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Thailand Medical Hub of Asia

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  • 1. First-Class Quality at Affordable Prices With over 1,000 public and 400 private hospitals operating in compliance with international standards and fully-equipped with internationallytrained physicians, Thai medical service provides excellent health care at highly competitive prices. Additionally, the prevalence of physicians with overseas training and the hospitals’ multilingual staff help bridge communication barriers. Thai private hospitals work primarily with cuttingedge medical equipment that meets international standards. For example, the availability of MRI (3 Telsa) has made diagnoses without the injection of contrast media more accessible. Thailand’s high quality medical service offerings are well known throughout the globe: the Thai medical care industry attracts almost 2 million foreign medical tourists annually. As a result, many visitors choose to undergo surgery in the Kingdom as part of their vacation stay. In addition to top-quality medical care, Thailand is renowned for its serviceminded culture. On example that demonstrates this commitment to service includes personal assistants who walk patients through hospital procedures to ensure smooth service delivery. As a result, patients are kept fully informed on policies and insurance reimbursement. Thailand’s medical services industry has grown significantly owing to its exceptional service quality at affordable prices. The Kingdom’s value proposition has only become more attractive given shrinking coverage of foreign health care systems abroad.
  • 2. The most popular treatments that are enjoyed by foreign patients in Thailand include general check-ups, dental care, hip replacement, laser eye surgery, kidney transplants and heart surgeries. Expatriates, executives of international corporations and embassy staff are frequent healthcare service customers. The price range of surgery services in Thailand compared to the US can be up to 90% less expensive. In addition to its reputation for its excellent medical care services for patients from around the globe, Thailand has gained increasing recognition as a research and development center for clinical trials of advanced medicine and stem cell treatments. Booming Medical Device Industry Life expectancies throughout the Asian region are rising along with improved standards of living. Many Asian countries are seeing a greying of their societies and will face rising medical device and service needs. Thailand is well positioned to take advantage of this growth in future demand. Although Thailand has a substantial number of medical device manufacturers, two-thirds of medical devices in the Kingdom are imported. Thus, there is an opportunity for new investment in medical device manufacturing in Thailand. Thailand is an excellent, cost-effective production location for medical devices.
  • 3. Thailand Market for Medical Equipment and Supplies for 2010-2015 1,400 1,200 1,000 Millions US$ 800 795 869 948 1,033 1,122 1,227 600 400 200 2010 2011 2012 2013 2014 2015 0 Source: Thai Medical Device Technology Industry Association (THAIMED) As illustrated in the above chart, the market for medical devices in 2011 was US$869 million, a growth of 9% from previous year. There is great promise in this industry – the market size of medical devices is predicted to grow 40% in the next four years to US$1.2 billion in 2015. Thailand’s Imports and Exports of Major Medical Devices/Disposable in 2011 Unit: US$ Description Import Export Instruments and appliances used in medical, surgical, dental or veterinary sciences 449,598,000 464,110,000 Spectacle lenses of other materials 211,222,000 807,721,000 Diagnostic or laboratory reagents on a backing, prepared diagnostic or laboratory regents whether or not on a backing, other than those of heading 30.02 or 30.06: certified reference materials 169,346,000 14,086,000 Oscilloscopes, spectrum analyzers and other instruments and apparatus for measuring or checking electrical quantities, excluding meters of 9028; instruments and apparatus for measuring or detecting alpha, beta, gamma, X-ray, cosmic or other ionizing radiations 150,482,000 126,038,000 Apparatus based on the use of X-rays or of alpha, beta or gamma radiations, whether or not for medical, surgical, dental or veterinary uses 124,506,000 10,963,000 Source: United Nations Trade Map
  • 4. Instruments and appliances used in medical, surgical, dental, or veterinary sciences have increased 30% year-on-year, the highest growth rate among imported goods within the industry in 2011. Oscilloscopes, spectrum analyzers and other instruments performed the best, enjoying 32% growth year-on-year. From the pie chart below, the largest export destinations of the Thai medical device sector in 2011 were Japan (40%) and the US (16%). Export of Medical Tools and Devices in 2011 Others 31% Singapore 3% France 3% Germany 7% Japan 40% USA 16% Source: Ministry of Commerce Major international medical device technology manufacturers in Thailand include: 3M, Bausch & Lomb, Baxter Healthcare, Boston Scientific, Carl Zeiss, Diethelm, GE Medical Systems, Guidant, Johnson & Johnson, Medtronic, Philips Electronics (Medical Systems), Roche Diagnostics, Siemens (Medical Solutions) Surgical Instruments and Tyco Healthcare.
  • 5. Pharmaceuticals The market value for pharmaceuticals has also seen significant growth. The Ministry of Public Health of Thailand has passed a bill which mandates that pharmaceutical manufacturers in Thailand comply with the Pharmaceutical Inspection Co-operation Scheme (PIC/S), thus ensuring that pharmaceutical products within the Kingdom meet international standards. The government has also issued a strategic plan for the pharmaceutical industry for 2012-2016, which aims to strengthen the pharmaceutical industry through research and a modernization of manufacturing practices. This strategy includes measures for strengthening and developing the competitiveness of the pharmaceutical industry through R&D and further development of an environment that is conducive for indigenous industry growth. The government has stipulated that all manufacturing companies update their standards and quality systems to meet Good Manufacturing Practice (GMP) standards based on the International Pharmaceutical Inspection Cooperation Scheme (PIC/S). To increase R&D in the pharmaceutical industry, Thailand’s pharmaceutical organizations have collaborated with domestic and foreign research groups. For example, BIOTECH-Novartis International Pharmaceutical Drug Discovery Partnership is identifying potential use of microorganisms and natural compounds as sources of innovative medicines. R&D in particular presents a large opportunity for foreign investment. While Thailand currently produces 25 active ingredients, including sodium chloride, camphor, and menthol, local pharmaceutical companies allocate less than 1% of their total costs to R&D. Most active ingredients are imported from manufacturers overseas, leaving sizable room for new pharmaceutical investors.
  • 6. Thailand’s Imports and Exports of Pharmaceuticals, 2006-2011 2,000 1,500 1,071 232 2006 1,545 1,365 1,160 Millions US$ 1,000 1,715 1,642 500 247 299 2007 2008 306 351 2009 Import 2010 350 0 2011 Export Source: Ministry of Commerce From the chart above, Thailand’s imports have grown steadily over the past six years while exports have stabilized over the past two years. At the end of 2011, imports accounted for over US$1.7 billion while exports were smaller at US$350 million. Thailand’s Imports of Pharmaceuticals in 2011 USA 15% Germany 9% Others 39% Thailand’s Exports of Pharmaceuticals in 2011 Switzerland 8% Italy 7% UK 7% India 7% France 8% Myanmar 20% Others 41% Vietnam 20% Malaysia 8% Cambodia 11% Source: United Nations Trade Map As the pie charts above, Thailand imports its pharmaceuticals from a variety of pharmaceutical leaders. In 2011, the US was the largest importer of pharmaceuticals to Thailand accounting for 15% of total imports. Germany, Switzerland and France were the next largest importers at 9%, 8% and 8%, respectively. More than half of the kingdom’s pharmaceutical exports were destined for the ASEAN region including Myanmar (20%), Vietnam (20%), Cambodia (11%) and Malaysia (8%).
  • 7. Medical Food Medical food refers to food that is formulated to be consumed or administered under the supervision of a physician and which is intended for a specific dietary treatment of a disease or a condition with distinctive nutritional requirements. Medical food differs from regular food as it has substantial healthpromoting or disease-preventing benefits beyond the basic delivery of nutrients. It also differs from nutritional supplements in that it is not designed for use by healthy persons, but rather as a therapy for a particular medical condition under the guidance of a medical practitioner. At minimum, medical food products must be: Food for oral ingestion or tube feeding (Nasogastric tube); Labeled for the dietary management of a specific medical disorder, disease or condition for which there are distinctive nutritional requirements; and, Intended to be used under medical supervision. Thailand’s Import and Export of Medical foods in 2011 Unit: US$ Description Import Export Food preparations of soybean powder - for infants allergic to milk or for Lactase deficient infants, put up for retail sale 757,017 1,681,482 Food preparations of others - for infants allergic to milk or for Lactase deficient infants, put up for retail sale 851,517 1,132,312 Food preparations of others - for infants allergic to milk or for Lactase deficient infants, not put up for retail sale 947,621 1,715,790 Food preparations - for supplements for seriously patients 2,392,510 333,197 Other food preparations - for Lactase deficient infants 16,489,466 1,597 Source: Global Trade Atlas
  • 8. The medical food market in Thailand continues to grow every year. Thailand has the benefit of numerous agricultural raw materials, standardized quality, advanced technology, and skilled laborers. These factors attract new investment projects to Thailand. Additionally, the government of Thailand has issued several policies to encourage investment in this sector. As a result, Thailand is an excellent base for investment in medical food processing and production. Major suppliers of medical food in Thailand include, among others: Mead Johnson Nutrition, Abbott and Novartis. Located in Chonburi, Thailand, Mead Johnson Nutrition (Thailand) Ltd. is the largest manufacturing plant outside of the US for the company and serves as its hub for Asia Pacific operations. We have always been able to attract workers with the appropriate skills to support our operations in Thailand. As a science-based business that utilizes cutting-edge technology in our laboratories and production operations, we encourage the government to continue building capabilities in science and engineering. When providing nourishment for precious infants, you always have a need for chemists, microbiologists, nutritional scientists and quality experts.” “We also see Thailand as an excellent place for conducting research and development, especially because of the deep local talent pool. In fact, most of the scientists at the company’s Bangkok and Chonburi facilities are Thai. Their breakthrough discoveries are helping to support the health and well-being of moms-to-be, moms, infants and children in Thailand and across Asia. - Mr. Stephen W. Golsby, President and Chief Executive Officer of Mead Johnson Nutrition -
  • 9. Quality and Safety of Services Thailand’s hospitals are global market leaders and have achieved international standards for quality and performance. Bumrungrad International Hospital (BIH), located in Bangkok, Thailand, is the largest hospital in Southeast Asia and is the first hospital in Asia to be certified with ISO 9001, and the first one in Asia to be granted membership to the prestigious Joint Commission International Accreditation (JCIA), an international accreditation arm of the US’ Joint Commission on Accreditation of Healthcare Organizations (JCAHO). These accreditations show that Thailand’s hospitals have been focus on the quality care. The following hospitals are also accredited by the JCIA: Bangkok Hospital Bangkok Heart Hospital Wattanosoth Hospital Bangkok Hospital Pattaya Bangkok Hospital Phuket Bangkok International Clinic BNH Hospital Samitivej Hospital Srinakarin Samitivej Hospital Sukhumvit Samitivej Hospital Sriracha Vejthani Hospital Bumrungrad Hospital Chiangmai Ram Hospital Synphaet Hospital Ramkhamhaeng Hospital Praram 9 Hospital Yanhee Hospital Nonthavej Hospital
  • 10. It is common among Thailand’s private hospitals to have established partnerships with top international medical schools and healthcare institutions worldwide. A number of private Thai hospitals have also achieved international standards of Hospital Accreditation (HACC) such as ISO 9002: 2000, ISO 14001, ISO 18000 and JCIA. Thailand’s Food and Drug Administration (FDA) is in charge of: Pre-marketing control Post-marketing Control Surveillance Programs for Consumer Safety Consumer Education Technical Support and Cooperation with other Agencies. The FDA oversees medical device imports of three classifications, which can be found at the organization’s website. Intellectual Property Rights Thailand’s 7 laws pertaining to intellectual property all meet international standards: 1. Copyrights Act of 1994 2. Patent Act of 1979, as amended by the Patent Act (No. 3) of 1999 3. Traditional Medicine and Practice Act of 1999 4. Trademark Act of 1991, as amended by the Trademark Act (No. 2) of 2000 5. Act for the Protection of Layout-Designs of Integrated Circuits 2000 6. Trade Secret Act of 2002 7. Protection of Geographical Indication Act of 2003 Excellent Infrastructure There are many institutions and research centers where medical technological breakthroughs and development are adequately supported: Thailand’s Science Park, established as a one-stop service center to assist companies engaged in scientific and technological research The National Center for Genetic Engineering and Biotechnology (BIOTEC) National Science and Technology Development Agency (NSTDA) Food and Drug Administration Ministry of Public Health (MoPH) Ministry of Science and Technology (MOST) National Innovation Agency Health Systems Research Institute Thailand Center of Excellence for Life Sciences (TCELS)
  • 11. Wonderful Investment Opportunity and Environment Thailand has one of the fastest-growing and foreign friendly economies in Asia. Recently, the World Bank ranked the Kingdom 16th globally and 2nd in Southeast Asia in the ease of doing business index. This ranking demonstrates the favorable climate for foreign investment in healthcare, medical devices, and pharmaceuticals. Coupled with a growing economy and growing medical device manufacturing needs, the Kingdom of Thailand has numerous investment opportunities for foreign investors. BOI Investment Incentives Thailand Board of Investment offers a wide range of fiscal and nontax incentives for investments based on location. Tax-based incentives include exemption or reduction of import duties on machinery and raw materials, and corporate income tax exemptions and reductions. Nontax incentives include permission to bring in foreign workers, own land and take or remit foreign currency abroad. As part of its efforts to promote Thailand as a Medical Hub, Several activities, including manufacture of medical food, manufacture of medical equipment and manufacture of parts for medical electronics, have been classified as high-technology businesses activities under the BOI’s policy for Sustainable Development. As such, projects in these categories that apply for BOI promotion prior to the end of 2012 receive an eight-year corporate income tax exemption without being subject to the corporate income tax exemption cap and a fifty percent reduction of corporate income tax on the net profit generated from the investment for not more than five years from the end of the incentive period under Section 13, Paragraph 1 or 2 as the case may be or from the date of the first income derivation from the promoted activity in case the promoted person does not receive corporate income tax exemption.
  • 12. In addition, these projects are exempt from import duties on machinery, double deduction for transportation, electricity and water costs for 10 years from the date of first income derivation from promoted activity, and a deduction for infrastructure installation or construction costs from net profit, in addition to normal depreciation of not more than 25% of the investment in promoted project. Such deduction can be made from the net profit in one or several years during the period of 10 years from the date of the first income derivation from promoted project. In addition, projects are eligible to receive other relevant location-based incentives. Projects involved in the manufacture of medicine and/or active ingredients in medicine who meet certain conditions are eligible for exemption of import duty on machinery, regardless of zone, and a corporate income tax holiday based on location (5 years if located in Zone 1. 6 years if located in Zone 2, 7 years if located in an industrial estate or industrial zone in Zone 2, or 8 years if located in Zone 3). In addition, projects are eligible to receive other relevant location-based incentives. The BOI also promoted retirement homes and care centers as well as dedicated health centers, which are facilities that can provide the processes of medical or psychotherapeutic treatment through the use of advanced technological devices and facilities. These dedicated health centers will serve only the patients who need further treatment to rehabilitate, so it helps them prevent injury and disease, recover function and strength, reduce pain and ultimately helps them return to a more independent and productive lifestyle. Projects in retirement homes and care centers, as well as dedicated health centers are eligible for exemption or reduction of import duty on machinery, based on project location, provided they achieve standards set by relevant government agencies. For further information: The Thailand Board of Investment (BOI): http://www.boi.go.th The Food and Drug Administration: http://www.fda.moph.go.th/eng/index.stm Thai Medical Device Technology Industry Association (THAIMED): http://www.thaimed.co.th/eng
  • 13. Head Offices Contact Us OFFICE OF THE BOARD OF INVESTMENT 555 Vibhavadi-Rangsit Rd., Chatuchak, Bangkok 10900 Tel: +66 (0) 2553-8111 Fax: +66 (0) 2553-8222 Website: www.boi.go.th Email: head@boi.go.th ONE STOP SERVICE CENTER FOR VISAS AND WORK PERMITS 18th Floor, Chamchuri Square Building, 319 Phayathai Rd., Pathumwan, Bangkok 10330 Tel: +66 (0) 2209-1100 Fax: +66 (0) 2209-1194 Email: visawork@boi.go.th ONE START ONE STOP INVESTMENT CENTER (OSOS) 18th Floor, Chamchuri Square Building, 319 Phayathai Rd., Pathumwan, Bangkok 10330 Tel: +66 (0) 2209-1100 Fax: +66 (0) 2209-1199 Website: osos.boi.go.th Email: osos@boi.go.th INVESTOR CLUB ASSOCIATION (ICA) 12th and 16th Floor, TP&T Building, 1 Soi Vibhavadi-Rangsit 19, Vibhavadi-Rangsit Rd., Lad Yao, Chatuchak, Bangkok 10900 Tel: +66 (0) 2936-1429 Fax: +66 (0) 2936-1441-2 Website: www.ic.or.th Email: is-investor@ic.or.th Regional Offices CHIANG MAI Regional Investment and Economic Center 1 Airport Business Park 108-110, 90 Mahidol Rd., Muang, Chiang Mai 50100 Tel: +66 (0) 5320-3397-400 Fax: +66 (0) 5320-3404 Email: chmai@boi.go.th SONGKHLA Regional Investment and Economic Center 5 7-15 Chaiyong Building, Juti Uthit 1 Rd., Hadd Yai, Songkhla 90110 Tel: +66 (0) 7434-7161-5 Fax: +66 (0) 7434-7160 Email: songkhla@boi.go.th NAKHON RATCHASIMA Regional Investment and Economic Center 2 2112/22 Mitraphap Rd., Muang, Nakhon Ratchasima 30000 Tel: +66 (0) 4421-3184-6 Fax: +66 (0) 4421-3182 Email: korat@boi.go.th SURAT THANI Regional Investment and Economic Center 6 49/21-22 Sriwichai Rd., Makhamtia, Muang, Surat Thani 84000 Tel: +66 (0) 7728-4637, +66 (0) 7728-4435 Fax: +66 (0) 7728-4638 Email: surat@boi.go.th KHONKAEN Regional Investment and Economic Center 3 177/54 Moo 17, Mitraphap Rd., Muang, Khonkaen 40000 Tel: +66 (0) 4327-1300-2 Fax: +66 (0) 4327-1303 Email: khonkaen@boi.go.th CHONBURI Regional Investment and Economic Center 4 46 Moo 5, Laem Chabang Industrial Estate, Sukhumvit Rd., Toongsukhla, Sriracha, Chonburi 20230 Tel: +66 (0) 3840-4900 Fax: +66 (0) 3840-4999, +66 (0) 3840-4997 Email: chonburi@boi.go.th PHITSANULOK Regional Investment and Economic Center 7 3rd Floor, Thai Sivarat Building, 59/15 Boromtrilokkanat 2 Rd., Naimuang, Muang, Phitsanulok 65000 Tel: +66 (0) 5524-8111 Fax: +66 (0) 5524-8777 Email: phitsanulok@boi.go.th Overseas Offices BEIJING Thailand Board of Investment, Beijing Office Royal Thai Embassy, No.40 Guang Hua Rd., Beijing 100600 P.R.C. Tel: +86-10-6532-4510 Fax: +86-10-6532-1620 Email: beijing@boi.go.th FRANKFURT Thailand Board of Investment, Frankfurt Office Royal Thai Embassy, Bethmann Str. 58, 5.OG 60311 Frankfurt am Main Federal Republic of Germany Tel: +49 (0) 69-9291-230 Fax: +49 (0) 69-9291-2320 Email: fra@boi.go.th GUANGZHOU Thailand Board of Investment, Guangzhou Office Investment Promotion Section, Royal Thai Consulate-General, Room 1216-1218, Garden Tower, 368 Huanshi Dong Rd., Guangzhou 510064 P.R.C Tel: +86-20-8333-8999 ext. 1216-8, 8387-7770 Fax: +86-20-8387-2700 Email: guangzhou@boi.go.th LOS ANGELES Thailand Board of Investment, Los Angeles Office Royal Thai Consulate-General, 611 North Larchmont Boulevard, 3rd Floor, Los Angeles CA 90004, U.S.A. Tel: +1-323-960-1199 Fax: +1-323-960-1190 Email: boila@boi.go.th SEOUL Thailand Board of Investment, Seoul Office #1804, 18th Floor, Coryo Daeyungak Tower, 25-5, Chungmuro 1-ga, Jung-gu, Seoul, 100-706, Korea Tel: +82-2-319-9998 Fax: +82-2-319-9997 Email: seoul@boi.go.th SHANGHAI Thailand Board of Investment, Shanghai Office Royal Thai Consulate-General, 15th Floor, Crystal Century Tower, 567 Weihai Rd., Shanghai 200041, P.R.C Tel: +86-21-6288-9728-9 Fax: +86-21-6288-9730 Email: shanghai@boi.go.th STOCKHOLM Thailand 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 1160 Email: stockholm@boi.go.th SYDNEY Thailand Board of Investment, Sydney Office Suite 101, Level 1, 234 George Street, Sydney, New South Wales 2000, Australia Tel: +61-2-9252-4884 Fax: +61-2-9252-2883 Email: sydney@boi.go.th NEW YORK Thailand Board of Investment, New York Office 61 Broadway Avenue, Suite 2810, New York, N.Y. 10006, U.S.A. Tel: +1-212-422-9009 Fax: +1-212-422-9119 Email: nyc@boi.go.th TAIPEI Thailand Board of Investment, Taipei Office Taipei World Trade Center, 3rd Floor, Room 3E 39-40 No.5 Xin-Yi Rd., Sec. 5 Taipei 110, Taiwan R.O.C. Tel: +886-2-2345-6663 Fax: +886-2-2345-9223 Email: taipei@boi.go.th OSAKA Thailand Board of Investment, Osaka Office Royal Thai Consulate-General, Bangkok Bank Building, 5th Floor, 1-9-16 Kyutaro-Machi, Chuo-Ku, Osaka 541-0056 Japan Tel: +81 (0) 6-6271-1395 Fax: +81 (0) 6-6271-1394 Email: osaka@boi.go.th TOKYO Thailand Board of Investment, Tokyo Office Royal Thai Embassy, 8th Fl., Fukuda Building West, 2-11-3, Akasaka, Minato-ku, Tokyo 107-0052 Japan Tel: +81 (0) 3-3582-1806 Fax: +81 (0) 3-3589-5176 Email: tyo@boi.go.th PARIS Thailand Board of Investment, Paris Office Ambassade Royale de Thailande, 8, Rue Greuze, 75116 Paris, France Tel: +33 (0) 1-5690-2600-1 Fax: +33 (0) 1-5690-2602 Email: par@boi.go.th
  • 14. www.boi.go.th 555 Vibhavadi-Rangsit Rd., Chatuchak, Bangkok 10900, Thailand Tel: +66 2553 8111 Fax: +66 2553 8222 E-mail: head@boi.go.th BOI 2012

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