Vol. 28 l No. 1 l April 2018

THAILAND TAKING OFF TO NEW HEIGHTS BOI Net Application 02 Company Interview 08 BGI - A global pioneer Cover Story 03 in next generation sequencing Taking off to New Heights News Bites 09 Special Topic 05 SMART Visa - Attracting talent BOI’s Missions 10 through the smart program and Events

Short Article 07 Thailand Economy 11 Thailand 2018 - Ready for business At-A-Glance to take off About BOI 12

BOI NET APPLICATION January - March 2018

FOREIGN INVESTMENT BY TARGET SECTORS

Total Investment Digital Medical Petrochemicals 333 Projects 38 Projects 62.04 M 1 Project 0.06 M and Chemicals 9 Projects 111.97 M 6,399.59 Million Automotive Agriculture and Electronics 15 Projects 115.37 M 12 Projects 95.19 M 11 Projects 43.43 M Total Foreign Automation Tourism Food Processing Investment and Robotics 1 Project 1.26 M 5 Projects 26.71 M 215 Projects 1 Project 0.28 M 782.75 Million

FOREIGN Sweden INVESTMENT 2 Projects 15.52 M Japan BY MAJOR 65 Projects ECONOMIES Netherlands 370.52 M 11 Projects South Korea 75.68 M 6 Projects United States 15.18 M 6 Projects 37.18 M 23 Projects 89.13 M 12 Projects 85.51 M United Arab Emirates Taiwan 2 Projects THAILAND 10 Projects 17.72 M 22.09 M 30 Projects 63.04 M

Unit: US$ (US$ = 31.82 THB)

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. For more details, please see link http://www.boi.go.th/ newboi/index.php?page=Report_investment

02 Thailand Investment Review COVER STORY THAILAND TAKING OFF TO NEW HEIGHTS With Thailand’s journey towards fulfilling its 4.0 vision now gathering pace and soaring high, one of the Thailand Board of Investment’s most important public events of the year took place on March 19, 2018 under the celebratory tagline “Thailand Taking off to New Heights”.

Held at the Royal Jubilee Ballroom, When it comes to external factors, dependent on reformation and economic Impact Exhibition & Convention Center in the economic aspirations of major players transformation. As the of the , Thailand, this seminar was in the region, including China and India, regional and global competitive landscape joined by high-ranking members of the coupled with the growing uncertainty has changed, Thailand can no longer Thai government together with foreign in advanced economies, have aligned rely on traditional and manufacturing industry leaders and executives, who to place Thailand at a crossroads of industries as its growth engine. Rather, came to share their perspectives on the immense unrealized opportunity. Thailand’s it must turn its attention to high value future of the Thai economy, the essential prime geographic location at the center products and services, green industry tools required to keep it on an upward of four high-growth emerging markets projects and the innovation-driven sector. trajectory, and the yet-to-be-realized in Cambodia, , Myanmar and Vietnam In terms of reformation, regulatory possibilities this country holds. reinforces its position as the regional bottlenecks must be dismantled in In delivering his opening remarks hub of business. In such an environment, order to improve business facilitation at the event, Deputy Prime Minister, Thailand is well-positioned to reap the and increase confidence in Thai public H.E. Dr. Somkid Jatusripitak, began by full benefit of its current strength and institutions. highlighting the facts that have made tackle the exciting opportunities ahead Thailand a prime investment destination. on the road to a new era for the Thai Internally, the government has been economy. placing emphasis on digital transformation The morning roundtable session, across the board as well as introducing dubbed the “New Era of Industrial various business-enabling facilitation Development,” included panelists from measures. Acknowledging the shifting key economic and industry ministries, global landscape and technological including the Minister Attached to the advancement, the government’s focus Prime Minister’s Office, H.E. Dr. Kobsak has now turned to attracting high- Pootrakool; the Minister of Industry, H.E. technology investment and supporting Dr. ; the Deputy the development of key skills. Next Minister of Transportation, H.E. Dr. Pailin generation industries are being provided Chuchottaworn; and Member of the with unprecedented support, while Commission, Policy Committee of the megaprojects such as the Eastern Development of the Eastern Economic Economic Corridor are turning these Corridor (EEC), Mr. Kan Trakulhoon. aspirations into reality. Due in no small There was a general consensus among part to these initiatives, Thailand’s the honorable panelists that the future international competitiveness and ease- of Thailand’s economy and industry is of-doing-business rankings have improved steadily over the past several years.

Thailand Investment Review 03 COVER STORY

In the first afternoon session, the Innovation will be an These areas include the Eastern Economic panelists included the Minister of Corridor (EEC), the Special Economic and Technology, H.E. Dr. ; integral component Zones (SEZ), the provinces along the Minister of Digital Economy and Thailand’s southern border, and 20 Society, H.E. Dr. Pichet Durongkaveroj; of Thailand in the other low-income provinces. The EEC is the Secretary General of the Thailand 4.0 era, and as such, of particular importance with regard to Board of Investment, Ms. Duangjai additional incentives as several types of Asawachintachit; the Secretary General the Thai government, business operations-including the S-Curve of the Eastern Economic Corridor Office, industries, various supporting activities, Dr. Kanit Sangsubhan; and the Deputy and the BOI in and infrastructure development-are also Director of U-Tapao Airport Authority, particular, will reward eligible for additional CIT reductions. Capt. Somnuk Keawmaruang. The Apart from the incentives listed honorable panelists discussed the BOI’s companies that place above, the BOI also provides support industry-enabling investment promotion with the upgrading of current machinery policy, the government’s manpower and heavy emphasis to enhance production efficiency and with skill development measures, and various on innovation. registering in the Market of Alternative infrastructure development initiatives, Investment (MAI), an equity market for particularly the area development projects low capitalization companies. in the Eastern Economic Corridor and Devised to facilitate the arrival the U-Tapao Airport expansion plan, all of foreign experts, executives and of which have been launched with the entrepreneurs who can support the purpose of fostering the growth of the higher value will merit a longer period development of the S-Curve industries next-generation of high-tech industry in of tax exemption compared to those in Thailand, the SMART Visa program, Thailand. of a lower value. Notwithstanding which became active in February, is The Secretary General of the the consideration of other incentives, another key initiative. The holders of Thailand Board of Investment stressed the product-based incentive scheme this type of visa will be granted unique that policy evolution and change are allows up to eight years of corporate privileges, including up to four year the key factors enhancing national income tax (CIT) exemption. As for the validity, an extended mandatory check-in economic competitiveness. Supportive latter measure, investment that involves period to replace the 90-day reporting policy thinking and clear foresight at the the development of biotechnology, requirement, and work permit exemption. highest level of government are the key nanotechnology, advanced material The final session of the day was foundations from which this exciting technology, and digital technology joined by leaders of companies and the new phase of the Thai economy will may be granted up to 10 years of CIT business community who are currently be launched. As technology evolves, exemption. engage in, or will soon be launching, so must the policy that drives the More importantly, innovation will be business activities in Thailand, including growth of industries. The theme of the an integral component of Thailand in the President of the Japanese Chamber BOI’s investment promotion policies in the 4.0 era, and as such, the Thai of Commerce (JCC), Bangkok, Mr. Soji support of the Thailand 4.0 vision can government, and the BOI in particular, Sakai; the Executive Vice President of accordingly be summarized into four will reward companies that place heavy BGI Group, Mr. Duncan Yu; the Chairman key areas: technology and innovation, emphasis on innovation. In certain of Cargill Asia Pacific Holdings Pte. Ltd., productivity, people, and area development. exceptional cases where such rewards Mr. Alan Willits; and the Head of the In short, there are currently two are merited, a company may be granted Alibaba Globalization Leadership Group, measures at the core of the BOI’s further CIT exemption for up to three Ms. Angel Zhao. The four distinguished investment promotion regime. The additional years, on condition that the panelists discussed their respective first utilizes product-based incentives, company has already been granted either company’s plans and visions for while the second involves technology- one of the core incentives. Effectively, Thailand. From this session, it can be based incentives. For the former, the a company may be granted up to a total concluded that the bright outlook for details of the incentives are determined of 13 years of CIT exemption. Thailand’s future can clearly be seen on a product-by-product basis. In Investors may also be granted over the horizon as the confidence and general, the production of goods and additional incentives for investments the interest in Thailand among foreign the provision of services that are of a made in specific, designated areas. investors remain high.

04 Thailand Investment Review SPECIAL TOPIC

SMART VISA: ATTRACTING TALENT THROUGH THE SMART PROGRAM

Strengthening launched the SMART Visa Program with New program; the economy with the purpose of attracting foreigners who new privileges the brightest minds will complement or add to Thailand’s 10 Unlike other types of visas previously At its core, the Thailand 4.0 vision is S-curve industries, comprised of next- issued, the key privileges exclusive to about people and skills. The Thai generation automotive, smart electronics, the SMART Visa include a validity of up to government understands that it needs affluent medical and wellness tourism, 4 years, an unlimited number of re-entries, the world’s brightest minds if it is to agriculture and biotechnology, food for and a 1-year mandatory check-in period. fulfil its vision of a technologically the future, automation and robotics, The latter replaces the 90-day reporting competitive Thailand. It is for this aviation and logistics, biofuels and required with all other visa types. reason that the country is committed to biochemicals, digital, and medical hub However, the most significant privilege attracting talent from all over the world industries. Setting it apart from other is that the SMART Visa itself also doubles to live and work in one of the region’s visa options, the SMART Visa includes as a work permit, meaning that its most vibrant economies. a number of exclusive privileges that are holders do not need to apply for a For anyone relocating to another truly unique in Thailand, superseding separate work permit in order to work country, a smooth transition into the anything available with any type of legally in Thailand. new working environment and territory non-immigrant visas previously issued As the family is an integral part is essential. The Thai government fully by the Thai government. This move of Thai cultural heritage, it is hardly comprehends this fact and is actively signals the Thai government’s genuine surprising that this is an area also taking steps to make each skilled commitment to opening its doors to covered by the SMART Visa. Spouses expat’s arrival in Thailand as comfortable foreign talents, entrepreneurs, corporate and children of SMART Visa holders will as possible. To this end, Thailand Board executives, and investors looking to also be granted the automatic right to of Investment (BOI) , in consultation with launch a business venture or to work in stay in Thailand for the duration of the other related government agencies, has Thailand. visa’s validity, while spouses are also

Thailand Investment Review 05 SPECIAL TOPIC entitled to work without the need of a separate work permit. The SMART Visa is classified into TYPES OF EXPATS four sub-categories, each of which is designed to cater to different types of expats. Identified by the initials T, I, E and S, the four sub-categories are available to Talents, Investors, Executives, and Startups, respectively. While the conditions for obtaining each category of visa varies, all applicants must have their technical or professional qualifications verified and certified by the designated certifying bodies, which will be determined according to the type of applicant and the industry in which the applicant is engaged. The specific conditions of each category of applicant is detailed in the following paragraphs. To be considered eligible for the T and E classes of SMART Visa, the 600,000 baht and one year remaining need to physically travel between applicant must be employed by a maturity. An additional 180,000 baht designated government agencies during company in Thailand with a salary of at balance applies for each spouse and the application process. If the applicant least 200,000 baht per month and not child accompanying the applicant on meets the qualification criteria, the less than one year remaining on his or the visa. The applicant must also be SMART Visa Unit will issue a letter of her contract. The applicant’s employer either participating in an incubation, qualification endorsement, which the must also be certified by relevant accelerator or similar program, or applicant can then use to apply for agencies as being engaged in one of receiving joint venture funding. After a SMART Visa. The time required for the targeted industries. A vetting of the an applicant is granted an I class the entire process – excluding visa applicant’s educational and professional SMART Visa, he or she must establish applications – takes approximately 30 background will focus on ensuring a company in Thailand within one year. days. It should be noted that the BOI expertise in the relevant area of the In all cases, the activities in which the itself is not the authoritative figure in targeted industry for T class applicants, applicant is engaged, regardless of the matter of visa issuance and other and a minimum education level of a whether they are pre-incorporated or immigration-related consideration. Rather, bachelor’s degree plus 10 years of incorporated, must be endorsed by the BOI is the endorser of the applicant’s relevant work experience for E class relevant government agencies. qualifications as a potential SMART Visa applicants. holder. Other immigration and customs I (Investor) class applicants must Easy to apply with laws and regulations stipulated by other be investing a minimum of 20 million the integrated service government agencies still apply. baht in the targeted industries, and All of the qualification certification and Thailand encourages all foreigners will be obliged to maintain this level related paperwork required for processing with the qualifying technical or professional of investment throughout the entirety a SMART Visa application is handled skills to come to live and work in of the SMART Visa validity period. and facilitated by the One-Stop Service Thailand where your talent will be Relevant government agencies will Center for Visas and Work Permits appreciated and you can make a real determine whether the business in (OSS), a specialized unit under BOI, difference by contributing to the fulfillment which the applicant is engaged falls located at Chamchuri Square Building of our vision of an innovation-driven into the category of one of the targeted in central Bangkok. The BOI’s SMART Thailand 4.0. Thailand is looking forward industries. Visa Unit will relay the applicant’s to welcoming you. For further details about As for startup entrepreneurs, the information directly to the certifying the SMART Visa privileges, conditionality applicant must have a fixed savings bodies and other related agencies, and application process, please visit account with a balance of at least meaning that the applicant does not www.boi.go.th

06 Thailand Investment Review SHORT ARTICLE THAILAND 2018 READY FOR BUSINESS TO TAKE OFF

Impressive figures for 2018 Sound regulations After a series of impressive competitiveness and infrastructure rankings and economic indicators preceded Despite the significant improvements the beginning of 2018, the momentum in the business registration process, it has been carried over into the current is clear that this was not the only area year to give Thailand a solid footing from of focus. The Thai government has also which to scale new heights. Attesting the been committed to modernizing and direction of current policy and economic updating many of its business-related strategy, these encouraging results are laws and regulations to international the outcome of many years of hard standards. In this respect, regulatory work and collaboration between various restrictions and limitations that are not departments within the government. Newly business-enabling are being removed drafted legislature, business facilitation or simplified. measures, and infrastructure investment While business facilitation measures are just a few examples of the recent are crucial, they alone cannot push is to be realized, it will be the highest government-led initiatives that have Thailand into the 4.0 era. Other areas recorded economic growth since 2012. made these improvements possible. of development, such as infrastructure, Adding to the good news, Dr. Ulrich Following the release of the World macroeconomic growth, and innovation, Zachau, World Bank Director for Regional Bank’s Doing Business Report 2018, more are of equal importance. Partnerships, Thailand and Malaysia, popularly known as the EODB ranking, The construction of Thailand’s first stated that intensifying reforms, Thailand’s outstanding performance in high-speed railway network—which will developing new infrastructure, and 2018 came as something of a surprise connect Bangkok with Nakhon Ratchasima increasing competition in the service to many spectators. Overall, Thailand’s Province, a gateway city to the North sector are the keys to Thailand’s rising ranking rose by 20 positions from 46th Eastern region of Thailand—is one of the productivity. to 26th, with improvements recorded in major infrastructure initiatives that is Among the goals of Thailand 4.0, 6 out of the 10 sub-categories of the already under way. While construction creativity and innovation are to become EODB index. According to the World is expected to be completed in 2021, the driving force of the economy. In Bank’s report, Thailand has facilitated the government has already planned and order to achieve this, reforms to the the business process by making tangible appropriated land for the subsequent public education system are being progress in several key areas. Most phase of this rail line, which will further introduced to ensure that Thailand has impressively, Thailand’s ranking in the stretch the network all the way to the high-skilled workforce it needs to Getting Credit section has jumped by Nong Khai province on Thailand’s border accommodate the future growth of 42 positions, from 84th to 42nd. This is with Laos, providing access to the advanced industries. As for the BOI, our largely due to the recently enacted neighboring country’s capital city of investment promotion policy has been legislation that allows more types of Vientiane just a short hop across the streamlined to kick-start the S-Curve assets to be used as collateral. An border. industries and encourage research and identical position shift is also observed innovation. in the Starting a Business section. It now Strong economy The developments mentioned here takes only five days to set up a company supported by are just a few examples of the progress in Thailand, whereas in 2013, the same attractive policy Thailand has made to enhance its procedure would require 27.5 days and In terms of macroeconomics, the outlook economic competitiveness. All of these incur much higher costs. is definitely getting increasingly brighter policies and initiatives have been curated as the World Bank in early April revised to form the solid platform from which Thailand’s growth forecast for 2018 Thailand is ready to take off to new from 3.6 to 4.1 percent. If this figure heights.

Thailand Investment Review 07 COMPANY INTERVIEW BGI: A GLOBAL PIONEER IN NEXT GENERATION SEQUENCING As healthcare technology continues to advance, – a field of natural science focusing on the study of the human genomes – is increasingly being utilized as a tool to help medical practitioners better understand disease and personalize healthcare treatment options. BGI is one of the world’s largest genomics organizations. As a leader in biotechnology, it provides governments, universities, pharmaceutical companies, hospitals, research institutions and other organizations with innovative research and application solutions. The integrated genomics-based services and solutions delivered by BGI include scientific research, healthcare provision, agriculture, and bio-sustainability that is in compliance with the principles of bioethics.

At the time of its establishment in 1999, healthcare, agriculture, conservation, “ BGI’s vision BGI envisioned the use of genomics and environmental fields. Currently, BGI is to use genomics as a way to benefit mankind, setting offers a wide range of transformative the goal of providing omics for all. genetic testing products across major to benefit mankind The organization has since garnered a diseases, which allow medical providers proven track record of innovative, high and patients worldwide to realize the and to achieve profile researches, many of which have promise of genomics-based diagnostics the goal of been published in top-tier journals such and personalized healthcare. as Nature and Science. BGI focuses At present, BGI operates in more providing omics on research and applications in the than 100 countries and has more than for all.” 3,000 partners across the globe. With regional offices in Laos, Hong Kong, Mr. Duncan Yu, Japan and Australia, plus one more Executive Vice President of BGI that has been recently established in Bangkok, Thailand, BGI works throughout the Asia-Pacific in both research and practical capacities such as pilot planting and marine farming.

The global genomics boom Economic forecasters predict that the global genomics market will be worth almost $24 billion USD by 2022. This represents an increase of $9.5 billion USD since 2017, an astounding compound annual growth rate (CAGR) of 10%. As an established biotechnology organization, BGI is pioneering a wide array of integrated genomics-based services, an indication of its desire to continue pushing the envelope in this

08 Thailand Investment Review COMPANY INTERVIEW sector. Engaging in scientific research, With the support of the Thailand Board towards this goal, BGI continues to be healthcare provision, agriculture and of Investment and its promotional active in conducting research across bio-sustainability, BGI has a genuine privileges package, BGI has expanded the region in areas including agriculture desire to contribute to the betterment of its operations in Thailand to include and food science, cancer research, mankind and, as such, is committed to Genomics, Agriculture, Marine, Forensics, metagenomics, reproductive health and remaining a leader well into the future. College and MGI. In February 2018, drug discovery. Since BGI Research BGI received an import certificate from was first established in 2007, it has Entering the Thai market the Thai Food and Drug Administration, gone on to partner and collaborate Recognizing Thailand’s strategic location meaning that a range of products, with scores of research bodies and as the gateway to the rest of Southeast including those for fetal aneuploidy academic institutions across Asia, Asia, BGI recently made the decision to detection, can now be legally launched North America and Europe. ramp up its investment into the country. into the Thai market. Not only will this With a proven record in research Through the creation of its trans-omics help to expedite the establishment of and innovation both globally and laboratory and national office, BGI has the Thai Genomics Center, but it will regionally, BGI is well placed to chosen Thailand as its ASEAN business also be an integral part in China’s ‘Belt continue driving Asia’s growth in the hub. With an organizational vision to and Road Initiative’ program across genomics sector. BGI will also continue provide ‘omics for all’, BGI intends Asia. to work closely with new and existing to further its investment in Thailand, partners to further solidify its role both especially in the Eastern Economic BGI’s regional within Thailand and across the region. Corridor of Innovation (EECi). growth strategy BGI sees Thailand and Southeast Developing solutions for the betterment Asia as offering unique opportunities of mankind sits at the heart of everything for significant economic potential. that BGI does. In order to progress

JBIC committed to providing finance for Japanese companies investing in the EEC The Japan Bank for International Co-operation (JBIC), a Japanese state-owned financial institution, has pledged its commitment to providing soft loans for Japanese investors setting up operations in the Eastern Economic Corridor (EEC). JBIC’s Chief Executive Officer and Executive Managing Director, Mr. Tadashi Maeda, personally delivered this promise in talks with Prime Minister General Prayut Chan-o-cha and Deputy Prime Minister Somkid Jatusripitak at the Government House in Bangkok on 3 May, 2018. The statement was well-received by the Prime Minister, who, in return, pledged the Thai government’s support for Japanese investors. The meeting also included discussions on the progress of the high-speed railway that will link all three major airports in the Bangkok and Rayong area. For this matter in particular, Mr. Maeda reaffirmed Japan’s dedication to working in collaboration with China on the development of key infrastructure in Thailand. Additionally, JBIC is in the process of conducting a feasibility study on a smart city project in the EEC.

Thailand as hub of automotive software

NEWS BITES NEWS Thailand’s competitiveness in automotive software development lies with its skilled software development engineers, said Mr. Koichi Okoshi, President and Chief Executive Officer of Toyota Tsusho Nexty Electronics (Thailand) Co., Ltd. (NETH). For several years, Thailand has been cumulating its expertise in the area of hybrid and electric vehicles, as well as in-vehicle software development, since these two particular types of vehicle require embedded software. Mr. Atsushi Aoki, President of NEXTY Electronics Corporation, NETH’s parent company, added that by selecting Thailand as the regional hub for software development, Toyota can increase its production efficiency by consolidating its design and production operations into one geographical location. NETH is also cooperating with universities in Thailand to nurture and cultivate young Thai software engineers.

Thailand Investment Review 09 BOI’S MISSIONS AND EVENTS

productive discussions focused on and of a leading medical and security possible partnerships between Bahrain technology company. The delegation and Thai companies. also attended the Hannover Messe 2018, the world-renowned trade fair for industrial technology.

On 8 March, 2018 at Landmark Hotel, Bangkok, Ms. Duangjai Asawachintachit, the Secretary General of the Thailand Board of Investment, and Mr. Noboru On 24-31 March, 2018, Dr. Bonggot Sekiguchi, Minister of Economic Affairs Anuroj, Deputy Secretary General of the of the Embassy of Japan in Thailand, Thailand Board of Investment, led a co-chaired the 8th meeting of the Sub- team at BOI on an overseas investment Committee on Enhancement of the promotion mission to Belgium. As a part At the German-Thai Chamber of Business Environment (EBE) under the of this mission, BOI and the Royal Thai Commerce Cocktail Reception held at Japan-Thailand Economic Partnership Embassy to Belgium and Luxembourg Anantara Siam Bangkok Hotel on 29 Agreement (JTEPA). The meeting was hosted the 5th Thai Belgium Business March, 2018, Ms. Sonklin Ploymee, joined by delegates from Thai and Forum on 28 March, 2018, under the theme Executive Director of the Foreign Japanese government agencies, as well “Thailand, taking off to new heights”. Investment Marketing Division of the as representatives of the Japanese private Dr. Bonggot met with executives from Thailand Board of Investment, delivered sector. The participants discussed the aircraft maintenance, repair, and a keynote presentation on the BOI’s measures to improve the business operating supplies (MRO) industries, investment policies and incentives in environment and facilitate the business as well as alternative energy and support of the Thailand 4.0 vision, process, the progress of the EEC agriculture industries, and shared a as well as introducing new investor infrastructure development plan, and discussion regarding potential investment facilitation services. the latest investment promotion policies, opportunities in these industries in as well as exchanging viewpoints on Thailand. human resource development.

At the “Thailand: Gateway to ASIA” seminar held at Park Hyatt Hotel, Hyderabad, On 19 April, 2018, Mr. Chokedee India on 25 April, 2018, Ms. Pannee Kaewsang, Deputy Secretary General Chengsuttha, Investment Advisor of of the Thailand Board of Investment, the Investment Services Center, and welcomed the Bahraini delegation During 23-27 April, 2018, Ms. Krongkanoke Ms. Kanokporn Chotipal, Director of led by H.E. Mr. Thanis Na Songkhla, Managitjonggol, Executive Director of the BOI Mumbai Office, jointly delivered the Thai Ambassador to the Kingdom the Industrial Linkage Development keynote presentations on the opportunities of Bahrain, at the One Start One Stop Division of the Thailand Board of for investment in Thailand’s digital, Investment Center (OSOS). During this Investment, together with Ms. Ratchanee automotive, and biochemical industries, session, the ASEAN-Bahrain Council Wattanawisitporn, Director of the BOI as well as clarifying the BOI’s current (ABC), led by Chairman Shaikh Daij Bin Frankfurt Office, led a delegation investment promotion policy and incentives. Isa AlKhalifa, met with the Thai Board of comprised representatives from 16 Thai Arranged by the Royal Thai Consulate Trade and representatives from several companies to Germany on a visit to the in Chennai, the seminar was attended Thai industries, including gem and jewelry, factories of one of the world’s largest by over 80 Indian investors in the three textile, food, and wellness tourism. The commercial airplane manufacturers, previously mentioned industries.

10 Thailand Investment Review THAILAND ECONOMY-AT-A-GLANCE

Key Economic Figures Unemployment Investment Growth GDP (2017) 2017 $455.4 Billion 2016 2017 2.8% 0.9% GDP per Capita (2017) $6,729 1.2% GDP Growth Headline Inflation Export Value Growth 2017 2016 2017 2016 2017 3.3% 3.9% 0.7% 0.1% 9.7% Source: NESDB Market Profile International Competitiveness (2017) WEF Global IMD World World Bank Population Minimum Wage Competitiveness Competitiveness Ease of Doing 68.4 THB 308 - 330 Index Yearbook Business Million $ Approximate $9.7 - 10.4 2016 : 34th 2016 : 28th 2017 : 46th 2017 : 32nd 2017 : 27th 2018 : 26th Source: United Nations and Ministry of Labor Time to set up business : 5 days Source: WEF, IMD and World Bank Export Figures Top 10 Export Markets (January - March 2018) Rank Value (USD Million) QoQ Growth Share China 7,200 0.6% 11.5% US 6,642 9.3% 10.6% Export value (USD million) Japan 6,502 23.4% 10.4% January - March 2017 : 56,456.4 Hong Kong 3,179 1.3% 5.1% January - March 2018 : 62,829.4 Vietnam 2,920 18.6% 4.7% Year-on-year Growth : 11.30% Australia 2,808 14.3% 4.5% Malaysia 2,803 15.5% 4.5% Indonesia 2,469 20.4% 3.9% Singapore 2,225 12.1% 3.5% India 1,979 31.0% 3.1% Top 10 Exports Value QoQ Value QoQ Goods / Products (USD million) Growth Share Goods / Products (USD million) Growth Share 1: Motor cars and parts 7,256 12.4% 11.5% 6: Precious stones and jewellery 2,094 3.6% 3.3% 2: Computers and parts 4,989 18.8% 7.9% 7: Electronic integrated circuits 2,070 7.4% 3.3% 3: Rubber products 2,587 5.3% 4.1% 8: Refined fuels 2,029 39.3% 3.2% 4: Plastic beads 2,476 20.5% 3.9% 9: Machinery and parts 1,961 9.6% 3.1% 5: Chemical products 2,204 27.1% 3.5% 10: Air conditioner and parts 1,641 12.2% 2.6% Source: Ministry of Commerce

Exchange Rates Tax Rate (Data as of 4 May 2018) Corporate Income Tax: 0 - 20% Personal Income Tax: 5 - 35% THB 31.82 THB 43.45 THB 38.29 THB 29.40 THB 5.05 VAT: 7% Source: Bank of Thailand Witholding Tax: 1 - 10% Note: JPY currency is for 100 Yen Source: the Revenue Department

Thailand Investment Review 11 ABOUT BOI The Office of the Board of Investment (BOI) is the principle goverment agency that operates under the Prime Minister’s Office for the purpose of encouraging investment in Thailand. We at the BOI serve as the professional contact points for investors, providing them with useful investment information and services. We offer business support and investment incentive to foreign investors in Thailand, including tax and non-tax incentives. A few non-tax incentives include granting land ownership to foreigners and facilitating visas and work permits. Besides serving the needs of overseas investors, we also offer consultation services to Thai investors who are interested in investment opportunities abroad.

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Sydney Head Office, Office of the Board of Investment 555 Vibhavadi-Rangsit Road., Chatuchak, Bangkok 10900, Thailand Tel: (+66) 2553 8111 l Fax: (+66) 2553 8222 l Email: [email protected]

New York Paris Taipei Guangzhou Thailand Board of Investment, Thailand Board of Investment, Thailand Board of Investment, Thailand Board of Investment, New York Office, Paris Office, Taipei Office, Guangzhou Office, 7 World Trade Center, 34th Fl., Suite F Ambassade Royale de Thailande 8, Taipei World Trade Center, Royal Thai Consulate General, No. 36 250 Greewich St., New York, Rue Greuze 75116, 3rd Fl, Room 3E40, No.5, Xin-yi Road, Youhe road, Haizhu District, Guangahou, NY 10007 USA Paris, France Sec.5, Taipei 110, Taiwan, R.O.C. P.R. China 510310 Tel: +1 212 422 9009 Tel: +33 1 5690 2600-1 Tel: +88 6 2 2345 6663 Tel: +86 20 8385 8988 ext.220-225 Fax: +1 212 422 9119 Fax: +33 1 5690 2602 Fax: +88 6 2 2345 9223 +86 20 8387 7770 (Direct Line) Email: [email protected] Email: [email protected] Email: [email protected] Fax: +86 20 8387 2700 Email: [email protected] Los Angeles Frankfurt Seoul Thailand Board of Investment, Thailand Board of Investment, Thailand Board of Investment, Tokyo Los Angeles Office, Frankfurt Office, Seoul Office, Thailand Board of Investment, Royal Thai Consulate-General Boulevard, Bethmannstr 58, 5.OG 60311, #1804, 18th Fl, Daeyungak Tower 25-5, Tokyo Office, 3rd Fl, Los Angeles, CA 90004 USA Frankfurt am Main Federal, 1-KA, Chungmu-Ro, Chung-Ku, Seoul, Royal Thai Ambassy, 8th Fl, Tel: +1 323 960 1199 Republic of Germany 100-706, Korea Fukuda Building West, 2-11-3 Akasaka, Fax: +1 323 960 1190 Tel: +49 69 9291 230 Tel: +82 2 319 9998 Minato-ku, Tokyo 107-0052 Japan Email: [email protected] Fax: +49 69 9291 2320 Fax: +82 2 319 9997 Tel: +81 3 3582 1806 Email: [email protected] Email: [email protected] Fax: +81 3 3589 5176 Email: [email protected] Stockholm Thailand Board of Investment, Thailand Board of Investment, Osaka Stockholm Office, Beijing Office, Thailand Board of Investment, Stureplan 4C, 4th Fl, 114 35 Royal Thai Ambassy, Osaka Office, Stockholm, Sweden No.21 Guanghua Road, Royal Thai Consulate General, Tel: +46 8 463 11 58, 72, 74-75 Chaoyang District Beijing 100600 Bangkok Bank Building, 7th Fl, Fax: +46 8 463 11 60 P.R. China 1-9-16 Kyutaro-Machi, Chuo-Hu, Email: [email protected] Tel: +86 10 8531 8753-8757 Osaka 541-0056 Japan Fax: +86 10 8531 8758 Tel: +81 6 6271 1395 Mumbai Email: [email protected] Fax: +81 6 6271 1394 Thailand Board of Investment, Email: [email protected] Mumbai Office, Shanghai Royal Thai Consulate Thailand Board of Investment, Sydney General Express Tower, Shanghai Office, Thailand Board of Investment, 12th Fl, Barrister Rajni Petel Marg, Royal Thai Consulate General 2nd Fl, Sydney Office, Nariman Point, Mumbai, 18 Wanshan Road, Changning District, Level 1, 234 George Street, Maharashtra 400021 Shanghai 200336, P.R. China NSW 2000, Australia Tel: (91 22) 2204 1589-90 Tel: +86 21 6288 3030 ext.828,829 Tel: +61 2 9252 4884 Fax: (91 22) 2282 1525 Fax: +86 21 6288 3030 ext.827 Fax: +61 2 9252 2883 www.boi.go.th Email: [email protected] Email: [email protected] Email: [email protected]