Thailand Board of Investmentwww.boi.go.th

THAILANDWHY

AEC

Asia & Oceania

Strategically located at the heart of Asia, Thailand aptly serves investors as a dynamic gateway to a fast growing economic market. Our growing economy, world-class infrastructure, competitive human capital and strong government support, are responsible for our key position as one of the most attractive investment destinations for foreign investors.

Example of MNEs in Thailand

THE REGIONAL ECONOMIC CENTER

THE SECOND HOME FOR GLOBAL MNEs

OUR GLOBAL RANKINGS

Source: 1World Bank.

Market size of USD 23.5 trillion

Population of 3.9 billions1

Asia’s Financial Literacy IndexMasterCard, 20145th

Ease of Doing Business among Emerging Economies in East Asia World Bank, 20162nd

The World’s Most Promising Emerging Economies Bloomberg Business, 2014 - 201611th Global Manufacturing Competitiveness IndexDeloitte, 201614th

ATTRACTIVE HOST COUNTRY

WORLDWIDE CONNECTIONS

Thailand has demonstrated remarkable economic progress experiencing foreign direct investment (FDI) inflows’ growth of 21% over the past 6 years, compared to the global percentage of 0.7%. Occupying the 4th rank in Asia’s top prospective host economies, Thailand has gained a solid reputation as a second home for various global multinational enterprises (MNEs).

The establishment of the ASEAN Economic Community (AEC) in 2015 has set up ASEAN as a single market that facilitates free flows of goods; and freer flows of services, investment, capital and skilled labor within the region. With further progress and expansion, we will become the center of a new economic engine of ASEAN.

ASEAN Economic Community (AEC)1

Growth Rate of Export2

[CAGR**, 2008-2014]

Source: 1UNCTAD, 2World Investment Report 2015, UNCTAD. Note: *Thailand has experienced a major flood during 2011. Nonetheless, the economy has been recovered quickly afterward.

Source: 1Ministry of Commerce of Thailand; 2WTO.Note: *Forecasted by UNCTAD & IMF, 2014; **CAGR = Compound Annual Growth Rate

Asia’s Top Prospective Host Economies, 2013 - 201514th

FDI Inflows2

Free Flows of goods, services,

investment, capital as well as skilled labors

Members Functions Opportunity

616 Million People

and GDP to double to USD 4.7 trillion in

2020*

Brunei

Cambodia

Thailand Philippines

Lao PDR

Viet NamMalaysia

Singapore

Indonesia Myanmar

ASEAN 4.58%

2.72%Global0

5

10

15

0

500

1000

1500

2000

2009 2010 2011* 2012 2013 2014

World Thailand [Billion USD]

“ With its strategic location and dynamic environment

Thailand is a key country for the development of Airbus Group in Asia Pacific ”Pierre JaffrePresident Airbus Group for Asia Pacific & Managing Director, Airbus Group Thai

Thailand has signed free trade agreements (FTA) with numerous trading partners worldwide, to reinforce its commitment to free and fair global trade, while conducting ongoing negotiations for new FTAs.

Source: 1Department of Trade Negotiations of Thailand; 2WTO.Note: *Ministry of Commerce; **Nations in grey text are under negotiation; ***Thailand is in preparation to initiate an agreement with Turkey

Source: 1IMD World Talent Report, 2014; 2Bureau of Budget of Thailand. Note: *The expenditure in USD is based on the average exchange rate over 2010-2014, gathered by the Bank of Thailand. **CAGR 2010-2016.

ROBUST HUMAN CAPITAL

The main driving forces behind Thailand’s economic growth are our robust human capital. The country has been ranked highest for various factors related to employment and talent development in Asia. Thailand’s investment in human resource development continues to be strong and we look forward to high human capital growth.

Human Capital Rankings among Asia Economies1

Thai Government Expenditure on Education2*

Thailand’s FTA Networks1

Thailand Export Value2

China

Chile

Indonesia

Iceland**

Japan

Singapore

Brunei

Liechtenstein**

South Korea

Malaysia

Philippines

Switzerland**

India

Viet Nam

Hong Kong

Norway**

Australia

Myanmar

EU**

Turkey***

New Zealand

Cambodia

Pakistan**

Peru

Lao PDR

Canada**

0

0.05

0.1

0.15

0.2

0.254.21%

2008 2009 2010 2011 2012 2013 2014 2015*Jan-Nov

[Trillion USD]

0

5

10

15

20

2010 2011 2012 2013 2014 2015 2016

6.49%

[Billion USD]

Attracting & Retaining Talents5th Foreign High-Skilled People5th Employee Training6th Worker Motivation8th

“ Thailand has strong automotive industrial basis and

skilled Thai people that boost our business growth ”Hiroshi IokiPresident,Toyota Boshoku Asia

STRONG ICT INFRASTRUCTURES

AFFORDABLE OFFICE SPACES

Thailand provides its citizens with 100% mobile network coverage by using multiple service providers. The availability of the third and fourth generation (3G and 4G) broadband networks coupled with the growing adoption of mobile internet devices is expected to help Thailand become a major digital business hub in the future.

With more than 8 million square meters of available office space1, Bangkok is gaining a steady reputation for having the most affordable grade A office spaces in Asia-Pacific with a reasonable occupancy cost of only 30.83 USD/ square foot / annum.

Thailand ICT Facts2Total Occupancy Cost of Prime Office2

Source: 1World Economic Forum Global IT Report, 2015; 2National Statistical Office of Thailand and National Broadcasting and Telecommunications Commission (NBTC). Source: 1Colliers International, 2015, 2CBRE’s Prime Office Occupancy Costs, 2015

Population Covered by a Mobile Network Signal1100%

No. of User (2015)

49.6million

21.8million

39.5million

Growth Rate[Person] [CAGR, 2010-2015]

5.34%

2.68%

15.38%

Cell Phones

Computers

Internet

The Most Affordable Grade A Office Space in Asia-Paccific2 (Bangkok)1st

0

50

100

150

200

250

300H

ong

Kong

New

Del

hi, I

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Shan

ghai

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31415073

99108126

157

254

[USD/ square foot/ annum]

“ The ICT IHQ Policy makes Thailand the best location

for our regional headquarter ”David SunPresident and CEO, the Southeast Asia Region, Huawei

FIRST-CLASS INDUSTRIAL ESTATES

WORLD-CLASSAIRPORTS

We now have approximately 70 well-developed industrial estates including the Eastern Seaboard, considered to be one of the world’s greatest industrial regions. It has already attracted various global industrial development projects that focus on a wide range of manufacturing processes.

In the fiscal year 2015, Thailand’s international airports catered to more than 106 million passengers and transported more than a million tons of air freight (more than 500 airlines were serviced). Moreover, Suvarnabhumi, the largest airport in Thailand, was ranked 5th in the list of the world’s best airports.

In addition, Don Mueang International Airport has recently completed the 2nd phase of development. With the reopening of a newly renovated Terminal 2, the airport is able to serve up to 30 million passengers annually.

The Eastern Seaboard Industrial Region3

More than 70

industrial estatesspread across all

regions in Thailand2

More than 256 million square meters

of cumulative supply of industrial estates2

Thailand’s Industrial Estates

Thailand’s Airports2

Source: 1Financial Times, 2012, 2Colliers International; 3I-EA-T & Ministry of Transport of Thailand.Note *The project has been approved by the cabinet and is under construction.

Source: 1SKYTRAX, 2015, 2Airports of Thailand Plc (AOT), Department of Civil Aviation of Thailand & Ministry of Transport of Thailand.Note: *Among airports with 40-50 million passengers; **Including Suvarnabhumi, Don Mueng, Chiang Mai, Mae Fah Luang, Phuket, Hat Yai, Krabi, Samui, Surat Thani, U-Tapao, Udon Thani & Ubon Ratchathani international airports.

More than 106 million passengers and

1.3 million tons of freight annually

12International airports in all the regions in

Thailand**

Location Capacity Destination

More than 500

International, domestic and

dedicated freighter airlines

World’s Best Economic Zone (Industrial Estate of Thailand)112th

The World’s Best Airport (Suvarnabhumi Airport)1*5th

of Thailand industrial GDP25%

industrial estates/ zones26

international deep-sea ports2

connecting to other zones*Double–track line

WORLD-CLASS DEEP-SEA PORTS

HUB OF REGIONAL ROAD CONNECTIVITY

Thailand has numerous deep-sea ports located along the Pacific Ocean and the Indian Ocean. The Laem Chabang international deep-sea port currently handles more than 10 million TEUs****. A plan has been devised to expand the port’s capacity to up to 18 million TEUs by 2019 to accommodate the rapid growth of Thailand’s international seaborne trade. Railway connectivity linking the ports along the Pacific and Indian oceans are now under construction, according to the Thai government plan. These networks are expected to further facilitate marine transport in Thailand.

Thailand has more than 465,000 kilometers of roads and a vast highway network connecting each region nationwide. We are also continuously upgrading and constructing new international road networks. Our goal is to increase regional cooperation with numerous fast-growing countries such as China, India, Viet Nam, Malaysia and Singapore and become a major hub of regional road connectivity.

465,000 kmof road connectivity in Thailand covering all

the provinces1

12th in AsiaQuality of Roads,

ranked by the World Economic Forum

Thailand’s Deep-Sea Ports Facts2

Thailand’s Current Road Connectivity1

Regional Road Connectivity Development Plan2

Source: 1World Shipping Council, 2015, 2Ports Authority of Thailand (PAT) & Ministry of Transport of Thailand.Note: *In term of container traffic. **Some major deep-sea ports under PAT include Laem Chabang, Maptaphut, Prachuab, Ranong, Phuket and Songkla deep seaports. ***The project has been approved by the cabinet and is under construction. **** TEU = Twenty-Foot Equivalent Unit Source: 1Ministry of Transport of Thailand; 2ADB

Top 50 World Container Ports(Laem Chabang)1*23rd

Laem Chabangport expansion to 18 million

TEUs by 2019

8International

deep-sea ports in the Pacific Ocean

and the Indian Ocean**

Location Capacity Destination

Land BridgeRailway network

connecting ports in The Pacific Ocean to

ports in the Indian Ocean***

Northern CorridorNorth-South CorridorWestern CorridorEast-West CorridorEastern CorridorCentral CorridorNortheastern CorridorSouthern CorridorSouthern Coastal Corridor

“ Thailand’s logistics infrastructure and linkage with

the global logistics network made it a country of choice as our global export hub ”Pascal PacheurGeneral Manager, Essilor (Thailand)

RAIL SYSTEMS AND MASS TRANSITMore than 4,000 kilometers of railway lines connect the various regions of Thailand. Plans are in the works to build both double-track railways and high speed trains, enabling a better connection with neighboring countries. A new mass transit system in Bangkok is also under construction. A total of more than 175 new stops are expected in the Bangkok Metropolitan Mass Transit system as well as in the rail connection between the Suvarnabhumi and Don Mueang airports.

Source: 1Ministry of Transport of Thailand and NESDB; 2Office of Transport and Traffic Policy and Planning (OTP)

Mass Transit Development Plan in Bangkok1

Rail Systems Development Plan1

More than 175

new mass transit stops in Bangkok

More than 500

kilometers of new mass transit

networksby 2029

Distance Stops Airport Connection

ConnectSuvarnabhumi airport

withDon Mueang airportof rail systems

will be laid by 20202

887Km

QUALITY LIFESTYLE

Expat ExperienceThailand has gained fame as the best place for expats who seek an improved quality of life with minimum expenditure. According to the HSBC’s Expat Explorers Summary 2014, Thailand was ranked 1st in terms of affordability, cost of living and 7th overall.

EducationIt is important for families to choose the right school for their children. According to the Ministry of Education, there are more than 120 international schools in Thailand, most possessing overseas accreditation. There is a wide variety of high-quality education on offer in different languages.

Source: 1HSBC’s Expat Explorers Summary 2014

COMPETITIVE CORPORATE INCOME TAXWith the reduction of the successive corporate income tax to 20% in 2013, the corporate tax rate in Thailand ranks as the 2nd lowest in the ASEAN countries. Not only has this led to an increase in economic activities and investments in Thailand but it has also put the kingdom in a competitive position against other countries.

Corporate Income Tax1

Source: 1Deloitte’s Taxation of AEC, as of 2015

0% 5% 10% 15% 20% 25% 30% 35%

Phillippines

Malaysia

Indonesia

Myanmar

Lao PDR

Viet Nam

Cambodia

Brunei

Thailand

Singapore 17%

20%

20%

20%

22%

24%

25%

25%

25%

30%

2nd lowest in ASEAN

in the most cost-effective

countries1

1st

of high-quality education

A variety

BOI AT YOUR SERVICEAs the principal government agency for encouraging investment, Thailand’s Board of Investment (BOI) is delighted to assist you in setting up an operation in Thailand. We offer a wide range of investment incentives and business-oriented support services to aid potential investors.

Investment Incentives Business Supporting Services

ü Corporate income tax holiday of up to 8 years

ü 50 percent reduction of the corporate income tax for 5 years

ü Exemption/ reduction of import duties on machinery, raw and essential material

ü Deduct ion of the cost of installation or construction of facilities

ü Land ownership rights for foreign investors

ü Facilitation in bringing in foreign experts and technicians to work in investment promoted activities

ü Faci l i tat ion in br inging in fore ign nat iona ls for the purpose of studying investment opportunities

BOI Services

Healthcare SystemThere are a thousand private and public hospitals with internationally trained doctors. Numerous Thai hospitals offer international-standard healthcare with JCI accreditation. Thailand consistently ranks as one of the top medical tourist destinations in Asia. Over 2.5 million foreign patients are treated in Thailand annually.

Leisure ActivitiesThere are a great number of recreation and leisure options for families to engage in at the end of the work week, or during vacations, such as sailing, yachting, kayaking and rafting along Thailand’s many rivers. Thailand has become one of the top golf destinations in Asia with more than 200 world-class golf courses. Shopping in Thailand is another enjoyable activity spanning the entire range from high-end fashion stores to colorful flea markets.

Note: JCI = Joint Commission International Accreditation

medical touristdestination in

Asia

Top

leisure destination in

the Asia-Pacific

Best

“ With strong support from the BOI and renewed tax

incentives, Thailand is an alternate MRO hub of Asia ”Remy MaitamPresident,Triumph Aviation Services Asia

CONTACT USHEAD OFFICESOFFICE OF THE BOARD OF INVESTMENT555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900Tel: +66 (0) 2553-8111Fax: +66 (0) 2553-8315Website: www.boi.go.thEmail: head@boi.go.th

ONE START ONE STOP INVESTMENT CENTER (OSOS)18th Floor, Chamchuri Square Building, 319 Phayathai Road, Pathumwan, Bangkok 10330Tel: +66 (0) 2209-1100Fax: +66 (0) 2209-1199Website: osos.boi.go.th Email: osos@boi.go.th

ONE STOP SERVICE CENTER FOR VISAS AND WORK PERMITS18th Floor, Chamchuri Square Building, 319 Phayathai Road, Pathumwan, Bangkok 10330Tel: +66 (0) 2209-1100Fax: +66 (0) 2209-1194Email: visawork@boi.go.th

REGIONAL OFFICESREGIONAL INVESTMENT AND ECONOMIC CENTER 1CHIANG MAI OFFICEAirport Business Park 108-110,90 Mahidol Road, Amphur Muang, Chiang Mai 50100Tel: +66 (0) 5329 4100Fax: +66 (0) 5329 4199Email: chmai@boi.go.th

PHITSANULOK OFFICE3rd Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Road, Naimuang, Amphur Muang, Phitsanulok 65000Tel: +66 (0) 5524-8111Fax: +66 (0) 5524-8777Email: phitsanulok@boi.go.th

REGIONAL INVESTMENT AND ECONOMIC CENTER 2NAKHON RATCHASIMA2112/22 Mitraphab Road, Amphur Muang, Nakhon Ratchasima 30000Tel: +66 (0) 4438 4200Fax: +66 (0) 4438 4299Email: korat@boi.go.th

REGIONAL INVESTMENT AND ECONOMIC CENTER 3KHONKAEN177/54 Moo 17, Mitraphab Road, Amphur Muang, Khonkaen 40000Tel: +66 (0) 4327 1300-2Fax: +66 (0) 4327 1303Email: khonkaen@boi.go.th

REGIONAL INVESTMENT AND ECONOMIC CENTER 4CHONBURI 46 Moo 5 Laem Chabang Industrial Estate, Sukhumvit Road, Toongsukhla, Sriracha, Chonburi 20230Tel: +66 (0) 3840 4900Fax: +66 (0) 3840 4997, +66 (0) 3840 4999Email: chonburi@boi.go.th

REGIONAL INVESTMENT AND ECONOMIC CENTER 5SONGKHLA7-15 Chaiyong Building Juti Uthit 1 Road, Hadd Yai, Songkhla 90110Tel: +66 (0) 7458 4500Fax: +66 (0) 7458 4599Email: songkhla@boi.go.th

REGIONAL INVESTMENT AND ECONOMIC CENTER 6SURAT THANI49/21-22 Sriwichai Road, Makhamtia, Amphur Muang, Surat Thani 84000Tel: +66 (0) 7740 4600Fax: +66 (0) 7740 4699Email: surat@boi.go.th

OVERSEAS OFFICESSHANGHAIThailand Board of Investment, Shanghai OfficeRoyal Thai Consulate General, No. 18, Wanshan Road, Changning Distric, Shanghai 200336, P.R.C.Tel: +86-21-5260-9876, +86-21-5260-9877Fax: +86-21-5260-9873Email: shanghai@boi.go.th

BEIJINGThailand Board of Investment, Beijing OfficeRoyal Thai Embassy, No.40 Guang Hua Road, Beijing 100600 P.R.C. Tel: +86-10-6532-4510Fax: +86-10-6532-1620Email: beijing@boi.go.th

GUANGZHOUThailand 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

TAIPEIThailand Board of Investment, Taipei OfficeTaipei World Trade Center, 3rd Floor, Room 3E 39-40 No.5 Xin-Yi Road, Sec. 5 Taipei 110, Taiwan R.O.C.Tel: +886-2-2345-6663Fax: +886-2-2345-9223Email: taipei@boi.go.th

TOKYOThailand Board of Investment, Tokyo OfficeRoyal Thai Embassy, 8th Floor, Fukuda Building West, 2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 JapanTel: +81 (0) 3-3582-1806Fax: +81 (0) 3-3589-5176Email: tyo@boi.go.th

OSAKAThailand Board of Investment, Osaka OfficeRoyal Thai Consulate-General, Bangkok Bank Building, 7th Floor, 1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 JapanTel: +81 (0) 6-6271-1395Fax: +81 (0) 6-6271-1394Email: osaka@boi.go.th

SEOULThailand Board of Investment, Seoul Office#1804, 18th Floor, Koryo Daeyeongak Center,97 Toegye-ro, Jung-gu, Seoul, 100-706, KoreaTel: +82-2-319-9998Fax: +82-2-319-9997Email: seoul@boi.go.th

MUMBAIThailand Board of Investment, Mumbai OfficeExpress Tower, 12th Fl., Barrister Rajni Patel Marg, Nariman Point, Mumbai, Maharashtra 400021Tel: +91-22-2204-1589-90Fax: +91-22-2282-1525 Email: mumbai@boi.go.th

NEW YORKThailand Board of Investment, New York Office 7 World Trade Center, 34th Floor, Suite F,250 Greenwich Street, New York, New York 10007, U.S.A. Tel: +1 (0) 212 422 9009 Fax: +1 (0) 212 422 9119 Email: nyc@boi.go.thWebsite: www.thinkasiainvestthailand.com

LOS ANGELESThailand Board of Investment, Los Angeles OfficeRoyal Thai Consulate-General, 611 North Larchmont Boulevard, 3rd Floor, Los Angeles CA 90004, U.S.A.Tel: +1 (0)-323-960-1199Fax: +1 (0)-323-960-1190Email: boila@boi.go.th

FRANKFURTThailand Board of Investment, Frankfurt OfficeInvestment Section, Royal Thai Consulate-GeneralBethmannstr. 58,5.0G60311 Frankfurt am Main,Federal Republic of GermanyTel: +49 (069) 92 91 230Fax: +49 (069) 92 91 2320Email: fra@boi.go.th

PARISThailand Board of Investment, Paris Office Ambassade Royale de Thaïlande 8, rue Greuze, 75116 Paris, France Tel: +(33-1) 56 90 26 00Fax: +(33-1) 56 90 26 02 Email: par@boi.go.th

STOCKHOLMThailand Board of Investment, Stockholm Office Stureplan 4C 4th Floor, 114 35 Stockholm, Sweden Tel: +46 (0) 8463 1158, +46 (0) 8463 1174-75 Fax: +46 (0) 8463 1160Email: stockholm@boi.go.th

SYDNEYThailand Board of Investment, Sydney OfficeSuite 101, Level 1, 234 George Street, Sydney, New South Wales 2000, AustraliaTel: +61-2-9252-4884Tel: +61-2-9252-4882Email: sydney@boi.go.th

Thailand Board of Investmentwww.boi.go.th

Think Asia, Invest Thailand