Presentation file on "Thailand: An ASEAN Hub, A World of Opportunities" by Ms. Ajarin Pattanapanchai, Senior Executive Investment Advisor, Thailand Board of Investment, June 15, 2015 at Courtyard Philadelphia Downtown (BIO 2015)

1. Thailand: An Asian Hub, a World of
Opportunities
Ms. Ajarin Pattanapanchai
Deputy Secretary General
Thailand Board of Investment

2. Outline
Thailand in Brief
Competitive
BOI Policy & Services
Investment Opportunities

3. Thailand is the World’s
• 16th largest manufacturer
• 12rd largest agriculture output
• 24th biggest economy by
purchasing power
• 27th biggest exporter (as %
of total world goods)
2nd largest economy in ASEAN
(GDP US$385 billion in 2013)

4. Competitive

5. Highly Ranked
UNCTAD
Thailand 8th top prospective host
economy 2014-2016
World Bank
26th easiest place to do business in the
world and 2nd among emerging
economies of East Asia

6. “Over the past 6 years, Thailand has suffered
bouts of political unrest on top of the global
financial crisis and severe flooding. Nevertheless,
the economy maintains solid economic
fundamentals that support its resilience, with high
international reserves, relatively low inflation, a
moderate amount of government and external
debt, and a strong manufacturing base.”
Asian Development Bank Outlook 2014

7. Thailand: (Baa1 stable) ratings
Very strong government financial position, well-diversified
economy and high foreign reserves
"Thailand's low funding costs and favorable debt structure,
which stem from prudent monetary policy and debt
management, are a core strength in the government's debt
carrying capacity" says Steffen Dyck,
a Vice President and Senior Analyst at Moody's.
Source: Moody's as of 28 May 2015

8. Thailand’s Cost Advantages
Office Space
• Grade A CBD $26.37 per square metre per month
• Grade B non-CBD rent of $17.50 per square metre per month
Construction Costs
• Standard Low Rise Factory $473 - $598
• Office, High Quality: $882 - $1,039
Corporate tax rate 20%
Sources: CBRE, Tractus-Asia Exchange rate: US$1=Bt32.48

9. Wage Comparison
92.4
54.8
49.6
42.8
33.3
21.5 20.9
17 14.6
8.5 8 7.9 7.6
0
10
20
30
40
50
60
70
80
90
100
Tokyo
Seoul
Dubai
H
ong
K
ong
Taipei
K
uala
lum
purShanghai
BeijingBangkokM
um
bai
M
anila
Jakarta
Delhi
WageLevels(US$)
Gross
Net
4
Cities ranked according to gross value of index. New York = 100
Source: UBS/Prices & Earnings update September 2012

10. Top Destinations for
Expat Experience 2013
by HSBC
1.Thailand
Source: Expat Explorer Survey 2013, HSBC
Thailand offers Best Expat Experience
and a Low Cost of Living
Thailand has been chosen
as the best country in the
world for
Overall Expat Experience
& Overall Quality of Life

11. Infrastructure
• 7 international airports
 In 2009, 53.9 million passengers, 1.1 million
tons of cargoes
 Suvarnabhumi Airport – Capacity: 45
million passengers and 3 million tons if cargo
per year
• Over 70,000 km Highway Systems
• 6 Deep Sea Ports & 2 International River Ports
 Capacity over 10 million TEUs
 Laem Chabang Sea Port – Capacity: 10.8
million TEUs, with additional 8 million TEUs
expansion
 e-Customs facilities
• 4,346 km Rail links to Malaysia & Singapore
• 60 Industrial Estates

12. GMS Infrastructure
Development
North-South Corridor
North-Eastern Corridor
East-West Corridor
Southern Corridor
Central Corridor
Southern Coastal Corridor

13. Government Policy on S&T
(12 September 2014)
1. Reform STI administration system to increase effectiveness of
public-private linkage and partnership. Increase R&D expenditures
to 1% of GDP with private/public sector ratio = 70:30 by 2021
2. Accelerate support for STI manpower development through
STEM education, work-integrated learning, talent mobility,
technological assistance to SMEs
3. Reform incentive systems, regulations and laws to enable
commercialization of R&D and IP
4. Use public mega investment projects and government
procurement to stimulate innovation in strategic areas.
5. Develop STI infrastructure & services to effectively support
technology and R&D commercialization
Source: Ministry Science and Technology

14. Investment Promotion
Policies and Services

15. BOI’s Liberal Investment Regime &
Attractive Investment Incentives
Policy
100% foreign
ownership
No local content
requirements
No export
requirements
No restriction on
foreign currency
Tax
Import duty exemptions/
reductions
Corporate Income Tax/
Exemption up to 8 years
50% reduction of corporate
income tax for up to 5 years
Double deduction on
utility costs
Deductions for qualifying
infrastructure costs
Non-Tax
Land ownership
rights
Work permit &
visa facilitation
with in 3 hrs.

16. 17
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
Global Sourcing program
(BUILD Unit)
Intensive information
ASEAN Supporting Industry Database
BOI SUPPORT
SERVICES

17. 18
US Investment

18. Success Stories of US Companies

19. Investor Testimonials
“We are not low-cost manufacturing but we are high-tech
manufacturing. Human resources here are professional with a good
cost structure.”
--Jeff Nygaard, Senior VP and Global Head of Operations, Seagate Technology
“We relocated nine senior executives from Singapore to Thailand
resulting in significant cost of living and operational savings.”
--Roger Nesti, Director of International Real Estate, Kellogg Company

20. THAILAND
INNOVATION
HIGH VALUE-ADDED
GREEN TECHNOLOGY
RESEARCH & DEVELOPMENT
Sustainable Development, More Competitive Economy
New Investment Promotion Strategy Direction

21. 22
New Approach to Granting Investment Incentives
Activity-based Incentives Merit-based Incentives
+
Classified incentives based on
the importance of activities
Grant additional incentives to encourage
more investment/expenditures that
benefit the country or overall industry
A1
A2
A3
A4
B1
B2
1. Competitiveness Enhancement
2. Decentralization
3. Industrial Area Development

22. Group Example Activities
A1
8-year CIT
exemption
with no
ceiling
• Biotechnology
• R&D, Lab service
• Micro electronics design, embedded software/system design
• Data center, Cloud service
• Training center
• Aerospace
A2
8-year CIT
exemption
• Bio-Fuel, waste to energy
• Active Pharmaceutical Ingredients
• Advance Materials, Nano-material
• High-risk Medical Devices
• Telecommunication device, control and measurement device
• Solar cell, Electricity from renewable energy
• Aerospace parts and equipment
• Automation machinery & equipment with design
Examples of GROUP AActivities (1/2)

23. Group Example Activities
A3
5-year CIT
exemption
• HDD, Semiconductor, flat panel display, thin film
• Digital content, multimedia software
• Product from Bio-Plastics
• Machinery with design or part forming process
• Manufacture of automobile engines
• Functional fiber
A4
3-year CIT
exemption
• Manufacture of products from agricultural by-products or
agricultural waste
• Heat Treatment
• Audio visual, LED, Office automation
• Assembling of machinery
• Manufacture of fashion products with conditions on product
development and design
• Paper product
Examples of GROUP A Activities (2/2)

24. BOI Promotion Statistics in Life Science Business
2010-2014 Jan - May 2015
Product # of
Project
Value
Million Baht
# of
Project
Value
Million Baht
Product from Herbs/natural
extracts
7 100.6
- -
Medical Food 4 842.8
- -
Medical Devices/equipment 93 19,877.3 16 7,112.3
Pharmaceutical 35 11,694.1
Actives Ingredient 16 3,633.4
Research & Development 65 5,418.8 4 326.4
Biotechnology 17 6,532.8 2 2,278.0
Lab Services 57 7,614.8 2 62.3
278 52,081.2 40 13,412.4

25. Sectors of Opportunity
Target
Industries
Agriculture
and food
processing
Automotive
Machinery
Target
Industries
Biotechnology
Alternative
energy
E&E
High Value
Added

26. As of May 1, 2014
YOURS COULD BE THE NEXT SUCCESS STORY

27. Biotechnology Sector
Thailand is ranked 8th most bio-diverse country
in the world
About 165 biotech companies in Thailand
7 Intellectual property laws
Good infrastructure: Science Parks and
industrial estates

28. EXCELLENT SUPPORTING UNITS
• Thailand’s Science Park (TSP) was established as a one-stop
service center to assist companies engaged in scientific and
technological research.
• National Science and Technology Development Agency
(NSTDA)
• National Science Technology and Innovation Policy Office
(STI)
• The National Center for Genetic Engineering and
Biotechnology (BIOTEC)
• Thailand Center of Excellence for Life Sciences (TCELS)
• Food and Drug Administration (FDA)
• Ministry of Public Health (MoPH)
• Ministry of Science and Technology (MOST)
• National Innovation Agency
• Health Systems Research Institute

29. Biodiversity in Thailand
Biodiversity in Thailand is ranked as the eighth most bio-
diverse region in the world.
Thailand is the world’s highest biodiversity per unit area-
hosting several forests types and aquatic habitats.
Thailand supports up to 10,000 species of plants,
• 980 species of birds,
• 300 species of mammals,
• 490 species of reptiles and amphibians,
• 2,800 species of fishes and
• 50,000 strains of bacteria, fungi and yeasts collected
• 200,000 species of microbes-world’s largest and most
diverse collection of micro organisms
Source: Thailand BIOTEC Guide 2013 as of Mar 24, 2014

30. Biotech Business in
Thailand
Source: Private Sector R&D in Thailand’s Bioindustry, Thailand Biotech Guide 2009/2010
Agriculture/Food
(51%)
Medical/Health
(35%)
Others
(4%)

31. Seed & Plant R&D
Biopharmaceutical agents R&D
Diagnostic kits for health,
agriculture, food and environment
Biomolecule & bioactive compounds using
microorganisms, plant cells and animal cells
Raw materials and/or essential materials
used in molecular biological experiment
Biotechnology: BOI Eligible Activities
Exemption of import duty
on machinery for all zones
Exemption of 8-year-CIT
A1 Incentives
Projects located in
Science Parks shall
receive 5 year additional
50% corporate income
tax reduction
Biological substances analysis and/or
synthesis services Quality control and
product validation services

32. 33
Company Product/Services
I- med Laboratory Thalassemia / Lymphocyte test kit
Baxter Thailand Continuous Ambulatory Peritoneal Dialysis
International Drug Development
Aclires Bangkok
Clinical Trial
MBS Asia Antibody testing
Bio-Innova and Synchron
International Bio Service
Bioequivalence
Bionet Asia R&D for Vaccine
Pacific Time Microbial testing/DNA testing
Greater Pharma Manufacturing Vaccine and Allergy Testing Agent
Siam Bioscience Therapeutic Biopharmaceutical
Apsalagen Biological Reagent from Bacteria &Animal Cells
Example of Promoted Projects in Life Science

33. Bioplastics Industry:
Activities of special importance and
benefits to the country
• Manufacture of eco-friendly chemicals
• Manufacture of eco-friendly products
Incentives
• Exemption of import duties on machinery
for all zones.
• 8-year exemption of corporate income tax
with no cap for all zones.
• Other relevant location-based incentives.
Incentives for Bio Industry
Source: A Guide to BOI as of March 2014

34. Bio Plastics: Why Thailand
Bioplastics’
Investment
Opportunities
Potentially abundant at competitive price
of sugar and starch based feedstock
Trend of monomers’ cost
reduction from agricultural
wastes as cellulosic glucose
from cassava pulp and bagasse
Good strategic location near
China and Japan with low
logistics cost
High R&D capabilities for technology
development to support the existing
bioplastics industry
Source: Progress in Implementation of Thailand’s National Bioplstics Roadmap Inno Bioplast 2013 seminar by NESDB as of Jan 26, 2013

35. Source: MOST
Support for US Investors
BOI Office Los Angeles
611 North Larchmont Blv.
3rd Floor
Los Angeles, CA 90004 USA
Tel: (323) 960 1199
Fax: (323) 960 1190
Email: boila@sbcglobal.net
BOI Office New York
7 World Trade Center,
34th Fl., Suite F
250 Greenwich St.
New York NY 10007 USA
Tel: (212) 422 9009
Fax: (212) 422 9119
E-mail: nyc@boi.go.th
U.S. Desk @ BOI Headquarters
555 Vibhavadi-Rangsit Rd.
Chatuchak, Bangkok 10900 Thailand
Tel: (66 2) 537-8111 Fax: (66 2) 537-8098
E-mail: head@boi.go.th

36. Thank you