NEW BOI POLICIES CREATE A DYNAMIC INVESTMENT CLIMATE FOR INVESTORS
e-commerce in thailand skyrockets
Lazada’s “One Stop Shop” A Thriving E-Commerce Success
November 2015 vol. 25 no. 11
government
development incentives
t or
de ve lo p
pp su
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Thailand Investment Review
government and private organizations p
manufacturer b
institutes
cluster a
man anufa ufactu actu cturrer rer manufacturer h institutes
manufacturer manu ma nufa ufac faact ctur ureer c manufacturer m a i
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research ccenters enter te s
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research centers ggovernment and priv organizations pprivate manufacturer m anufacturer a institutes
manufacturer manu m anu nuufact f ctur urer ure rerr e
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PRIME MINISTER PRAYUT CHAN-O-CHA PLEDGES FULL SUPPORT TO BOI'S NEW INVESTMENT PROMOTION POLICIES PM Prayut stresses the need to boost Thailand's investment competency amid accelerating regional integration thailand board of investment www.boi.go.th
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boi net application
(jan - sep 2015)
BY target sector TOTAL INVESTMENT 758 Projects 4,363 m
TOTAL Foreign INVESTMENT 408 Projects 2,095 M
Digital 67 Projects 25 M
logistics n/a n/a
human resource 2 Projects 1M
Intl. Business Hub 71 Projects 41 M
tourism 2 Projects 6M
environment 2 Projects 14 M
Alternative Energy 24 Projects 422 M
science, tech & innovation 46 Projects 115 M
value-added agriculture 12 Projects 209 M
Other target sectors : 3 projects (28 M)
BY ECONOMY SOUTH KOREA 21 projects 49 m netherlands 10 projects 61 m
usa 14 projects 189 m
JAPAN 118 projects 358 m
china 42 projects 339 m
TAIWAN 21 projects 63 m
thailand singapore 67 projects 497 m malaysia 10 projects 32 m
hong kong 23 projects 83 m
indonesia 2 projects 441 m
Unit : US$ (US$ = 35.70 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.
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CONTENT NOVEMBER 2015
Cover Story :
Prime Minister Prayut Chan-o-cha Pledges Full Support To BOI’s New Investment Promotion Policies
03-04
New BOI Policies Create A Dynamic Investment Climate For Investors
05-06
Special Issue :
Industry Focus :
E-Commerce in Thailand Skyrockets
Company Interview :
Lazada’s “One Stop Shop” : A Thriving E-Commerce Success News Bites BOI’s Missions and Events Thailand Economy-At-A-Glance About BOI 02
THAILAND INVESTMENT REVIEW
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07 08-09 09 10 11 12
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NOVEMBER 2015
Prime Minister Prayut Chan-o-cha Pledges Full Support To BOI’s New Investment Promotion Policies In a recent seminar entitled welcomed questions from the public. “Thailand Moving Ahead with Its members included Minister of Cluster Development,” more than Industry Dr. Atchaka Sibunruang, 2,000 foreign and Thai nationals BOI Secretary General Mrs. Hirunya gathered at the Queen Sirikit National Suchinai, Deputy Secretary General Convention Center to hear Prime of National Science Technology and Minister General Prayut Chan- Innovation Policy Office Mr. Kitipong o-cha’s discourse. Affirming the Promwong and Deputy DirectorGovernment’s willingness to boost General of the Fiscal Policy Office the country’s economy and level of Dr. Warotai Kosolpisitkul. development ‘from within,’ the Prime Following up on his visit to th Minister also offered his support to the 27 ASEAN Summit in Kuala the BOI’s new investment policies Lumpur, General Prayut emphasized geared towards attracting foreign the on-going process of regional investors to establish integration, particularly the symbolic new businesses in establishment of the ASEAN Thailand. single market. He stressed General its possible implications A panel Prayut called the BOI’s cluster development policy of experts for Thailand’s economic discussed the architecture and the need ‘the biggest change in BOI’s latest to enhance the country’s the nation’s investment investment investment competency. promotion measures promotion The prospects in twenty years.’ package and appear hopeful. ASEAN’s
single market and production base characterized by the less restricted movements of goods, services and labor is projected to bolster foreign investment in the years to come. The cluster policy is expected to play a crucial role in helping Thailand keep up with the fast-paced socioeconomic development happening in its neighboring nations. Not only will the policy facilitate the businesses of existing and new investors in Thailand, but it is also expected to benefit the locals living in investment areas and raise their standard of living. For now, implementation is key. That will require many related Government agencies to collaborate, with the Ministry of Industry acting as the principle coordinator. As these agencies lay the foundation for the policy to be realized, the long-term expectation is that these investment promotion schemes will operate THAILAND INVESTMENT REVIEW 03
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smoothly regardless of whoever comes into power after the elections. The Prime Minister highlighted Thailand’s key competencies, such as its strategic location at the center of ASEAN and its abundance of local resources, especially agricultural products, that could greatly benefit from more research and the integration of advanced technologies. The cluster development policy along with the border-focused special economic zones (SEZs) is expected to play a critical role in creating a favorable atmosphere for further investment, strategies and shared their personal aided by advantageous tax and non- views with the public on their tax incentives wherever applicable. approach to implementing the various General Prayut also reiterated the investment promotion packages. Government's efforts towards making The panel members identified three it easy for investors to start businesses important objectives of the cluster in Thailand, with the assistance of the development policy - strengthening One Start One Stop Investment Center industrial value chains, attracting (OSOS) that helps with expediting value added investments and creating the necessary procedures. more business opportunities. The In 2015, 1,923 projects were Minister of Industry Dr. Atchaka approved by the BOI from January Sibunruang, expressed a strong desire to October, with a total capital to specifically promote nine provinces investment of 693,637 million baht that fall under the Super Cluster (USD 19,539 million). The amount package. is expected to significantly contribute Investors are encouraged to focus to the betterment of both the public on these industries, to boost the and private sectors. standing of individual provinces and Emphasizing the plan to move the bolster internal connectivity. country forward to a more prominent The Secretary General of the BOI global position through investment Mrs. Hirunya Suchinai, summarized acceleration, General Prayut stated the advantages of various incentives that the Government would not leave for the industrial cluster. Investors anyone behind in the process whose projects qualify to be and that all interconnected under the Super Cluster sectors would share the will enjoy an 8-year Super Cluster includes automotive benefits. corporate income tax and parts, electrical General Prayut’s exemption and an appliances, electronics and opening remarks and telecommunication equipment, additional 5-year keynote speech was petrochemical and eco-friendly tax reduction of chemical products, digital followed by a lively 50%.Deputy cluster, food innopolis and panel discussion on Director-General of medical hubs. the topic ‘Cluster the Fiscal Policy Office Development Incentive Dr. Warotai Kosolpisitkul, Packages.’ Four panelists also indicated the ministry’s briefly elaborated their respective willingness to grant 10-15 years of 04
THAILAND INVESTMENT REVIEW
corporate income tax exemption. The ministry can additionally offer personal income tax exemption of 15% that applies to both Thai and foreign renowned specialists. The Deputy Secretary General of National Science Technology and Innovation Policy Office Mr. Kitipong Promwong, also took this opportunity to highlight the benefits of the Talent Mobility Program. This project aims to mobilize researchers in Government agencies and higher education institutions towards industrial sectors, giving them the authority to work either full-time or part-time. Up to now, around 117 researchers and 86 research assistants have been mobilized into 56 projects in 54 companies. Not only does this advance their academic careers but it also upgrades their technological know-how, ultimately boosting Thailand’s competitiveness. Thailand’s future prospects will focus on mutually beneficial projects and investment acceleration that raises industry standards overall. Existing and future investors that take advantage of this golden opportunity can avail all the tax benefits that the BOI offers until December 2016.
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special issue
New BOI Policies
To entice more investors, the BOI has split its tax incentives into Activity-based incentives and Meritbased incentives and made them more attractive. For instance, projects under the A1 category involving knowledgebased activities focusing on research and development (R&D) will gain the most incentives. Activities in the other categories will get appropriate benefits depending on whether they call for infrastructure development, advanced technologies, or if they’re important to the value chain. Investors can also apply for Meritbased incentives if they are willing to get involved in specific activities. For instance, investments that involve
research, technology development and innovation will gain an additional cap of 200%. Businesses will also benefit if they happen to be in one of the 20 identified poorest provinces. Any projects located in industrial estates will gain additional year of corporate tax exemption. An exciting development here is the abolishment of zone-based promotions in favor of planned special economic zones (SEZs) that consider the potential and needs of each area. Border SEZs aid logistic businesses and labor-intensive businesses that utilize raw materials sourced from border areas or countries close by. Ten such SEZs have been identified, scattered along the border of Thailand. Not only will developing these SEZs boost the local economy and establish a better economic bond with neighboring countries, but it is also expected to smoothen Thailand’s entry into ASEAN. Cluster-based SEZs are the second category, involving businesses located inland and future-industries that incorporate minimum labor, advanced technologies and R&D. By concentrating investments in the targeted clusters, the BOI hopes to make the most of an area’s regional potential while strengthening the value chain. A combination of an area approach and a sector approach is used to identify Cluster-based SEZs; these can further be subdivided into 2 types, Super Clusters and other clusters.
activity-based incentives
merit-based incentives
Create A Dynamic Investment Climate For Investors
R
ecently the BOI and the foreign chambers of commerce in Thailand met to discuss the BOI’s latest promotion policies. Mr. Stanley Kang, Chairman of the Joint Foreign Chamber of Commerce in Thailand was present along with Mrs. Hirunya Suchinai, Secretary General of the BOI and Deputy Secretary Generals, Ms. Ajarin Pattanapanchai, Ms. Duangjai Asawachintachit and Mr. Chokedee Kaewsang. The officials discussed the impact of the new BOI policies that aim to inject new life into Thailand’s investment climate, effective from January 2015 to 2021. The BOI’s major thrust with these new policies, is to support the Government’s efforts towards creating a more progressive economy, by awarding numerous benefits to investment projects based on the level of technology involved. To that end, the BOI aims to promote activities that greatly benefit the country while reducing labor intensive and low value projects.
a1 a2 a3 a4 B1 B2
+
1. Competitiveness enhancement 2. decentralization 3. industrial area development THAILAND INVESTMENT REVIEW 05
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These activities have major tax incentives such as an import duty exemption on machinery and an 8-year corporate income tax exemption as well as an additional 5-year reduction of 50%. International specialists hired to work in these areas can also look forward to being exempted from personal income tax. Agro-processing, textiles and garments will fall under other clusters category. They qualify for a 3-8 year corporate income tax exemption and an additional 5-year reduction of 50%. By promoting cluster development, the BOI hopes to encourage the use of advanced technologies and eco-friendly technologies. Non-tax incentives for both cluster types generously includes granting permanent residence to important specialists as well as giving permission for foreigners to own land. To gain approval for the BOI Cluster incentive packages, businesses will have to qualify under the classified, eligible BOI categories. For example, to fall under the automotive and parts cluster, a project has to involve the manufacture of automobile engines, automobile tires, engine parts and motorcycles (except less than 248 cc engine displacement). Secondly,
Chonburi, Rayong, Chacheongsao, Prachinburi,Nakorn Ratchasima. Businesses can also co-operate with academic and research institutions in the designated areas. Options include participating in mutually beneficial programs like work-integrated learning, talent mobility, co-operative education, research and more. For instance, the talent mobility program aims to mobilize qualified researchers from the public sector to the private sector for a certain period of time, in order to solve the issue of inadequate manpower in the science and technology fields. Businesses that utilize this program will be able to borrow the right experts for a few years, to work in their own R&D projects, establish production standards or solve technical problems. Those choosing the option of work-integrated learning can provide long-term training to appropriate schools within a factory setting. By doing this, businesses will not only upgrade the skills of the Thai work
Applications for gaining approval for the BOI cluster package incentive need to be submitted to the BOI by the end of 2016, with revenue generation being demonstrated by the end of 2017. Businesses don’t have to complete their entire investment by the end of 2017, but they do need to have their first invoice by that time. it’s important for the project to be physically located in the designated province for that cluster. Continuing with the automotive cluster example, the project would need to be in one of 7 provinces – Ayuttaya, Pathumthani, 06
THAILAND INVESTMENT REVIEW
force but they will also be providing the industry with manpower that possesses the right skills. It’s also possible for interested investors to apply for investment acceleration measures. If investors
are willing to speed up their investment, they can expect to gain an additional 1-4 years of tax holidays. The number of years granted depends on how quickly the investment is made within a certain period of time. Businesses that want to qualify for this measure, will have to submit their applications before June 30, 2016, begin operations and obtain an income within 2017. The BOI laid out all this and more to the Chamber members present at the event. JFCCT officials expressed a desire to see more tax incentives for service-based companies, especially when compared to the benefits enjoyed by companies in the manufacturing sectors. Mrs. Hirunya Suchinai, pointed out that service-oriented companies were already quite favored, given that service-related activities comprised 16 to 20% of the existing categories. At its heart, the new BOI policies encourage the use of advanced, alternative energy-based and environment-friendly technologies that establish a spirit of innovation and create value. The BOI expects its comprehensive investment strategy to usher in a fresh and more dynamic era in Thailand’s investment atmosphere.
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industry focus e-commerce in thailand skyrockets The dotcom industry in Thailand is currently experiencing unprecedented growth. In this issue, successful e-commerce entrepreneur, Mr. Pawoot Pongvitayapanu, shares his vast expertise on this emerging market. The president of the Thai E-commerce Association expressed his confidence in Thailand’s e-commerce progress and elaborated on the key drivers spurring this exceptional growth. Thailand’s e-commerce business is expected to reach 59 billion USD this year alone, greatly exceeding figures reached in previous years. Some of the key drivers of Thailand’s e-commerce growth include a rapidly expanding Thai population coming online, a higher adoption of smartphones and the development of e-commerce infrastructures. The use of smartphones as shopping devices is a relatively new trend in Thailand (m-commerce) and the availability of affordable devices has led to a higher number of internet users which has in turn facilitated online trading. Members of the older generation are turning to the internet too, increasing the overall number of Thai internet users. Mr. Pongvitayapanu also shared his thoughts on Thailand’s infrastructure development and the various business opportunities in the e-commerce industry. The development of e-commerce infrastructure has greatly contributed towards expanding the industry. Thailand saw a rapid growth in broadband users after the introduction of third-generation (3G) wireless broadband and their numbers are only expected to increase with the introduction of fourth-generation (4G) wireless broadband.
Additionally, the emergence of new logistics providers in Thailand and the greater variety of electronic payment (e-payment) options not only facilitates the buying process but also enables consumers to shop online more conveniently. Mr. Pongvitayapanu also highlighted the presence of large business gaps in e-commerce infrastructure that include logistics and fulfillment services, such as storage and delivery services. These gaps have to be filled to help the e-commerce industry become more robust.
E-commerce industry overview KEY DRIVERS
40.8% of Thailand’s population had access to the internet in 2014
44.6
million mobile internet users in 2015
Development in e-commerce infrastructure e.g. e-payment and e-logistics Source: NECTEC, DAAT
E-COMMERCE INDUSTRY VALUE 2015 [Billion USD]
59.0
2014
2015 (p)
21.5 2013
WHY INVEST IN THAILAND
57.0
Note: Exchange rate 1USD = 35.7 THB
[Billion USD]
Thailand is ranked first in the ASEAN countries in B2C. Its e-commerce value reached 11.7 billion USD in 2014 1
thailand
11.7
2
malaysia
9.6
3
singapore
3.45
4
vietnam
2.97
5
indonesia
2.6
Source: EDTA (2014, 2015) and NSO (2013)
19.1 %
58.4 % b2g b2c
2015p b2b
22.5 % The business-to-business category was the largest contributor to e-commerce sales in 2015, followed by business-to-consumer and business-to-government sales.
Source: EDTA
ABOUT THE INTERVIEWEE
ATTRACTIVE SEGMENTS [Billion USD]
1
ACCOMMODATION SERVICES
17.5
2
MANUFACTURINg
12.3
3
NEWS INFORMATION & COMMUNICATION
Mr. Pawoot Pongvitayapanu is the President of Thai E-commerce Association and also the founder and Managing Director of Rakuten TARAD.com Co., Ltd., the biggest e-commerce service in Thailand.
7.4 Source: EDTA
THAILAND INVESTMENT REVIEW 07
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Company interview
LAZADA’s “One Stop Shop” A Thriving E-Commerce Success
W
hen online retail company Lazada first entered Bangkok in 2013 to take advantage of Thailand's rapidly growing e-commerce segment, little did they expect to become Thailand’s number one online marketplace with sales figures skyrocketing through the roof. It's an impressive track record, especially when you consider that 99% of the population in South East Asia still prefer to shop offline. Lazada has made shopping simple and fun for the Thai consumer with a customer friendly website and an easy-to-use mobile application.
A Successful Business Model Their unwavering focus on customer convenience is central to why they expect to see e-commerce jump to 4% to 5% of total shopping in a country where only about 1% of the population shop online. By leveraging their core competencies, Lazada has grown to be an e-commerce tycoon, gradually expanding their online business in Thailand, Indonesia, Malaysia, Philippines, Singapore and Vietnam. The entire South East Asian market represents a massive customer base of over 550 million people and it’s a market that’s still largely untapped. To take advantage of this growing customer base, Lazada has wisely modeled itself after dot-com giants like Amazon and Alibaba, minimizing their processing times while maximizing 08
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E-commerce Industry customer convenience. Their unique “One Stop Shop” leverages their Potential in Thailand key strengths, displaying more than In addition to providing 800,000 diverse products online. a convenient shopping window for They also offer their customers consumers, the burgeoning online a 24/7 shopping arcade, a high market presents a whole host of security payment system and a solid exciting opportunities for various Thai guarantee of customer satisfaction. Small and Medium-Sized Enterprises Moving onwards to new (SMEs). Numerous startups have horizons, Lazada is looking experienced dynamic success online forward to being the leading by offering a wide range e-commerce solution in of products, but their targeted countries as logistic services fall " L a s t ye a r , well as being the short. If SMEs primary online had around were to offer platform of a professio1,200 SMEs on their site. In choice for onnal platform July, the number spiked to 6,000. line sellers. similar to Just like Lazada, they A current forecast predicts over any other could poten10,000 SMEs joining the platform online retailer, tially expect by the end of 2015." Lazada's key their path to strategic growth success to be direction involves smooth sailing. steadily attracting more Currently, Lazada online customers. They've has partnered with 8 logistics implemented initiatives to not providers throughout Thailand, only widen their product range, but with Thailand Post being one of to also make their online platform their key supporters. They're also more reliable in order to promote taking dynamic measures to ensure customer confidence. As more their future success, such as utilizing and more customers gravitate to a case study of Amazon's processes. shopping online, Lazada stands They aim to improve their processing to benefit by being an early player time from 2 days to 2 hours to match in the entire e-commerce space. Amazon’s standards and also plan
Lazada
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to enhance their warehouse and roadshows at Universities. Given packaging processes. the exceptional growth potential that Similar to the “Fulfillment by exists in e-commerce in Thailand, Amazon” measure, sellers will be experienced professionals can expect able to pool their products in Lazada’s to play an important role in driving the entire industry forward. warehouse. This central platform will help Lazada To encourage foreign package and deliver investors, the goods to customers Thailand Board has of Investment in a reliable and experienced a tenfold timely fashion. plans to offer growth in sales since its It's not only numerous attractive SMEs that inception. Presently, it offers incentives stand to benefit over 800,000 products on to support from the largely its online platform. the rapid unexploited e-commerce growth of this space in Thailand. i n d u s t r y. T h e Tr e m e n d o u s j o b businesses could be opportunities have opened poised to make use of these up in Thailand's local dot-com advantages, and can expect to emerge industry. Lazada has been rigorously as one of the key players in Thailand's engaged in recruiting personnel, budding e-commerce space. through both online channels and
Lazada
Getting
To
Know
‘Lazada’ Lazada Co., Ltd. is owned
by the German company called Jade 1326 GmbH & Co Vierte Verwaltungs KG, a subsidiary of European e-commerce giant, ‘Rocket International GmbH’. Lazada’s online e-commerce store provides a viral marketplace for common consumer goods such as CDs, online games, movies, music & software, books & magazines, electronics & computers, home, garden & tools, grocery, health & beauty, toys, kid & baby, sport & outdoor, automotive & industrial, clothing, and shoes & jewelry.
Let The BOI Support Your Online Success Lazada Co., Ltd. has been supported by the new investment promotion measures (2015-2021) under the activity 5.8 E-Commerce Business, which is in the B2 category of activity-based incentives. BOI measures granted include non-tax incentives, e.g. permission to bring in skilled workers and experts to work in projects, permission for majority or total foreign ownership, etc. For further information and support, please contact Office of the Board of Investment.
NEWS BITEs Draft Dr Cooperation Framework On Thai-Chinese Railway Development Project
The Thailand cabinet approved a draft cooperation on November 17, 2015 for the Thai-Chinese railway Th development project. It covers the construction of 1.435-metre standard gauge railways along two routes, namely the Nong Khai-Nakhon Ratchasima-Kaeng Khoi route and the Bangkok-Kaeng Khoi-Map Ta Phut route. Collectively, the routes will cover a total distance of 867 kilometers and totally cost 350 billion THB. Thailand and China plan to take six months to analyze the project and evaluate the worthiness of the investment before submitting the project for Cabinet approval. Construction is tentatively expected to start in May 2016.
Infrastructure Project Approvals Under Fast-Track PPP
The Government has put five infrastructure projects worth 334 billion THB on the front burner, under the fast-track public-private partnership scheme. The projects include three mass-transit development routes in Bangkok, costing 194 billion THB and two inter-city highways with a combined 140 billion THB price tag. A recently issued mandate requires these public works to commence in the second half of 2016.
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BOI missions and events
NOVEMBER 2015
H.E. Minister of Industry, Dr. Atchaka Sibunruang, along with BOI Secretary General, Mrs. Hirunya Suchinai and BOI executives, exchanged views with entrepreneurs in various fields such as automotive and parts, electrical and electronics, petrochemical and environmentally friendly chemicals, and digital economy, about the new investment promotion policy on cluster development at the One Start One Stop Investment Center (OSOS), Chamchuri Square, from 2nd – 13th November 2015.
BOI Secretary General, Mrs. Hirunya Suchinai and the Mayor of Hamamatsu City, Mr. Yasutomo Suzuki, signed the MOU on cooperation to promote and support investment between the BOI and Hamamatsu City. The MOU signing ceremony was held on 19th October 2015 at the OSOS in the presence of Thailand’s Minister of Industry, H.E. Dr. Atchaka Sibunruang and the President of JETRO’s Bangkok office and Chief Representative for ASEAN and South Asia, Mr. Masayasu Hosumi.
BOI Deputy Secretary General, Ms. Duangjai Asawachintachit, welcomed the Deputy Premier of Tasmania, Mr.Jeremy Rockliff and the Thailand Trade Mission from Tasmania, Australia on 19th October 2015 at the OSOS and gave a presentation on the new BOI investment policy.
BOI Deputy Secretary General, Ms. Duangjai Asawachintachit, welcomed Senior Trade Commissioner, Mr. Greg Wallis and the Australian Trade Commission Delegation (Austrade) on 3rd November 2015, at the BOI headquarters and gave a presentation on the new BOI investment policy.
BOI Executive Director of the Eastern Region Investment and Economic Centre, Mr. Chanin Khaochan, together with BOI Mumbai Director, Ms. Kanokporn Chotipal and Thailand BIOTEC representative, Dr. Panit Kitsuban, led a mission to Bangalore, India, from 21st- 26th September 2015. The mission’s activities included seminars and visits to Indian companies in pharmaceutical, biotechnology as well as automotive industries. 10
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thailand ECONOMY-AT-A-GLANCE demographics asean population (2014)
population (2014)
67.7
625
million
liteRacy rate
minimum wage
96 %
million
300 baht/day Source : World Bank
gross domestic product gdp by sector 2014 agriculture
gdp/capita 2014 industry
total investment growth (%yoy, first 9 months)
gdp growth (%yoy)
12 %
$ 373.8 billion
45 %
$ 5,519.4 0.9 %
43 % 2014
3.5 % 4.5 %
-4.4 %
3.7 %
2015
2014
2015
(Projected)
services
Source : World Bank, NESDB
export figures thailand export value
TOP 10 EXPORTS (JAN-SEP 2015)
[ TRILLION USD ]
9 10
10.35 %*
0.25
8
0.20
7
0.15
6
0.10
1
$ 72.8 billion 2
5
0.05
4
3
-
2010
2011
2012
2013
2014 2015 p
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Motor cars, parts and accessories (24.5%) Computer parts and devices (16.6%) Precious stones and jewelry (11.0%) Plastic beads (8.0%) Refined fuels (7.9%) Electronic integrated circuits (7.3%) Rubber products (6.7%) Machinery and parts thereof (6.6%) Chemical products (6.3%) Iron and steel and their products (5.0%)
Note: *2009-2014 CAGR, 2015(P) figure projected by NESDB
Source: WTO, Ministry of Commerce
other economic indicators $ 15.4 billion
$ 157.1 billion
CURRENT ACCOUNT BALANCE (2014)
INTERNATIONAL RESERVES (2014)
86.8%
107.26
2.5 ± 1.5 %
MANUFACTURING PRODUCTION INDEX (SEP 2015)
HEADLINE CONSUMER PRICE INDEX (2011=100)
HEADLINE INFLATION (2014)
$ 224.8 billion
$ 24.6 billion
TOTAL EXPORT VALUE (2014)
TRADE BALANCE (2014)
58.8% CAPACITY UTILIZATION (SEP 2015)
$
Source : Bank of Thailand, Ministry of Commerce and World Bank
average exchange rates $ 35.70 thb
€ 39.56 thb
Source : Bank of Thailand
tax rates
( as of 2 nov 2015 )
£ 55.30 thb
¥ 0.30 thb
5.68 thb
10 - 20 %
1 - 10 %
7%
corporate income tax
withholding tax
value added tax
Source : The Revenue Department THAILAND INVESTMENT REVIEW
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about boi
The Office of the Board of Investment (BOI) is the principal government 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 incentives 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.
boi overseas offices stockholm
frankfurt beijing shanghai seoul
paris tokyo osaka new york
taipei guangzhou
los angeles
mumbai
thailand headquarterS
sydney
HEAD OFFICE, OFFICE OF THE BOARD OF INVESTMENT 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900 Thailand Website : www.boi.go.th Email : head@boi.go.th New York
Paris
Mumbai
Beijing
Tokyo
Thailand Board of Investment, New York Office 7 World Trade Center, 34 th FL.,Suite F 250 Greenwich St., New York, NY 10007 USA Tel. : +1 212 422 9009 Fax : +1 212 422 9119 Email : nyc@boi.go.th
Thailand Board of Investment, Paris Office Ambassade Royale de Thailande 8, Rue Greuze 75116 Paris, France Tel. : +33 1 5690 2600-1 Fax : +33 1 5690 2602 Email : par@boi.go.th
Thailand Board of Investment, Mumbai Office Royal Thai Consulate-General, Express Tower, 12th Floor, Barrister Rajni Petel Marg, Nariman Point, Mumbai, Maharashtra 400021 Tel. : (91 22) 2204 1589-90 Fax : (91 22) 2282 1525 Email : mumbai@boi.go.th
Thailand Board of Investment, Beijing Office Royal Thai Embassy No.40 Guang Hua Road. Beijing, 100600, P.R.China Tel. : +86 10 6532 4510 Fax : +86 10 6532 1620 Email : beijing@boi.go.th
Thailand Board of Investment, Tokyo Office Royal Thai Embassy, 8th Floor., Fukuda Building West, 2-11-3 Akasaka, Minato-ku,Tokyo 107-0052 Japan Tel. : +81 3 3582 1806 Fax : +81 3 3589 5176 Email : tyo@boi.go.th
Los Angeles, USA.
Frankfurt
Taipei
Shanghai
Osaka
Thailand Board of Investment, Los Angeles Office Royal Thai Consulate-General 611 North Larchmont Boulevard, 3rd Floor,Los Angeles, CA 90004 USA Tel. : +1(0) 323 960 1199 Fax : +1(0) 323 960 1190 Email : boila@boi.go.th
Thailand Board of Investment, Frankfurt Office Bethmannstr 58, 5.OG 60311 Frankfurt am Main Federal Republic of Germany Tel. : +49 69 9291 230 Fax : +49 69 9291 2320 Email : fra@boi.go.th
Thailand Board of Investment, Taipei Office Taipei World Trade Center, 3rd Floor, Room 3E40,No.5, Xin-yi Road, Sec.5 Teipei 110, Taiwan, R.O.C. Tel. : +88 6 2 2345 6663 Fax : +88 6 2 2345 9223 Email : taipei@boi.go.th
Thailand Board of Investment, Shanghai Office Royal Thai Consulate General 2nd Floor, 18 Wanshan Road, Changning District,Shanghai 200336, P.R. China Tel. : +86 21 6288 3030 ext. 828, 829 Fax : +86 21 6288 3030 ext. 827 Email : shanghai@boi.go.th
Thailand Board of Investment, Osaka Office Royal Thai Consulate-General, Osaka, Bangkok Bank Bldg. 7th Floor 1-9-16 Kyutaro-Machi, Chuo-Hu Osaka 541-0056 Japan Tel. : +81 6 6271 1395 Fax : +81 6 6271 1394 Email : osaka@boi.go.th
Stockholm
Seoul
Guangzhou
Sydney
Thailand Board of Investment, Sweden Office Stureplan 4C, 4th Floor, 114 35 Stockholm, Sweden Tel. : +46 8 463 11 58 +46 8 463 11 72 +46 8 463 11 74-75 Fax : +46 8 463 11 60 Email : stockholm@boi.go.th
Thailand Board of Investment, Seoul Office #1804, 18th Floor, Daeyungak Tower 25-5, 1-KA, Chungmu-Ro, Chung-Ku, Seoul, 100-706, Korea Tel. : +82 2 319 9998 Fax : +82 2 319 9997 Email : seoul@boi.go.th
Thailand Board of Investment, Guangzhou Office Investment Promotion Section Royal Thai Consulate-General, No. 36 Youhe Road, Haizhu District, Guangzhou, P.R.C. 510310 Tel. : +86 20 8385 8988 ext. 220-225 +86 20 8387 7770 (Direct Line) Fax : +86 20 8387 2700 Email : guangzhou@boi.go.th
Thailand Board of Investment, Sydney Office Level 1, 234 George Street, NSW 2000, Australia Tel. : +61 2 9252 4884 Fax : +61 2 9252 2883 Email : sydney@boi.go.th
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THAILAND INVESTMENT REVIEW