Business Opportunities Business Opportunities in Thailandin ThailandBusiness Opportunities Business Opportunities in Thailandin Thailand
Nattinee NetraumpaiAssistant DirectorThailand Board of InvestmentFrankfurt Office
Nattinee NetraumpaiAssistant DirectorThailand Board of InvestmentFrankfurt Office
Various WondersVarious WondersVarious WondersVarious Wonders
Today’s TopicsToday’s Topics Why Thailand Renewable Energy Environtment Seafood Processing Biotechnology Furniture Industry
Why ThailandWhy Thailand
Strategic Location at the Heart of AsiaStrategic Location at the Heart of Asia
ASEAN: 570 million AFTA ASEAN: 570 million AFTA
Australia: 20 million TAFTAAustralia: 20 million TAFTA
China: 1.3 billion China: 1.3 billion Early Harvest :China-Thailand Early Harvest :China-Thailand China-ASEAN FTA China-ASEAN FTA
India: 1.1 billion Early India: 1.1 billion Early Harvest Agreement Harvest Agreement
Japan: 128 million Japan-Japan: 128 million Japan-Thailand Economic Partnership Thailand Economic Partnership AgreementAgreement
Taiwan: 23 million Taiwan: 23 million
Thailand: 64 millionThailand: 64 millionNo. of Tourists >13 million/yrNo. of Tourists >13 million/yr
New Zealand: 4 million New Zealand: 4 million Closer Economic PartnershipCloser Economic Partnership
1 United States 11 Korea
2 Switzerland 12 Hong Kong
3 Denmark 14 Taiwan
4 Sweden 21 Malaysia
5 Germany 2828 ThailandThailand
6 Finland 34 China
7 Singapore 48 India
8 Japan 54 Indonesia
9 United Kingdom 68 Vietnam
10 Netherlands 71 Philippines
Global Competitiveness Index 2007-2008Global Competitiveness Index 2007-2008Global Competitiveness Index 2007-2008Global Competitiveness Index 2007-2008
Source: World Economic Forum, October 2007
1 Singapore 12 Japan
2 New Zealand 1515 THAILANDTHAILAND
3 United States 24 Malaysia
4 Hong Kong 30 Korea
5 Denmark 50 Taiwan
6 UK 83 China
7 Canada 91 Vietnam
8 Ireland 123 Indonesia
9 Australia 133 Philippines
10 Iceland 164 Laos PDR
Ease of Doing BusinessEase of Doing BusinessEase of Doing BusinessEase of Doing Business
Source: World Bank Study: Doing Business 2008
Most Attractive Economies for the Location of FDIMost Attractive Economies for the Location of FDI2007-20092007-2009
Most Attractive Economies for the Location of FDIMost Attractive Economies for the Location of FDI2007-20092007-2009
1 China 1111 ThailandThailand
2 India 12 France
3 United States 13 Malaysia
4 Russian Federation 14 Indonesia
5 Brazil 15 Singapore
6 Vietnam 16 Italy
7 United Kingdom 17 Ukraine
8 Australia 18 Japan
9 Mexico 19 Canada
10 Poland and Germany 20 Republic of Korea
Source: UNCTAD World investment Prospects Survey, 2007-2009
Promising Countries for Promising Countries for Overseas Business OperationsOverseas Business Operations
Promising Countries for Promising Countries for Overseas Business OperationsOverseas Business Operations
Medium-Term (next 3 years)Medium-Term (next 3 years)Rank Country1 China2 India3 Vietnam
#4#4 ThailandThailand5 U.S.6 Russia7 Korea8 Indonesia9 Brazil10 TaiwanIncludes production, sales, R&D, outsourced operations
Long-Term (next 10 years)Long-Term (next 10 years)Rank Country1 China2 India3 Russia4 Vietnam5 U.S.
#6#6 ThailandThailand7 Brazil8 Indonesia9 Korea10 MalaysiaIncludes production, sales, R&D, outsourced operations
Source: JBIC FY 2006 Survey: Outlook for Japanese FDI (18th Annual Survey)
Number of Surveyed Companies Looking to Strengthen or Expand Number of Surveyed Companies Looking to Strengthen or Expand in ASEAN-4in ASEAN-4
Number of Surveyed Companies Looking to Strengthen or Expand Number of Surveyed Companies Looking to Strengthen or Expand in ASEAN-4in ASEAN-4
238
33
55
1531
118102
2410
22
86
1012
50
50
50
100
150
200
250
All Industries E&E Automobile
Thailand Vietnam Indonesia Malaysia Philippines
Source: JBIC 18th Annual Survey Report on Overseas Operations by Japanese Manufacturing Companies
Renewable EnergyRenewable Energy
Source: Bangkok Post 2007 Economic Review
Alternative Energy in ThailandAlternative Energy in ThailandAlternative Energy in ThailandAlternative Energy in Thailand
Solar Biogas Wind Bio Cluster
Garbage Water Bio Diesel Ethanol
Target of Power Generation usingTarget of Power Generation usingRenewable Energy in 2011Renewable Energy in 2011
Target of Power Generation usingTarget of Power Generation usingRenewable Energy in 2011Renewable Energy in 2011
Energy Type
Current RE Generation
(MW)
Target of RE Generation
(MW)
Amount of Increased
Capacity (MW)
Biomass 1,977 2,800 823
MSW 4 100 96
Biogas 5 30 25
Hydro 44 156 112
Wind 1 115 114
Solar 30 45 15
Total 2,061 3,246 1,185
RE Power Generation Situation (Mid-2006)RE Power Generation Situation (Mid-2006)RE Power Generation Situation (Mid-2006)RE Power Generation Situation (Mid-2006)
100100 MW(4.25 MW)
4343 MW(0.55 MW)
1010 MW(4.60 MW)
8585 MW(25.48 MW)
2,8002,800 MW(1,761.29 MW)
200200 MW(44.33 MW) Biogas in livestock farm
and Agro-industry
- Bangkok - Municipality- Industry estate
- Remote area- Roof top- Industry
- Wind farm in south of Thailand- Hybrid with diesel
-Sugarcane Industry-Biomass power plant-Community power plant
- mini/micro hydro plant
BiomassBiomass WindWind
BiogasBiogasHydroHydro
PhotovoltaicPhotovoltaicMSWMSW
CDM Projects in ThailandCDM Projects in ThailandClassified by type of projectClassified by type of projectCDM Projects in ThailandCDM Projects in Thailand
Classified by type of projectClassified by type of project
5%
47%
27%
8%
8%5%
Ethanol & BiodieselBiogasBiomassLandfillEnergy EfficiencyThermal
Source: DEDE 2006
Feed-In Tariff for Renewable EnergyFeed-In Tariff for Renewable EnergyFeed-In Tariff for Renewable EnergyFeed-In Tariff for Renewable Energy
VSPPs
Fuel/Type Feed-In Tariff
(Baht/kWh)
Biomass, Biogas 0.30
Mini Hydro (50-200 kW) 0.40
Micro Hydro (<50 kW) 0.80
MSW 2.50
Wind 2.50
Solar 8.00
SPPs
Fuel/Type Feed-In Tariff (Baht/kWh)
MSW 2.50
Wind 2.50
Solar 8.00
Other RE types 0.30 (Bidding)
Geography Yearly average photometry(Megajoule/ m2 per day)
Energy Capacity(1,000 ton equivalent to oil)
Over all country 18.2 554,070.6
Photometry and solar energy capacity of Photometry and solar energy capacity of countrycountry
Region Amount (System) Installation Size (Kilowatt)
Central 107 286.675
North 521 1,255.241
North East 52 164.75
South 128 510.95
Total 808 2,217.616
Solar power development by DEDEEnergy Installation from 1993-2005
Source:http://www.egat.co.th/re/egat_heater/heater_prince.htm
Solar PotentialSolar Potential(Dispersive surface energy)(Dispersive surface energy)
Average: 18.2 MJ/m2/dayor 554,070.6 ktoe
Solar Cell InstallationSolar Cell InstallationSolar Cell InstallationSolar Cell Installation
Source:Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energyhttp://www.dede.go.th/dede/index.php?id=958
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1985-1989
1990-1994
1995-1999
1998-2002
2003 2004 2005 2006 2007
kW
grid-connected
off-grid
Solar Energy Utilization by TypeSolar Energy Utilization by TypeSolar Energy Utilization by TypeSolar Energy Utilization by Type
Source:Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy http://www.dede.go.th/dede/index.php?id=498
PV Battery Charging System1,401, 4%
SPP 3,382, 10%
Water Pump328, 1%
Telecommunication1,142, 4%
Power Generation25,997, 81%
Northeast6%
South19%
Central14%
North61%
Solar Energy by LocationSolar Energy by LocationSolar Energy by LocationSolar Energy by Location
Source:Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy http://www.dede.go.th/dede/index.php?id=430
Source:http://www.egat.co.th/re/egat_heater/heater_prince.htm
Solar PotentialSolar Potential(Dispersive surface energy)(Dispersive surface energy)
Average: 18.2 MJ/m2/dayor 554,070.6 ktoe
Solar Cell InstallationSolar Cell InstallationSolar Cell InstallationSolar Cell Installation
Source:Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energyhttp://www.dede.go.th/dede/index.php?id=958
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1985-1989
1990-1994
1995-1999
1998-2002
2003 2004 2005 2006 2007
kW
grid-connected
off-grid
Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
Wind PotentialWind PotentialWind PotentialWind PotentialUnit: Watt/Sq.m.
Kilometer
Map of Thailand
Wind speed and directionWind speed and direction
in Thailandin Thailand
Wind speed and directionWind speed and direction
in Thailandin Thailand
The mean wind speed is varies from 2.5 m/sin the Northern part up to 4.0 m/s in the Southern part of Thailand. Some specific sites of Phuket Islandhave been measured and evaluated byEGAT , the result show that themonthly wind speed is varies from4.0 to 6.1 m/s
NE- MONSOONNE- MONSOONNovember-AprilNovember-April
SW- MONSOONSW- MONSOONMay-OctoberMay-October
Phuket IslandPhuket IslandSource: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
Year
Jan Feb
Mar
Apr
May
Jun Jul Aug
Sep
Oct
Nov
Dec
Avg.
1994
4.5
4.5
4.7
3 .5
6.9 6.1
6.4
5.5
6.0
3.4
3 .5
4.4
5.5.00
1995
5.4
4.94.4
3.94.3
5.3
4.1
6.1
6.8
4.1
4.94.8
4.94.9
1996
5.0
6.2
4.5
4.0
4.2
3 .5
5.8
6.2
7.6
4.3
5.0
4.95151
1997
5.2
4.2
4.4
3.7
5.8
NA 2.1
7.3
4.0
3.3
4.6
4.94.4.55
1998
5.1
NA NA NA NA 6.5
4.7
5.8
5.96.0
5.1
4.6
5.5.55
1999
3.8
5.2
4.5
6.3
4.3
9 .8
7.6
2.3
NA 3.94.8
4.95252
2000
4.6
NA NA 3.7
3.6
NA NA NA NA 7.0
4.2
3.3
4.4.44
2001
4.8
4.7
4.2
3.2
3.98.0
6.2
7.8
5.5
4.5
4.3
4.1
5151
2002
4.4
5.5
4.6
3.8
4.5
4.3
5.0
5.2
6.2
4.2
3.2
4.5
4646
2003
4.95.0
5.0
4.2
6.0
4.0
5.7
6.0
6.8
5.5
4.0
4.7
5252
Avg.
4.8
5.0
4.5 4.0 4.85.9 5.3 5.8 6.1 4.
6
4.4
4.5
4.94.9
Monthly mean wind speed (m/s) at 36 m. above groundMonthly mean wind speed (m/s) at 36 m. above groundMonthly mean wind speed (m/s) at 36 m. above groundMonthly mean wind speed (m/s) at 36 m. above ground
Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
Wind Power Generation Technology hasWind Power Generation Technology hasbeen introduced in Thailand since 1983.been introduced in Thailand since 1983.This is mainly attributed to field test worksThis is mainly attributed to field test worksby Electricity Generating Authority of by Electricity Generating Authority of Thailand (EGAT). There are several Thailand (EGAT). There are several institutions that concerning in the fieldinstitutions that concerning in the fieldof assessment wind energy, developingof assessment wind energy, developingperformance testing and monitoring ofperformance testing and monitoring ofwind turbine for generating electricity.wind turbine for generating electricity.
BackgroundBackground
Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
Wind Turbine Generator Wind Turbine Generator Components & SpecificationComponents & Specification
Type : NTK 150/25Type : NTK 150/25
Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
Promthep Alternative Energy StationPromthep Alternative Energy Station
Phuket IslandPhuket Island
Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
1. Total Investment Cost 13,100,000 Baht.2. Electrical Energy generated 197,000 kWh/year3. O&M 260,000 Baht/year4. Cost of generation (Discount rate 9.5%)
-: Without subsidy 9.45 Baht/kWh5. FIRR 14.00 %
1. Total Investment Cost 13,100,000 Baht.2. Electrical Energy generated 197,000 kWh/year3. O&M 260,000 Baht/year4. Cost of generation (Discount rate 9.5%)
-: Without subsidy 9.45 Baht/kWh5. FIRR 14.00 %
150 kW 150 kW Wind Turbine GenerationWind Turbine Generation150 kW 150 kW Wind Turbine GenerationWind Turbine Generation
Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
1. Total Investment Cost 42,843,000 Baht./set2. Electrical Energy generated 985,000 kWh/year3. O&M 850,000 Baht/year4. Cost of generation (Discount rate 9.5%)
-: Without subsidy 6.18 Baht/kWh5. FIRR 14.00 %
EGAT plans to install large wind EGAT plans to install large wind turbine generation with capacity turbine generation with capacity
750 kWx3 in 2008750 kWx3 in 2008
EGAT plans to install large wind EGAT plans to install large wind turbine generation with capacity turbine generation with capacity
750 kWx3 in 2008750 kWx3 in 2008
Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
Future Future InstallationInstallation of 3x750 of 3x750
kW kW Wind Wind
Turbine Turbine GenerationGeneration
Future Future InstallationInstallation of 3x750 of 3x750
kW kW Wind Wind
Turbine Turbine GenerationGeneration
Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm
Seafood ProcessingSeafood Processing
Food Industry:Food Industry:Production & Domestic SalesProduction & Domestic Sales
Food Industry:Food Industry:Production & Domestic SalesProduction & Domestic Sales
Products Unit: Tons
Production Domestic Sales
2006 2007 2006 2007
Jan-Sep Jan-Sep Jan-Sep Jan-Sep
Livestock 531,335.20 500,479.80 434,286.00 397,717.90
Fishery 524,746.20 454,538.80 49,548.90 44,627.30
Vegetable & Fruits 374,389.80 288,985.70 22,091.40 17,202.70
Vegetable Oil 965,078.40 918,561.70 666,677.70 614,441.80
Dairy 329,812.30 302,991.40 201,667.10 219,309.60
Cereal & Flour 679,723.60 588,172.90 425,723.10 404,001.30
Animal Foods 2,203,657.40 2,110,322.10 2,207,962.90 2,108,361.70
Sugar 2,674,611.40 3,159,592.50 789,106.50 912,370.10
Instant Noodle 310,973.20 563,616.40 313,418.30 557,022.70
Total 41,433,202.40 41,609,957.30 5,110,481.90 5,275,055.00
Source: Office of Industrial Economics
Food Industry: ExportsFood Industry: ExportsFood Industry: ExportsFood Industry: Exports
Products 2006 2007
Jan-Sep Jan-Sep
Seafoods 143,199.8 140,314.0
Livestock 23,172.9 24,869.5
Vegetable & Fruits 52,899.4 51,254.2
Rice & Cereal 118,116.0 128,883.4
Sugar 22,468.2 38,840.9
Others 24,587.9 30,702.3
Total 384,444.2 414,864.3
Source: Office of Industrial Economics
USA, 61,181.41, 30%
Japan, 40,851.82, 20%EU, 30,020.10, 15%
ASEAN, 9,302.31, 5%
Canada, 9,886.53, 5%
Australia, 8,870.97, 4%
Middle East, 7,020.70, 3%
Af rica, 8,455.49, 4%
Others, 29,210.63, 14%
ExportsExportsExportsExportsProducts 2003 2004 2005 2006 2007
Q'TY Value Q'TY Value Q'TY Value Q'TY Value Q'TY Value
Shrimp 234,092 71,800 267,366 74,772 279,334 71,354 336,810 86,275 350,351 80,390
Cephalopod 109,750 15,682 116,064 18,525 99,341 16,012 93,939 15,835 93,387 15,526
Fish 431,901 19,110 454,803 20,487 421,623 21,422 444,333 20,924 507,906 22,299
Total 580,405 51,191 621,757 59,981 649,373 65,444 695,631 68,525 694,452 71,092
Others 291,734 17,316 345,451 20,622 310,808 19,854 377,712 22,428 273,490 15,493
Grand Total 1,647,884
175,101 1,805,442
194,388 1,760,478
194,086 1,948,425
213,986 1,919,586
204,800
Q'TY = TonsValue = M.Baht
Source: Fisheries Foreign Affairs Division Department of Fisheries http://www.fisheries.go.th/foreign/mainexport.htm
Export Marketsby Valuein 2007
JTEPA: Thailand-Japan FTAJTEPA: Thailand-Japan FTAJTEPA: Thailand-Japan FTAJTEPA: Thailand-Japan FTAType Products/Import Duty Export Volume from
Thailand to Japan (Tons)Total Japan's Import
Volume (Tons)
Out of Negotiation Cuttlefish / 5% 7,627 43,309
Preserved Cuttlefish / 10.5% 2,172 46,553
Fillet Fish / 10% 2,152 67,857
New Negotiation within 5 yrs. Yellowfin Tuna / 3.5% 2,010 19,077
Other Preserved Fish / 9.6% 3,827 9,639
Big Eye Tuna / 3.5% 821 15,876
Frozen Skipjack / 3.5% 3,070 50,448
Mackerel / 9.6% 1,469 10,511
0% Now Frozen Shrimp / 1% 20,097 229,948
Preserved Shrimp / 5.3% 21,613 50,016
Simple Preserved Shrimp / 4.8% 9,564 18,269
0% within 5 yrs. Other Frozen Foods / 3.5% 41,640 119,692
Canned Tuna / 9.6% 19,198 28,587
Frozen Mongohika / 3.5% 11,248 20,114
Canned Skipjack / 9.6% 4,269 7,314
0% within 7 yrs. Other Preserved Fish / 9.6% 7,105 82,928
Extracts from Fish / 9.6% 1,087 4,267
Canned Salmon / 9.6% 554 1,327
Sensitive Goods Itoyori (Surimi) / 2% 29,235 54,709
Source: Fisheries Foreign Affairs Division, Department of Fisheries http://www.fisheries.go.th/foreign/JTEPA.pdf
BiotechnologyBiotechnology
New Incentives for BiotechnologyNew Incentives for BiotechnologyNew Incentives for BiotechnologyNew Incentives for Biotechnology Exemption of import duty on machinery and an
eight-year corporate income tax break without investment cap and zone.
Projects located in science and technology parks will receive a 50% reduction of corporate income tax for 5 years after the exemption period.
Biotech Infrastructure
National Center for Biotechnology (BIOTEC)
Thailand Science Park (TSP)
Research Services
Kasetsart University (Plant Genetic Engineering Unit, DNA Fingerprinting Unit, and the Bioservice Unit, which provides biomolecular resources for researchers from both the public and private sectors)
Mahidol University (Microbial Genetic Engineering Unit and Medical Biotechnology Center at Siriraj Hospital)
Chulalongkorn University (Marine Biotechnology Laboratory)
King Mongkut's University of Technology
(Biochemical Engineering and Pilot Plant Unit)
ScienceScience ParkParkScienceScience ParkParkThailand Science Park: an incubation center for science-related investmentSupport includes:
–Assistance in finding and acquiring technology
–Analytical and technical services
–Intellectual property services
–Quality management services
–Maximum BOI Incentives
80 acre park80 acre park lab spacelab space
greenhousesgreenhouses accommodationsaccommodations
National Biotechnology Policy National Biotechnology Policy Framework 2004 – 2011 Framework 2004 – 2011 (1 of 2)(1 of 2)
National Biotechnology Policy National Biotechnology Policy Framework 2004 – 2011 Framework 2004 – 2011 (1 of 2)(1 of 2)
Collaborative plan between the NESDB, National Science and Technology Development Agency, and National Center for Genetic Engineering and Biotechnology
Promotional activities and tax incentive packages expected to bring THB 5 billion investment in R&D and lead to THB 30 billion of revenue a year in the sector
Increase food production to become “The Kitchen of the World,” along with increased safety and quality inspection capacity
Support expansion of biomedical infrastructure and human resources, promote locally produced health care products
Applications for agricultural outputs to be used in alternative energy production
Use of biotechnology to promote a self-sufficient economy
National Biotechnology Policy National Biotechnology Policy Framework 2004 – 2011 Framework 2004 – 2011 (2 of 2)(2 of 2)
National Biotechnology Policy National Biotechnology Policy Framework 2004 – 2011 Framework 2004 – 2011 (2 of 2)(2 of 2)
Established in 1983
Part of the National Science and Technology Development Agency (NSTDA)
Allocates approximately $200 million annually for research
30% for research infrastructure and services
70% for direct grants
BIOTEC have a total of 490 staff members. As of 30 September 2005, BIOTEC had a total of 490 full time staff, of which 63% were devoted to research. The number of Ph.D. researchers is 119 and this is expected to grow to 220 by 2017, the majority of which will come from overseas education on government scholarships. BIOTEC is publicly funded.
National Center for Biotechnology (BIOTEC)
BIOTEC, through Thailand Science Park, provides basic research services
Private companies and university research labs provide specialized services
TSP offers support importing products not found locally
Research ServicesResearch Services
Biotech Specialties Agriculture (Rice, Pest resistant Tomato, Pepper and
other vegetables, Cassava, Ornamental Flowers, Shrimp)
Animal Testing Alternatives
Tropical Diseases
Food Handling
Furniture IndustryFurniture Industry
Furniture Industry OverviewFurniture Industry OverviewFurniture Industry OverviewFurniture Industry Overview
Employees (persons)* 300,000
Manufacturers* (Companies)
Small size (<=50 employees) 2,220
Medium size (51-200 employees) 294
Large size (>=200 employees) 86
Total 2,600ISO** (Companies)
ISO 9000 73
ISO 14000 7
QS 9000 1
Source: * Department of Export Promotion ** Thailand Industrial Standards Institute
ExportsExportsExportsExports
Export Structure(%)
Wood Furniture 51.31
Other Furniture 23.12
Furniture Parts 16.31
Bedclothes 5.00
Metal Furniture 4.34
Exports in 2006 (Estimated)
Value (M.USD) 1,363
Growth (%) 10
Source: Department of Export Promotion
Export MarketsExport MarketsExport MarketsExport MarketsCountry
Value (M.USD) Growth (%) Share (%)2003 2004 2005 2006
(Q1-Q3)
2004 2005 2006(Q1-Q3)
2004 2005 2006(Q1-Q3)
1 USA 351.57 435.07 405.58 271.25 23.75 -6.78 -9.63 36.04 32.73 30.122 Japan 318.11 316.73 306.99 210.82 -0.43 -3.07 -7.92 26.23 24.77 23.413 UK 89.96 119.07 126.02 93.04 32.37 5.83 2.13 9.86 10.17 10.334 Australia 27.38 31.23 33.36 40.60 14.08 6.8 77.15 2.59 2.00 4.515 Malaysia 10.12 13.4 19.74 19.27 32.45 -26.48 31.84 1.11 2.14 2.146 Canada 43.47 46.53 34.21 18.38 7.03 47.26 -25.81 3.85 2.07 2.047 Netherlands
13.49 14.48 21.42 16.66 7.29 47.97 -0.72 1.20 1.76 1.85
8 Germany 21.83 24.65 25.78 14.82 12.91 4.59 -14.84 2.04 1.69 1.659 Italy 11.31 13.5 16.51 14.27 19.35 22.27 20.89 1.12 1.65 1.5810 UAE 12.08 11.89 14.16 12.97 -1.52 19.08 26.90 0.99 1.41 1.4411 Spain 10.48 13 16.28 11.07 23.99 25.28 -9.44 1.08 1.31 1.2312 France 11.59 13.79 13.39 10.84 18.96 0.56 3.83 1.14 1.12 1.2013 Belgium 6.74 8.74 11.61 9.91 29.57 32.88 13.69 0.72 0.94 1.1014 Philippines 4.91 6.39 11.39 9.56 30.10 78.12 16.78 0.53 0.92 1.0615 S. Africa 1.18 3.16 7.38 9.42 167.70 133.86 63.10 0.26 0.60 1.0516 S. Korea 8.79 10.2 10.67 9.14 15.94 4.64 18.37 0.84 0.86 1.0117 India 3.69 5.99 9.56 9.03 62.38 59.48 24.20 0.50 0.77 1.0018 Singapore 7.12 7.82 7.69 8.88 9.83 -1.71 61.66 0.65 0.62 0.9919 Vietnam 3.32 3.65 7.32 8.62 10.12 100.41 90.60 0.30 0.59 0.9620 Sweden 7.75 10.14 12.36 7.86 30.87 21.85 -16.10 0.84 1.00 0.87Total 964.90 1,109.4
41,111.8
8806.40 14.98 0.22 -1.47 92.78 89.72 89.55
Others 75.07 97.88 127.42 94.13 30.40 30.17 -0.96 7.22 10.28 10.45Grand Total 1039.97 1207.3
21,239.3
0900.53 16.09 2.65 -1.42 100.00 100.00 100.00
Source: Department of Export Promotion
77.15 New MarketThailand-Australia FTA
New Market 90.60
New Market 63.10
New Market 61.66
Australia
S.Africa
Singapore Vietnam
Investment IncentivesInvestment Incentives
Thailand Investment Year 2008-2009Thailand Investment Year 2008-2009Thailand Investment Year 2008-2009Thailand Investment Year 2008-2009Promote industries for the future-To promote investment in and hi-tech industries such as life science, biotechnology, bio-degradable materials, RFID, LED, LCD panels etc. -To promote investment in alternative energy such as ethanol, bio-fuels, biogas, solar and wind energy-To gear the entrepreneurs towards higher value-added and more advanced technology developmentPromote the country’s infrastructure to accommodate the future industrial expansion–Southern Seaboard to accommodate the expansion of fundamental industries such as petrochemicals, steels, energy crops, shipbuilding and tourism–To push forward the high-quality upstream steel industry to accommodate the rising demand of automotive, electronics and electrical products, food packaging and other related industries Promote industrial competitiveness -companies to change or upgrade their machinery and to develop technology and IT systems in order to improve efficiency and reduce environmental impacts -To promote R&D activities among local industry and to upgrade the industrial workforce in collaboration with educational institutions and research centers
The R&D and human resources development in the industrial sector by collaborating with other agencies such as National Science and Technology Development Agency (NSTDA)
The establishment of “incubation center”for product and process development as well as research and development cooperation among private sector, research centers and educational institutions
BOI Net ApplicationsBOI Net ApplicationsBOI Net ApplicationsBOI Net Applications
Sector 2006 2007 2008(Jan-Feb)No. Of
ProjectsValue
(M.Euro)No. Of
ProjectsValue
(M.Baht)No. Of
ProjectsValue
(M.Baht)Agricultural Products 46 517.6 46 185.5 15 83.74Minerals/Ceramics 32 536.4 27 573.9 7 177.6Light Industries/Textiles 73 194.9 59 186.2 16 50.53Automotive/Metal Processing 220 1080 228 3199 38 153Electrical/Electronics 180 1495 153 1645 25 363.8Chemicals/Paper 80 842.4 129 2077 17 114.1Services 192 1743 203 2600 49 171.8Total 823 6410 845 10467 167 1115
1 Euro = 48 Baht
BOI Net Applications from EuropeBOI Net Applications from EuropeBOI Net Applications from EuropeBOI Net Applications from Europe 2006 2007 2007 2008
COUNTRY (Jan.-Feb.) (Jan.-Feb.)
No. ofProjects
Total No. ofProjects
Total No. ofProjects
Total No. ofProjects
Total
Invest. Invest. Invest. Invest.
Austria 3 1 4 13 - - - -
Belgium 6 50 5 10 - - 2 0
Cyprus 1 0 - - - - - -
Denmark 5 7 16 375 1 9 2 1
Finland - - 4 15 - - - -
France 10 9 19 18 2 1 5 2
Germany 21 27 36 773 3 8 3 7
Ireland 1 0 - - - - - -
Italy 12 17 10 27 - - - -
Luxembourg - - 1 4 - - - -
Netherlands 26 133 20 182 6 18 4 98
Norway 5 16 4 6 - - 3 1
Slovakia 1 0 - - - - - -
Slovenia 1 1 - - - - - -
Spain 7 217 1 0 - - - -
Sweden 5 18 8 21 1 1 2 16
Switzerland 9 83 11 36 - - - -
United Kingdom 31 157 24 142 7 13 8 64
Total Europe 140 735 153 1,582 16 46 29 189
1 Euro = 48 Baht
TAX INCENTIVES
Corporate income tax holidays up to 8 years
Import duty reductions or exemptions on machinery and raw materials
NON-TAX INCENTIVES
100% Ownership Land rights for foreign
investors
Permission to bring in foreign experts and technicians
Work permit & visa facilitation
Basic BOI privileges and incentivesBasic BOI privileges and incentivesBasic BOI privileges and incentivesBasic BOI privileges and incentives
BOI Basic BOI Basic Promotion Promotion PackagesPackages
BOI Basic BOI Basic Promotion Promotion PackagesPackages
3 Investment Promotion Zones to promote industrial decentralization
Zone: 1 2 3Incentives: Lower Higher
Incentives by LocationIncentives by LocationIncentives by LocationIncentives by LocationIncentives Zone Inside
Industrial Estate
Outside Industrial Estate
Import Duties on Machinery
Zone 1 50% Reduction 50% Reduction
Zone 2 Exemption** 50% Reduction
Zone 3* Exemption Exemption
Corporate Income Tax
Zone 1 3 Years No Exemption
Zone 2 7 Years** 3 Years
Zone 3 8 Years 8 Years
Import Duties on Raw Materials
Zone 1 Exemption Exemption
Zone 2 Exemption Exemption
Zone 3 Exemption Exemption
More Info: http://www.boi.go.th/english/about/eligible_activities.asp
•For projects in Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong Province, Applications must be submitted by December 31, 2009•** Applications must be submitted by December 31, 2009
Tax Incentives for Tax Incentives for Manufacturing of Solar CellManufacturing of Solar Cell
Tax Incentives for Tax Incentives for Manufacturing of Solar CellManufacturing of Solar Cell
Incentives:
• Machinery Import Duty Exemption for 8 years, regardless of zone
• Corporate Income Exemption for 8 years, regardless of zone
Condition:
• Production process must be approved by BOI
BOI Bio-tech incentives granted to:BOI Bio-tech incentives granted to:BOI Bio-tech incentives granted to:BOI Bio-tech incentives granted to:
1. R&D and manufacturing activities using biotech in seed industry, and in plant and animal improvement industry.
2. R&D and manufacturing activities of biopharmaceutical agents using biotech. (For example, drugs, vaccines, and therapeutic proteins).
3. R&D and manufacturing activities of diagnostic kits and reagents for health, agriculture, food and environment applications. (For example, diagnostic kits for pure line breeding, diagnostics for disease screening, biosensors and gene chips.)
4. R&D and manufacturing activities of biomolecules and bioactive compounds using microorganism, plant and animal cells. (For example, enzymes, probiotics, flavors, monoclonal antibodies and recombinant proteins.)
SeafoodsSeafoodsSeafoodsSeafoods
1. Deep sea fisheries2. Inspection, analysis of diseases of crops, livestock or
aquatic animals3. Cold storage and cold storage transportation
Incentives:1. Exemption from import duty on machinery, regardless
of location2. Maximum 8-year corporate income tax holiday,
regardless of location3. Additional incentives according to zone in which
project is located
FoodsFoodsFoodsFoods
Tax Incentives:
• Maximum Incentives regardless of location or zone for 8 years
• Corporate Income Tax Exemption
• Machinery Import Duty Exemption
In addition, projects may receive extra zone-base incentives including:
• Raw Material Import Duty Exemption for up to 5 years
• Double Deduction from Taxable Income of Utility and Transport Costs for up to 10 years in Zone 3
• Food production, preservation or packaging• Research and Development• Cold storage and cold storage transportation• Crop drying and silo facilities using modern technology• Inspection analysis for diseases• Production of farm and food-processing machinery• Grading, packaging and storage of plants, vegetables, fruits or flowers• Trading centers for agricultural goods
% of First Three Years’ Sales Add. Income Tax Exemption, No cap
1% or at least 150 million baht 1 year
2% or at least 300 million baht 2 years
3% or at least 450 million baht 3 years
Additional incentives for skills, technology, and innovation (Optional)
Investment and Expenditures on:•Research and development or design•Advanced technology training•Funding of educational and research institutes
Note: Corporate income tax holiday may not exceed eight years.
1414--1717 MAY 2008 MAY 2008BITEC BANGKOK THAILANDBITEC BANGKOK THAILAND
BOI Support Services:
Sectoral Divisions to guide you through the process
Overseas offices
Country desks
1-Stop for visas & work permits:work permits in 3 hours
Interaction with other govt. agencies on behalf of investors
Industrial Subcontracting Services Vendors meet customers program
(BUILD Unit)
Investment Matchmaker Program
ASEAN Supporting Industry Database (ASID)
Thailand—Each Piece Fits Perfectly.Thailand—Each Piece Fits Perfectly.Thailand—Each Piece Fits Perfectly.Thailand—Each Piece Fits Perfectly.