Board of Investment www.boi.go.th WHY THAILAND THE REGIONAL ECONOMIC CENTER

Market size of USD 23.5 trillion

1 AEC Population of 3.9 billions

Asia & Oceania

Strategically located at the heart of Asia, Thailand aptly serves investors as a dynamic gateway to a fast growing economic market. Our growing economy, world-class infrastructure, competitive human capital and strong government support, are THE SECOND HOME FOR GLOBAL MNEs responsible for our key position as one of the most attractive investment destinations for foreign investors. Example of MNEs in Thailand OUR GLOBAL RANKINGS

Ease of Doing Business among Emerging nd Economies in East Asia 2 World Bank, 2016

th Asia’s Financial Literacy Index 5 MasterCard, 2014

th The World’s Most Promising Emerging Economies 11 Bloomberg Business, 2014 - 2016

th Global Manufacturing Competitiveness Index 14 Deloitte, 2016

Source: 1World Bank. With its strategic location and dynamic environment “Thailand is a key country for the development of Airbus Group in Asia Pacific Pierre Jaffre ” President Airbus Group for Asia Pacific & Managing Director, Airbus Group Thai

ATTRACTIVE WORLDWIDE HOST COUNTRY CONNECTIONS

Thailand has demonstrated remarkable economic progress experiencing foreign The establishment of the ASEAN Economic Community (AEC) in 2015 has set up direct investment (FDI) inflows’growth of 21% over the past 6 years, compared to ASEAN as a single market that facilitates free flows of goods; and freer flows of the global percentage of 0.7%. Occupying the 4th rank in Asia’s top prospective host services, investment, capital and skilled labor within the region. With further progress economies, Thailand has gained a solid reputation as a second home for various and expansion, we will become the center of a new economic engine of ASEAN. global multinational enterprises (MNEs). ASEAN Economic Community (AEC)1 Members Functions Opportunity th Asia’s Top Prospective Host Economies, 4 2013 - 20151 Brunei Indonesia Myanmar Free Flows 616 Million People Malaysia Viet Nam of goods, services, FDI Inflows2 investment, capital as and GDP to double Singapore Lao PDR well as skilled labors to USD 4.7 trillion in 2020*

Thailand Philippines World Thailand [Billion USD] Cambodia

2000 15 Growth Rate of Export2 1500 10 [CAGR**, 2008-2014]

1000

5 ASEAN 4.58% 500

0 0 2009 2010 2011* 2012 2013 2014 Global 2.72%

Source: 1UNCTAD, 2World Investment Report 2015, UNCTAD. Note: *Thailand has experienced a major flood during 2011. Nonetheless, the economy has been Source: 1Ministry of Commerce of Thailand; 2WTO. recovered quickly afterward. Note: *Forecasted by UNCTAD & IMF, 2014; **CAGR = Compound Annual Growth Rate Thailand has strong automotive industrial basis and skilled“ Thai people that boost our business growth Hiroshi Ioki ” President,Toyota Boshoku Asia ROBUST HUMAN CAPITAL

Thailand has signed free trade agreements (FTA) with numerous trading partners The main driving forces behind Thailand’s economic growth are our robust human worldwide, to reinforce its commitment to free and fair global trade, while conducting capital. The country has been ranked highest for various factors related to employment ongoing negotiations for new FTAs. and talent development in Asia. Thailand’s investment in human resource development continues to be strong and we look forward to high human capital growth.

Thailand’s FTA Networks1 Human Capital Rankings among Asia Economies1

th Attracting & Retaining Talents hia apa outh orea Idia Australia e ealad Peru 5

th Foreign High-Skilled People hile iapore alasia iet a aar abodia ao P 5 6th Employee Training Idoesia ruei Philippies Ho o Pakista aada 8th Worker Motivation Icelad iechtestei iterlad ora Turke

Thailand Export Value2 Thai Government Expenditure on Education2*

[Billion USD] [Trillion USD] 4.21% 20 0.25 6.49%

0.2 15

0.15 10 0.1 5 0.05

0 0 2008 2009 2010 2011 2012 2013 2014 2015* 2010 2011 2012 2013 2014 2015 2016 Jan-Nov

Source: 1Department of Trade Negotiations of Thailand; 2WTO. Source: 1IMD World Talent Report, 2014; 2Bureau of Budget of Thailand. Note: *Ministry of Commerce; **Nations in grey text are under negotiation; ***Thailand is in preparation Note: *The expenditure in USD is based on the average exchange rate over 2010-2014, gathered by to initiate an agreement with Turkey the Bank of Thailand. **CAGR 2010-2016. The ICT IHQ Policy makes Thailand the best location for“ our regional headquarter David Sun ” President and CEO, the Southeast Asia Region, Huawei

STRONG ICT AFFORDABLE INFRASTRUCTURES OFFICE SPACES

Thailand provides its citizens with 100% mobile network coverage by using multiple With more than 8 million square meters of available office space1, is gaining service providers. The availability of the third and fourth generation (3G and 4G) a steady reputation for having the most affordable grade A office spaces in Asia- broadband networks coupled with the growing adoption of mobile internet devices Pacific with a reasonable occupancy cost of only 30.83 USD/ square foot / annum. is expected to help Thailand become a major digital business hub in the future.

st The Most Affordable Grade A Office Space Population Covered by 1 in Asia-Paccific2 (Bangkok) 100% a Mobile Network Signal1

Total Occupancy Cost of Prime Office2 Thailand ICT Facts2 [USD/ square foot/ annum] No. of User (2015) Growth Rate 300

[Person] [CAGR, 2010-2015] 250 254 200 Cell Phones 49.6 5.34% million 150 157 100 126 108 99 Computers 21.8 2.68% 50 73 50 million 41 31 0

39.5 iet Nam

Internet 15.38% Thailand

million Singapore , Indonesia Hong Kong r Hanoi, V New Delhi, India Shanghai, China Bangkok, Manila, Philippines Jakarta Seoul, South Korea Source: 1World Economic Forum Global IT Report, 2015; 2National Statistical Office of Thailand and National Broadcasting and Telecommunications Commission (NBTC). Source: 1Colliers International, 2015, 2CBRE’s Prime Office Occupancy Costs, 2015 FIRST-CLASS INDUSTRIAL ESTATES

We now have approximately 70 well-developed industrial estates including the Eastern Seaboard, considered to be one of the world’s greatest industrial regions. It has already attracted various global industrial development projects that focus on a wide range of manufacturing processes.

th World’s Best Economic Zone 12 (Industrial Estate of Thailand)1 WORLD-CLASS AIRPORTS

Thailand’s Industrial Estates In the fiscal year 2015, Thailand’s international airports catered to more than 106 million passengers and transported more than a million tons of air freight (more than 500 airlines were serviced). Moreover, Suvarnabhumi, the largest airport in Thailand, was ranked 5th in the list of the world’s best airports. More than More than 70 256 million In addition, Don Mueang International Airport has recently completed the 2nd phase industrial estates square meters of development. With the reopening of a newly renovated Terminal 2, the airport is spread across all of cumulative supply able to serve up to 30 million passengers annually. regions in Thailand2 of industrial estates2

th The World’s Best Airport 5 ()1*

The Eastern Seaboard Industrial Region3 Thailand’s Airports2

25% of Thailand industrial GDP Location Capacity Destination

More than 26 industrial estates/ zones 12 More than International 500 106 million International, airports in all passengers and domestic and international deep-sea ports the regions in 1.3 million tons of 2 dedicated Thailand** freight annually freighter airlines Double–track line connecting to other zones*

Source: 1SKYTRAX, 2015, 2Airports of Thailand Plc (AOT), Department of Civil Aviation of Thailand & Ministry of Transport of Thailand. Note: *Among airports with 40-50 million passengers; **Including Suvarnabhumi, Don Mueng, Chiang Source: 1Financial Times, 2012, 2Colliers International; 3I-EA-T & Ministry of Transport of Thailand. Mai, Mae Fah Luang, , , Krabi, Samui, , U-Tapao, & Ubon Note *The project has been approved by the cabinet and is under construction. Ratchathani international airports. Thailand’s logistics infrastructure and linkage with “the global logistics network made it a country of choice as our global export hub HUB OF REGIONAL Pascal Pacheur ” General Manager, Essilor (Thailand) ROAD CONNECTIVITY

Thailand has more than 465,000 kilometers of roads and a vast highway network connecting each region nationwide. We are also continuously upgrading and constructing new international road networks. Our goal is to increase regional cooperation with numerous fast-growing countries such as China, India, Viet Nam, Malaysia and Singapore and become a major hub of regional road connectivity.

Thailand’s Current Road Connectivity1

WORLD-CLASS 465,000 km 12th in Asia of road connectivity in Quality of Roads, DEEP-SEA PORTS Thailand covering all ranked by the World the provinces1 Economic Forum Thailand has numerous deep-sea ports located along the Pacific Ocean and the Indian Ocean. The international deep-sea port currently handles more than 10 million TEUs****. A plan has been devised to expand the port’s capacity to up to 18 million TEUs by 2019 to accommodate the rapid growth of Thailand’s Regional Road Connectivity Development Plan2 international seaborne trade. Railway connectivity linking the ports along the Pacific and Indian oceans are now under construction, according to the Thai government plan. These networks are expected to further facilitate marine .

rd Top 50 World Container Ports 23 (Laem Chabang)1*

Thailand’s Deep-Sea Ports Facts2

Location Capacity Destination

8 Laem Chabang Land Bridge International port expansion to Railway network deep-sea ports connecting ports in in the Pacific Ocean 18 million The Pacific Ocean to and the TEUs ports in the Indian orther orridor Indian Ocean** by 2019 orthouth orridor Ocean*** Wester orridor astWest orridor aster orridor etral orridor ortheaster orridor outher orridor outher oastal orridor Source: 1World Shipping Council, 2015, 2Ports Authority of Thailand (PAT) & Ministry of Transport of Thailand. Note: *In term of container traffic. **Some major deep-sea ports under PAT include Laem Chabang, Maptaphut, Prachuab, Ranong, Phuket and Songkla deep seaports. ***The project has been approved by the cabinet and is under construction. **** TEU = Twenty-Foot Equivalent Unit Source: 1Ministry of Transport of Thailand; 2ADB RAIL SYSTEMS AND MASS TRANSIT

More than 4,000 kilometers of railway lines connect the various regions of Thailand. Plans are in the works to build both double-track railways and high speed trains, enabling a better connection with neighboring countries. A new mass transit system in Bangkok is also under construction. A total of more than 175 new stops are expected in the Bangkok Metropolitan Mass Transit system as well as in the rail connection between the Suvarnabhumi and Don Mueang airports.

Rail Systems Development Plan1

Mass Transit Development Plan in Bangkok1

Distance Stops Airport Connection

More than 500 More than Connect kilometers 175 Suvarnabhumi airport of new mass transit new mass transit with of rail systems networks stops in Bangkok Don Mueang airport 887 will be laid by 2029 Km by 20202

Source: 1Ministry of Transport of Thailand and NESDB; 2Office of Transport and Traffic Policy and Planning (OTP) QUALITY LIFESTYLE

COMPETITIVE CORPORATE INCOME TAX With the reduction of the successive corporate income tax to 20% in 2013, the st corporate tax rate in Thailand ranks as the 2nd lowest in the ASEAN countries. Not 1 Expat Experience only has this led to an increase in economic activities and investments in Thailand in the most but it has also put the kingdom in a competitive position against other countries. cost-effective Thailand has gained fame as the best place for expats who countries1 seek an improved quality of life with minimum expenditure. According to the HSBC’s Expat Explorers Summary 2014, Corporate Income Tax1 Thailand was ranked 1st in terms of affordability, cost of living and 7th overall.

Singapore 17% Education nd lowest in Thailand 20% ASEAN 2 It is important for families to choose the right school for their children. According to the Ministry of Education, there Brunei 20% A variety are more than 120 international schools in Thailand, most possessing overseas accreditation. There is a wide variety of of high-quality Cambodia 20% high-quality education on offer in different languages. education

Viet Nam 22%

Lao PDR 24%

Myanmar 25%

Indonesia 25%

Malaysia 25%

Phillippines 30%

0% 5% 10% 15% 20% 25% 30% 35%

Source: 1Deloitte’s Taxation of AEC, as of 2015 Source: 1HSBC’s Expat Explorers Summary 2014 With strong support from the BOI and renewed tax incentives,“ Thailand is an alternate MRO hub of Asia Remy Maitam ” President,Triumph Aviation Services Asia

BOI AT YOUR SERVICE

As the principal government agency for encouraging investment, Thailand’s Board of Investment (BOI) is delighted to assist you in setting up an operation in Thailand. We offer a wide range of investment incentives and business-oriented support services to aid potential investors.

Healthcare System Top There are a thousand private and public hospitals with medical tourist internationally trained doctors. Numerous Thai hospitals destination in offer international-standard healthcare with JCI accreditation. Asia Thailand consistently ranks as one of the top medical tourist destinations in Asia. Over 2.5 million foreign patients are treated in Thailand annually.

Leisure Activities

There are a great number of recreation and leisure options for families to engage in at the end of the work week, or Best during vacations, such as sailing, yachting, kayaking and leisure rafting along Thailand’s many rivers. Thailand has become destination in one of the top golf destinations in Asia with more than 200 the Asia-Pacific world-class golf courses. Shopping in Thailand is another enjoyable activity spanning the entire range from high-end BOI Services fashion stores to colorful flea markets.

Investment Incentives Business Supporting Services

üü Corporate income tax holiday üü Land ownership rights for of up to 8 years foreign investors üü 50 percent reduction of the üü Facilitation in bringing in foreign corporate income tax for 5 experts and technicians to years work in investment promoted üü Exemption/ reduction of import activities duties on machinery, raw and üü Facilitation in bringing in essential material foreign nationals for the üü Deduction of the cost of purpose of studying investment installation or construction of opportunities facilities

Note: JCI = Joint Commission International Accreditation CONTACT US HEAD OFFICES OFFICE OF THE BOARD OF INVESTMENT ONE STOP SERVICE CENTER FOR VISAS AND 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900 WORK PERMITS Tel: +66 (0) 2553-8111 18th Floor, Chamchuri Square Building, Fax: +66 (0) 2553-8315 319 Phayathai Road, Pathumwan, Bangkok 10330 Website: www.boi.go.th Tel: +66 (0) 2209-1100 Email: [email protected] Fax: +66 (0) 2209-1194 Email: [email protected] ONE START ONE STOP INVESTMENT CENTER (OSOS) 18th Floor, Chamchuri Square Building, 319 Phayathai Road, Pathumwan, Bangkok 10330 Tel: +66 (0) 2209-1100 Fax: +66 (0) 2209-1199 Website: osos.boi.go.th Email: [email protected] REGIONAL OFFICES REGIONAL INVESTMENT AND ECONOMIC CENTER 1 REGIONAL INVESTMENT AND ECONOMIC CENTER 4 OFFICE Airport Business Park 108-110, 46 Moo 5 Laem Chabang Industrial Estate, Sukhumvit Road, 90 Mahidol Road, Amphur Muang, Chiang Mai 50100 Toongsukhla, Sriracha, Chonburi 20230 Tel: +66 (0) 5329 4100 Tel: +66 (0) 3840 4900 Fax: +66 (0) 5329 4199 Fax: +66 (0) 3840 4997, +66 (0) 3840 4999 Email: [email protected] Email: [email protected] OFFICE REGIONAL INVESTMENT AND ECONOMIC CENTER 5 3rd Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Road, Naimuang, Amphur Muang, Phitsanulok 65000 7-15 Chaiyong Building Juti Uthit 1 Road, Hadd Yai, Tel: +66 (0) 5524-8111 Songkhla 90110 Fax: +66 (0) 5524-8777 Tel: +66 (0) 7458 4500 Email: [email protected] Fax: +66 (0) 7458 4599 Email: [email protected] REGIONAL INVESTMENT AND ECONOMIC CENTER 2 REGIONAL INVESTMENT AND ECONOMIC CENTER 6 2112/22 Mitraphab Road, Amphur Muang, SURAT THANI Nakhon Ratchasima 30000 49/21-22 Sriwichai Road, Makhamtia, Amphur Muang, Tel: +66 (0) 4438 4200 Surat Thani 84000 Fax: +66 (0) 4438 4299 Tel: +66 (0) 7740 4600 Email: [email protected] Fax: +66 (0) 7740 4699 Email: [email protected] REGIONAL INVESTMENT AND ECONOMIC CENTER 3 KHONKAEN 177/54 Moo 17, Mitraphab Road, Amphur Muang, Khonkaen 40000 Tel: +66 (0) 4327 1300-2 Fax: +66 (0) 4327 1303 Email: [email protected] OVERSEAS OFFICES SHANGHAI MUMBAI Thailand Board of Investment, Shanghai Office Thailand Board of Investment, Mumbai Office Royal Thai Consulate General, No. 18, Wanshan Road, Express Tower, 12th Fl., Barrister Rajni Patel Marg, Changning Distric, Shanghai 200336, P.R.C. Nariman Point, Mumbai, Maharashtra 400021 Tel: +86-21-5260-9876, +86-21-5260-9877 Tel: +91-22-2204-1589-90 Fax: +86-21-5260-9873 Fax: +91-22-2282-1525 Email: [email protected] Email: [email protected] BEIJING NEW YORK Thailand Board of Investment, Beijing Office Thailand Board of Investment, New York Office Royal Thai Embassy, No.40 Guang Hua Road, Beijing 100600 P.R.C. 7 World Trade Center, 34th Floor, Suite F, Tel: +86-10-6532-4510 250 Greenwich Street, New York, New York 10007, U.S.A. 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Investment Section, Royal Thai Consulate-General Tel: +886-2-2345-6663 Bethmannstr. 58,5.0G Fax: +886-2-2345-9223 60311 Frankfurt am Main, Email: [email protected] Federal Republic of Germany Tel: +49 (069) 92 91 230 TOKYO Fax: +49 (069) 92 91 2320 Thailand Board of Investment, Tokyo Office Email: [email protected] Royal Thai Embassy, 8th Floor, Fukuda Building West, 2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 Japan PARIS Tel: +81 (0) 3-3582-1806 Thailand Board of Investment, Paris Office Fax: +81 (0) 3-3589-5176 Ambassade Royale de Thaïlande Email: [email protected] 8, rue Greuze, 75116 Paris, France Tel: +(33-1) 56 90 26 00 OSAKA Fax: +(33-1) 56 90 26 02 Thailand Board of Investment, Osaka Office Email: [email protected] Royal Thai Consulate-General, Bangkok Bank Building, 7th Floor, 1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 Japan STOCKHOLM Tel: +81 (0) 6-6271-1395 Thailand Board of Investment, Stockholm Office Fax: +81 (0) 6-6271-1394 Stureplan 4C 4th Floor, 114 35 Stockholm, Sweden Email: [email protected] Tel: +46 (0) 8463 1158, +46 (0) 8463 1174-75 Fax: +46 (0) 8463 1160 SEOUL Email: [email protected] Thailand Board of Investment, Seoul Office #1804, 18th Floor, Koryo Daeyeongak Center, SYDNEY 97 Toegye-ro, Jung-gu, Seoul, 100-706, Korea Thailand Board of Investment, Sydney Office Tel: +82-2-319-9998 Suite 101, Level 1, 234 George Street, Sydney, Fax: +82-2-319-9997 New South Wales 2000, Australia Email: [email protected] Tel: +61-2-9252-4884 Tel: +61-2-9252-4882 Email: [email protected]

Thailand Board of Investment Think Asia, Invest Thailand www.boi.go.th