 2014-2016
World Bank
26th easiest place to do business in the
world and 2nd among emerging
economies of East Asia
Good Corporate Governance
“Thailand is a clear leader in corporate governance among Asian economies
and emerging economies. To maintain that leadership, Thailand must ensure
the effectiveness of the Thai Securities and Exchange Commission (SEC) and
Bank of Thailand (BOT) and address raising the level of corporate governance
for state owned enterprises” (2013)
Mr. David Robinett,
Senior Private Sector Development Specialist, World Bank
“Thailand has showed endurance and commitment to reforms in corporate governance
in recent years. These reforms are approaching the standard of international best practices.
Indeed, Thailand has made very significant progress in its overall corporate governance
framework, and that progress must be acknowledged and encouraged.” (2013)
Mr. Constantine Chikosi,
Acting Country Director for the World Bank Thailand
In 2014, Thailand ranked 4th
of 11 Asian Markets by ACGA.
Source: World Bank, Corporate Governance ROSC for Thailand as of April 25, 2013
Strong Infrastructure
Road
• National highway: 61,747 km.
• Motorway & expressway: 313 km.
Ports
6 deep sea ports : Laem Chabang: 7.7 Million TEUs/Year and
Bangkok: 1.34 Million TEUs/Year
Rail
• Single track: 3,685 km.
• Double & third track: 358 km.
Air
• Suvarnabhumi airport: 45 Million populations / Year
• Don Muang airport: 36 Million populations /Year
• Phuket airport: 6.5 Million populations/Year
• Chiang Mai airport: 8 Million populations/Year
Investment Promotion Policy for Investment in Special
Economic Zones
Chiang
Rai
VIETNAM
Phayao
LAOS
Chiang
Mai
Nan
Lampang
Bueng
Kan
Phrae
Nong Khai
MYANMAR (Burma)
Uttaradit
Udon Thani
Nong
Bua
Lamphu
Loei
A
Tak
Phitsanulok
Khon Kaen
Kamphaeng
Phet
Sakhon
Nakhon
Nakhon
Phanom
Lamphun
Mae
Hong
Son
B
Kalasin
Phichit
Chaiyahum
Roi Et
Nakhon Sawan
Amnat
Charoen
Ubon
Ratchathani
Uthai Thani
Chai Nat
Lopburi
Nakhon
Ratchasima
1
Kanchanaburi
Buriram
Saraburi
2
Surin
Si Saket
3
10
4
5
Ratchaburi
8
6
Bangkok
9
7
C
Prachin
buri
Sa
Kaeo
Chachoengsao
Chonburi
Phetchaburi
Rayong
Chantha
buri
D
Trad
1. Singbusi
2. Ang Thong
3. Phra Nakhon
Si Ayutthaya
4. Pathum Thani
5. Nakhon Pathom
6. Nonthaburi
7. Samut Sakhon
8. Samut Songkhram
9. Samut Prakan
10. Nakhon Nayok
A Thailand-Myanmar border area, Tak
province (8 sub-districts in Mae Sod/3 subdistricts in Pod Phra /3 sub-districts in Mae
Ramad)
B Thailand-Laos border area, Mukdahan
province (5 sub-districts in Muang/4 subdistricts in Wan Yai/2 sub-districts in Don
Tan)
D Thailand-Cambodia border area, Trat
province (3 sub-districts in Khong Yai)
Phangnga
Nakhon Si
Thammarat
E Thailand-Malaysia border area, Songkhla
province (4 sub-districts in Sadao)
Phuket
Trang
Initial phase of Special Economic Zones in
5 provinces
1st Phase
C Thailand-Cambodia border area, Sa Kaew
province (3 sub-districts in Arangyaprathet/1
sub-districts in Wattana Nakon)
Surat Thani
Krabi
CAMBODIA
Investment Promotion Policy for
Investment in Special Economic
Zones
Phatthalung
E
Satun
Songkhla Pattani
Yala
Narathiwat
MALAYSIA
F
Chiang
Rai
VIETNAM
Phayao
LAOS
Chiang
Mai
Nan
Lampang
G
Phrae
Udon Thani
Nong
Bua
Lamphu
MYANMAR (Burma)
Loei
Phitsanulok
Khon Kaen
Kamphaeng
Phet
H
Nong Khai
Uttaradit
Tak
Bueng
Kan
Sakhon
Nakhon
Nakhon
Phanom
Lamphun
Mae
Hong
Son
Kalasin
Phichit
Chaiyahum
Roi Et
Nakhon Sawan
Amnat
Charoen
Ubon
Ratchathani
Uthai Thani
Chai Nat
I
Lopburi
Nakhon
Ratchasima
1
Kanchanaburi
Buriram
Saraburi
2
Surin
10
5
Ratchaburi
8
6
Bangkok
9
7
Prachin
buri
Sa
Kaeo
Chachoengsao
Chonburi
Phetchaburi
Rayong
Chantha
buri
Trad
1. Singbusi
2. Ang Thong
3. Phra Nakhon
Si Ayutthaya
4. Pathum Thani
5. Nakhon Pathom
6. Nonthaburi
7. Samut Sakhon
8. Samut Songkhram
9. Samut Prakan
10. Nakhon Nayok
Initial phase of Special Economic Zones in
5 provinces
2nd Phase
F Thailand-Laos/Myanmar border area,
Chiangrai province (21 sub-districts in
Maisai/ Chiangsan/ Chiangkhong)
Si Saket
3
4
Investment Promotion Policy for
Investment in Special Economic
Zones
CAMBODIA
G Thailand-Laos border area, Nongkhai
province (22 sub-districts in Nongkhai/
Srakai/ Phonpisai/ Thabo/ Sri Chiangmai)
H Thailand-Laos border area, Nakhon
Phanom province (13 sub-districts in Nakhon
Phanom/ Tha Uten)
I Thailand-Myanmar border area,
Kanchanaburi province (2 sub-districts in
Kanchanaburi)
Surat Thani
Phangnga
Krabi
Nakhon Si
Thammarat
Phuket
Trang
Phatthalung
Satun
Songkhla Pattani
J
Yala
Narathiwat
MALAYSIA
J Thailand-Malaysia border area,
Narathiwat province (5 sub-districts in
Narathiwat/ Su-ngai Kolok/ Takbai/ Wang/
Yi-ngo)
Thailand and the BOI offer:
No restrictions on
foreign currency
100% foreign
ownership
LIBERAL INVESTMENT
REGIME
No export
requirements
No local content
requirements
BOI’s Liberal Investment Regime &
Attractive Investment Incentives
Tax
Import duty exemptions/
reductions on machinery &
raw materials
Corporate Income Tax/
Exemption up to 8 years
50% reduction of corporate
income tax for up to 5 years
Double deduction on utility
costs
Deductions for qualifying
infrastructure costs
Non-Tax
Land ownership
rights
Work permit &
visa facilitation
New Investment Promotion Strategy Direction
Promote investment to restructure Thai economy for
sustainable development and to overcome “Middle Income Trap”
 Competitiveness development and value creation of industrial sector
 Green industry to drive balanced and sustainable growth
 New industrial clusters in the regions to create new investment
concentration
 Thai overseas investment in order to increase competitiveness of Thai
businesses
Source: Investment Strategy and Policy Bureau, Thailand BOI
Thailand BOI Serves Investors
Investment Matching and
Investment Matching
Industrial Subcontracting Assistance
1-Stop Visas/Work Permits
Investment
Matching
Within 3-hours
Inter-agency support and country
Investment
Matching
desks
ASEAN Supporting Industrial Data
Investment
Matching
Base (ASID)
Overseas offices and outbound
Investment
Matching
investment assistance
23
More Convenience,
less time,
more efficiency!
18th Floor, Chamchuri Square Building
319 Phayathai Road, Pathumwan
Domestic Call: 0 2209 1100, Inter. Call: (66 2) 209 1100
Email: [email protected]
24
Investment Opportunities
Sectors of Opportunity
Agriculture
and food
processing
Target
Industries
Biotechnology
Alternative
energy
Automotive
Target
Industries
Machinery
E&E
High Value
Added
Agro-business Sector
Food Safety Standards at International level
Halal certification
Food Exports of 934 billion baht in 2014
World’s top leaders in sugar production and exports, and
more
Source: National Food Institute
Automotive Industry
9th largest automobile producer in the world in 2013
ECO-CAR production capacity over 700,000
High local content of up to 90%
Target of 3 million units in 2017
Machinery Sector
Mould & Die Industry
Food and farm machinery
Alternative energy/energy conservation machinery
Automotive machinery
Biotechnology Sector
Thailand is ranked 8th most bio-diverse country in the world
About 165 biotech companies in Thailand
7 Intellectual property laws
Science Parks and industrial estates
Alternative/Renewable Energy Sector
Natural: Solar, Hydro, Wind
Crop: Sugar Cane, Cassava, Palm
Waste: Agricultural Waste, Industrial Waste,
Municipal Waste
Electrical and Electronics Sector
E&E exports US$55.7 billion in 2014, 25% of total exports
Major products: Computer components, IC, TV, A/C &
other WG
Leading country in the manufacture of integrated circuits
and white goods
Strong supporting industries for electrical appliances
Compressors, motors, plastic and metal parts
High Value-added Industries
Tourism: Ranked #1 in Value for Money by CBI
Software development, distribution centers and logistics
Excellent location for Regional Operating HQ
Film Production and post production, animation and more
Thank you