THAILAND INVESTMENT REVIEW VOL.29 | DECEMBER 2019

TRANSPORT & LOGISTICS BOI NET APPLICATION JANUARY – SEPTEMBER 2019

CONTENTS TOTAL TOTAL FOREIGN INVESTMENT INVESTMENT 02 1165 689 BOI NET Projects Projects APPLICATION US $10,333.19 US $6,689.67 Million Million 03 COVER STORY FOREIGN INVESTMENT BY TARGET SECTORS

05 ELECTRONICS AUTOMOTIVE INDUSTRY FOCUS 94 US $1,664.09 60 US $1,109.11 Projects Million Projects Million 07 SHORT ARTICLE PETROCHEMICALS TOURISM & CHEMICALS 45 US $512.34 9 US $289.54 08 Projects Million Projects Million COMPANY INTERVIEW

DIGITAL AGRICULTURE & FOOD PROCESSING 10 93 US $191.72 48 US $315.78 BOI’S MISSIONS Projects Million Projects Million & EVENTS

BIOTECHNOLOGY MEDICAL 11 4 US $141.06 12 US $82.01 ECONOMY Projects Million Projects Million AT- A-GLANCE

AUTOMATION & ROBOTICS AEROSPACE 12 5 US $25.41 2 US $17.99 ABOUT BOI Projects Million Project Million

Unit: US$ (US$ = 30.6 THB as of 11 December 2019) MAJOR FOREIGN Note: Investment projects with foreign equity participation from more than one country are reported in the figures for both countries. Statistics on net applications are adjusted whenever applications are returned to applicants due to insufficient information. INVESTMENTS

1 2 3 4 5

JAPAN PEOPLE’S REPUBLIC OF CHINA SWITZERLAND TAIWAN SINGAPORE 167 Projects 139 Projects 15 Projects 44 Projects 88 Projects US $1,953.37 US $1,499.64 US $386.47 US $318.81 US $307.06 Million Million Million Million Million

6 HONG KONG 7 NETHERLANDS 8 AUSTRALIA 9 USA 10 SOUTH KOREA 44 Projects 30 Projects 11 Projects 24 Projects 21 Projects US $294.95 US $194.82 US $150.63 US $101.29 US $80.26 Million Million Million Million Million

For more details, please see www.boi.go.th Cover Story THE FUTURE OF TRANSPORTATION, LOGISTICS AND MOBILITY Thailand’s transportation and logistics development is accelerating at a rapid pace and positioning Thailand to become the transportation hub of ASEAN. As Thailand develops, growing urbanization creates demand for transportation improvements, and the supply chains of every industry rely on transportation and logistics . Given the country’s robust growth as one of Asia’s mobility and trading hubs, Thailand’s transportation and logistics sector shows strong potential to drive further trade, travel, and investment Future trends in Thailand’s transportation and logistics sector are detailed below.

THE FUTURE OF CONNECTIVITY IN THAILAND national and cross-border transportation high-speed rails and other infrastructure Thailand’s national infrastructure and the opportunities it creates for projects in the Eastern Economic development program has committed investment in the kingdom. Notably, Corridor (EEC) are set to drive US$ 25.2 billion to 36 projects the Ministry of Industry’s industrial Thailand’s economic growth over the concerning rail and road upgrades, development strategic plan to promote next decade, with strong investment improvement, airport the Eastern Economic Corridor (EEC) prospects in , Rayong, expansion and seaport development as a leading ASEAN economic zone Chachoengsao, and Chonburi. Network nationwide.1 Major plans include: is expected to drive additional expansion and facilities improvement • U-Tapao airport development infrastructure investment projects in both the public and private • Sattahip, Laem Chabang, and worth US $43 billion by 2021.2 development sectors is projected Map Ta Phut seaport upgrades The broad range of transportation to remain high thanks to the • High-speed and double-track infrastructure projects coupled with implementation of large public railways government support creates a highly infrastructure systems and the raft • Bangkok’s public transport favorable investment climate for of supportive policies working to network expansion companies in the transportation and stimulate inclusive urban growth.4 logistics industries. A LUCRATIVE ENVIRONMENT PARTNERSHIPS DRIVE FOR INVESTMENT THE EXPANDING TRANSPORT THE EXPANSION OF URBAN OPPORTUNITIES AND LOGISTICS SECTOR IN CONNECTIVITY The government is facilitating these THAILAND The role of the Thai government in significant investments in transportation, Thailand continues to benefit from national transportation and infrastructure logistics, and infrastructure projects to private investment in public infrastructure development involves facilitating promote future connectivity between projects and the robust, ongoing investment projects and partnerships key hubs and gateways because it expansion of countrywide transport that have far-reaching impacts on recognizes the surging demand for networks.3 The expansion of air transport, people’s lives, drive economic prosperity,

1 BOI. (2017). Thailand infrastructure development. Retrieved from https://www.boi.go.th/upload/content/BOI%20-%20Thailand%20Infrastructure%20Development_14976.pdf 2 ASEAN Briefing. (2018). Thailand’s Eastern Economic Corridor – What you need to know. Retrieved from https://www.aseanbriefing.com/news/2018/06/29/thailand-eastern-economic-corridor.html 3 World Bank Group. (2019). Thailand Economic Monitor. Retrieved from http://documents.worldbank.org/curated/en/765751562176921636/pdf/Thailand-Economic-Monitor-Harnessing-Fintech-for-Financial-Inclusion.pdf 4 PWC. (2019). Thailand Infrastructure News. Retrieved from https://www.pwc.com/th/en/deals/assets/infrastructure-news/Issue10.pdf

THAILAND INVESTMENT REVIEW 03 Cover Story

and improve efficiency and safety. The BOI has reported Foreign Direct Investment (FDI) amounting to US $9.3 billion in the EEC, and a range of Public-Private Partnerships (PPPs) have been established to meet the need for urban mobility and accessibility in line with the government’s smart city framework, Thailand 4.0 strategic direction, and urban development initiatives. Thailand’s transport infrastructure development strategy places focus on human resource development and strategic investment for the integration of rail mass transit, and investors are seizing BOI INCENTIVE POLICIES the opportunities that investment in The Thailand Board of Investment (BOI) provides enticing privileges to these sectors has created. foreign investors to support further logistics and transport infrastructure development. Subject to conditions and/or approval by relevant ONE TRANSPORT FOR ALL: government agencies, the BOI provides investment facilitation for investors OPPORTUNITIES IN THAILAND through its competitive package of tax incentives, general incentives, and Thailand offers tremendous opportunities assistance relating to smart visas and work permits. Some examples of the across industries and continues to incentives include: drive investment in its transportation and infrastructure development and • Companies that are involved in the manufacture and/or repair of expansion. The government established rolling stock, parts orequipment for rail systems may apply for BOI’s the national investment action plan incentives under the general list of activities for investment promotion to address priority multimodal ranging from group A1 to A3. transport projects and interconnection • Companies investing in mass transit systems and transportation activities, including extensive highway of bulk goods may obtain the following general incentives: and rail system improvements, next- A2: Rail transport generation mass transit, 11 international B1: Pipeline transportation (except water pipeline) airports, 8 major deep seaports, and A2: Maritime transportation services well-integrated international river A3: Air transportation services ports.5 In this pursuit, the Ministry of • Logistics service centers may be eligible for the following incentives: Transport (MOT) outlined significant B1: Logistics service’s distribution centers (DC) investment opportunities and bilateral A3: International distribution centers (IDC) cooperation prospects to promote A3: Logistics Park sustainable, safe, and cost-effective • In addition to general incentives, logistics businesses in certain areas transport and logistical measures in for the Special Economic Zones (SEZs), subject to conditions, may be areas such as aviation development, granted 8-year exemptions on corporate income tax and an additional border transport upgrades, and marine 50% reduction in corporate income tax for 5 years. transport and logistics integration. Signed MOUs at a regional level include the following: • Thailand-Japan Transport Cooperation • Thailand-Republic of Korea Transport Cooperation • Thailand-Germany Transport Cooperation • ASEAN Transport Cooperation • Greater Mekong Subregion (GMS) Transport Cooperation6

5 Invest in ASEAN. (2019). Thailand. Retrieved from http://investasean.asean.org/index.php/page/view/asean-member-states/view/709/newsid/862/thailand.html 6 Ministry of Transport. 4-year Performance of Ministry of Transport: For Happiness of Thai People. Retrieved from https://complain.mot.go.th/prproject/files_upload/publishonweb/4years-performance-mot.pdf

04 THAILAND INVESTMENT REVIEW Industry Focus

FROM ROAD TO RAIL

A MAJOR UPGRADE Looking for a way to tap into the ASEAN market, one of the fastest growing markets in the world? Thailand offers the most convenient point of access for the region’s 640 million residents. Located at the heart of , Thailand is known as the region’s connectivity hub. Its capital, Bangkok, welcomed over 22 million international visitors in 2018, making it the world’s most visited city four years in a row.1

The kingdom has relied heavily on roads for transportation, but since rail transportation consumes less energy, occupies less land, results in fewer accidents and causes less air pollution, it is a more cost-effective solution for many types of freight. Recognizing these advantages, the Thai government has invested to strengthen the country’s position as a regional hub by improving inter- country transportation connectivity In April 2019, the Department of Rail infrastructure and services while the and efficiency through a major Transport was established under latter oversees systems overhaul of railway systems. Under the Ministry of Transport (MOT) to in Bangkok and other major cities. Thailand’s Transport Infrastructure drive the country’s rail management Major railway infrastructure development Development Strategy 2015-2022, and infrastructure development. It is projects include a double track railway the value of railway development tasked with creating rail transportation network, including high-speed rail (HSR), projects takes up about half of the development policy and regulations and mass rapid transit development. megaproject’s THB1.94 trillion (US as well as overseeing rail management, $63.39 billion) total budget. including the ongoing development ∙ Double Track Railway Network projects under the Transport Infrastructure Under the Intercity Rail Networks Development Strategy. The railway Development plan, there are 25 development strategy paves the way double track railway projects, to integrated and seamless transportation including 6 High Speed Rail (HSR) in the ASEAN region through projects, set to connect regional improvement of existing inter-city centers and link major cities. The plan tracking and facilities and the calls for a 5,561 kilometer rail network development of double track railways, by the end of 2022. As of June 2019, commuter trains, metros and high the MOT reports that construction on speed trains. six rail projects and one HSR project has commenced. THE TRAIN IS ON TRACK A total of 43 railway system development The 187 kilometer double track rail projects are planned for implementation line between Nakhon Ratchasima and under the State Railway of Thailand Khon Kaen opened in March of 2019. (SRT) and the Mass Rapid Transit This new route forms a part of the Authority of Thailand (MRTA). The northeastern rail link, and will shorten former manages inter-city railway a passenger train trip from 3 hours to

1 https://newsroom.mastercard.com/wp-content/uploads/2019/09/GDCI-Global-Report-FINAL-1.pdf

THAILAND INVESTMENT REVIEW 05 Industry Focus

less than 1.5 hours and a cargo train ∙ Mass Rapid Transit System trip from 6 hours to only 2.5 hours. By 2029, Bangkok Metropolitan’s The Chachoengsao-Klong Sib Kao- mass rapid transit system will span Kaeng Koi line is also expected to a total length of 557.56 kilometers. be completed in 2020. This route The expansion of the from offers a gateway to Thailand’s next Mochit to Khu Khot is expected to be major economic zone, the Eastern completed in December 2020. The Economic Corridor (EEC). Blue metro line will open new stations in early 2020, and the construction Thailand’s HSR infrastructure projects, of the Dark Red when completed, will strengthen the connecting Bang Sue Central Station, Trans-ASEAN bullet train network, Bangkok’s next rail transport hub, to expanding trade across the region. the northern suburbs is projected to The routes will link Bangkok to major open in early 2021. cities in the North, Northeast, South RAIL SYSTEMS TO and the EEC in the East. Ultimately, BOI INCENTIVE SUPPORT PROPEL OPPORTUNITIES the Northeastern Bangkok-Nong To support rail development, the Thailand’s railway development Khai route, a collaboration between Thailand Board of Investment projects are creating lucrative Thailand and China, will connect with (BOI) offers appealing privileges opportunities for a wide range of the HSR from China through Laos. The to investors, inclusive of tax and investors. Companies with operations Southern Bangkok-Padang Besa line non-tax incentives, and business- relating to these megaprojects can will link to Malaysia and Singapore. related assistance such as work seize tremendous investment The northeastern line construction is permits. Investors in the rail sector, opportunities. Demand for rail expected to commence in 2020. The manufacturing and/or repairing of components, electrification and power second phase is expected to start rolling stocks, parts or equipment supply systems, railway signaling in 2020. Another high priority HSR for rail system, are eligible for systems, and train and infrastructure investment is the flagship east route corporate income tax exemption for maintenance will skyrocket following project. The first phase will link the a consecutive period of no more than completion of the projects. Investors three major international airports in eight years, provided that applications in other industries will enjoy a Thailand: Don Mueng International are submitted by December 30, variety of opportunities in real estate Airport, , and 2021 and projects meet the BOI’s development, retail, logistics, tourism U-Tapao International Airport. requirements and conditions. and more.

06 THAILAND INVESTMENT REVIEW Short Article MASS TRANSIT CONNECTS BANGKOK TO A BRIGHTER FUTURE

The mass transit system in Thailand’s Thailand 4.0 development strategy and congestion, leading to delays capital city has been called a model has driven investment from a number and frustration from commuters and for emerging Asian countries.1 By of leading international companies decreasing employee productivity. collaborating with industry leaders and created new opportunities in Expanding the mass transit system with a long history of excellence in the the rail transport sector. Increased will help reduce traffic, decrease the rail market, Bangkok has benefited investment in this sector builds the time and cost of commuting, and from two iconic transit systems: the capacity of Thai engineers and sets allow people to move around the BTS Skytrain and the MRTA Metro the country on the path to be a city more safely, more efficiently and underground. The government is leader in the rail transport industry in more sustainably. planning extensive expansions of southeast Asia. Bangkok’s mass transit network, and Thailand’s mass transit investment 12 routes covering 512.5 kilometers The expansion of mass transit in also addresses concern about the across 312 stations will be completed Thai cities has positive implications environmental impact of carbon by 2029. This plan includes extending for Thailand’s economy and society dioxide and other greenhouse current lines as well as constructing beyond the influx of investment. gasses. With an estimated twenty new ones in order to better link Currently, Bangkok’s twin transit five percent of Bangkok’s carbon Bangkok with surrounding suburb systems, the BTS Skytrain and the emissions stemming from transport1, and provinces, that will be capable of MRTA Metro, enable nearly one expanding the mass transit network transporting an estimated 7.6 million million people each day to efficiently to increase public transport ridership passengers a day. and affordably move around the city, and decrease private vehicle use making Bangkok one of the most will help the government meet its The Thai government’s concerted livable capital cities in Southeast Asia, objective to curb emissions. efforts to develop the country’s and a model for the rest of the region. mass transit infrastructure under the Bangkok is well known of its traffic As mass transit systems in Thailand continue to expand, there will be increased demand, and new opportunities, for the rail industry in the kingdom. If the government approves the proposed systems for major markets such as Chiang Mai, Phuket, and Khon Kaen, partnerships could move forward to establish a plant to produce rail cars for both the Thai and greater Southeast Asian market.2

Dr. Sombat Kitjalaksana, the Managing Director of the Bangkok Expressway and Metro Public Company (BEM), summed up the importance of mass transit well: “The metro isn’t just about the passengers’ demands; it is actually about the economy. If we didn’t have the Mass Rapid Transit System, the economy would immediately become bottlenecked.”3

1 World Bank: http://siteresources.worldbank.org/INTCARBONFINANCE/Resources/Chanin_Manopiniwes_Nat_Pinnoi_Bangkok_Urban_Transformation.pdf 2 Ibid. 3 Lesley Nichol, “ Upgrade: Trust is a must,” Siemens, (17 July 2018). https://new.siemens.com/global/en/company/stories/mobility/trust-is-a-must.html

THAILAND INVESTMENT REVIEW 07 Company Interview

BOMBARDIER TRANSPORTATION THAILAND established its Bangkok site as the first Regional Centre for Rail Signaling Engineering in Asia. Today the team has grown to 600 employees in Thailand, of which 85% are Thai, working on Bombardier’s full range of high-technology rail system solutions and services, as part of Bombardier’s wider presence across the region. The Bangkok site is the base for a state-of- the-art regional customer training center on mass transit rail control and growing global center of competence for system integration.

A LEADER IN TRANSPORTATION SOLUTIONS Since commencing operations in Thailand, Bombardier has been proud to be a local partner for key customers, including the Bangkok Mass Transit System Public Company Limited (BTSC), the State Railway of Thailand Bombardier Transportation, a on rail control and signaling technology. (SRT), and Bangkok Expressway global leader in the rail industry, “The choice of Bangkok as a base was and Metro Company Limited has had a strong footprint in driven by several factors, including (BEM). Thailand for over two decades. its level of development, strategic Mr. Claudio Tiraferri, Head of location, and skilled workforce,” said Expanding on its first projects Region Asia Pacific for Bombardier Mr. Tiraferri. “The city had an established in Bangkok, which included Transportation’s Rail Control power system, which the company upgrading the signaling on Solutions Division and Managing saw as a necessary foundation for the Bangkok SkyTrain and its Director of Bombardier Transportation developing a transportation network. subsequent extensions, the Thailand and Mrs. Yuwaree Chulya, Thailand is also situated in the heart of company is currently working Head of Finance for Bombardier Southeast Asia with close proximity to implement Thailand’s first Transportation Southeast Asia to other key markets, providing a systems—providing discussed the company’s commitment strategic base for Bombardier’s rail its turnkey BOMBARDIER INNOVIA to the railway industry in Thailand. control products and services in the solutions, comprising trains, region.” signaling and other sub-systems WHY THAILAND? for the city’s new Pink and Yellow Bombardier Transportation began In 1998, Bombardier provided the lines-and first automated people its investment journey in Thailand first successful electronic interlocking mover system on the city’s new in 1997, with a small team focused in the region and by 2007 had . Mr. Tiraferri said,

08 THAILAND INVESTMENT REVIEW Company Interview

technology skills and have become “The choice of much needed resources. As a result, they help the Thai economy and Bangkok as a base contribute to projects around the was driven by world.”

several factors, “It is natural, and a reflection on their level of training, that some including its level Bombardier employees may go of development, to work for other companies, but we see this as an asset,” said Mr. strategic location, Tiraferri. “They often return to work for us with broader experience and and skilled a deeper understanding of how to workforce.” provide even better solutions for our customers.”

“As well as providing our market- Bombardier Transportation Thailand leading technology, key growth also prides itself on being a leader in ATTRACTIVE INCENTIVES areas for Bombardier are system gender diversity in the industry, both FROM THE BOI integration and services. Railway in the region and globally. “Diversity The BOI has been an integral systems are complicated and in the workforce is a key success part of Bombardier’s continuing Bombardier can ensure that the factor for Bombardier as a whole, growth in Thailand. The BOI first many sub-components required as employees gain understanding approved Bombardier’s investment are delivered as one solution which of different ways of working from application in 2014, providing tax is then supported throughout its colleagues of different genders, and import benefits, supporting entire life cycle.” ages, nationalities and cultures.” business development, and facilitating the company’s efforts Notably, Bombardier was recently The company’s commitment to to bring in international experts awarded its first order in Thailand to localization in Thailand has also to grow local knowledge and deliver the now globally-recognized extended to university programs introduce advanced technology European Rail Traffic Management which are benefitting the entire to the market. System (ERTMS) Level 1 technology industry. In 2018, the company signed for mainline operations. “Upgrading a Memorandum of Understanding “Incentives and investment support to ERTMS is an excellent and proven (MOU) with Mahidol University from the BOI make Bombardier’s choice for Thailand to provide to develop the first postgraduate engineers globally competitive, improved safety and reliability of degree in Thailand on railway and the company has sent them services, plus integration between engineering. The company has also around the world to assist with systems from different companies, signed MOUs with Navamindradhiraj projects and gain experience,” allowing for easier network development,” University and Kasetsart University said Mr. Tiraferri. Mr. Tiraferri said. “The standard can in 2016 and 2013, respectively, to also facilitate cross-border transport develop signaling and rail expertise Support from BOI also enabled and trade, as it can enable seamless in their university curricula. Bombardier to establish the transitions for trains and freight to status of Regional Operating other similarly equipped rail systems.” Headquarters, and most recently an International Business Centre A STRONG FUTURE in 2019, which have enabled the THROUGH INVESTMENT company to continue its growth IN LOCAL SKILLS and add new roles and expertise DEVELOPMENT to the Bangkok site. The BOI Bombardier strongly recognizes recognizes the importance and Thailand’s long-term potential and potential of the rail and logistics has made significant investments industry and offers a wide range in developing the advanced railway of tax and non-tax incentives for engineering expertise and business projects that support Thailand’s education of its employees. This push to upgrade its rail systems. engineering expertise spans both The BOI is ready to assist mass transit and mainline rail companies in their investments system technologies, explained Mrs. that will help develop Thailand’s Yuwaree Chulya. “Our Thai Engineers rail ecosystem, putting Thailand have been developed with high on track to be a regional rail hub.

THAILAND INVESTMENT REVIEW 09 BOI’s Missions and Events

BOI PRESENTS “BUSINESS OPPORTUNITY IN THAILAND” SEMINAR 2O NOVEMBER 2019 Mr. Chokedee Kaewsang, MAXIMIZING BOI PROMOTIONS PRESENTATION Deputy Secretary General BOI, presided over the opening AT STOCK EXCHANGE OF THAILAND ceremony of the “Business Opportunity in Thailand” 14 NOVEMBER 2019 Mr. Narit Therdsteerasukdi, seminar which was co-presented by the Eastern Economic Deputy Secretary General of the BOI, together with Corridor (EEC) and Japan External Trade Organization Mr. Suthiket Thatpitak-Kul, Executive Director of the (JETRO). The seminar was presented to over 70 Japanese Investment Promotion Division 1 (Bio and Medical investors at BITEC Bangna, Bangkok. Mr. Chokedee Industries), lectured on how to “Maximize BOI Promotion Kaewsang, Deputy Secretary General BOI, together with for Best Benefit and Efficiency” organized by mai listed Ms. Kanchana Noppun, the Executive Director of the company association (maiA) at the Stock Exchange of Investment Services Center of the BOI, and Ms. Patcharada Thailand. Nawakawongkarn, the Director of BOI Osaka Office, hosted a welcome reception for investors from Japan and Thailand to network.

EXECUTIVE DIRECTOR TOYAMA JAPAN MEETS BOI BOI LEADER ADDRESSES 2019 SEGYE ASEAN 21 NOVEMBER 2019 Ms. Ratchanee Wattanawisitporn, FORUM IN SEOUL Executive Director of Foreign Investment Marketing 20 NOVEMBER 2019 Mr. Narit Therdsteerasukdi, the Division of BOI, welcomed the delegation of executive Deputy Secretary General of the BOI, presented on impacts director from Toyama, Japan who had come to visit of trade wars on ASEAN’s investment opportunities Metalex 2019 expo. The meeting was held at the BOI during the 2019 Segye ASEAN Forum. Approximately 200 head office where the delegation and the BOI expressed participants joined the event organized by Segye Times, interest in potential cooperation to leverage the Thai a leading news publication from the Republic of Korea. industrial sector. The forum was honored by the attendance of Mr. Yunmo Sung, Minister of Trade, Industry and Energy (MOTIE), Mr. Park Young-sun, Minister of SMEs and Startups, and Mr. Joo Hyung Chul, advisor to President Moon Jae-in, and the President of the Presidential Committee on New Southern Policy.

BOI PRESENTS TO AUTOMOTIVE SEMINAR IN JAPAN 21 NOVEMBER 2019 The BOI Office in Tokyo partnered with the city of Hamamatsu, site of Suzuki Motor’s headquarters, to organize a seminar focused BOI LEADS AGRO DELEGATION TO TOKYO on the automotive industry. In the seminar, Mrs. Achara INDUSTRY EXHIBITION Soontawnkrut, Director of BOI Tokyo Office, and Mr. 13-15 NOVEMBER 2019 Mrs. Achara Soontawnkrut, Chatri Limpongsai, Executive Director of the Investment Director of BOI Tokyo Office, together with the Investment Promotion Division 2 (Advanced Manufacturing Industries), Ecosystem Division of the BOI, led a group of Thai in collaboration with KPMG, presented on the modern entrepreneurs in the agro processing and healthcare automotive technology industry and outlined the sectors to an investment promotion activity at the Tokyo investment incentive policies that Thailand is offering International Industry Exhibition 2019 in Japan. for this sector.

10 THAILAND INVESTMENT REVIEW Thailand Economy at-a-Glance

KEY ECONOMIC FIGURES CLMVT ECONOMY AT-A-GLANCE

Source: IMF, International Trade Statistics, UNCTAD, World Bank Data 2018

POPULATION GDP GROWTH FDI GDP (2018) US $506.2 BILLION 242 8.2% 52 Million US $ Billion

GDP PER IMPORT EXPORT CAPITA US $7,462 FROM THE WORLD FROM THE WORLD (2018) 12.7% 9.9% (540 bil. US $) (535 bil. US $) GDP GROWTH

INTERNATIONAL COMPETITIVENESS Source: WEF, IMD and World Bank

2017 2018 THAILAND IS THE EASIEST CLMVT COUNTRY TO DO BUSINESS. 4.0% 4.1% LEAST TIME HIGHEST RATING: TH TO SET UP BUSINESS WORLD BANK EASE OF 27 DOING BUSINESS 2019 4.5 DAYS

FEWEST HIGHEST SCORE: TH INVESTMENT GROWTH PROCEDURES STEPS WORLD ECONOMIC 38 5 FORUM COMPETITIVENESS INDEX 2017 2018 EXPORT FIGURES 0.9% 6.3% EXPORT VALUE US $ JANUARY-NOVEMBER 2019 232,813.10 MILLION

EXPORT VALUE GROWTH TOP 10 INDUSTRIES TOP 10 MARKETS

2017 2018 9.8% 7.2 % Motorcars and Parts Computers and Parts USA China $26,022.52 $17,082.50 $29,519.25 $27,192.42 Share 11.2% Share 7.3% Share 12.7% Share 11.7%

UNEMPLOYMENT 2018* 1.1% Precious Stones Rubber Products Japan Vietnam and Jewellery $10,472.50 $23,349.80 $11,450.13 HEADLINE $15,334.20 Share 4.5% Share 10% Share 4.9% INFLATION % Share 6.6% 2019* 1

Source: NESDB *Forecast under Source: NESDB, add Bank of Thailand

Plastic Beads Chemical Products Hong Kong Malaysia $8,687.70 $7,188.33 $11,100.48 $9,884.39 Share 3.7% Share 3.1% Share 4.8% Share 4.2% MARKET PROFILE 2018

POPULATION Electronic Refined Fuels Australia Indonesia Integrated Circuits $6,870.08 $9,844.97 $8,686.79 69.6 $7,126.41 Share 3% Share 4.2% Share 3.7% Million Share 3.1%

MINIMUM WAGE $ APPROXIMATE PER DAY THB 325 US $10.5 Machinery Iron, Steel Singapore India and Parts & Products $8,384.29 $7,000.60 Source: United Nations and Ministry of Labor $6,825.18 $5,282.67 Share 3.6% Share 3% Share 2.9% Share 2.3% Source: Ministry of Commerce

Source: Bank of Thailand EXCHANGE RATES Note: Baht/ 1 Unit of Foreign Currency - Average Selling Rates. (Data as of 11 December 2019) JPY currency is for 100 Yen TAX RATES Source: The Revenue Department

CORPORATE PERSONAL VAT WITHOLDING INCOME TAX: INCOME TAX TAX THB THB THB THB THB 30.6 39.4 34.0 28.2 4.4 20% 35% 7% 1 - 10% BOI OVERSEAS OFFICES

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BEIJING LOS ANGELES SEOUL Thailand Board of Investment, Thailand Board of Investment, Thailand Board of Investment, Beijing Office Los Angeles Office Seoul Office No.21 Guanghua Road, Royal Thai Consulate-General, #1804, 18th Floor, Chaoyang District, Beijing, 611 North Larchmont Boulevard, Daeyungak Tower 25-5, P.R. China 100600 3rd Floor Los Angeles 1-ga, Chungmu-to, Junggu Tel: +86 10 8531 8755-57 CA 90004, USA 100-706, Korea +86 10 8531 8753 Tel: +1 323 960 1199 Tel: +82 2 319 9998 Fax: +86 10 8531 8758 Fax: +1 323 960 1190 Fax: +82 2 319 9997 Email: [email protected] Email: [email protected] Email: [email protected]

FRANKFURT MUMBAI SHANGHAI Thailand Board of Investment, Thailand Board of Investment, Thailand Board of Investment, Frankfurt Office Mumbai Office Shanghai Office Royal Thai Consulate-General, Royal Thai Consulate-General Royal Thai Consulate General, Investment Section 12th Floor, Express Towers, No. 18, Wanshan Road, Liebfrauenberg Barrister Rajni Patel Marg, Changning District, Shanghai 26, 60313 Frankfurt am Main, Nariman Point Mumbai 200336, P.R. China Federal Republic of Germany 400021, India Tel: +86 21 5260 9876 Tel: +49 69 92 91 230 Tel: +91 22 2204 1589 +86 21 5260 9877 Fax: +49 69 92 91 2320 +91 22 2204 1590 Fax: +86 21 5260 9873 Email: [email protected] Fax: +91 22 2282 1525 Email: [email protected] Email: [email protected]

GUANGZHOU NEW YORK STOCKHOLM ABOUT BOI Thailand Board of Investment, Thailand Board of Investment, Thailand Board of Investment, Guangzhou Office New York Office Stockholm Office The Office of the Board of Investment Royal Thai Consulate-General 7 World Trade Center Stureplan 4C, 4th Floor No.36 Youhe Road, Haizhu 250 Greenwich Street, 114 35 Stockholm, Sweden (BOI) is the principle goverment District, Guangzhou 510310 Suite 34F New York, Tel: +46 8 463 1158 agency that operates under the Prime P.R. China NY 10007, USA +46 8 463 1174 Tel: +86 20 8385 8988 Tel: +1 212 422 9009 Fax: +46 8 463 1160 Minister’s Office for the purpose of ext. 220-225 Fax: +1 212 422 9119 Email: [email protected] encouraging investment in Thailand. +86 20 8387 7770 Email: [email protected] (Direct Line) We at the BOI serve as the professional Fax: +86 20 8387 2700 SYDNEY contact points for investors,providing Email: [email protected] Thailand Board of Investment, them with useful investment information OSAKA Sydney Office Thailand Board of Investment, Suite 101, Level 1, 234 George and services. We offer business support Osaka Office Street, Sydney, NSW 2000, and investment incentive to foreign HANOI Royal Thai Consulate-General Australia Thailand Board of Investment, Bangkok Bank Building, Tel: +61 2 9252 4884 th investors in Thailand, including tax Hanoi Office 7 Floor 1-9-16 Kyutaro-Machi, Email: [email protected] and non-tax incentives. A few non-tax 26 Phan Boi Chau Str., Chuo-ku Osaka 541-0056, Hoan Kiem, Hanoi, Vietnam Japan incentives include granting land Tel: +81 24 3823 5092-4 Tel: +81 6 6271 1395 ownership to foreigners and facilitating Email: [email protected] Fax: +81 6 6271 1394 TAIPEI Email: [email protected] Thailand Board of Investment, visas and work permits. Besides serving Taipei Office the needs of overseas investors, we Taipei World Trade Center Room:3E40 No.5 Xinyi Rd., also offer consultation services to Thailand Board of Investment, PARIS Sec.5, Taipei110 Taiwan R.O.C. Thai investors who are interested in Jakarta Office Thailand Board of Investment, Tel: +81 2 2345 6663 Royal Thai Embassy, Paris Office FAX: +81 2 2345 9223 investment opportunities abroad. Jl. DR Ide Anak Agung Gde 8 Rue Greuze 75116 Email: [email protected] Agung Kav. E3.3 No.3 (Lot 8.8), Paris, France Kawasan Mega Kuningan, Tel: +33 156 902 600-01 Jakarta 12950, Indonesia Fax: +33 156 902 602 Email: [email protected] Email: [email protected] TOKYO Thailand Board of Investment, Tokyo Office www.boi.go.th 8th Floor, Fukuda Building West, 2-11-3 Akasaka, Minato-ku, Tokyo 107-0052 Japan Tel: +81 3 3582 1806 Fax: +81 3 3589 5176 Email: [email protected]