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Improvement of Business Environment under the current Government and New Investment Policy in Thailand

Mr. Kitti TangjitrmaneesakdaSecretary General

The Federation of Thai Industries

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1. Issues relating to the business environment in Thailand

2. Government measures in support of investment promotion policy

Outline of Presentation

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Issues relating to business environment in Thailand

- Promotion of FTAs (JTEPA, AJCEP)- Customs Procedure (e.g. transparency, customs

operation, laws and regulations)- Labor Policy (e.g. visa and work permit,

shortage of work force, law and regulations)- Infrastructure Development (mega-projects)- Deregulations (e.g. deregulation of Foreign

Business Act.)- Promotion of Regional Operating Headquarters

(ROHs)

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Government measures in support of investment promotion policy

1. Review of investment promotion strategy2. Promotion of set-up of international

headquarter (IHQ) and international trading company (ITC)

3. Promotion of non-tax measures4. Facilitation for investors regarding the set-up

of IHQ and ITC

New Investment Promotion Strategy (2015-2021)

1. Promote investment that help enhance national competitiveness

2. Promote environment-friendly activities3. Promote clusters in accordance with regional

potential and strengthened value chain4. Promote investment in southern border

provinces5. Promote special economic zone, especially in border areas6. Promote Thai overseas investment

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New Approach to Granting Investment Incentives

Activity-based Incentives

Classified incentive based on theImportance of activities

Merit-based Incentives

1. Competitiveness Enhancement

2. Decentralization

3. Industrial Area Development

Grant additional incentives to Encourage more investment/ expenditures that benefitthe country or overall industry

Exemption of import duty on machinery/ raw material and non-tax incentive

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Activity-Based IncentivesA2: Activities in infrastructure for the country’s development, activities using advanced technology to create value added, with none or very few existing investments in Thailand

A1: Knowledge-based activities, focusing on R&D and design to enhance the country’s competitiveness

A3: High technology activities which are important to the country’s development, with a few investments already existing in Thailand

A4: Activities with lower technology than A1-A3 but add value to domestic resources and strengthen supply chain

B1/B2: Supporting industries that do not use high technology but are still important to value chain

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Other special policies1. Industrial development in border provinces in

Southern Thailand2. Investment in special economic zones

Phase 1 Phase 2

1)Tak 2)Mukda

han 3)Sakea

w 4)Trat 5)Songkl

a

1)Chiangrai2)Nongkai3)Nakhonpa

nom4)Kanchana

buri5)Naratiwas

Special Economic Zone in Thailand

MyanmarMyanmar

Laos LaosVietnam Vietnam

Cambodia Cambodia

Vietnam

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Thank You for Your Attention

ありがとう