thailand board of investment total inv. 8544,164 840 6,151 375 2,863 total for. 6753,359560 4,154263...
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ThailandBoard of Investment
Total Inv. 8544,164
840 6,151 375 2,863
Total For. 6753,359560 4,154
263 2,358
100% For. 3201,900291 2,391
118 1,410
By Country
Japan 275 1,332 251 1,672128 889
U.S.A. 48 420
35 196 18 560
Taiwan 42 103
55 964 30
46Hong Kong 17
202 13 268
8 198
Singapore 62 305
40 305
21 110
E.U. 84 567 66
321 31
464
2001 2002 2003 (Jan.-May) Number Value of Number Value of Number Value of
of Investment of Investment of Investment Projects (mil. US$) Projects (mil. US$) Projects (mil. US$)
Note 1: Investment projects with foreign equity participation from more than one country are reported in the figures for each country Note 2: 2001 US$=44.48 baht; 2002 US$=43.00 baht; 2003 US$=42.68 baht
Board of Investment Board of Investment Net Applications by Net Applications by
CountryCountry
ThailandBoard of Investment
Major Investors in Major Investors in 20022002
ProjectApprovals
Investment Value
Country Rank Country Rank
Japan 1 Japan 1
Europe 2 Europe 2
Taiwan 3 Singapore 3
Singapore 4 USA 4
USA 5 UK 5
ThailandBoard of Investment
Investment by Investment by SectorSector
(2002)(2002)
Sector Projects (Net Apps)
Value (Bt. Bn.)
Agriculture 171 82.3Minerals and Ceramics
13 2.2
Light Industry 71 15.1Metal Processing 193 58.1Electrical & Electronics
159 35.3
Chemicals 88 31.0Services 145 40.4
ThailandBoard of Investment
BOI Project ApprovalsBOI Project Approvals For India For India (1998-2003)(1998-2003)
Several Projects From APL Group Indo-Rama Textiles Indo Poly Indo Worth Indo-Thai Synthetics
A Total of 7 Software Projects, all in the Last 2 Years.
Two PET Projects, Each for More Than 1 Billion Baht
A Half-Dozen Jewelry Projects
ThailandBoard of Investment
BOI Project ApprovalsBOI Project Approvals For India For India (1998-2003)(1998-2003)
Services2%
Light Industry
45%
Chemicals, Paper and
Plastic29%
E&E16%
Agriculture8%
ThailandBoard of Investment
Liberal Investment Liberal Investment RegimeRegime
No Export Requirements No Foreign Equity
Restrictions in Manufacturing Sectors
No Local-Content Requirements
No Location Requirement in All But 6 Activities
ThailandBoard of Investment
The Board of The Board of Investment Investment
Basic Incentives and Basic Incentives and MeasuresMeasures
The Board of The Board of Investment Investment
Basic Incentives and Basic Incentives and MeasuresMeasures Guarantees and
Permissions Guarantees against
nationalization and price controls
Permission to own land and bring in foreign experts
Tax Incentives Tax exemption /reduction on
imported machinery and input
Income tax exemption Support services
Advisory and information provision
Publications
ThailandBoard of Investment
The Board of Investment The Board of Investment Basic Incentives and MeasuresBasic Incentives and Measures
The Board of Investment The Board of Investment Basic Incentives and MeasuresBasic Incentives and Measures
To reduce initial investment costs:Tax exemption or
reduction on imported machinery
Tax exemption or reduction on imported inputs
Exemptions from corporate income tax for 3-8 years
Note: Income Tax Holiday is capped at 100% of Investment Capital
ThailandBoard of Investment
Zones of OpportunityZones of OpportunityZones of OpportunityZones of Opportunity
ThailandBoard of Investment
Import Duty on Import Duty on MachineryMachinery
Zone1 Reduce
50%2 Reduce
50%3 Exempt
ThailandBoard of Investment
Import Duty on Import Duty on Raw MaterialsRaw Materials
Import Duty on Import Duty on Raw MaterialsRaw Materials
Zone1 1 Year
Exemption2 1 Year
Exemption3 5 Year
Exemption
ThailandBoard of Investment
Corporate Income Corporate Income Tax ExemptionTax Exemption
ZoneInside
Industrial
Estate
Outside Industrial Estate
Zone 1
3 Years Not Exempt
Zone 2
5 Years 3 Years
Zone 3
8 Years 8 Years
The Amount of a Project’s Corporate Income Tax Holiday is Capped at 100% of Investment Capital
ThailandBoard of Investment
Additional Zone 3 Additional Zone 3 Incentives Incentives
40 provinces
Inside Industrial Estate
Outside Industrial Estate
50% reduction of income tax for 5 years
Double deduction of water, electricity, transport costs for 10 years
25% deduction of infrastructure installation or construction costs
ThailandBoard of Investment
Additional Zone 3 Incentives Additional Zone 3 Incentives Additional Zone 3 Incentives Additional Zone 3 Incentives
18 least-developed provinces
Inside Industrial Estate
Outside Industrial Estate
50% reduction of income tax for 5 years
Double deduction of water, electricity, transport costs for 10 years
25% deduction of infrastructure installation or construction costs
ThailandBoard of Investment
Criteria and Condition Criteria and Conditionss
Criteria Value added D/E ratio Modern tech
nology Environment
al protection
Conditions 9000ISO Performance
based Cap on
corporate income tax exemption (equal to investment capital)
ThailandBoard of Investment
Investment Policy Investment Policy ReformReform
intensive
Old Model New Model Capital intensive & labor
intensive Skill & Knowledge
Production base Integrated Internationalbusiness center
Tax incentives provider Facilitation & investment services provider”
Standard package Customization to promote
SMEs and communityenterprises
Large Corporations,
ThailandBoard of Investment
New Investment New Investment Promotion FocusPromotion Focus
3 Dimensions3 Regions7 Strategies5 Target Industries
ThailandBoard of Investment
3 Dimensions3 Dimensions
Shift emphasis from capital investment towards investment that creates:TalentSkill DevelopmentTechnology Transfer Innovation
Customized Incentive Packages: Balance between investor needs and economic contribution
Cluster Development
ThailandBoard of Investment
Developing Industrial Developing Industrial ClustersClusters
Developing Industrial Developing Industrial ClustersClusters
Project location requirements have been lifted
New and Expansion projects are free to expand wherever they deem appropriate
For environmental protection purposes, the following activities do not apply:Tanneries, bleaching and
dying, heat treatment using cyanide, recycling/reusing unwanted materials
ThailandBoard of Investment
Changing Role of the BOIChanging Role of the BOI
Provide Tax Provide Tax IncentivesIncentives
Provide Value-Added Provide Value-Added
Investment ServicesInvestment Services
Solve Problems and Enhance
Investment Environment
ProactiveMarketing
Set up Investment Network
Enhance Capabilities of Thai
Community Enterprises
Market Community Enterprises
Develop KnowledgeAbout International
Investment Law
Promotion InvestmentAdministration
Develop Database System
Increase Training and Skills Development
ThailandBoard of Investment
55 Target IndustriesTarget Industries
Agro Industry Food Processing Rubber Products Bio - Technology
Fashion Industry Jewelry Leather Products Garments
Automotive Pick-ups Major Auto Parts
High Value - Added Services
Long Stay ROH Film Industry
Printing Industry MICE Call Center
ICT incl. Electronics Fiber Optics Telecom
IC Design
ThailandBoard of Investment
Target IndustriesTarget Industries Specific Policies and
Measures Will Be Developed for Each Target Industry, Based OnCompetitivenessLevels of technologyMarket potential
Non-target IndustriesNo change in policyNo backtrackingNo reduction in incentives
ThailandBoard of Investment
Thai Automotive Thai Automotive IndustryIndustry
Thailand: Regional Hub15 assemblers with capacity
of 1 million units/year5 motorcycle manufacturersLarge supplier base
700 tier 1 suppliers1,100 tier 2&3 suppliers
Strong market potential 35% domestic sales growth
(H1/03)39% export growth (Jan.-
May)
ThailandBoard of Investment
New Automotive Industry New Automotive Industry PolicyPolicy
Projects must be submitted in packages comprising manufacture of car assemblies, vehicle parts and automotive engines.
Investment must be not less than 10 billion baht.
Car assemblies manufacture must be export-oriented with a distinct target.
Vehicle parts and automotive engines manufacture will supply products in their own packages or for export only.
ThailandBoard of Investment
More than 1,000 companies involved in these industries, including 621 BOI-promoted companies thatEmploy 300,000+ Thai
workersGenerate annual export
earnings of more than US$20 billion, or roughly 35% of all Thai exports
Trade surplus in 2001 of US$4.7 billion
Electronic and Electrical Electronic and Electrical Industry in ThailandIndustry in Thailand
Electronic and Electrical Electronic and Electrical Industry in ThailandIndustry in Thailand
ThailandBoard of Investment
HDD & HDD Parts IBM, Fujitsu, Western Digital,
Nidec,Seagate, Read-Rite, Hoya, Minebea
Printers Cal-Comp, Canon, Oki
PCBAs Celestica, Koshin, ACT, SCI
Systems, SVI, Hana, Pemstar, PCTT, Mektec
White Goods (Air Conditioner, Refrigerator) Daikin, Fujitsu General,
Mitsubishi, Sharp, Toshiba, Sanyo
Current Key Players in Current Key Players in Thailand’s E&E Thailand’s E&E
IndustryIndustry
ThailandBoard of Investment
Promotion of Value Promotion of Value Chain Chain
in Electronics Industryin Electronics Industry Promote projects in the
electronic industry that locate all elements of the value chain in Thailand
Cover all downstream and upstream activities, such as R&D, design, quality control, production development, and technical support
Have total sales of at least 2,500 million baht/year
Must transfer technology to domestic operators
ThailandBoard of Investment Regional Operating
Headquarters Tourism-Related Activities
Retirement Homes Long-stay Tourism Dedicated Health Centers
ICT-Related Services E-Commerce application
service providers E-Commerce users
Entertainment Industry Printing Industry
High Value ServicesHigh Value Services
ThailandBoard of Investment
Regional Operating Regional Operating Headquarters (ROH)Headquarters (ROH)
Last year, the Government Established Regulations Covering Regional Operating Headquarters
Companies must be incorporated under Thai law and have paid-up minimum capital of 10 million baht They must service branches or
affiliates in at least 3 countries Income must come from managerial,
administrative, technical, or other prescribed supporting services for branches/associated companies
ThailandBoard of Investment
ROHROH Benefits
Corporate income tax at 10% for:Qualified servicesRoyalties from ROH in ThailandInterest income on loans made to ROH branches/associated enterprises
Tax exemption for dividends from ROH branches/associated enterprises
Expats working for ROH are taxed at 15% for 1st 2 years, instead of on sliding scale
ThailandBoard of Investment
Services of the BOIServices of the BOI
The BOI offers : Support around the world – 5
overseas offices (New York, Paris, Frankfurt, Shanghai, Tokyo)
One-Stop Shop for Visas and Work Permits – Work Permits within 3 hours
Services of BUILD Unit to promote industrial subcontracting ASEAN Supporting Industry Database (ASID)
Comprehensive, world-class website Help with work and residency permits Interaction with other government
agencies on behalf of investors
ThailandBoard of Investment
• Up-to-date Info on BOI Policies, Procedures, Incentives and Services
• Links to Business News About Thailand
• What’s New at the BOI• Links to Important
Business Sites• Cost of Doing Business
in Thailand
• Database of Promoted Companies
• Comprehensive Information From Other Government Agencies
• BOI Statistics• Trade Statistics• Demographic Data• Industrial Estates
Since 2000, the BOI web site has been ranked as Since 2000, the BOI web site has been ranked as the the #5 Investment Promotion Agency website Investment Promotion Agency website
in the world byin the world by Corporate LocationEmail: [email protected]: [email protected]
BOI on the InternetBOI on the Internethttp://www.boi.go.thhttp://www.boi.go.thBOI on the InternetBOI on the Internethttp://www.boi.go.thhttp://www.boi.go.th