Thailand Investment Review, August 2021

Vol.
31
l
August
2021
HONING THAILAND
AS A TRADING
NATION

Unit: US$ (US$ = 33.00 as of 23 July 2021)
Note: Investment projects with foreign equity participation from more than one country are reported in the figures for both countries. Statistics on net
applicationsareadjustedwheneverapplicationsarereturnedtoapplicantsdue toinsufficientinformation. Formore details, please visitwww.boi.go.th
BOI NET APPLICATION
January – June 2021
FOREIGN INVESTMENT BY TARGET SECTORS
Total Investment
801 Projects
US$ 11,703.03 Million
Total Foreign
Investment
403 Projects
US$ 8,444.18 Million
Petrochemicals
& Chemicals
29 Projects l 801.27 M
Automotive
Electronics
64 Projects l 1,726.58 M
Biotechnology
Tourism
Digital
Medical
23 Project l 566.21 M
Automation
& Robotics
1 Projects l 0.09 M
Aerospace
First S-Curve New S-Curve
Agriculture
& Food Processing
FOREIGN INVESTMENT BY MAJOR ECONOMIES
Taiwan
20Projects
430.12 M
Japan
87Projects
1,296.15 M
SouthKorea
16Projects
352.58 M
China
63Projects
564.09M
Singapore
52Projects
563.03 M
HongKong
32Projects
332.42 M
Malaysia
14Projects
33.87M
India
11Projects
104.99M
THAILAND
Netherlands
30Projects
162.18 M
Germany
13Projects
9.19M
UnitedStates
18 Projects
731.24 M

Highlights
Leveraging Deepening Regional Integration
11
Company Interview
A Solid Past, a Changing Present and a Bright Future
for International Logistics Services in Thailand
20
Executive Talk
Strengthening GMS Integration
to Address Challenges
17
Industry Focus
Thailand’sVibrantPost-PandemicLogisticsOutlook
08
Cover Story
Sharpening Thailand’s Edge as a Logistics
and Trading Hub
04
Thai Economy At A Glance
23
Facts & Figures
13

SHARPENING
THAILAND’S EDGE
AS A LOGISTICS
AND TRADING HUB
In addition to its strategic location
at the center of the other five
Greater Mekong Subregion (GMS)1
markets of China (specifically
Yunnan Province and Guangxi
Zhuang Autonomous Region),
Cambodia, Laos, Myanmar and
Vietnam,Thailandisalsoamember
of the Indonesia-Malaysia-Thailand
Growth Triangle (IMT-GT) and
the Bangladesh-India-Myanmar-
Sri Lanka-Thailand Economic
Cooperation.
For several decades, this
geographical advantage together
with Thailand’s continued
development of its intermodal
transportation linking the country
to the Asia-Pacific region has
prompted multinational companies
across diverse industries to
choose Thailand as the operations
base for their regional activities.
Overthelastdecadealone,Thailand
is estimated to have invested
approximately US$ 130 million in
infrastructure development2.
As the future development of
logistic services in Thailand is
oriented towards upgrading the
physical infrastructure through the
use of robotics and automation,
drones and 3D Printing, and
developing the digital side with
a focus on data analytics, blockchain
technology,IoT,cloudcomputing
and Artificial Intelligence, the
robust ecosystem that Thailand is
establishing for these technologies
will drive the country’s logistics
industry.
The National Economic and
SocialDevelopmentCommittee,a
secretariat of the Thai government’s
National Logistics Committee,
As businesses come to terms with a world market that is expected to be dominated by
volatility, uncertainty, complexity and ambiguity due to geopolitical, economic and environmental
risks, they are increasingly looking for reliable, proactive and dynamic logistics system
that can better facilitate the flow of goods and limit the risk of major disruption. The trend
ofglobalinvestorsreconfiguringtheirsupplychainstominimizerisksduringtheCOVID-19
pandemichasalsounderscoredhowimportantitisforcountriestoupgradetheirconnectivity
to the world market and improve the efficiency of their logistics.
COVER
STORY
04 Thailand Investment Review
2https://www.pwc.com/th/en/deals/assets/pwc-th-infrastructure-market-update-and-outlook.pdf
1https://greatermekong.org

COVER
STORY
Thailand Investment Review 05
reported that although the
country’s logistics decreased
slightly from 13.8% of its gross
domestic product in 2016 to
13.2% in 2019, the sector rose to
14.1% of GDP in 2020 reflecting
theimpactofthepandemiconthe
tourismandtheservicesector.By
comparison, logistics accounted
for an average of 6-8% GDP in
OCED countries and 12.8% GDP
across the Asia-Pacific region3.
In the latest edition of the
World Bank’s Logistic Performance
Index 20184, which assesses
logistics performance in six
dimensions, Thailand was ranked
32nd out of 167 countries, second
only to Singapore in ASEAN.
Of all six dimensions assessed,
Thailand performed best in ease
of arranging competitively priced
shipments and in timeliness of
shipments, if Japan, which was
thetopscorerinAsia,wasusedas
a benchmark. The four remaining
indicators include competence
and quality of services; tracking
and tracing; efficiency of clearance
process; and quality of trade and
transport-related infrastructure
including ports, railroads, roads
and information technology.
The NESDC, in collaboration
with the private sector, has
announced “The Third Thailand
Logistic Development Plan
2017-2022”5 which outlines the
following three guidelines for
upgrading the country’s logistics:

Supply chain enhancement
involves upgrading the standard
of supply chain management,
connecting trade towards
e-commerce, and enhancing the
capability and competitiveness of
logistics providers
Development of Infrastructure
andfacilities,whichcoversdeveloping
transportation infrastructure and
the logistics network, developing
a National Single Window System,
enhancing electronic logistics
procedures,andtacklinginternational
trade barriers
Development of logistics
and supporting factors. which
covers developing occupational
standards for the logistics services,
building the capacity of logistics
service providers, improving R&D
in logistics innovations and
technology, and evaluating and
monitoring international agreements
and databases to assess the local
logistics development.
Ramping Up
Regional Connectivity
To hone its advantage as ASEAN’s
trade and commerce hub in the
near future, Thailand is pushing
forward development of infrastructure
networks with a focus on upgrading
connectivity with the Asia-Pacific
region.
One flagship project is the
Eastern Economic Corridor (EEC),
a special economic zone in the
Eastern region with a focus on
high-technology industries which
willserveasenginesforthecountry’s
economic development. As the
3 https://www.nesdc.go.th/ewt_dl_link.php?nid=11803
4 https://lpi.worldbank.org/international/scorecard/radar/254/C/THA/2018#chartarea
5 https://www.nesdc.go.th/download/document/logistic/The%20Third%20
Thailand%20Logistics%20Development%20Plan.pdf

COVER
STORY
EEC area covers Map Ta Phut and
Lam Chabang deep seaports and
U-Tapao International Airport, it is
where the Thai government’s has
concentrated a majority of its
investment on upgrading the
transportation network.
Through public-private
partnerships, the Thai government
has made significant progress,
with four out of five key projects
having already been signed, as
of August6. These include the
development of Map Ta Phut
Industrial Port (Phase 3); Laem
Chabang Port (Phase 3); and
the High-Speed Rail Linking
Don Mueang, Suvarnabhumi and
U-Tapao International Airports,
as well as the U-Tapao International
Airport and Eastern Aviation City
Project. Generating an investment
of approximately US$ 20 billion,
all four projects are targeting a
commencement of operations
between 2025-2026.
Outside the EEC, the Southern
Land Bridge, which will include a
new upgraded commercial port,
will provide a land link between
the Pacific and Indian Oceans in
addition to ports in the Strait of
Malacca. Thailand’s Ministry of
Transportbeganafeasibilitystudy
on the Southern Land Bridge
project’s environmental and health
impacts as well as a design and
business development model in
March of this year, with completion
scheduled in 2022. The project
is expected to include the
development of smart commercial
sea ports in Ranong and Chumphon
provinces, offering a segregated
route between the Gulf of Thailand
and the Andaman Sea to serve
the expected increase in the
volume of shipping traffic in the
future.
TheMinistryofTransporthas
also commenced the Motorway-
RailMap(MRMap)project,which
will see the construction of major
roads and rail lines connecting
the country’s regional industrial
andspecialeconomiczones.The
Ministry is conducting feasibility
studies on four routes for roads
andparalleldual-trackedrailways
including Ranong-Chumphon, Nong
Khai-Lam Chabang, Kanchanaburi-
Ubon Ratchathani,anda newOuter
Bangkok Ring Road.
The Thai government’s
infrastructure connectivity plan
also includes the construction
of four dry ports to link Lam
Chabang Deep Seaport to Kon
Kaen and Nakhon Ratchasima in
the Northeastern Region and to
Nakhon Sawan and Chacheongsao
in the Central Region.
The construction of the MR
Map routes and dry ports will
enable Thailand to take advantage
of a better flow of goods and
services along three main GMS
Economic Corridors7. The East-
6https://www.eeco.or.th/th/news/365
7https://greatermekong.org/content/economic-corridors-in-the-greater-mekong-subregion

8https://www.nesdc.go.th/ewt_dl_link.php?nid=5195
West Economic Corridor, North-
South Economic Corridor, and
SouthernEconomicCorridorenhance
trading routes across the GMS
markets.Amongthemostadvanced
projects is the China-Laos Railway
which is a high-speed train
route linking Kunming in China to
VientianeinLaos.Thetransportation
route, which will considerably
shorten travel time between China
and Laos, offers an exciting
opportunity for Thailand to
enhance its border trade and
transportation and further boost
the tourism and wellness industries
in Thailand.
In 2015, Thailand began the
development of 10 special economic
zonesalongitsborders8 toserveas
economic gateways to neighboring
countries across the country’s
Northern,Northeastern,Western,
Eastern and Southern borders.
Tosupporttheseprojects,theThai
government has offered incentives
for investment and workforce
development in targeted industries
and worked on developing the
business environment in these
areas.
BOICementingThailand’s
Position as a Trading
and Logistics Hub
The BOI offers investment promotion
incentives for a comprehensive
rangeoflogisticsbusinessservices
aimed at cementing the country’s
positioning as a trading and
logistics hub in the region.
HighlightingThailand’spotential
as a regional operation base for
multinational companies, the BOI
has reinstated incentive programs
for International Procurement Offices
(IPOs). As IPOs will act on behalf
of manufacturers in procuring raw
materials for goods, selling them
forfurtherprocessing,andexporting
the raw materials out of Thailand,
their operation will be important
forensuringthecosteffectiveness
of the regional supply chain for
businesses. Eligible businesses
in the IPO categories will receive
an exemption from import duties
on machinery and raw materials
used in producing goods for
export as well as various non-tax
incentives.
For the BOI’s tax incentives
for the logistics sector, eligible
activities include:
Basic infrastructure and
services: inland container depots/
cargo bays and loading/unloading
facilitiesforcargoshipsareeligible
for 5 years of CIT exemption and
airports are eligible for 8 years of
CIT exemption.
Mass transit and goods
transportation services: rail and
maritime services are eligible for
8 years and air transportation
services are eligible for 5 years of
CIT exemption
International distribution
centers are eligible for 5 years of
CIT exemption
Smart distribution centers
are eligible for 8 years of CIT
exemption
The manufacture of carriages
and the manufacture of devices
orpartsofrailsystemsareeligible
for 8 years of CIT exemption; the
repairment of rail systems, parts
ordevicesiseligiblefor5yearsof
CIT exemption.

INDUSTRY
FOCUS
1https://www.etda.or.th/th/Our-Service/Standard-(1)/Law.aspx
2 https://www.jpmorgan.com/europe/merchant-services/insights/reports/thailand
THAILAND’S VIBRANT
POST-PANDEMIC
LOGISTICS OUTLOOK
With the largest online population
and the second largest economy
intheASEANregion,Thailandhas
seen its consumers increasingly
shift to e-commerce as part of
the adjustment process to the
COVID-19 pandemic, creating a
boon to delivery services. Meanwhile
the country’s air, maritime and
road transportation services are
all poised to rebound strongly
in line with the pickup in world
demand, as Thailand is one of
the region’s largest export bases
for industries from automotive to
agribusiness and biochemicals.
Represented by both local
andglobalcompanies,Thailand’s
well-established logistics sector
is a major facilitating factor for
trade and investment while also
generating massive jobs for the
country’s workforce. The database
of the Trade Policy and Strategy
Office (TPSO), under Thailand’s
Ministry of Commerce, showed
that around 20,200 companies
wereregisteredintheThailogistics
sector as of August 2020. More
than half of these (10,500) were
active in road and rail transportation,
with 7,900 in warehouses and
related activities and approximately
800eachinmaritimeshippingand
delivery services. Approximately
200 companies were operating
air transportation services.
The TPSO estimated that
Thailand’s logistics industry was
the fourth largest industry in the
country’sservicesector,generating
economic outputs during the first
half of 2021 of approximately US$
12.2 billion, accounting for 5% of
gross domestic product. Although
theTPSOreportedthatThailand’s
logistic industry declined by 22%
in the first half of 2021 compared
to the same period of 2020, such a
decrease was observed in almost
all of the country’s logistics sectors
during the pandemic, except for
last-mile delivery and postal services,
which posted 35% growth in 2019
from 2018 to reach a value of
US$ 860 million.
Thriving Delivery and
Goods Transportation
Reflectingthesurgeine-commerce
during the pandemic, for both
business-to-consumer (B2C) and
business-to-business (B2B)
transactions,asurveybytheElectronic
Transactions Development Agency
(ETDA)1 estimated that Thailand’s
revenue from e-commerce rose
to approximately $50 billion in
2020, up from $35 billion in 2017.
The survey also showed that
Thailand had the largest B2C
e-commerce sector in the ten-
membered ASEAN region in 2019
with solid growth prospects.
AstudybyJPMorgan2 showed
that one-third of all e-commerce
activities in Thailand involve cross-
border transactions, with half of
the country’s online shoppers
having already made a purchase
from abroad. The top three overseas
destinations forThai products are
WhileThailand’srobustlogisticsfacilitiesandbusinessecosystemcontributetothereliability
and competitiveness of its supply chains across industries and markets, the country has
a strong commitment and a concrete plan to further improve this competitiveness and
leverage its advantageous location in ASEAN.

INDUSTRY
FOCUS
3https://unctadstat.unctad.org/CountryProfile/MaritimeProfile/en-GB/764/index.html
China, Japan, and the United States.
Thailand’s growing e-commerce
market is driven by mobile
applications and e-payment
systems, with an estimated
compound annual growth rate
of 12% to $25 billion by 2023
reflecting the growing popularity
of online shopping through mobile
phones.
Looking at ASEAN overall,
an e-Conomy SEA 2020 report,
jointly commissioned by Google,
Temasek and Bain & Company,
predicted e-commerce in the
bloc to hit $62 billion in value in
2020. Global e-commerce firm,
Lazada, expects online shopping
inASEANtoreachUS$172billion
by 2025, an increase by nearly
three times from 2020.
The robust demand for
e-commerce in Thailand and across
ASEAN has attracted global
e-commerce portals to invest in
warehouse and logistics facilities
in the country, helping shorten
transportation times and provide
more sophisticated supply chain
and logistics management in the
medium-term.
Promising Hub for
Maritime, Air
and Road Logistics
After a decline during the pandemic,
Thailand’s logistics industry is
poised to recover gradually along
with world demand for Thai exports
and tourism. Over the long-term,
the country’s ongoing investment
in upgrading the country’s deep
seaports and dry ports as well as
international airports across the
countrywillunderpintherobustness
of the traffic and growth of the
logistics industry and further
cement Thailand as a logistics
hub of Asia and the Pacific.
The database3 of the United
Nations Conference for Trade and
Development (UNCTAD) showed
that Thailand reported a fleet growth
rate of 15.5% to 6.7 million dead
weighttonsofnationalflagfleetin
2020, compared with 5.4 million
tons in 2015. A 2019 UNCTAD
analysis of the volume of goods
transported by shipping in the
next 20 years, meanwhile, has
forecast a significant expansion
of the shipping volume to as much
as 536 million tons in 2039.
As about 90% of all goods
transported from one country to
another are sent by sea, due to
the low cost and greater capacity
of this mode compared to air
freight, the Thai government has

placed a priority on expanding
the capacity of seaports across the
country. Flagship projects include
the expansion of Laem Chabang
Deep Seaport to reach a capacity
of at least 18 million twenty-foot
equivalent units (TEUs) per year
uponcompletiontargetedin2023,
compared to 11 million TEUs at
present, and the expansion of
Map Ta Phut Industrial Seaport to
increase the capacity of natural gas
and fluid material shipments for
the petrochemical industry upon
completion in 2025. Aside from
these two seaports, which are
located in the Eastern Economic
Corridor(EEC),theThaigovernment
is also conducting a feasibility
study for the Southern Land Bridge
which will feature upgraded
commercial seaports in Ranong
andChumphonprovinces,connecting
the Andaman Sea and the Gulf
of Thailand, which will connect
to other seaports along coastal
areas in Bangkok and the EEC.
The Thai aviation industry has
grown continually since it underwent
liberalization in 2008, which led
to the rise of low-cost carriers and
vigorous air freight businesses.
Thailand’s air freight sector, which
is well-represented by multinational
companies, contracted in 2020-
2021 in line with the pandemic-
driven slowdown in Thai exports
and tourism. The International
Air Transport Association (IATA)
predicts that the number of air
passengers worldwide will recover
to the pre-COVID level by 2024,
depending on the progress of
the global vaccination program,
and that air freight will grow back
to the pre-COVID level of 61.2
million tons in 2021, compared
with 54.2 million tons in 2020.
In line with the IATA predictions,
KrungsriResearchCenterestimated
that Thailand’s air freight will begin
to recover gradually in 2021-2023,
from contractions of 68% for
local and 38% for international
transportation in 2020 compared
to 2019. In the short-term, the
recovery of the sector will be
weighed down by negative factors
such as uncertainty of commercial
flights, weak global economic
recovery, and high competition
in the airline industry. Over the
long-term, however, the Thai
government’s ongoing investment
in upgrading aviation capacity at
Suvarnabhumi, Don Mueang and
U-Tapao international airports and
major provincial airports as well as
in developing the Eastern Aviation
City, which includes maintenance
repair and operation facilities, will
support Thailand’s position as
an important investment and
logistics hub.
Road transportation is currently
the major platform for Thailand’s
domestic logistics industry,
accounting for 80% of all goods
transported for industrial, farm,
construction materials and delivery
sectors. Thailand’s plans for
upgrading its transportation
infrastructure focuses more on
dual tracked railways connecting
with motorways, airports and
seaports. The PPP contract
signed in October 2019 for the
220-kilometer high-speed train
linking three international airports
scheduled for completion in
2025 has set a new milestone
for the country’s railway network
development. This high-speed
train service will bring about new
investment in support systems,
such as feeder systems and
trams. Under the Motorway-Rail
Map, the Thai government will
invest in the construction of dual-
tracked railways linking Bangkok
to major provincial cities and regional
economic corridors such as the
China-Laos Railway.
According to Krungsri
Research Center, there are more
than 20 cold storage container
operators in Thailand at present
able to handle perishable goods
such as food, fruit and vegetable,
and fishery products. Growth of
the sector will drive Thailand’s
industrial economic growth and
its robust export markets.
Smart Warehouses
as the Heart of
the Supply Chain
Having the largest e-commerce
market in ASEAN, Thailand has
seenarapidgrowthinwarehouse
properties, which continue to attract
more investors to the EEC and
other special economic zones.
Knight Frank Thailand Research
predicted that the total supply of
ready-built warehouses in Thailand
would increase by 0.7% in the
second half of 2020, to reach 4.6
million square meters, compared
with the same period in 2019.
Despite the slowdown in the global
economy during the pandemic, the
total warehouse supply in Thailand
increased by 2.5%, with occupancy
standing at approximately 85% at
the end of 2020.
To address the challenges in
supply chain management, many
warehouses in Thailand have
installedupgradedsystems,suchas
enterpriseresourceplanning,cloud-
based warehouse management
systems,andautomationandrobotics,
to enhance their competitiveness
and support Thailand’s vibrant
trade and logistics ecosystem.
INDUSTRY
FOCUS

HIGHLIGHTS
LEVERAGING DEEPENING
REGIONAL INTEGRATION
By upgrading the capacity of its multi-modal infrastructure and preparing facilities to serve
growingworlddemandforhigh-technologygoodsandservices,Thailandexpectsinvestment
anddevelopmentacrossvariousindustriestothrive overthecomingdecades.
Building on its strategic location in the middle of
the Indo-China region, the accelerated pace of
economic integration in the Greater Mekong Subregion
(GMS)andthesubsequentimprovedflowsofgoods,
services and people across the region are creating
new opportunities for Thailand’s manufacturing, tourism
and services industries.
WhentheBoten–VientianeRailway(China–Laos
railway) opens for services in December 2021, it will
mark a significant advancement in the Trans-Asian
Railway1 in its quest to become a fully-integrated
transportation platform linking Asia and the Pacific.
At 414 km long, the Boten-Vientiane Railway
connects China’s Yuxi-Mohan Railway in the North
with the existing meter-gauge railway, which runs
from Boten in Northern Laos to Vientiane before
crossing into Thailand at Thanaleng and continuing
to Nong Khai in Thailand’s Northeastern region
and finally to Bangkok. The railway will shorten
transportation times from Yunnan to Nong Khai to
15 hours, compared with two days via road.
In addition to lowering costs and improving the
efficiency of logistics, the rail route will increase
the GMS’s access to Chinese markets and create
new opportunities for tourism and the service
sector. Thailand’s plan for the construction of a
high-speed train route linking Bangkok initially
with Nakhon Ratchasima, due to open in 2026,
and then later with Nong Khai, due for completion
in 2028, will enhance Thailand’s capacity to take
advantage of better connectivity across the GMS
marketandChina.Theconstructionplanwillinclude
warehouses and transportation yards to facilitate
goods transportation. A study conducted by the
BankofThailandshowedthattherailwaywillreduce
logistics costs from Yunnan to Nong Khai by half,
boosting trade with Laos and China.
The private sector also expects collaboration
under the Cambodia-Vietnam-Thailand Economic
Corridor (CVTEC) to boost connectivity for trade and
commerce, as well as for the meetings, incentive
travel, conventions, and exhibitions (MICE) and
1 https://www.unescap.org/our-work/transport/trans-asian-railway-network

HIGHLIGHTS
tourism sectors. The CVTEC framework links Thailand’s
industrial zone in the EEC to tourism destinations
in Chanthaburi and Trat provinces; to Cambodia’s
Kampot, Kep, Koh Kong and Preah Sihanouk
provinces; and Vietnam’s Ca Mau and Kien Giang.
The linkage of the three countries via rail, road and
water represents an opportunity to develop high-
value services such as in the MICE and medical and
wellness sectors, as well as in logistics for goods.
Aside from the physical connectivity, the 7th
GMS Summit Meeting2 included a commitment by
the participants to push forward other mechanisms
to help facilitate transport and trade flows across
borders, including the GMS Cross Border Transport
Facilitation Agreement, which aims at streamlining
the rules and regulations for cross-border trade,
investment and tourism. The GMS members have
also initiated a framework to encourage better
integration of the energy sector focusing on power
generation, transmission infrastructure, and power trade
thoughpowergridconnectionandtheestablishment
of an integrated regional power market oriented
toward clean and renewable energy.
The region also pledged to improve competitiveness
by implementing measures for enhancing the food
safety, security and environmental sustainability of
agri-foodproductionthroughvaluechainintegration
thatfavorssmallfarmers,ruralwomenandsmalland
medium agro-enterprises and harmonized quality
and safety standards. In addition, tourism in the GSM
should be boosted by promoting the region as a single
touristdestinationwithawell-coordinatedmarketing
campaign and connected tourism infrastructure.
The GMS members also announced plans to
develop special economic zones and border SEZs
with improved connectivity as well as e-commerce.
The GMS is also focused on community aspects by
helping one another on matters such as sustainable
urbanization, along with programs to improve the
surveillance of communicable diseases, particularly
across borders; improve public health systems;
regulate safe and orderly labor migration; and
conduct capacity building programs for public
officials.
2 https://pressocm.gov.kh/en/archives/71797

FACTS
&
FIGURES
Greater Mekong Subregion’s
Economic Corridors
Source: Greater Mekong Subregion Secretariat, Asian Development Bank

FACTS
&
FIGURES
Thailand’s Investment
to Improve Logistic Network
Eastern Economic Corridor
LADKRABANG
STATION
SUVARNABHUMI
INTERNATIONAL
AIRPORT
DONMUANG
INTERNATIONAL
AIRPORT
U-TAPAO
INTERNATIONAL
AIRPORT
LAEM CHABANG
SEAPORT
SATTAHIP
COMMERCIAL
PORT MAP TA PHUT
DEEP SEAPORT
CHACHOENGSAO
CHONBURI
RAYONG
Wang Chan
Klang
Ko Chan
SanamChaiKhet
Plaeng Yao
Ratchasan
SAMUT PRAKAN
BANGKOK
Ban Bueng
Phanat Nikhom
Existing Industrial Zone
Future Industrial Zone
Future Inter-City Motorway
Inter-City Motorway
High-Speed Train

Key Infrastructure Projects
Road:
Enhancing motorway network to 206 kilometers
withkeyroutesincludingBangkok-Chonburi-Pattaya-
Map Ta Phut which has opened for services; and
Laem Chabang-Nakhon Ratchasima which will lay
parallel to dual-tracked railway under feasibility
study
Rail:
14 routes of dual-tracked train for 2,500 kms
distance with Chacheongsao-Keang Koi and Jira
Road-Kon Kaen routes opened for services and
the rest scheduled to complete by 2023.
High-speedtrainlinkingDonmueang,Suvarnabhumi
and U-Tapao International airports
Bang Sue Grand Station, ASEAN’s largest railway
station, connecting urban mass transit, outbound
trainsfromBangkokandhigh-speedtrain,opened
for services in August 2021
Extension of mass rapid transit connecting Bangkok
MetropolitanRegionwithatotal540kms.distance,
half of which has opened for services
Air:
Expansion of U-Tapao International Airport and
development of Eastern Aviation City, to serve
as ASEAN’s logistics and aviation hub, with PPP
contract signed in 2020 and services expect to
start in 2025
Expansion of Suvarnabhumi International Airport
Sea:
LaemChabangDeepSeaportPhase3,increasing
container capacity to 18 million from 7 million,
land and rail shipment
Map Ta Phut Seaport Phase 3, Thailand’s largest
industrial port, to increase capacity of cargoes
for petrochemical industry, due to start operation
in 2025
FACTS
&
FIGURES
Special Economic Zones
Southern Economic Corridor

Special economic zones to promote cross-border trade and investment
in 10 provinces of Chiang Rai, Tak, Mukdahan, Nong Khai, Nakhon
Phanom, Kanchanaburi, Sa Kaeo, Trat, Songkhla and Narathiwat
Northern Economic Corridor:
Creative LANNA comprising Chiang Rai, Chiang Mai, Lamphun and
Lampang provinces for creative industry
Northeastern Economic Corridor:
NeEC – Bioeconomy comprising Khon Kaen, Nakhon Ratchasima,
Udon Thani and Nong Khai for high-technology bio-based industry
leveraging from farm produces
Central – Western Economic Corridor:
CWEC comprising Ayutthaya, Nakhon Pathom, Suphanburi and
Kanchanaburiprovincesforagribusiness,tourismandhigh-technology
industries connecting to Bangkok and EEC.
Southern Economic Corridor:
SEC comprising Chumphon, Ranong, Surath Thani and Nakhon Si
Thammarat provinces for commercial and logistics hub via the Andaman
Sea, high-value biobased, agribiz and tourism
Activities
Mass transit and goods transportation through rail,
air and maritime services
Inland container depots / cargo bays and loading /
unloading facilities for cargo ships
International distribution centers
Smart distribution centers
Manufacture of carriages and devices of rail system
International procurement office
Incentives
Up to 8-year CIT exemption
5-year CIT exemption
Exemption of Import Duties on Machineries and Raw
Materials for Manufacture of Exports
FACTS
&
FIGURES

STRENGTHENING GMS
INTEGRATION TO ADDRESS
CHALLENGES
TheGMS
Framework2030
espousesregional
connectivityfor
holisticprogress,
whichwilltranslate
tosocioeconomic
gainsforall
stakeholders
acrosstheGMS.
Mr. Suriyan Vichitlekarn
Executive Director of Mekong Institute
The GMS Cooperation Program Strategic Framework 2030
is anchored on the collective action of Cambodia, P.R.
China,LaoPDR,Myanmar,Thailand,andVietnaminhelping
stabilize the world market, while keeping pace with the
demands of rapid urbanization, broadening adaptation to
technological changes, enhancing positive climate action,
andstrengtheningpandemicpreparednessandresiliency.
In implementing these goals, the GMS has deployed spatial development
approaches, such as integrating a network of border areas, economic
corridors,andclustercities;fosteringcollaborationamongstakeholders;
and promoting digitalization, as part of member countries’ mission to
enhance connectivity, competitiveness, and community for a stronger
subregion.
Mr. Suriyan Vichitlekarn, Executive Director of Mekong Institute,
spoke with us on how current investments on two of these interlinked
approaches—logistics and economic integration—will deepen in the
next five years for the benefit of over 300 million people.
EXECUTIVE
TALK

EXECUTIVE
TALK
Q: What pivotal
cooperation agreements
are needed to enhance
connectivity and
contribute to economic
development in
the subregion?
A: Inthe1990s,theGMSfocused
on building market economies,
cross-border cooperation, and basic
infrastructure development, which
later progressed to establishing
transport linkages and economic
corridors.
These investments made
possible logistical and economic
connectivity schemes that have
attracted a growing number of
internationalandregionalinvestors.
While there remains much
work to be done in enhancing
our connectivity and our market
competitiveness, nearly five decades
ofworkbygovernments,business
communities,andtheprivatesector,
particularlybyThailand,P.R.China,
andVietnam,reflect considerable
milestones, which have resulted
in the subregion being one of the
fastest growing economies in the
world.
Today, with the surge of
e-commerceduetothepandemic,
GMS integration has further
deepened among member
countries and also with others
outside the subregion to enhance
all forms of connectivity from
economic, logistical, infrastructure,
and digital. With focus on
technological investments and
upskilling human resources, the
GMS has been expanding
partnerships with other regional
cooperation actors such as
the Mekong Plus Framework,
Mekong-China, Mekong-Japan,
Mekong-US and Mekong-Australia
to keep pace with increasing
diversified market demands.
This is one of the reasons
there has been a recalibration of
national policies, where many
governmentsandforeignchambers
of commerce have been focusing
on optimizing resources in the
subregion, particularly on scouting
investmentopportunitiesinstrategic
cities that can serve as gateways
to the GMS.
In the midst of this fast-paced
progress, the GMS member
countrieshavealsobeenworking
to align their national economies
with new trends, while ensuring
responsible social, environment,
and governance benchmarks are
upheld for lasting socioeconomic
sustainability.
Q: How well have
the GMS countries
harnessed opportunities
from the economic
integration framework?
A: Progress has been made
in implementing a connectivity
blueprint but there remain many
more opportunities, where GMS
countries, with their vast resources,
can optimize. I believe the framework
presents areas for countries to
benefit from the positive spillover
effect of investments. More importantly,
therearecomparativeadvantages
in each GMS country that can be
identified and tapped to bridge
development progress and gains
for the longer term.
Mekong Institute has been
supporting the GMS in shoring
broader ownership that the path
tooursustainablesocioeconomic
growth rests on the strength of
our regional connectivity. To put
it in perspective, when we have a
new road, many may not necessarily
foresee the benefits this infrastructure
will bring to every sector in the
community. Once restaurants and
hotels are built and tourists will
come in, the advantages of
employment,diversifiedbusiness
opportunities, better social services,
among others, are realized.
This is the core tenet of the
GMS Framework 2030. It espouses
regional connectivity for holistic
progress, which will translate to
sustainable socioeconomic gains
for all stakeholders across the
GMS.
Q: How well has Thailand
contributed to the GMS’s
economic integration?
A: We Many GMS frameworks
focus on logistics, including the
most recent one approved at the
7th GMS Summit. Thailand’s role
and potential in cementing this
connectivity is acknowledged, as
any logistical development in the
subregion is understood to be
mutually beneficial to all member
countries.
Thailand has many advantages
under its belt such as its strategic
location, the ingenuity of its
entrepreneurs, and connective
infrastructure. Investors have also
recognized the country’s resilience,
as proven by its continued logistical
operations, due to the government
and private sector’s proactive
measures. This adaptability in
the face of a global health crisis
can only generate good returns
for longer-term investments. I also
believe that these gains can increase
tenfold if investors continue to use
existing consultative mechanisms
to share their opinions and proposals
with government representatives.
Apart from the Eastern
Economic Corridor (EEC), Thailand’s
other provinces offer opportunities
as part of the region’s integrated
logistics network. In Khon Kaen,
the dry port can be developed to
facilitate the East-West Economic
Corridor, which can be integrated
to the EEC. The province also has
an international airport, where local
air industries can provide diversified
services at more competitive
operational costs.

Q: What kind of cooperation has been implemented
within the GMS to upgrade the workforce?
A: TheGMSeconomyisdrivenbyitslaborforce.Toremaincompetitive,
we must increase investments in upskilling our human resources in
digitalizationandenhancingourlabormigrationmanagement. Thepandemic
has highlighted more than ever that a holistic and systematic approach
to workforce management is needed, where issues on health, labor, and
responsible entrepreneurship are interlinked.
Labor management has increasingly become a multi-layered and
complex agenda that must be collectively understood and addressed in
terms of policies, strategies, and implementation. The pandemic gave
rise to opportunities, where we all can contribute to stronger and more
responsive labor management practices.
Although large businesses employ automation systems, small- and
medium-sized enterprises—the engines of the subregion’s economy—
rely on their workers. For us to effectively revitalize our economies,
we must increase our support in enhancing their competitiveness and
safeguarding their well-being. These are imperative, as our human
resources are contingent to the GMS’ sustainable, resilient, equitable,
and harmonious progress.

COMPANY
INTERVIEW
A SOLID PAST, A CHANGING
PRESENTAND A BRIGHT
FUTURE FOR INTERNATIONAL
LOGISTICS SERVICES
INTHAILAND
With global trade experiencing
unprecedented disruption from
theCovid-19pandemic,onlythose
who are flexible and prepared for
change will flourish in the new
normal. Supporting Thailand’s
commitment to provide data-based,
proactive and dynamic logistics
services, the Thai government
There are still steps to be taken,
butyouseethatthenewergenerations
of Thai people are progressing
in terms of knowledge, dynamism,
and motivation to put their mark
withintheprofessionalenvironment,
and that’s something we try to be
part of as a company to support
this evolution.
Mr. Arnaud Derbaudrenghien
Managing Director, Katoen Natie Thailand

hasimplementedmassiveinvestment
projects in air, road, maritime, and
rail infrastructure.
Katoen Natie is a Belgian
multinational logistics service
provider with over 20 years of
experience in Thailand. We spoke
with Mr. Arnaud Derbaudrenghien,
Managing Director of Katoen Natie
Thailand, about the past, the
present and the future of logistics
services in Thailand.
Could you tell us
about Katoen Natie’s
operations and services
in Thailand?
We started our operations in
Thailand providing logistics solution
services and logistics engineering
services, with classic services
such as warehousing, inventory
management, transportation and
even some freight services. But as
a company, we try to go beyond
that and have more supply chain
integration, and add value to the
supply chain of our customers.
The three basic principles of
Katoen Natie are safety, quality
and productivity, which are often
the same principles and key
elements that are important to
our customers. For example,
customers want the operations
to take place in a safe way where
there is no harm to either the
people or the environment. They
also obviously want quality because
nowadays you have to provide
quality; otherwise, you will not be
competitive and will not meet the
expectations of the customer.
For productivity, logistics and
supply chain services are always
quiteacompetitivemarket.Similarly,
our customers are always operating
in a competitive environment, so
they expect that we will provide
them with efficient solutions that
create win-win possibilities, where
the customer sees the advantages
of our solutions and of working
with us.
What milestones
have you achieved and
what are your future
targets in Thailand?
As we have been in Thailand for
more than 20 years, and because
we are an asset-heavy company,
we have invested significant money
and resources into Thailand to
develop facilities, people and
systems. What is important for
us is the long-term vision of achieving
sustainable growth year-on-year,
whichwehavebeenabletoachieve
with more than 5 billion baht in
investment and close to 1,000
peopleworking forusin Thailand.
Concerning sustainability, we
have different goals. We want to
train, develop and grow our
people, while operating within an
environment where the impact of
our operations is as minimal as
possible. This can be achieved
through using technologies such
assolarenergy,sortingourwaste
in a systematic way, but as well
through the focus on improvement
of efficiencies such as fuel
consumption, space utilization,
this in order to reduce the
footprint of our warehouses and
its activities.
This approach as a whole
means trying to develop our
activities within a growing model
whilelimitingthenegativeimpacts.
What are the challenges
and opportunities in
Thailand’s logistics
industry?
Our company believes that Thailand
is a region with still plenty of
opportunities providing us further
room for further growth. When
we look at the complete supply
chain of Thailand, we see a
diverserangeofcustomersgoing
from producers of raw materials
to converters, the manufacturing
companies. Whether this is in
FMCG, automotive, or other
manufacturing industries, we see
the position of Thailand being
strong and still growing.
Even during the pandemic,
there is still interest from companies
to locate here. We also see that
thanks to the great location of
Thailandanditsexcellentlogistics
network, there is an established
network through which we can
easily reach other nations within
Southeast Asia, Asia Pacific, or
even globally.
There are still steps to be
taken, but you see that the newer
generations of Thai people are
progressing in terms of knowledge,
dynamism, and motivation to put
their mark within the professional
environment, that’s something
we try to be part of as a company
to support this evolution.”

COMPANY
INTERVIEW
We have trainee programs
that help the integration of young
graduates into the professional
world, while developing their
skills and knowledge in the supply
chain and logistics. As I often tell
them, we hire them and prepare
them to be the future leaders of
our organization, because it’s
important that we develop a long
termvisionwiththelocaltalent,to
sustain our growth, and continue
the successful path of Katoen
Natie in Thailand.
How areyou planning
to cope with changes in
consumerbehaviorand
global supplychain
trends?
Pre-pandemic, a lot of industries
werereallyfocusedonshortening
their timelines and adapting their
stockstoaminimum,thisinorder
to make their supply chains as
Lean as possible.
We see now, that pushing
that type of efficiency to its
extreme, also had its downsides
in case of unexpected events.
Companies are now adapting
theirsupplychainstohaveamore
risk control approach, expecting
the unexpectable. They are
increasing their inventories to
be able to cope with swings in
demand and offer their products
tothemarketwhenevertheseare
needed.
I would say that having a
propervisionforthelong-termwill
require a lot of transparency and
exchangeofinformationbetween
all the different actors in the
supply chain. We see that even
nowadays in the supply chain, the
forecasts that businesses have
and the information that people
exchange are still limited. Once we
have this exchange, this will help
all stakeholders to grow together
asacompletechainforthefuture.
The first step is acknowledging
that there are needs through
the supply chain to be more
transparent, more communication
throughout the supply chain in
order to plan, forecast and adapt
where needed within a timely
manner. Once you have this,
then upcoming technologies
like blockchain and other data
analysis systems will enable the
implementation in a smooth and
compliant way, and providethe
information that will is essential to
have a flexible and risk resistant
supply chain.
How much does
the Thai government’s
commitment to
infrastructure
development and
the BOI’s support
facilitate
your business?
I believe it’s important to develop
infrastructure of railroads and
motorways to improve accessibility
and even the wellbeing of society.
Forthelogisticsindustry,development
of the port of Laem Chabang Phase
3 will be a key project to upgrade
Thailand’s logistics capacity in the
future.
In terms of digitalization, further
digitalization of the administration,
and processes is important not
only for logistics but also for all
other businesses and the Thai
people.Asacompanywestrongly
believe that providing further
progress in this area, eliminating
all the piles of paperwork which
a lot of organizations are being
confronted every day with, is a
must. By digitalizing all these
procedures and facilitating
administration for companies and
individuals, overall efficiency will
be enhanced.
I would like to thank the BOI
because it has been an integral
partofourjourneyhereinThailand.
The BOI enabled us to start here
in Thailand by making sure we
secured the first investments
and that we were able to develop
further, year on year, and grow
the business. Now, after being
present for more than 20 years in
Thailand as a company,the BOI
still listens to our challenges and
raises these with the appropriate
departments within the government
with the goal of improving the
overall situation and making sure
that not only Katoen Natie but all
companies in Thailand strive and
develop further.

THAI ECONOMY At A Glance
Key Economic Figures
GDP (2020*)
US$ 506.4 Billion
GDP per Capita (2020*)
US$ 7,328.2 / Year
Dec 2020*
Unemployment
1.5%
Average 2020*
Headline Inflation
-0.85%
Note: *Estimated value l Source: NESDC
(Data as of March 2021)
Note: *Estimated value
Source: NESDC
Source:NationalStatisticalOffice,
MinistryofCommerce Source:MinistryofLabour
MinimumWage
THB313-336
US$Approximate
US$9.98-10.71
Market Profile
(2019)
Population
66.56
Million
GDP Growth
-6.1%
2020 2021*f
2.5-3.5%
Investment Growth
-4.8%
2020 2021*f
5.7%
Export Value of Goods Growth
-6.6%
2020 2021*f
5.8%
THB 33.00 THB 45.80 THB 39.17 THB 30.27
(100 Yen)
THB 5.16
Source: Bank of Thailand
Exchange Rates
(As of 23 July 2021)
Tax Rate
Corporate Income Tax: 0 - 20%
Personal Income Tax: 5 - 35%
VAT: 7%
Witholding Tax: 1 - 15%
Source: the Revenue Department
(As of May 2021)
15.02%
13.82%
9.49%
5.06%
4.44%
4.29%
4.23%
3.11%
3.06%
2.89%
Share
19,873.77
18,289.22
12,565.02
6,698.42
5,875.91
5,671.60
5,598.49
4,119.51
4,051.66
3,830.93
Value
(US$ million)
Top 10 Export Markets (January-June 2021)
Rank
United States
China
Japan
Vietnam
Malaysia
Hong Kong
Australia
Indonesia
Singapore
India
Export Figures
Export value (USD million)
Jan - Dec 2019 : 246,268.8
Jan - Dec 2020 : 231,468.4
Jan - June 2021 : 132,334.65
Source: Ministry of Commerce
Top 10 Exports
Goods / Products
11.26%
7.92%
5.75%
4.04%
3.44%
3.40%
3.08%
2.94%
2.86%
2.75%
Share
14,900.20
10,486.92
7,603.94
5,343.94
4,553.99
4,496.50
4,074.93
3,896.38
3,778.99
3,640.51
Value
(US$ million)
6. Jewelry Products
7. IntegratedCircuits
8. Machinery andParts
9. RefinedFuel
10. AirConditionersandParts
1. VehiclesandParts
2. ComputersandParts
3. Rubber Products
4. PlasticPellets
5. ChemicalProducts
Source: World Economic Forum
Source: Ministry of Commerce
Source: IMD
Source: World Bank
Global Competitiveness
2018:38th 2019:40th
Logistics Performance Index
2016:32nd 2018:28th
World Competitiveness Ranking
2020:29th 2021:28th
International
Competitiveness

BOI OVERSEAS OFFICES
Los Angeles
Thailand Board of Investment,
Los Angeles Office
Royal Thai Consulate-General,
611NorthLarchmontBoulevard,
3rdFloor
Los Angeles CA 90004, USA
Tel: +1 323 960-1199
Fax: +1 323 960-1190
E-mail : boila@boi.go.th
New York
New York Office
7 World Trade Center
250 Greenwich Street, Suite 34F
New York, NY 10007, USA
Tel: +1 212 422 9009
Fax: +1 212 422 9119
E-mail: nyc@boi.go.th
Stockholm
Stockholm Office
Stureplan 4C, 4th Floor
114 35 Stockholm, Sweden
Tel: +46 8 463 1158, +46 8 463 1174
Fax: +46 8 463 1160
stockholm@boi.go.th
Frankfurt
Frankfurt Office
Investment Section,
RoyalThaiConsulate-General
Bethmannstr.58,5.0G 60311
Frankfurt am Main
Federal Republic of Germany
Tel: +49 (069) 92 91 230
Fax: +49 (069) 92 91 2320
Email: fra@boi.go.th
Paris
Paris Office
8 Rue Greuze 75116 Paris, France
Tel: 33(0)1 56 90 26 00-01
Fax: 33(0) 1 56 90 26 02
E-mail: par@boi.go.th
Mumbai
Mumbai Office
Royal Thai Consulate-General
12th Floor, Express Towers,
Barrister Rajni Patel Marg, Nariman Point
Mumbai 400021, India
Tel: +91-22-2204-1589
+91-22-2204-1590
Fax: +91-22-2282-1525
Email: mumbai@boi.go.th
Osaka
Osaka Office
Royal Thai Consulate-General
Bangkok Bank Building, 7th Floor
1-9-16 Kyutaro-Machi, Chuo-ku
Osaka 541-0056, Japan
Tel: (81-6) 6271-1395
Fax: (81-6) 6271-1394
E-mail: osaka@boi.go.th
Tokyo
Tokyo Office
8th Floor, Fukuda Building West,
2-11-3 Akasaka, Minato-ku,
Tokyo 107-0052 Japan
Tel: +81 3 3582 1806
Fax: 81 3 3589 5176
E-Mail: tyo@boi.go.th
Seoul
Seoul Office
#1804,18th floor,KoryoDaeyeongakCenter,
97 Toegye-ro, Jung-gu, Seoul, 100-706,
Republic of Korea
Tel: (+82)2 319 9998
Fax: (+82)2 319 9997
E-mail: seoul@boi.go.th
Taipei
Taipei Office
Taipei World Trade Center Room:3E40
No.5 Xinyi Rd., Sec.5, Taipei110
Taiwan R.O.C.
Tel: (886)-2-2345-6663
FAX: (886) 2-2345-9223
E-mail: taipei@boi.go.th
Guangzhou
ThailandBoardofInvestment,
GuangzhouOffice
RoyalThaiConsulate-General
No.36YouheRoad,HaizhuDistrict,
Guangzhou510310P.R.China
Tel: +86-20-8385-8988ext.220-225,
+86-20-8387-7770 (Direct Line)
Fax: +86-20-8387-2700
E-mail:guangzhou@boi.go.th
Shanghai
ThailandBoardofInvestment,
ShanghaiOffice
RoyalThaiConsulate General,No.18,
WanshanRoad, ChangningDistrict,
Shanghai 200336,P.R.China
Tel: +86-21-5260-9876,
+86-21-5260-9877
Fax: +86-21-5260-9873
Email:shanghai@boi.go.th
Beijing
Beijing Office
No.21Guanghua Road,
ChaoyangDistrict,Beijing,
P.R. China 100600
Tel: +86 10 85318755-57,
+86 10 85318753
Fax: +86 10 85318758
E-mail: beijing@boi.go.th
Sydney
Sydney Office
Suite101,Level1,234 George Street,
Sydney, NSW 2000, Australia
Tel: +61 2 9252 4884
E-mail: sydney@boi.go.th
Jakarta
Jakarta Office
Royal Thai Embassy,
Jl. DR Ide Anak Agung Gde Agung
Kav. E3.3No.3(Lot8.8),
KawasanMega Kuningan,
Jakarta 12950, Indonesia
Email: jkt@boi.go.th
Hanoi
Hanoi Office
26 Phan Boi Chau Str., Hoan Kiem,
Hanoi, Vietnam
Tel: (84) 24 3823 5092-4
Email: hanoi@boi.go.th
ABOUT BOI
TheOfficeoftheBoardofInvestment(BOI)istheprinciplegovermentagency
thatoperatesunder the Prime Minister’s Office for the purpose of encouraging
investment in Thailand. WeattheBOIserve as the professional contact points
for investors, providing them with useful investment information and services.
We offer business support and investment incentive to foreign investors in
Thailand, including tax and non-tax incentives. A few non-tax incentives include
granting land ownership to foreigners and facilitating visas and work permits.
Besides serving the needs of overseas investors, we also offer consultation
servicestoThaiinvestorswhoareinterestedininvestmentopportunitiesabroad.
Jakarta
Beijing
Shanghai
Seoul
Tokyo
Osaka
Taipei
Guangzhou
Hanoi
Head Office, Office Of The Board Of Investment
555Vibhavadi-RangsitRoad.,Chatuchak,Bangkok10900,Thailand
Tel: (+66) 2553 8111 Fax: (+66) 2553 8315 Email: head@boi.go.th
www.boi.go.th

Thailand Investment Review, August 2021

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