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 Thailand 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 Biotechnology 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 China 37.18 M 23 Projects Hong Kong 89.13 M 12 Projects 85.51 M United Arab Emirates Taiwan 2 Projects THAILAND 10 Projects 17.72 M 22.09 M Singapore 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 nature of the Bangkok, 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, Laos, 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. Uttama Savanayana; 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 Science Corridor (EEC), the Special Economic and Technology, H.E. Dr. Suvit Maesincee; 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.