Invest in Thailand

TradePromotion

2017-2-27 10:26:29

FDI in Figures

Foreign direct investment has been an important element of Thailand's economic development, and the country is an important FDI destination. The country offers an attractive and modern legal framework and its economy benefits from regional dynamism. According to the UNCTAD World Investment Report 2016, FDI flows to Thailand tripled in 2015, amounting to USD 10.8 billion. However, during the first half of 2016, FDI flows fell by more than 90%, according to the Banque of Thailand. The decline was attributed to the structure of Thai industry, political uncertainty and the sluggish global economy. Despite the Government's seven-year strategy to stimulate investment, political uncertainty, increased by the death of King Bhumibol Adulyadej, may impact FDI flows negatively.

Why You Should Choose to Invest in Thailand

Strong Points

The country's main strong points are:
- A skilled work force in a number of sectors
- A strategic location at the heart of Asia: the country is an entryway to Southeast Asia and the Upper Mekong Basin region where the emerging markets have great economic potential
- A government policy which promotes investment and free trade
- The existence of a number of government agencies to help investors
- An investment regime in total harmony with WTO regulations: no restrictions in the manufacturing sector, no local requirements nor export conditions

Weak Points

Factors impeding foreign investment: the lack of infrastructure, a shortage of skilled workers, political uncertainty, piracy and counterfeiting.

Government Measures to Motivate or Restrict FDI

The Thai Board of Investment (BOI) offers a series of incentives in six industrial sectors, namely eight years of tax exemptions for companies and 50% tax reduction for companies for five years, double transport, electricity and re-supply deductions as well as 25% deduction on net profits for establishment and construction costs. The six sectors are:
- Agriculture and food
- Renewable and alternative energies
- Automobile
- Electronics, information and communication technologies (ICT)
- Fashion
- High added value services (including leisure, health and tourism)

The BOI also implemented measures aimed at contributing to the increase of company liquidity. Additionally, it offers import tax exemption on raw materials required for production aimed at export.

On December 2014, the Thailand Board of Investment (BOI) approved the 'Seven-Year Investment Promotion Strategy' (2015-2021). The new investment strategy focuses on giving priority to investments that will contribute to, and have a positive effect on, society and the environment. The investment strategy gives priority to high-tech and creative industries, service industries that support the development of the digital economy and activities that develop and utilise local resources.

Protection of Foreign Investment

Bilateral investment conventions signed by Thailand

Thailand has signed 41 bilateral investment treaties. See the list on the Thailand page of the UNCTAD Investment Policy Hub.

Procedures Relative to Foreign Investment

Learn more about Foreign Investment in Thailand on Globaltrade.net, the Directory for International Trade Service Providers.

Freedom of Establishment

Certain types of business activities are reserved for Thai nationals only. Foreign investment in those businesses must comprise less than 50% of share capital, unless specially permitted or otherwise exempt.

Acquisition of Holdings

A Thai private limited company may be wholly owned by foreign parties. However, for certain business activities reserved for Thai nationals, foreign participation is generally allowed up to 49%.

Obligation to Declare

The Board of Investment gives information on the permits required to start a business.

Competent Organisation For the Declaration

Department of Business Development
Industrial Estate Authority

Requests For Specific Authorisations

Prohibited sectors include: media, rice and livestock farming, fishery in Thai territorial waters and specific economic zones, extraction of Thai medicinal herbs, trading and auctioning of antique objects or objects of historical value and land trading. Restrictions apply to activities related to national safety or security, or those which affect arts and culture, or natural resources and the environment
Specific authorisations are needed for the following sectors: accounting; legal, architectural, or engineering services; retail and wholesale; advertising businesses; hotels; guided touring; selling food or beverages and any kind of service business.

Investment Opportunities

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Thailand
Asian Development Bank, Procurement Plans in Asia
DgMarket, Tenders Worldwide

China Council for the Promotion of International Trade Beijing

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