Investment Opportunities in Thailand for Biotech Business

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Presented by Ms. Ajarin Pattanapanchai, Deputy Secretary General of Thailand Board of Investment in San Diego on June 23, 2014

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Investment Opportunities in Thailand for Biotech Business

  1. 1. Investment Opportunities in Thailand for Biotech Business Ms. Ajarin Pattanapanchai Deputy Secretary General Thailand Board of Investment
  2. 2. Outline • Facts & Figures • Why Thailand • BOI Investment Promotion Policy • Investment Opportunities for Biotechnology
  3. 3. Thailand’s Fast Facts Thai population 67 million (2013) Thailand’s GDP US$385 billion (2013) US$5,647 per capita GDP Thai GDP by sector Agriculture: 12% Industry: 45% Services: 43% Thai labor force 39.13 million (2013) Thai exports US$225.4 billion (2013) Thai imports US$219.0 billion (2013) Source: NESDB as of Feb 17, 2014 and Pocket World in Figures 2014 Edition
  4. 4. THAILAND is the world’s • 17th largest manufacturer output • 28rd largest exporter (US$225.4 billion in 2013) • 2nd largest economy in ASEAN (GDP US$385 billion in 2013)
  5. 5. WHY THAILAND
  6. 6. Highly Ranked UNCTAD Ranks Thailand 8th as a top prospective host economy 2013- 2015 World Bank Ranks Thailand among the easiest places to do Business in Asia and 18th in the World
  7. 7. “Over the past 6 years, Thailand has suffered bouts of political unrest on top of the global financial crisis and severe flooding. Nevertheless, the economy maintains solid economic fundamentals that support its resilience, with high international reserves, relatively low inflation, a moderate amount of government and external debt, and a strong manufacturing base.” Asian Development Bank Outlook 2014
  8. 8. 275 249 201 166 164 105 83 71 47 36 34 - 50 100 150 200 250 300 Prime Office Occupancy Costs A$/sq ft/annum Source: CBRE Prime Office Occupancy Costs, Q3/2013 as of December 18, 2013 Note:US$1=Bt30.73 and A$1=Bt29.69 in 2013
  9. 9. Wage Comparison 92.4 54.8 49.6 42.8 33.3 21.5 20.9 17 14.6 8.5 8 7.9 7.6 0 10 20 30 40 50 60 70 80 90 100 Tokyo Seoul Dubai H ong K ong Taipei K uala lum purShanghai BeijingBangkokM um bai M anila Jakarta Delhi WageLevels(US$) Gross Net 4 Cities ranked according to gross value of index. New York = 100 Source: UBS/Prices & Earnings update September 2012
  10. 10. Low Corporate Income Tax 2013 Source: KPMG ASEAN Tax Guide, as of 2013 17 20 20 25 25 25 26 30 30 35 0 5 10 15 20 25 30 35 40 Percent Singapore Thailand Cambodia Vietnam Malaysia Indonesia
  11. 11. 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
  12. 12. 12 • Thailand has 8 intellectual property-related laws, all of which are consistent with international standards: • Copyright Act of 1994 • Patent Act of 1979, as amended by the Patent Act (No.3) of 1999 • Trademark Act of 1991, as amended by the Trademark Act (No.2) of 2000) • Act for the Protection of Layout-Designs of Integrated Circuits 2000 • Trade Secret Act of 2002 • Protection of Geographical Indication Act of 2003 • Plant Varieties Protection Act of 1999 • Traditional Medicine and Practice Act of 1999 IPR Framework
  13. 13. Numbers of Thailand’s Graduates in 2014 (Forecast) (Unit: person) Source: Labor Market Research Division, Department of Employment 2012
  14. 14. 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
  15. 15. Free Trade Agreement Note: * Thailand, Malaysia, Indonesia, Philippines, Singapore and Brunei only. ASEAN •+570 million pop. •US$1.3 trillion GDP (2007) ASEAN+3 •+2 billion pop. (1/3 world pop.) •US$9trillion GDP (16% of world GDP) ASEAN+6 •3.3 billion pop. (>50% world pop.) •US$12.25 trillion GDP Thai-Peru Thai-Chile
  16. 16. ASEAN Economic Community(AEC) 2015 AEC A Single Market & Production base Source: Reaping the benefits of AEC & ,www.asean.org, as of December 2009 • Free flow of goods • Free flow of services • Free flow of investment • Free flow of capital • Free flow of skilled labor Transform ASEAN into a stable, prosperous and highly competitive region with equitable economic development, and reduced poverty and socio-economic disparities
  17. 17. (17) Investment Promotion Policy
  18. 18. (18)  No restrictions on foreign currency remittances  No export requirement  No foreign equity restrictions in manufacturing sectors and promoted services sector  No local content requirement Liberal Investment Policy
  19. 19. (19) Tax Incentives  Corporate income tax holidays up to 8 yrs •Additional 50% reductions of corporate income tax for 5 yrs may apply in zone 3  Import duty reductions or exemptions on machinery and raw materials  Double deduction of public utility costs  Deductions for infrastructure construction/installation costs Non-Tax Incentives  Land ownership rights for foreign investors  Permission to bring in foreign experts and technicians  Work permit/visa facilitation One-Stop-Shop Visas & Work Permits are issued in 3 hours Basic BOI privileges and Measures
  20. 20. 20 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
  21. 21. Thailand :Top of the Food Processing Country • The country’s rich agriculture and the high technology combined with governmental support in food R&D have developed • Thailand is one of 5 net food exporter countries, reputation as the “Kitchen of the World.” • Thailand is among the world’s leading suppliers of commodities such as rice, sugar and cassava, as well as a leading provider of fresh and canned fish, shrimp, pineapple, and a variety of fruits and vegetables.
  22. 22.  World class hospital services, high-quality medical treatment with Thai hospitality  Thai doctors study abroad, speak international languages and are among the best in the region  Supporting facility: Lab test services  Health tourism increased in last few years, more than 3 millions foreign patients get services in Thailand each year, becoming the largest in Asia Thailand: Regional Medical Hub  Good opportunities for medical device and biotechnology
  23. 23. EXCELLENT SUPPORTING UNITS • Board of Investment (BOI) • 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 & Innovation Policy Office (STI) • The National Center for Genetic Engineering and Biotechnology (BIOTEC) • Thailand Center of Excellence for Life Sciences (TCELS) • National Innovation Agency (NIA) • Health Systems Research Institute
  24. 24. Science Park & Bio Park • Thailand’s Science Park Serves as an incubation Center for Science-Related Investment • Bio Park : 1st biotech hub in Thailand for agro- based and life science research and services • Support Includes: – Joint investment (i.e. joint ventures) – Assistance in finding and acquiring technology – Analytical and technical services – Intellectual property services – Quality management services – Maximum BOI Incentives
  25. 25. Thailand Science Park Phase II State-of-the-art R&D and incubator facilities 120,000 sq.m. of space one 13-story tower three 10-story buildings fully completed in 2012
  26. 26. Target BOI Promotion in Life Science Business • Medical supplies or medical devices • Medical food • Scientific equipment • Laboratories Services/Test • Research and development • Training Center • Biotechnology • Biopharmaceutical agent • Diagnostic kits for health, agriculture, food • Bio molecule and bioactive compounds • Biological substances analysis or synthesis services • Biological substances analysis and/or synthesis services
  27. 27. Priority Activity Incentives • Exemption on machinery import duties • 8-year corporate income tax holiday • Additional incentive if locate in Science Park • 50% corporate income tax reduction for another 5 years Special Incentive for Life Science Business
  28. 28. 29 Company Product/Services I- med Laboratory Thalassemia / Lymphocyte test kit Siam Bio Science Biopharmaceuticals • 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 Austrianova Cell-in-a-box Greater Pharma Manufacturing Vaccine and Allergy Testing Agent Example of Promoted Projects in Biotech
  29. 29. (30) Supports for US Investors BOI Office New York 61 Broadway, Suite 2810, New York NY 10008 USA Tel: (212) 422 9009 Fax: (212) 422 9119 E-mail: boiny@aol.com nyc@boi.go.th 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 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
  30. 30. Thank you

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