SMART ELECTRONICS THE FOUNDATION OF SMART INDUSTRIES - THAILAND INVESTMENT REVIEW - BOI
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THAILAND INVESTMENT REVIEW VOL.30 | FEBRUARY 2020
SMART
ELECTRONICS
THE FOUNDATION
OF SMART INDUSTRIES
BOI NET APPLICATION
CONTENTS
JANUARY – DECEMBER 2019
TOTAL TOTAL FOREIGN
INVESTMENT INVESTMENT
02 1,624 991
BOI NET Projects Projects
APPLICATION
US $24,312.03 US $16,277.49
Million Million
03
COVER STORY
FOREIGN INVESTMENT
BY TARGET SECTORS
05 ELECTRONICS AUTOMOTIVE
INDUSTRY FOCUS
140 US $2,522.06 101 US $2,255.79
Projects Million Projects Million
07
SHORT ARTICLE PETROCHEMICALS TOURISM
& CHEMICALS
60 US $602.57 15 US $450.77
08 Projects Million Projects Million
COMPANY INTERVIEW
AGRICULTURE DIGITAL
& FOOD PROCESSING
10 71 US $375.31 134 US $266.37
Projects Million
BOI’S MISSIONS Projects Million
& EVENTS
BIOTECHNOLOGY MEDICAL
11 7 US $190.29 13 US $79.97
THAILAND ECONOMY Projects Million Projects Million
AT- A-GLANCE
AUTOMATION & ROBOTICS AEROSPACE
12 7 US $26.98 2 US $17.52
ABOUT BOI Projects Million Projects Million
MAJOR FOREIGN Unit: US$ (US$ = 31.1 THB as of 31 January 2020)
Note: Investment projects with foreign equity participation from more than one country are reported in the figures for both countries.
INVESTMENTS
Statistics on net applications are adjusted whenever applications are returned to applicants due to insufficient information.
1 2 3 4 5
PEOPLE’S REPUBLIC OF JAPAN HONG KONG SWITZERLAND TAIWAN
CHINA 227 Projects 67 Projects 21 Projects 76 Projects
203 Projects
US $2,350.55 US $1,167.65 US $766.01 US $645.88
US $8,414.98 Million Million Million Million
Million
6 SINGAPORE 7 USA 8 NETHERLANDS 9 AUSTRALIA 10 SOUTH KOREA
120 Projects 34 Projects 47 Projects 14 Projects 33 Projects
US $394.63 US $394.18 US $335.31 US $148.26 US $100.93
Million Million Million Million Million
For more details, please see www.boi.go.th
Cover Story
SMART
ELECTRONICS
SMART INDUSTRIES
Lifestyle changes are driving new
demands for a growing array of
intelligent products. Decreasing
birthrates and increased urbanization
are contributing to an aging population,
smaller working age population,
smaller families, and solo living.
People are more concerned by health
and wellbeing. Modern consumers
increasingly care about environmental
impact of their product choices.
At the same time importance of
connectivity and mobility is growing.
These global trends are driving
demand for consumer electronics
products such as health promoting
electronic devices, care robots, mobile
communication devices, and small-
but-smart home appliances. These
products are more energy efficient and
environmentally friendly. Moreover,
they are equipped with smart
technologies that use computation industry is the foundation for all block that enables many other growth
and connectivity to access and share smart industries. industries. Smart Electronics is
information in real time in almost any indeed a “National Industry Agenda”
place. as described by The Electrical and
NATIONAL INDUSTRY Electronics Institute (EEI). The institute,
The modern economy is driven by AGENDA supervised by the Ministry of Industry
data, and that trend is being accelerated Thailand’s E&E industry is already the (MOI), has proposed three key pillars
by the spread of IoT. This has spurred world’s second largest air conditioner of sustainable smart E&E development. 5
a rise in smart electronics, which can exporter,1 as well as a major producer First a collaborative platform among
be defined as any intelligent device of refrigerators, cellphones, electronic designers, programmers and marketers
with integrated sensors that is connected integrated circuits (IC) and micro- must be created. Second, a data
to the internet. These devices, which assemblies, and hard disk drives. science center needs to be established
can include the capabilities of sensing, In 2019, Thailand’s forecasted E&E to analyze and make use of industrial
actuation, and control, are used in export value was US $59.52 billion,1 and behavioral data efficiently. Lastly,
everything from smart traffic management equaling 24 percent of Thailand’s an industry’s innovation lab must be
systems, to smart building solutions, total exports.2 The E&E industry, and set up to research and test product
energy automation systems, smart its supporting supply chain, employ standards as well as user design. In
farming, healthcare service management, more than 750,000 workers, making line with the EEI strategy, the MOI
and many other systems. it one of the largest industrial has formed measures to enhance the
employers in Thailand. capacity of the E&E industry in four
The industrial sector is quickly key areas; 1) capacity enhancement
adopting these technologies to The government selected Smart of potential and existing operators
become “smarter” and more efficient Electronics to be one of the 12 such as manufacturers of hard disk
in managing resources, improving targeted growth industries under drives and electrical appliances,
productivity and reducing costs. the Thailand 4.0 economic model as well as promoting IC design,
The electrical and electronics (E&E) because it is a fundamental building wafer fab and embedded software
1 Office of Industrial Economics. (2020). Thailand Economic Outlook and Forecast 2019. Retrieved from http://www.oie.go.th/2019annualreport
2 Ministry of Commerce. (2020). Thailand Trading Report 2020. Retrieved from http://www.ops3.moc.go.th/tradereport
THAILAND INVESTMENT REVIEW 03
Cover Story
businesses; 2) enhancing system
developers, including establishing
an IoT Platform, Center of Smart
E&E, and standards of smart E&E
products; 3) market stimulation by
tax incentives and other support;
and 4) disposal of electronic waste.
Ultimately, the MOI aims to promote
new growth industry subsectors
that require advanced technologies
and developer skills, such as smart
home, smart appliances, wearable
electronics, and electronics design.3
STRONG E&E INDUSTRY
Thailand is well positioned to be a
prominent manufacturing base of
smart E&E products. The Thai E&E
industry is highly proficient in the to US $2.19 billion by 2030.4 Cloud
production and development of services and mobile devices are
sophisticated E&E products. Thai also substantial parts of the Smart
manufacturers, as well as MNC’s such Electronics trend.10 Various government
as Bosch, Siemens, Daikin, Samsung, targeted growth industries, from
Seagate, and Western Digital that next-generation automotive to the
have manufacturing operations in digital industry, are creating large
Thailand, are trusted by global partners market opportunities for providers
because of their skill in precision of electronic industrial parts and
manufacturing, as well as electronic systems with applications ranging
manufacturing services such as IC from private smart factories to
design. Thailand has an extensive government smart city initiatives. In
E&E supply chain, and companies addition to the domestic consumer
are equipped with well trained and industrial markets, Thailand has
technicians and engineers who are convenient links to ASEAN, China manufacturing of E&E products,
capable of harnessing the benefits of and Japan, providing easy access to parts or equipment used for E&E
factory automation systems. a large regional demand. products, including material for
microelectronics, may be granted
In the consumer electronics segment, BOI INCENTIVES corporate income tax exemption up
major opportunities lie in the rise of FOR SMART E&E to eight years. The more advanced
IoT-embedded electrical appliances. Committed to facilitating investors embedded software developer and
Backed by strong supply chains and business success, the BOI constantly electronics design business, including
trends in digital services, the market works with ministries and industry microelectronics design and embedded
value of Thai IoT is forecasted to leap experts to enhance policies and system design, could also receive
from only US $120 million in 2018 incentives. Investment in the the generous eight-year holiday on
corporate income tax with 8-year
CIT exemption (No CIT exemption
ceiling)
Opportunities for investors in the
smart electronics industry go far
beyond the E&E sector. The smart
technologies will also transform
other growth industries, including the
digital, robotics, aviation, automotive,
agriculture, food, and healthcare
industries. With supportive incentives
from the BOI, along with the existing
expertise of the domestic E&E supply
chain, Thailand is an excellent choice
for investors in this industry segment.
3 Ministry of Digital Economy and Society. (2019). Thailand Technology Foresight 2035. Retrieved from https://www.depa.or.th/database
4 Ministry of Industry. (2020). Smart Electronics in First S-Curve. Retrieved from http://www.industry.go.th/database
04 THAILAND INVESTMENT REVIEW
Industry Focus
INTERNET OF THINGS
IN THE THAI MARKET
PROLIFERATION OF IOT
After years of anticipation, the era
of the Internet of Things (IoT) has
arrived. Real products and services are
accessible to not only the industrial
sector, but also to end consumers.
Products such as smart fridges,
smart watches, health trackers, smart
bike locks, and even a smart yoga
mat, have become common in just
a few years. IoT devices, defined
as anything that has a sensor-
attached and the ability to connect
and transmit data over the Internet,
are game changers because of their
ability to capture data which can be
processed into valuable information
for businesses and consumers. The
applications that are enabled by the
technology are virtually limitless.
THE GLOBAL MARKET
The number of IoT devices worldwide
is skyrocketing. It is estimated that
there will be more than 75 billion IoT
devices installed by 2025, five times
as many as in 2015. This growth has
created opportunities for businesses
large and small to build innovative applications of IoT technologies are system interconnectivity platform
IoT products. McKinsey & Company diverse, including industry, agriculture, with data analytics systems, the
reported that the percentage of retail, and medical services. Research factory achieved a seven percent
businesses using IoT grew from indicates that public utilities, for improvement in productivity and
13 percent to 25 percent during the example smart meters, are the segment up to thirty percent energy savings.
period from 2014 to 2019. The industrial with the highest installed base, In another example, Michelin, a
accounting for one quarter of the total world-renowned tire manufacturer,
endpoints. Building automation is applied IoT to address a different
predicted to enjoy the highest business concern, asset tracking and
growth rate in 2020, followed by the monitoring. The tire giant developed
automotive and healthcare segments. IoT a real time tracking and analytics
spending is forecast to increase from solution for its sea freight. During the
US $726 billion in 2019 to US $1.1 trillion pilot period the company reported
in 2023. that the accuracy rate of shipment
ETA’s improved by 40 percent, there
The benefits of IoT can be illustrated was a 10 percent reduction of inventory
by considering case studies of early in transit, and “out ofstock” occurrences
adopters, such as the case of Schneider were reduced by 75 percent. In both
Electric’s smart factory in France, cases, the connected IoT technology
which was highlighted by The World devices captured and communicated
Economic Forum as one of the information which was integrated
smartest factories in the world. By with other data, analyzed, often in real
integrating IoT technologies into the time, and transformed into valuable
facility, and creating a machine and business insights by sophisticated
THAILAND INVESTMENT REVIEW 05
Industry Focus
a centralized system with 250,000 IoT
sensors installed. Another application
is from the insurance sector, Thaivivat
Insurance has a system that uses IoT
to track motor vehicle usage and
offers vehicle owners the option of
on demand insurance coverage. This
“Pay As You Drive” plan can reduce
premiums by up to 40 percent.
IoT plays a significant role in the
digital and economic transformation
of the government’s Thailand 4.0
vision. The BOI offers a range of
investment incentives to support
and promote investment in IoT and
related digital technologies, including
eligibility to receive up to eight years
of corporate tax exemption and
non-tax privileges. The EECd digital
analytics tools. Applications of IoT by 2030. From a baseline of industry promotion zone, offering
will continue to expand and become US $120 million in 2018, that represents investors from targeted industries
more varied and more customized to a CAGR of more than 27 percent. This additional compelling tax incentives,
different business requirements. This rapid growth, the highest among all is set to become the technology
trend will be made possible by a range of Smart Electronics segments, makes supercluster that drives Thailand’s
IoT devices that bring higher computing the IoT market a huge opportunity. growth in this important industry
power, more affordable price points, A recent Asia IoT Business Platform segment.
smaller size, and enhanced computing survey ranked Thailand highest
and sensor technologies, as well as among ASEAN countries in corporate
the faster and more reliable 5G next IoT implementation.
generation connectivity.
The arrival of 5G, set to be ready by
IOT OPPORTUNITIES 2020, is expected to further accelerate
IN THAILAND the adoption of IoT, and Thai network
IoT represents a powerful disruptive operators are prepared for the
force because it is not merely a forecasted IoT boom. CAT Telecom
single technology, it is a foundation is developing a LoRaWAN network to
for capturing and analyzing data serve the Smart City project in Phuket
which will fuel future innovations and while AIS and True have rolled out
economic growth. In fact, several multiple IoT solutions for consumers
of the government’s Thailand 4.0 and businesses.
initiatives, such as Smart City and
Industry 4.0, are focused on boosting USE CASES
adoption of IoT. The government The current majority of IoT adoption
also established the Digital Economy in Thailand has been in manufacturing,
Promotion Agency (DEPA) under logistics and transportation, however,
the Ministry of Digital Economy and applications are being developed
Society (MDES), which collaborates across many industries. For example,
with the private sector and numerous PTT, the Thai oil and gas company,
partner organizations, including agencies has a gas pipeline maintenance
under the Ministry of Industry, to system, called the Integrated Pipeline
establish an IoT Institute and Thailand Maintenance and Monitoring System
Digital Valley in the digital industry (iPMMS), that uses IoT devices to
promotion zone (EECd), located in reduce cost and increase safety. In
the Eastern Economic Corridor area. real estate, developers are planning
smart buildings that incorporate IoT,
The IoT market in Thailand is forecast including projects such as the flagship
to grow, driven mostly by consumer- business district, One Bangkok. The
related IoT, rising to US $2.19 billion entire district will be managed by
06 THAILAND INVESTMENT REVIEW
Short Article
WELCOME TO THE EEC:
ASIA’S PRIME GATEWAY
investment promotion zone which
was announced in February 2019, is
located at the Thammasat University
Campus in Pattaya. This future hub of
innovative health care includes a new
Thammasat University hospital as
well as a Senior Complex to support
the aging society in Thailand.
The EEC promotional zones qualify
for tax and non-tax investment
incentives for specific industries,
including exemption from corporate
income tax (CIT) for up to 13 years
with 8-year CIT exemption (No CIT
exemption ceiling)
E&E IN EEC
The electrical and electronics (E&E)
industry is a major investor in the
THE PRIME GATEWAY TO ASIA Economic Corridor of Innovation EEC, along with the automotive and
Since 2016, the Eastern Economic (EECi), and the Medical Hub (EECmd), petrochemical industries. Thailand is
Corridor (EEC), Thailand’s flagship as well as expansions of the Map Ta a major producer of E&E goods and
economic zone, has attracted investment Phut and Laem Chabang Seaports. services and has a well-integrated
applications totaling more than supply chain. Smart electronics are
US $39 billion. In 2018, applications for The EEC megaprojects are already expanding the reach of the E&E
investments exceeded US $22 billion, underway. In the EECa zone, the industry by delivering components
a year-on-year increase of 117 percent. upgrade of U-Tapao International for the Next Generation Automotive
In 2019, 59 percent of all investment Airport, as well as the surrounding industry, Smart Homes, and Smart
applications received by the BOI were commercial areas and MRO facilities, Cities.
from projects in the EEC. are scheduled to be complete by 2023.
In the Digital Park, major construction The EEC is home to many multinational
Thailand’s gateway to Asia ranges is underway, including the Intelligent corporations in the E&E industry,
across three eastern provinces, Operation Center (IOC), due to be including Emerson, Samsung, Sharp,
Chachoengsao, Chonburi and Rayong. completed in July 2020, and the IoT Sony, and Sumitomo. In 2018, Hitachi
The EEC Development Plan is designed Institute, expected to be completed opened the Lumada Center Southeast
to help transform Thailand into a by 2021. The contract for the 3 Airport Asia in Chonburi. The Hitachi center
value-based economy supported by High Speed Rail Link Project was was one of the first movers in the
innovation, technology and creativity, signed in October 2019, construction market to offer industrial IoT solutions.
with extensive and efficient links to sites are now being prepared, and
ASEAN and the world. rail operation is expected to start by PROSPEROUS FUTURE
2023. EECi, the promotion zone for The EEC offers a promising opportunity
INVESTMENT the R&D and innovation ecosystem for E&E investors looking for long-
PROMOTION ZONES for the automation, robotics, agri- term yields. Companies wishing to
The EEC project includes a food and biotechnology industries, reach the ASEAN marketplace, with a
US $32.93 billion infrastructure started construction in February 2019. population of more than 650 million
upgrade plan, including the Eastern Currently 72 percent of the project’s people, should consider investing
Airport City “Aerotropolis” (EECa), “Phase 1” space has been leased or is in the EEC because of the industry
Digital Park Thailand (EECd), High under negotiation with tenants and it ecosystem, upgraded infrastructure,
Speed Rail Ribbon Sprawl (EECh) is expected to start operation by mid- generous tax and non-tax incentives,
linking 3 main airports, the Eastern 2021. The Medical Hub, the latest and strong connectivity to regional
and global markets.
THAILAND INVESTMENT REVIEW 07
Company Interview
SEAGATE
CONTINUES FOSTERING
INNOVATION IN THAILAND
MR. JEFF NYGAARD
•
SEAGATE’S EXECUTIVE
VICE PRESIDENT OF
OPERATIONS, PRODUCTS,
AND TECHNOLOGY
Seagate Technologies, a global
leader in data management,
has provided the data solutions
behind the technologies, from
personal computers to the cloud
to autonomous vehicles, and smart
cities that have revolutionized
the lives of individuals across the
world. Thailand has played an
important role in the company’s
overall success, as Seagate has
been active in the country for The environment that Seagate entered some product development activities
37 years. During that time, in 1983 has changed considerably to Thailand. Transitioning such
the company has expanded over the years. What began as labor- value-added services to a new
its presence and taken on a intensive manufacturing has evolved location takes time, and Mr. Nygaard
leading role as a steward for the into automation-driven manufacturing. credits the consistency of the
development of innovation and While the Thai workforce is more Thai Government’s vision and
technology in the country. expensive today, it has also become support for allowing Seagate to
more skilled, enabling Seagate to cultivate a world-class working
In 1983, Seagate’s first facilities find local talent to fill the higher value environment.
in Thailand opened their doors. positions it needs.
At the time, the country offered The broader development of the
both a low-cost workforce as “Today, we are here because of the business environment has also
well as a strategic location in the workforce,” said Mr. Jeff Nygaard served to facilitate the expansion
heart of Southeast Asia, a region (Seagate’s Executive Vice President of of Seagate’s operations in Thailand.
in the midst of a rapid ascent that Operations, Products, and Technology). The combination of Government
continues to this day. In addition, “The workforce is quite experienced, policy, the economic rise of Asia,
the Thai Government’s commitment from the operator, technician, to and an improved Thai workforce
to creating an enabling environment professional, and throughout the created a flourishing ecosystem,
for businesses swayed Seagate’s management levels.” not only multi-national corporations,
decision-makers to invest in but domestic firms as well. As such,
Thailand. From the Government’s Because of the quality of the workforce, Seagate has built a robust supply
perspective, Seagate’s presence Seagate has moved more value-added chain, encompassing approximately
was not only good for economic components of its operations to Thailand. 750 local suppliers in Thailand.
development, but also for sparking In fact, the company’s global financial
a more innovative mindset in services unit is now based in Bangkok. “The fact that we have the talent
Thailand. The company has also transitioned and supply chain in Thailand has
08 THAILAND INVESTMENT REVIEW
Company Interview
been a huge enabler to help us get to
where we are today,” said Mr.Nygaard.
Seagate management views its
investment in Thailand on a long-term
time horizon. This is evident through
both its expansion into value-added
services as well as its commitment to
workforce development. To support
the next generation of workers, Seagate
takes an active role in improving
the quality of education nationwide.
Specifically, the company has partnered
with a range of government agencies
anduniversities to improve science,
[technology, engineering, and
mathematics] (STEM) learning from
the grade-school through university
levels. The company aims to inspire
youth to pursue high-value STEM
careers and enhance technical
education so that graduates are
prepared to succeed in emerging
fields, such as automation, data
analytics, and mechatronics.
Over the past ten years, Seagate has
also made substantial investments
in research and development (R&D)
Since 2003, Seagate has collaborated More broadly, innovation is at
initiatives in Thailand. The company
closely with local universities in R&D the heart of Seagate’s vision.
currently supports 17 active projects
activities, the company has launched Just as it has done throughout its
with strategic partners, including the
engineering hubs with Khon Kaen history, the firm is hard at work
National Science and Technology
University (KKU), Suranaree University developing the next generation of
Development Agency (NSTDA), King
of Technology (SUT), and King data solutions needed to enable
Mongkut’s Institute of Technology
Mongkut Institute of Technology emerging technologies to reach
Ladkrabang, and Suranaree University
Latkrabang (KMITL). Subsequently, their potential and empower
of Technology. These R&D initiatives
many graduates from these universities human flourishing worldwide.
demonstrate Seagate’s commitment to
have been employed by Seagate.
Thailand’s domestic innovation space.
From cloud-based solutions to
Moreover, Seagate has also been a store the exponential rise of Big
“The fact constant supporter of The AMCHAM Data to local storage needed
Thailand Foundation (ATF). The ATF to provide the real-time data
that we have has funded the University education
of almost 3000 deserving Thai
necessary for autonomous vehicles
to run safely, Seagate is at
the talent and students. The ATF organizes camps
for new and graduating students of
the forefront of technological
progress and helping Thailand
supply chain
the program every year to prepare shape its 4.0 industries.
them for life after university. Seagate
funds scholarship for deserving ATF As the company forges ahead, it
in Thailand students and during the orientation has made strategic investments
camp, students visit Seagate’s facilities in both its own operations as
has been a huge to get hands-on corporate world
experience. The company also works
well as the future workforce of
Thailand. As a result, Thailand will
enabler to help hand in hand with the International
Labour Organization (ILO) to further
continue to play a prominent role
in Seagate’s operations, helping
us get to where
supports female retention and career the company harness the power
advancement in the company by up of data to propel the next
skilling and broadening critical soft technological revolution.
we are today,” skills of female employees working
in STEM-related frontline positions.
THAILAND INVESTMENT REVIEW 09
BOI’s Missions and Events
THAILAND’S INVESTMENT ECOSYSTEM UPDATE MOU ON COOPERATIVE AND WORK
16 JANUARY 2020 Mr. Kobsak Pootrakool, Deputy INTEGRATED EDUCATION
Secretary General to the Prime Minister for Political Affairs, 30 JANUARY 2020 Ms. Duangjai Asawachintachit, BOI
along with Ms. Duangjai Asawachintachit, Secretary Secretary General, and Mr. Seksan Ruangwohan, Deputy
General of the Board of Investment, and Ms. Pimchanok Secretary General, attended the academic conference to
Vonkorpon, Director General of the Office of Trade promote Cooperative and Work Integrated Education
Policy and Strategy Office, Ministry of Commerce, met (CWIE) and signed an MOU for cooperation on CWIE with
the international press to discuss “Thailand’s Investment the Ministry of Higher Education, Science, Research and
Ecosystem Update.” The briefing was held at the Foreign Innovation, government agencies, educational institutes
Correspondents Club of Thailand (FCCT) at Maneeya and private companies. The conference took place at Rama
Center Building on Ploenchit Road in Bangkok. Gardens Hotel in Bangkok, and was attended by over 500
senior executives from the public and private sectors.
JAPAN – THAILAND ENVIRONMENTAL WEEK
16 JANUARY 2020 Mr. Chokedee Kaewsang, BOI
Deputy Secretary General, presented about investment
promotion policies for businesses focused on environmental BOI BRIEFS JAPANESE BANKS
topics in the seminar “Japan – Thailand Environmental 22 JANUARY 2020 Mr. Chokedee Kaewsang, BOI
Week” at The Berkeley Hotel Pratunam in Bangkok. The Deputy Secretary General, welcomed the delegation
event was jointly organized by Thailand’s Ministry of of representative offices of Japanese banks in Thailand
Natural Resources and Environment, Japan’s Ministry to the meeting to share information about the BOI’s
of the Environment, Japan International Cooperation investment promotion policies, measures and incentives.
Agency (JICA) and the Japan Environmental Management The event, organized by Shoko Chukin Bangkok
Association for Industry (JEMAI). Representative Office, was held at the BOI’s One Start
One Stop Investment Center (OSOS), Chamchuri Square
Building in Bangkok
BOI PRESENTS INVESTMENT PROMOTIONS
TO KOREAN EXECUTIVES
22 JANUARY 2020 Mr. Narit Therdsteerasukdi, BOI
Deputy Secretary General, delivered opening remarks
and presented new investment promotion measures at JAPAN-THAI BUSINESS MATCHING
the BOI’s seminar “All Korean Executives Need to Know 28 JANUARY 2020 Mr. Seksan Ruangwohan, Deputy
about Doing Business in Thailand” at Cape Dara Resort Secretary General of the BOI, presided over the opening
Pattaya in Chonburi Province. Mr. Kim Hyuntae, Director ceremony of the “Japan-Thai Business Matching 2020,”
General of KOTRA Bangkok, and Mr. Kim Do-Soon, a business matching event that promotes domestic
President of the Korean-Thai Chamber of Commerce, sourcing of components and parts by facilitating trade
also addressed the attendees. Event speakers include connections between companies from Japan and Thailand.
representatives from the Eastern Economic Corridor The event, organized by the BOI’s Industrial Linkage
(EEC) Office, the Customs Department, the Immigration Development Division, Japan Finance Corporation (JFC)
Bureau and the Department of Employment. The seminar and the Japanese Chamber of Commerce (JCC), was held
brought together 160 Korean business operators in the at the Bangkok International Trade & Exhibition Centre
eastern region and members of the Korean-Thai Chamber (BITEC). The event attracted more than 400 buyer firms
of Commerce. and exhibitors, resulted in 1,250 business matches
10 THAILAND INVESTMENT REVIEWThailand Economy at-a-Glance
KEY ECONOMIC FIGURES CLMVT ECONOMY AT-A-GLANCE
Source: IMF, International Trade Statistics, UNCTAD, World Bank Data 2018
POPULATION GDP GROWTH FDI
GDP
US $543.7
(2018)
BILLION 242 8.2% 52
Million US $ Billion
IMPORT EXPORT
GDP PER
CAPITA US $7,856 FROM THE WORLD FROM THE WORLD
12.7% 9.9%
(2018)
(540 bil. US $) (535 bil. US $)
GDP GROWTH
INTERNATIONAL COMPETITIVENESS Source: WEF, IMD and World Bank
2018 2019 THAILAND IS THE EASIEST CLMVT COUNTRY TO DO BUSINESS.
4.1% 2.4% LEAST TIME HIGHEST RATING:
27TH
TO SET UP BUSINESS WORLD BANK EASE OF
4.5 DAYS
DOING BUSINESS 2019
INVESTMENT GROWTH
FEWEST
PROCEDURES 5 STEPS
HIGHEST SCORE:
WORLD ECONOMIC 38TH
FORUM COMPETITIVENESS
INDEX
2018 2019
EXPORT FIGURES
6.3% 4.8%
EXPORT VALUE
JANUARY-DECEMBER 2019 244,956.87 US $
MILLION
EXPORT VALUE GROWTH TOP 10 INDUSTRIES TOP 10 MARKETS
2017 2019
7.2% -3.2% Motorcars and Parts Computers and Parts USA China
$27,168.52 $18,153.94 $31,224.27 $29,012.02
Share 11.1% Share 7.4% Share 12.7% Share 11.8%
UNEMPLOYMENT
2018* 1.1% Precious Stones
and Jewellery
Rubber Products
$11,182.06
Japan
$24,464.24
Vietnam
$12,065.19
1%
HEADLINE $15,634.00 Share 4.6% Share 10% Share 4.9%
INFLATION Share 6.4%
2019*
Source: NESDB
*Forecast under Source: NESDB, add Bank of Thailand
Plastic Beads Chemical Products Hong Kong Malaysia
$9,140.26 $7,566.76 $11,666.35 $10,420.05
Share 3.7% Share 3.1% Share 4.8% Share 4.3%
MARKET PROFILE 2019
POPULATION
69.6
Electronic Refined Fuels Australia Indonesia
Integrated Circuits $7,315.16 $10,194.43 $9,059.55
$7,560.27 Share 3% Share 4.2% Share 3.7%
Million Share 3.1%
MINIMUM WAGE $ APPROXIMATE
PER DAY
THB 331 US $10.64 Machinery Other Industrial Singapore India
and Parts Products $8,807.49 $7,319.37
Source: United Nations and Ministry of Labor
$7,277.70 $6,269.28 Share 3.6% Share 3%
Share 3% Share 0%
Source: Ministry of Commerce
EXCHANGE RATES Source: Bank of Thailand
Note: Baht/ 1 Unit of Foreign
(Data as of 31 January 2020)
Currency - Average Selling Rates.
JPY currency is for 100 Yen TAX RATES Source: The Revenue Department
CORPORATE PERSONAL VAT WITHOLDING
INCOME TAX: INCOME TAX TAX
THB THB THB THB THB
31.1 41.2 34.7 28.9 4.5 20% 35% 7% 1 - 10%BOI OVERSEAS OFFICES
B EI J I N G
STO C K H O L M S HA N G HA I
S EOU L
FRA N K FU RT
TOKYO
NEW YO RK PA RI S OSA KA
TA I PEI
LOS ANG ELE S
G UA N G Z HOU
MU M BA I HANOI
THAILAND
JAKARTA
SY D N EY
HEAD OFFICE, OFFICE OF THE BOARD OF INVESTMENT
555 Vibhavadi-Rangsit Road., Chatuchak, Bangkok 10900, Thailand
Tel: (+66) 2553 8111 Fax: (+66) 2553 8222 Email: head@boi.go.th
BEIJING LOS ANGELES SEOUL
Thailand Board of Investment, Thailand Board of Investment, Thailand Board of Investment,
Beijing Office Los Angeles Office Seoul Office
No.21 Guanghua Road, Royal Thai Consulate-General, #1804, 18th Floor,
Chaoyang District, Beijing, 611 North Larchmont Boulevard, Daeyungak Tower 25-5,
P.R. China 100600 3rd Floor Los Angeles 1-ga, Chungmu-to, Junggu
Tel: +86 10 8531 8755-57 CA 90004, USA 100-706, Korea
+86 10 8531 8753 Tel: +1 323 960 1199 Tel: +82 2 319 9998
Fax: +86 10 8531 8758 Fax: +1 323 960 1190 Fax: +82 2 319 9997
Email: beijing@boi.go.th Email: boila@boi.go.th Email: seoul@boi.go.th
FRANKFURT MUMBAI SHANGHAI
Thailand Board of Investment, Thailand Board of Investment, Thailand Board of Investment,
Frankfurt Office Mumbai Office Shanghai Office
Royal Thai Consulate-General, Royal Thai Consulate-General Royal Thai Consulate General,
Investment Section 12th Floor, Express Towers, No. 18, Wanshan Road,
Liebfrauenberg Barrister Rajni Patel Marg, Changning District, Shanghai
26, 60313 Frankfurt am Main, Nariman Point Mumbai 200336, P.R. China
Federal Republic of Germany 400021, India Tel: +86 21 5260 9876
Tel: +49 69 92 91 230 Tel: +91 22 2204 1589 +86 21 5260 9877
Fax: +49 69 92 91 2320 +91 22 2204 1590 Fax: +86 21 5260 9873
Email: fra@boi.go.th Fax: +91 22 2282 1525 Email: shanghai@boi.go.th
Email: mumbai@boi.go.th
ABOUT BOI GUANGZHOU
Thailand Board of Investment,
NEW YORK
Thailand Board of Investment,
STOCKHOLM
Thailand Board of Investment,
Guangzhou Office New York Office Stockholm Office
The Office of the Board of Investment Royal Thai Consulate-General 7 World Trade Center Stureplan 4C, 4th Floor
No.36 Youhe Road, Haizhu 250 Greenwich Street, 114 35 Stockholm, Sweden
(BOI) is the principle goverment District, Guangzhou 510310 Suite 34F New York, Tel: +46 8 463 1158
agency that operates under the Prime P.R. China NY 10007, USA +46 8 463 1174
Tel: +86 20 8385 8988 Tel: +1 212 422 9009 Fax: +46 8 463 1160
Minister’s Office for the purpose of ext. 220-225 Fax: +1 212 422 9119 Email: stockholm@boi.go.th
encouraging investment in Thailand. +86 20 8387 7770 Email: nyc@boi.go.th
(Direct Line)
We at the BOI serve as the professional Fax: +86 20 8387 2700 SYDNEY
contact points for investors,providing Email: guangzhou@boi.go.th Thailand Board of Investment,
OSAKA Sydney Office
them with useful investment information Thailand Board of Investment, Suite 101, Level 1, 234 George
and services. We offer business support Osaka Office Street, Sydney, NSW 2000,
and investment incentive to foreign HANOI Royal Thai Consulate-General Australia
Thailand Board of Investment, Bangkok Bank Building, Tel: +61 2 9252 4884
investors in Thailand, including tax Hanoi Office 7th Floor 1-9-16 Kyutaro-Machi, Email: sydney@boi.go.th
26 Phan Boi Chau Str., Chuo-ku Osaka 541-0056,
and non-tax incentives. A few non-tax
Hoan Kiem, Hanoi, Vietnam Japan
incentives include granting land Tel: +81 24 3823 5092-4 Tel: +81 6 6271 1395
ownership to foreigners and facilitating Email: hanoi@boi.go.th Fax: +81 6 6271 1394 TAIPEI
Email: osaka@boi.go.th Thailand Board of Investment,
visas and work permits. Besides serving Taipei Office
the needs of overseas investors, we Taipei World Trade Center
JAKARTA Room:3E40 No.5 Xinyi Rd.,
also offer consultation services to Thailand Board of Investment, PARIS Sec.5, Taipei110 Taiwan R.O.C.
Thai investors who are interested in Jakarta Office Thailand Board of Investment, Tel: +81 2 2345 6663
Royal Thai Embassy, Paris Office FAX: +81 2 2345 9223
investment opportunities abroad. Jl. DR Ide Anak Agung Gde 8 Rue Greuze 75116 Email: taipei@boi.go.th
Agung Kav. E3.3 No.3 (Lot 8.8), Paris, France
Kawasan Mega Kuningan, Tel: +33 156 902 600-01
Jakarta 12950, Indonesia Fax: +33 156 902 602
Email: jkt@boi.go.th Email: par@boi.go.th TOKYO
Thailand Board of Investment,
www.boi.go.th Tokyo Office
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.thYou can also read
