Thailand aims to position itself as the ASEAN hub through its strategic location, infrastructure development, and competitive business environment. The document outlines Thailand's competitiveness through rankings and surveys. It also details the country's investment promotion policies, including incentives for targeted super clusters in industries like automotive, electronics, aviation, and digital technology. The goal is to attract international headquarters and trading centers by offering tax benefits and other facilitation.

1. “Why Thailand”
An Asian Hub, a World of Opportunities
March 1, 2016
Ms. Ajarin Pattanapanchai,
Deputy Secretary General 1

2. 2
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

3. Source: Economist 2015 Pocket World Figures
Vietnam
Cambodia
Thailand
Myanmar
China
Laos Philippines
Malaysia
Singapore
Indonesia
Thailand
ASEAN’s
2nd Largest
Economy
12th Largest
Agriculture Output
16th Largest
Manufacturing Output
Population 68.0 Million,
97% literacy rate
27th
Biggest Exporter
Taxation
Corporate: 10-20%
Withholding: 1-10%
VAT: 7%
GDP US$405 billion,
(per capita) US$5,736
Growth 3.0-4.0%
Brunei
3
Thailand’s globally established position

4. 4
2nd in HDD Exports
Thailand Plays a Vital Role in the Global Supply Chain
7th Rubber Tire
Exports
7th Computer Device
Exports
12th Automotive
Production

5. 6
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

6. 7
AEC
Asia &
Oceania
“We are surrounded by the
world’s economic powerhouses”
1 Strategic Location – right at the
Center of Mainland ASEAN
2 Strategic Location – gateway to
ASEAN
Thailand’s Strategic Location Offers Many Advantages

7. Thailand: Well Developed Regional Connectivity

8. 9
Sources: IMF as of 2014, Ministry of Foreign Affairs of March 2015
ASEAN
Economic
Community
633 million population
(9% of world population)
GDP: US$ 2.4 trillion
(2% of world’s GDP)
FLAGSHIP OF ASEAN
• Emerging regional architecture
• A new generation FTA
• A high ambition agreement
Regional Comprehensive
Economic Partnership (RCEP)
(ASEAN + China, Japan, Korea, India,
Australia & NZ)
3.3 billion population
(50% of world
population)
GDP: US$21 trillion
(28% of world’s GDP)
THE BIGGEST FTA
• Market size (16 countries)
• Regional supply chain
• FDI (intra-extra region)
Expanding Regional Integration Offers More Opportunities

9. 10
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

10. 11
UNCTAD ranks Thailand
8th as a top prospective
host economy 2014-2016
Country Rank
China 1
USA 2
Indonesia 3
India 4
Brazil 5
Germany 6
United Kingdom 7
Thailand 8
Vietnam 9
Malaysia 15
World Economic Forum
ranks Thailand 32th out of
140 economies for global
competitiveness index
2015-2016
Sources: UNCTAD, 2016; World Economic Forum, 2016
Country Rank
Switzerland 1
Singapore 2
US 3
Germany 4
Netherlands 5
Japan 6
… …
Thailand 32
Indonesia 37
Vietnam 56
Thailand Consistently Ranks High in International Surveys

11. 5th Asia’s Financial Literacy Index
MasterCard, 2014
The World’s Most Promising
Emerging Economies
Bloomberg Business, 2014 - 2016
11th
Ease of Doing Business among
Emerging Economies in East Asia
World Bank, 2016
2nd
Corruption Perception Index
Transparency International, 201576th
12
Thailand Gains Global Recognition for its Promising
Economy

12. 23rd
Best Countries for Quality of Life
Best Countries to Invest In6th
Best Countries to Start a Business1st
Best Countries in the World (Overall)21st
13
Sources: Surveys Conducted by US News in Partnership with BAV and Wharton, 2016
Recent Rankings in 2016

13. 14
Sources: 2016 Global Manufacturing Competitiveness Index by Deloitte Touche Tohmatsu Ltd. & U.S. Council on Competitiveness
(as of December 2015)
5.57
5.58
5.65
5.9
5.9
5.91
6.04
6.21
6.36
6.72
6.84
6.87
6.95
7.29
7.58
7.67
8.04
9.39
9.95
10
Netherlands
Indonesia
Vietnam
Turkey
Malaysia
Poland
Thailand
Sweden
Switzerland
India
Singapore
Canada
Mexico
Taiwan
United Kingdom
South Korea
Japan
Germany
USA
China
Index Score
[10=high, 1=low]
2016 Global Manufacturing Competitiveness Index
# 14

14. Infrastructure
• 7 international airports
 Suvarnabhumi Airport – Capacity: 45
million passengers and 3 million tons of
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

15. 1. Expansion of the
inter-city rail
network
(USD 13.8 billion)
2. Highway capacity
enhancement
(USD 14.6 billion)
3. Development of
mass transit
systems in Bangkok
Metropolitan Region
(USD 20.8 billion)
4. Air transport
capacity
enhancement
(USD 1.4 billion)
5. Development of
the maritime
transport network
(USD 2.8 billion)
Infrastructure development programs for 2015-2022 (USD 53.4 billion*)
5 Key Programs: to reduce logistics and transportation costs
Improve the competitiveness of the economy
• Upgrade railway networks
• Increase double-track railways
• Build 1.435-meter standard
gauge
• Expand highways to 4 or more
traffic lanes
• Develop facilities along the main
roads such as container yards
• Extend mass transit railway
system in Bangkok and vicinity
• Acquire 3,183 natural gas vehicle
(NGV) buses
• Enhance sea ports capacity
• Enhance airport capacity
• Establish aviation industrial
estates with Thailand as a regional
center of the MRO** industry
Railway
Road
Mass Transit
Water & Air
Source: Office of Transport and Traffic Policy and Planning, Ministry of Transport, as of 21 December 2015
Note: *1 USD = 35.84 THB **Maintenance Repair and Overhaul
Thailand’s Infrastructure Development Strategy (2015-2022)
17

16. 18
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading Center

17. Policy
Tax
Incentives Facilitation
100% foreign
ownership
No local content
requirements
No export
requirements
No restriction on
foreign currency
Import duty exemptions/
reductions
Corporate income tax
exemption for 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
Land ownership rights
Work permit & visa
facilitation
Within 3 hrs
19
BOI’s Attractive Investment Incentives

18. Activity-based Incentives
• Exemption of import duties on
machinery
• Up to 8 years of corporate income
tax exemption
A1
A2
A3
A4
B1
B2
Merit-based Incentives
Grant additional incentives to encourage
more investment/expenditures that benefit
the country or overall industry
1. Competitiveness
Enhancement
2. Decentralization
3. Industrial Area
Development
20
How Investment Incentives Are Granted

19. Success Stories of Canadian Companies

20. 25
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

21. Latest Investment Promotion policy : Super Cluster
Super Cluster
 Automotive and Parts Cluster
 Electrical Appliances, Electronic and Telecommunication Cluster
 Digital Cluster
 Aviation & Aerospace Cluster
 Automations and Robotics Cluster
 Medical Hub
 Eco-Friendly Chemical and Plastics cluster

22. 27
 8-year corporate income tax exemption and an additional 5-year
reduction of 50%
 Import duty exemption on machinery
 For future industries with significant importance, the Ministry of
Finance will consider granting 10-15 years corporate income tax
exemption
 Personal income tax exemption for renowned specialists who work in
the specified areas, both Thais and foreigners
 Consideration of granting Permanent Residence to leading specialists
 Permission for foreigners to own land to implement promoted
businesses
Tax
Non
Tax
Investment Incentives for Super Clusters
 Matching grant to encourage and support investors in the high-value
added activities in Super Cluster such as such R&D, training, etc.
** Remark: The cabinet has approved in principle the Ministry of Finance proposal
to set up a 10-billion-baht ($279-million-USD) fund to promote the targeted sector
$279
Million
Fund

23. Obligatory Conditions to Receive Cluster Incentives
28
 Must have cooperation with academic institution / research institution /
Center of Excellence in the cluster to develop human resource and
improve the level of technology e.g.
• Cooperation in the Talent Mobility / Work-integrated Learning /
Co-operative Education / Dual systems
• Cooperation in development of human resource or technology as
approved by the Board of Investment
 Must apply for investment promotion within 2016 and must start
operation within 2017 to accelerate investment, unless under necessity
i.e. large-scale project, the BOI will consider relaxation as deemed
appropriate.

24. Automotive and Parts Super Cluster
29
7 Provinces : Ayuddhaya, Patumthani, Chon Buri,
Rayong, Chacheongsao, Prachinburi,
Nakorn Ratchasrima
Target Activities
Manufacture of Motorcycle with engine size > 248 CC. (only
for projects with forming of engine parts)
Manufacture of Automobile Engines
Manufacture of Important Parts that are not locally
produced or are few i.e.
- Parts using advance technology
- Safety and Energy Efficient System
- Equipment for Hybrid, EV, PHEV cars
- Fuel injection parts/ Transmission/ Engine System
Manufacture of Automobile Tires

25. 9
Electrical Appliances, Electronic and
Telecommunication Cluster
7 Provinces : Ayuddhaya, Patumthani, Chon Buri,
Rayong, Chachoengsao, Prachinburi, Nakorn
Ratchasrima
Target Activities
Electronic Design
Microelectronics Design, Embedded System Design
Electronic / telecommunication products and parts
e.g. telecommunication equipment, electronic control
and measurement, security control equipment, Solid
State Drive, Hard Disk Drive, solar cells,
Semiconductor, Flat panel display, Photonics
Internet of Things Appliance/ Smart devices
Test Lab, R&D, Training center
Target Activities
- Software (Embedded Software,
Enterprise Software, Digital Content, Big
Data, Data Analytic, Business Process
Management, Cyber security, Controlling,
Industrial Software)
Cloud Services
Data Center, Innovation Incubation Center
IT Services (Software Platform, Managed
Service, Digital Architecture Design
Service, FinTech, DigiTech, MedTech)
Digital Cluster

26. Automation & Robotics Cluster
Target Activities
Manufacture or Assembly of Robots &
Automation equipment and parts
- Machinery /Equipment with engineering design
- Machinery, Equipment & parts / Repair of Mould
- Assembling of Automation Machinery/Equipment,
Robots & parts*
Service and Public Utilities
- Research & Development
- Engineering Design
- Scientific Laboratories
- Calibration Services
- Vocational Training Centers
- Innovation Incubation Centers*
Target Activities
Software Development and Systems
Integration
- Systems Integration Design
- Electronic Design
- Installing automated or robotic systems
- Embedded Software, Big Data Analytics
SW, Controlling and Commanding SW,
Business Process management, IoT,
*under the approval process

27. Aviation & Aerospace Cluster
Chiang Rai
Phitsanulok
Nakhon
Ratchasima
Nakhon Sawan
Lopburi
Nakhon Pathom
Pathum Thani
Bangkok
Samut Prakan
Chachoengsao
Chonburi
Rayong
Surat Thani
Songkhla
14 Provinces : Bangkok, Samut Prakan, Nakhon Pathom,
Pathum Thani, Chachoengsao, Chonburi, Rayong,
Chiang rai, Phitsanulok, Nakhon Sawan, Lopburi,
Nakhon Ratchasima, Surat Thani, Songkhla
Target Activities
Manufacture or MRO
- Airframe, Airframe parts
- Critical parts e.g. Engine and parts, Propeller
- Appliance e.g. Flight recorder, Radar
- Telecommunication/Electronic products
- Electronic Design
- Embedded Software, High Value – Added Software
Manufacture of space devices
- Parts or equipment of Rocket, Space craft, Space vehicle,
Propulsion unit part and Auxiliary equipment
- Search, Detection, Navigation, Guidance, Aeronautical,
Nautical system and instrument
Training Center for pilot and technician

28. Companies in the aircraft industry tend to look for lower cost parts
for their manufacturing and repair plants. Thailand can offer this
price advantage when compared with neighboring countries.
Other regional locations, such as Singapore, may have a
limitation regarding the ability to facilitate the expansion of
aircraft part manufacturing investment.
Major aircraft and parts manufacturers
 24 companies have been
promoted under aircraft part
manufacturing activity
 12 companies have been
promoted under aircraft and part
maintenance and repair activity
BOI promoted activities
34
Investment Opportunities for Aviation Industry

29. Thailand Digital Economy Policy:
National broadband : Expand hi-speed internet systems
Cover areas
nationwide to
facilitate domestic
economic
development
1
2
3
4
5
Local employment (at least USD 47 million)
Procurement of domestic materials
(approximately USD 112 million)
Growth in telecommunications
industry
Promotion of local products via e-commerce
Support the gaining of household
income, both in the local agricultural
and industrial sectors
12 months
(100%)
30,000 villages
Exchange rate (BOT, Feb 1 2016): 1 USD = 35.84 THB
37

30. Hub for ASEAN regional internet connectivity
International Internet Gateway : Enhance the efficiency of
international internet systems to become the ASEAN regional
internet connectivity hub
Internet services
become cheaper
Citizens/
Customers
Expenses for
transactional
circuits become
cheaper
Service
Providers
Decrease
dependency on
connectivity
through
neighboring
countries
Risk
Management
Promote digital
economy which
will help enhance
business
performance of
other sectors and
improve the
country’s
competency
Digital
Economy
Help develop the
Digital Cluster
that will stimulate
innovation and
investment in new
industries,
increasing the
country’s GDP
Private
Companies
38

31. 39
International Internet Gateway: ASEAN Regional Internet
Connectivity Hub
Route
Expand the total capacity of transnational submarine cable
networks to 4 Tbps, and domestic networks to 2 Tbps
DWDM 100 Gbps
Action Plan
Delivery of the 1st task
Capacity Submarine Cable
200 Gbps
June 2016
September
2016
Delivery of the 2nd task
Capacity Submarine Cable
200 Gbps
December
2016
Delivery of the 3rd task
Capacity Submarine Cable
400 Gbps
September
2017
Delivery of the 4th task
Capacity Submarine Cable
3,750 Gbps and Domestic
Backhaul 2,000 Gbps
 Fast and smooth internet connection in Thailand
 Thailand becomes the ASEAN Regional Internet
Connectivity Hub
 World-class content providers invest in Thailand
Route
Technology
39

32. 43
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

33.  Corporate income tax exemption on income derived from
dividends and capital gain
 Corporate income tax exemption on income derived from
services to associated enterprises; such as
 Human resources management and training
 Technical support
 Financial management
 Corporate income tax exemption on income derived from the
purchase and sales of goods overseas (OUT-OUT trading)
 Final tax (similar to withholding tax) exemption on dividends
paid by the IHQ to corporate shareholders overseas
15
International Headquarter (IHQ) Incentives

34. International Headquarters (IHQ)-Eligibility 1/2
• A juristic company incorporated in Thailand providing the following services
to IHQ’s foreign branches or associated enterprises
Org. admin. and mgt. & business planning
Sourcing of goods
R&D
Technical support
Mkt. and sales promo.
HR & training and dev.
Business advisory
services
Econ. and inv. analysis
and research
Credit mgt. and control
Treasury center

35. International Trading Centers (ITC)
• A juristic company incorporated in Thailand providing purchase and
sale services as well as other related services to juristic companies
incorporated in oversea.
• The paid-up registered capital must not be less than 10 million
baht.
• Have total ITC business spending of at least 15 million baht per
year in Thailand
Warehousing and
inventory services
Goods delivery
services
Advisory, Technical and
Training services about trading
Sourcing of
goods
Packaging
activities
Goods
insurance
Other services as in Notification of the
Director General of Revenue Department

36. Examples of IHQ / ROH in Thailand

37. BOI SUPPORT
SERVICES
49Overseas offices
Country desks
1-Stop for visas & work permits:
work permits in 3 hours
Interaction with other govt. agencies
on behalf of investors
Subcontracting Development
Program by BUILD Unit
Investment Matchmaking Program
ASEAN Supporting Industry Database

38. Thank you
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