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.