Thailand Investment Review, February 2021

Vol.
31
l
February
2021
SPEEDING UP EVs
Imagine ASEAN’s
Fully-Charged EV Hub

Unit: US$ (US$ = 31.36 as of 31 March 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 – December 2020
FOREIGN INVESTMENT BY TARGET SECTORS
Total Investment
1,717 Projects
US$ 15,342.76 Million
Total Foreign
Investment
907 Projects
US$ 7,371.24 Million
Petrochemicals
& Chemicals
61 Projects l 1,081.60 M
Automotive
Electronics
Biotechnology
6 Projects l 683.26 M
Tourism
Digital
Medical
32 Project l 159.31 M
Automation
& Robotics
Aerospace
3 Projects l 7.94 M
First S-Curve New S-Curve
Agriculture
& Food Processing
FOREIGN INVESTMENT BY MAJOR ECONOMIES
Taiwan
56Projects
371.65 M
Japan
211Projects
2,421.75 M
RepublicofKorea
26Projects
85.33M
China
164Projects
1,003.35M
Switzerland
19Projects
145.66M
Singapore
111Projects
521.84 M
HongKong
76Projects
522.16 M
Indonesia
3Projects
81.05M
THAILAND
Netherlands
72Projects
595.92 M
Germany
21Projects
98.53M
UnitedStates
39 Projects
783M

Highlights
Making a Foray into Next-Generation Transportation
12
Company Interview
Energy Absolute Plc
16
Thai Economy At-A-Glance
19
Executive Talk
Driving Thailand’s Economic Transformation
13
Industry Focus
Confidence in EVs Fuels Thai Market
09
Cover Story
ASEAN’s Fully Charged EV Hub
04

ASEAN’S
FULLY CHARGED
EV HUB
Thailandiscommittedtoplayingaleading
role in the global electric transportation
revolution and fulfilling its international
commitment to greenhouse gas reduction.
Indeed,theuseofElectricVehicles(EVs)
has quickly become a practicality in
Thailand where multiple models of EVs
from global and local manufacturers have
generated great enthusiasm among local
carusers,attractedbytheirenvironment-
friendly advantages, reasonable prices and
increasedconfidenceinitslong-termuses.
While Hybrid Electric Vehicles
(HEVs) have already become popular
with Thailand’s car users, the country
is forecast to see an increase in the
number of more intensive battery-fuel
vehicle types of Plug-in Hybrid Vehicles
(PHEVs) and Battery Electric Vehicles
(BEVs) on the road over the next few
years. As more of these EVs are being
sold, their prices are also falling due to
abettereconomyofscale,makingthem
an even more appealing alternative to
cars with traditional combustion engines.
Catering to the vibrant consumer market,
this trend also reflects the concrete
nationalframeworkofpromotingtheusage
of and confidence in EVs, expanding
the network of charging facilities, and
developing EV supporting industries.
With EVs considered to be an
important first step towards realizing the
next-generation transportation goals as
they seek to leverage on digital technology
to improve functionality, the Thai government
is making efforts to attract significant
investment in the EV industry.
Driving the EV
Ecosystem Forward
The National Electronic Vehicles Policy
Committee,setupbytheThaigovernment,
hasrecentlyintroducedamasterplanwhich
laid out a framework of EV development
over a 5-, 10- and 15-year timeframe
with the aim of transforming the country’s
well-established automotive supply chain
for the production of battery-powered
vehicles and building the technological
capacity for modern mobility.
The main objective of the plan is
to establish Thailand as “ASEAN’s center
of excellence” in three areas, namely
zero-emission vehicles, next-generation
automotive technology, and innovation
in the next-generation business models
by 2035. Individual goals within the plan
relate to EV usage, electricity charging
facilities, industry capacity building,
incentives for EV adoption, and awareness
of next-generation transportation. Leveraging
on the competitiveness of its skilled
workforce and ecosystem in the
automotivesectoratthegloballevel,the
Thai government envisions the country
Imaginebusyurbanstreetsalivewithbattery-poweredmotorcycles,carsandbusesbutwithoutthehaze
of exhaust fumes and the noise of whirring engines. Imagine e-ferries docking quietly at piers and
traveling along waterways without emitting hot black smoke into the air or oil into the water. Imagine
citiesthataremorelivablewithhealthierairandcleanerwater.ImagineASEAN’sfully-chargedEVhub.
COVER
STORY
04 Thailand Investment Review

COVER
STORY
Thailand Investment Review 05
becoming the largest investment hub
for EVs in one of the world’s fastest-
growing economic blocs, the Association
of Southeast Asian Nations (ASEAN)1.
In Thailand’s large automotive supply
chain, where more than 2,000 companies
operate,30globalautomakersareusing
the country as their main production
baseinASEAN.Thankstofourdecades
of developing the technical knowhow,
laborforce,partsproductionandsupporting
facilities for the automotive industry,
Thailand has established itself as the
world’s 11th largest automobile production
base, with a total output of 2.2 million
units in 2020.
The progress being made in EV
technology also creates tremendous
new opportunities for local companies
to enter the EV market, as it requires
assembly methods that differ from
those used in the production of fossil
fuel-driven combustion engines. In line
with the global EV evolution, Thailand’s
flourishing EV market sees international
and local entrepreneurs undertaking
business ventures in a variety of areas
ranging from the manufacture of
passenger and commercial EVs, e-buses,
e-motorcycles,electricthree-wheelers,
and electric boats to the introduction of
EVbatteryplants,chargingstations,and
home-based charging system services
as part of the ongoing conversion from
combustion engines to EVs.
Joining Global
30@30 Campaign
Inlinewiththe“30@30”globalcollaboration2
in which countries target achieving certain
greenhouse-gas reductions, the Thai
government has set the goal of having
EVs, mostly PHEVs and BEVs, account
for one-third of all cars sold in Thailand,
or around 750,000 units, by 2030. The
projection will see the total number of
EVs on the road reach 1.2 million by the
endofthecurrentdecade. Considering
that Thailand had a total of around
200,000 EVs on the road at end of last
year, the government is committed to
accelerating investment in and the use
of EVs locally over the next five years to
strengthen the local EV ecosystem.
In working towards these targets,
Thailand is expected to see a complete
conversion towards EVs among the public
sector and public bus services over the
next decade. By 2035, the plan then
envisions EVs being the mainstream
meansoftransportintheprivatesector,
particularly BEVs and PHEVs for long
distancetravel,higher-poweredtwo-wheel
EVs for urban use, and three- and four-
wheelEVsforthetransportationofgoods.
Under the Thai government’s plan to
graduallyphaseoutinternalcombustion
engine vehicles, the public sector will
lead the local adoption of BEVs with a
target of all newly procured cars by the
public sector being BEVs by 2025 with
15% of cars sold in the private sector also
expected to be BEVs by the same year.
Supporting the convenience of local EV
usage will be 10,000 charging stations
across the country at no more than a
50-kilometer radius from one another
by 2025, with the number expected to
increase to 80,000 charging stations by
2035. Driven by state-enterprises and
the private sector, Thailand currently
has a total of 650 EV charging stations
with around 2,000 chargers out of which
700 are quick charging facilities.
The country’s EV development plan
calls for the Thailand Board of Investment
(BOI)toexpandthescopeofinvestment
promotion incentives for multinational
and local companies to support industrial
capacity building in a wide range of
areas, namely technology, design and
production, market service, innovations,
and adaptability. As for the policy to
promote technology and innovation
development, the target is oriented
towards high-technology components
such as batteries, drive trains and
controller systems, as well as EV
prototypes.
A competitive digital and energy
infrastructure will also cement Thailand’s
position as the hub of next-generation
transportation with a focus on Connected,
Autonomous, Shared and Electricity
(CASE) technology in ASEAN, where
technology such as IoT, cloud and AI
played a key role in driving functionality.
Thanks to the continued investment in
the country’s broadband internet facilities

COVER
STORY
and efficient telecommunications system,
Thailand recorded the world’s fastest
internet speed based on the Speedtest
Global Index in December 20203.
The country’s current power
generation capacity reserve of nearly
50% of total capacity, higher than the
global average of 15-20%, reflects the
country’s readiness for the development
of EVs. Meanwhile Thailand is committed
to developing a “Smart Grid” system
whichwillproduceanddistributepower
in a more efficient way and support the
development of EVs in the country.
BOI Incentives Reinforce
Thailand’s EV Vision
The Thailand Board of Investment (BOI)
has recently introduced comprehensive
investment promotion incentives to replace
the expired package for the EV industry,
with a main focus on accelerating the
development of the BEV ecosystem and
building Thailand up as a manufacturing
hubforBEVs,includinglithium-ionbatteries.
In more detail, the promotional package
offersthefollowingincentives:
8-year CIT exemption for the
manufacture of four-wheel BEVs, plus
an additional 3-year CIT exemption for
the manufacture of four-wheel PHEVs
and HEVs in addition to BEVs, while
further incentives are available if certain
requirementsaremet.
manufacture of electric two-wheelers,
three-wheelers,busesandtrucks.
5 to 8-year CIT exemption for
battery packaging and the manufacture
of battery modules and cells, and a 90%
reduction of import duties for two years
on essential materials used in battery
production.
8-year CIT exemption for 17 key
components of EVs, 4 out of which are
newcategories.
manufactureofelectricboats.
During 2017-2019, the BOI granted
investment incentives to 28 EV
manufacturing projects, including 5
HEVs, 7 PHEVs, 14 BEVs and 2 E-Bus
projects, with a total investment value
of US$ 2,700 million and an annual
manufacturing capacity of 570,000 units.
In terms of EV parts and batteries, the
BOI granted investment incentives to
14 parts and 10 battery manufacturing
projects with a total investment value of
US$ 350 million.

COVER
STORY
Manufacture of Battery
Electric Four-Wheelers
(Investment in BEVs is required.)
1
Electric Buses and Trucks
4
Electric Boats
5
BOI Revamps
Electronic Vehicle
Incentives
Manufacture of EV Parts
and Batteries
6
Investment of
5billion Bht or above
BEVs 8-year
CIT exemption
PHEVs 3-year
CIT exemption
HEVs no tax incentives
BEVs 3-year
CIT exemption
PHEVs 3-year
CIT exemption
HEVs no tax incentives
* maximumtotalof11-yeartaxexemption
available in the case of R&D
available if all requirements are met.
Investment of
up to 5billion Bht
Electric Motorcycles
2
3-year
CIT
exemption
3-year
CIT
exemption
Electric Three-Wheelers
3
3-year
CIT
exemption
8-year
CIT
exemption
8-year
CIT
exemption
4 New EV Parts
to a total 17
90% reduction of material
import duties for 2 years
and 3 to 8 years of CIT
exemption for the manufacture
of battery cells and modules
Source:ThailandBoardofInvestment Thailand Investment Review 07
COVER
STORY

Thailand’s Transformation
Towards Zero-Emission Mobility
Source: “White Paper for Thailand’s EV Development” by the Ministry of
HigherEducation,Science,ResearchandInnovationandotheragencies
2025
All vehicles procured for government agencies and public fleets
to be zero-emission vehicles (ZEVs)
15% of all new vehicles produced to be ZEVs
2030
All vehicles used by government agencies and public fleets to be ZEVs
30% of all new vehicles produced to be ZEVs
2035 All new vehicles produced to be ZEVs
COVER
STORY

INDUSTRY
FOCUS
CONFIDENCE IN
EVs FUELS
THAI MARKET
AccordingtotheElectricVehicleAssociation
of Thailand (EVAT), the use of all forms
of EVs-including motorcycles, 3-wheelers,
passenger cars, buses and trucks-rose
by 70% from the previous two years,
bringing the total number of EVs1 on
Thailand’s roads to 192,000 units at the
end of 2020. Of the 35,300 new EVs
registered in 2020, the overwhelming
majority of 32,300 units were PHEVs
and HEVs. While just 3,000 units were
BEVs. In terms of usage purposes,
passenger cars accounted for the
majority of the newly registered EVs,
followedbymotorcycles.Itisalsoworth
noting that the 3,000 new BEVs on
Thailand’s roads in 2020 was double
the number for 20192.
JustasgrowingenvironmentalawarenessandadvancingEVtechnologyhavedrivenasurprisingincrease
in global EV sales, these same factors have also significantly increased Thai car users’ enthusiasm for
switching to EVs. Their growing confidence in the long-term advantages of EVs combined with their
environmental consciousness have seen EV sales in Thailand continuing to grow in 2020, on the back of
flourishing investment by both Thai and local investors. With a solid development path for the local EV
industry,Thailand’sEVmarketisfirmlysetonanaccelerated growthtrajectoryover the next fewyears.
Source: Department of Land Transport
Accumulated Number of xEV Registration /
Between 2016 - 2020
Accumulated Number of xEV Registration in 2020 /
As of 31 December 2020
200,00
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
6,000
5,000
4,000
3,000
2,000
1,000
0
HEV
&
PHEV
(Units)
BEV
(Units)
HEV/PHEV BEV
HEV/PHEV
186,272
BEV
5,686
Car (179,034)
Motorcycle (7,236)
Tuk Tuk (0)
Bus (1)
Truck (1)
Car (2,202)
Motorcycle (3,128)
Tuk Tuk (235)
Bus (120)
Truck (0)
3,128
2,202
2
3
5
120
1 1
179,034
7
,2
3
6

INDUSTRY
FOCUS
The Thai government’s National
Electric Vehicle Policy Committee targets
having EVs account for 30% of all car
salesinThailandby2030,whichequates
to 750,000 out of 2.5 million cars
manufactured. Taking steps towards
reaching that goal, the Committee expects
between 60,000 and 110,000 new EVs
to be added to the road over the next
couple of years, and 250,000 Eco EVs
and 3,000 smart city buses to be in the
market over the next five years.
The Committee’s target will see
Thailandhavingatotalof1.2millionEVs
on the road by 2030, with the number
doubling to 2.5 million EVs on the road
within the following six years. This
outlookcementsThailand’spositionasa
significant EV investment hub in ASEAN
and will enable the country to meet its
targets for greenhouse gas reductions and
the development of its BEV ecosystem.
Public Fleet Conversion
to EVs Boosts Local
Ecosystem
To jump start the adoption of BEV
technology, state-enterprises, academic
institutes, government agencies and
automotive industry associations have
taken a leading role in targeting BEV
procurement and use in public mass
transit.
Among their initiatives of promoting
EVcapacitybuilding,theyhavecollaborated
on a contest to facilitate the conversion of
traditional combustion buses to electric
city transit buses3. From the design plans
that were submitted for the contest, four
localcompanieswereselected,witheach
receiving a grant and a retired buses
from Bangkok Mass Transit Authority
(BMTA) to be developed into an E-bus
prototype. The selected prototypes use
40-60%localcontentandhaveacapacity
to travel at a speed of 80-90 km per
hour for a distance of 160-250 km on
a single charge. The modifications will
cost the BMTA US$ 230,000 per bus,
compared to the cost of US$ 400,000-
460,000 for importing new E-buses.
Inarelateddevelopment,Thailand’s
MinistryofTransport hasfacilitatedbattery-
driven ferry boats to offer services along
the Chao Phraya River and Bangkok’s
New Number of xEV Registration /
Between 2016 - 2020
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
3,500
3,000
2,500
2,000
1,500
1,000
500
0
BEV
(Units)
HEV
&
PHEV
(Units)
HEV/PHEV BEV
Source: Department of Land Transport
HEV/PHEV
32,264
BEV
2,999
Number of xEV Registration in 2020 /
1 January - 31 December 2020
Car (29,459)
Motorcycle (2,804)
Tuk Tuk (0)
Bus (1)
Truck (0)
Car (1,288)
Motorcycle (1,591)
Tuk Tuk (118)
Bus (2)
Truck (0)
1,591
1,288
11
8
29,459
2
,
8
0
4
1 2

INDUSTRY
FOCUS
main canals to reduce urban pollution as
ferry boats are also popular transportation
mode for residents.
Upgrading to
Game-Changing
Battery Technology
The Ministry of Higher Education, Science,
Research and Innovation, EVAT and
a number of science and engineering
academic institutions have recently joined
forces to form the Thailand Energy
StorageTechnologyAlliance(TESTA)with
the common aim of driving progress in
local energy storage technology, which
is key for electric transportation and a
cleanenergyindustryecosystem4. TESTA’s
key approaches are creating a collaborative
platformandnetworkaswellasensuring
that R&D, especially on Lithium-ion
batteries, is fully commercialized.
As a well-established automotive
hub in ASEAN, Thailand benefits from
thein-depthknowhowofmanyqualified
academies and international business
associations collaborating on the study
of EV technology. These collaborations
not only increase the competencies of
students and their readiness to serve
enterprises but also create new local
industries through new innovations.
Academies such as Khon Kaen University,
KingMongkut’sUniversityofTechnology
and Sirindhorn International Thai-German
GraduateSchoolofEngineering(TGGS)
are well-known in the industry. These
academies engage in collaborative
programs with international experts
such as RWTH Aachen University of
Germany and the Joint Graduate School
of Energy and Environment (JGSEE)
program to produce high quality workforce
for the industry comprised of MSc. and
Ph.D. graduates.
The Ministry of Industry is also
working with research institutes and the
private sector to promote the production
anduseofelectricvehiclesinthecountry,
including end-of-life battery systems.
Ensuring Convenient
Access to Power Sources
To support the transition to EV usage,
the Ministry of Industry has ensured
that EV car users will have convenient
access to public charging stations
across the country with the individual
chargingstationsbeinglocatednomore
than a 50-70 kilometers radius from
one another. To stimulate development
in the charging business, three state-
enterprises, namely the Electricity
GeneratingAuthorityofThailand(EGAT),
the Metropolitan Electricity Authority (MEA)
and the Provincial Electricity Authority
(PEA), have collaborated to pioneer
investment in both home-based and
publicEVchargingfacilitiesandservices.
Under a comprehensive energy
investment plan to prepare for the
mainstream use of EVs for personal
transportation,Thailandaimstodevelop
a Smart Grid and smart EV charging
systemaswellasimplementinga“vehicle
to grid” (V2G) electricity system to ensure
moreefficientpowerdistributiontosupport
EV usage.
EGAT, MEA and PEA have formed
a consortium with PTT Plc to develop
aprototypeforV2G.Usingacloud-based
platform, the system compiles the
charging profiles and activities of EVs
at electricity distributers’ servers to ensure
the country’s electricity load profile
matchesthe usage profile at usage time.
Thailand’s national energy plan for
the EV industry aims to regulate electricity
fees based on a time of use rate,
thereby promoting competition among
charging business and facilitating a
mix of renewable energy supplies such
as roof-top solar cells as an energy
source.Theplantargetstheadoptionof
smart grid technology which analyzes
EV charging data and the country’s
usage to manage the efficiency of
electricity transmission. The Ministry of
Energy has also adjusted the country’s
power development plan to increase
the energy generation capacity in
preparation for the anticipated higher
demand. EGAT5 projects an increase
of around 9% of electricity usage in
Thailand if around 1.5 million BEVs and
800,000 PHEVs are in use by 2036.
Following brisk investment from
both the public and private sectors,
data from EVAT show that Thailand
had around 2,000 chargers and 650
charging stations from 10 developers
countrywide at the end of 2020. Of this
total, three in five are normal chargers
whiletheremainderarequickchargers.
The Ministry of Energy has regulated EV
charging rates to ensure cost worthiness,
while charging station developers are
offering mobile EV charging station
applications to provide charging station
maps and estimated remaining fuel
amounts as part of the drive to facilitate
the countrywide adoption of EVs.
The opportunities in the development
of charging stations also attracted
investment from many start-ups in the
green energy sector for the sale and
installation of home-based charging units
and charging systems for residential
and commercial areas. Some of these
start-ups have partnered with big
international EV equipment brands
while others have focused on importing
chargers from smaller brands. However,
most of these companies tend to use
online tools to promote their services,
with a few expanding their networks of
dealerships across the country.

On the back of Thailand’s accommodative business environment
andcompetitivecutting-edgetechnology,localentrepreneurs
are increasingly launching ventures that delve into the next-
generation transportation mode. One such startup has joined
forceswiththeNationalScienceandTechnologyDevelopment
Agency to manufacture the first AI self-driving three wheelers.
This development reflects Thailand’s drive to be the leader of
ASEAN’s next-generation transportation concept1.
Thailand’s proven strengths in the areas of the Internet
ofThings(IoT)andnext-generationplatformcapabilities,such
as cloud computing, will also support the development of big
data. It is this established infrastructure which will enable the
realization of connected and shared transportation concepts,
linking vehicles to vehicles, vehicles to infrastructure and
vehicles to smart phones. Thailand is also ready to embrace
newopportunitiesarisingfromtheMobilityasaServiceconcept
whereby vehicles can be operated along on-demand routes.
Given the requirements for these new-generation platforms,
such as cloud computing and AI, Thailand has sought and
attracted huge investment in the Eastern Economic Corridor
(EEC), a special economic zone equipped with 5G, fiber
optics, data centers and various partnerships between the
public and the private sector as well as academic institutions.
The EEC has introduced 21 promoted zones to serve as the
locationsforThailand’s12designatedtargetedindustriesand
drive future economic growth in sectors that include next-
generation transportation, digital, biotechnology, food for the
future, smart electronics and robotics2.
The EEC Innovation Zone (EECi) is an innovation hub
located at Wangchan Valley in Rayong Province. The EECi
includes comprehensive facilities to support the creation,
development and scaling of innovations. Managed by the
NationalScienceandTechnologyAgency,theEECiecosystem
for innovation is comprised of laboratories, testing centers,
facilities for testbeds and field demonstrations to facilitate the
translation of R&D concepts to commercial uses3. The EECi
has also created a regulatory sandbox to support startups
and SMEs through the testing and incubation of innovative
products and services. Providing a convenient setting in
which the business community and academic institutions can
network, the EECi serves as a meeting point for startups and
venture capitalists. The EECi’s innovation facilities, including
an autonomous vehicle living lab, support the development of
CASEvehiclesinareassuchasAI,batteryandenergystorage
development, field testing, vehicle navigation and mapping,
and system integration.
Such an enabling environment fosters the research and
developmentofhardwareandsoftwareforCASEtransportation
modes, as well as for related high-technology industries like
automation and robotics, digital and smart electronics.
The EEC also houses the first EV Battery Testing Center
inASEAN3.OperatedbytheThailandAutomotiveInstitute,the
facilityprovidestestingofthesafetyandperformanceoftheEV
batteries used in passenger cars and motorcycles as well as
offeringconsultationandtrainingservicesforbusinesses.The
center has also co-invested with TÜV SÜD PSB (Thailand) to
develop testing, inspection and certification standards for EV
batteries. Expected to achieve full operation within this year,
the center initially expects to offer battery testing services for
50 trials per year.
HIGHLIGHTS
Thailand’s vision for its automotive industry extends beyond EVs to include the four major trends of
cutting-edgetransportation.Withacommitmenttovehiclesthatareconnected,autonomous,sharedand
electric(CASE),Thailandaimstocreateasafe,cleanandsustainabletransportationsystem.Thenational
target of phasing out traditional combustion vehicles from all new registered cars by 2035 will shape the
directionofboththeprivatesectorandacademicinstitutionstowardsthese newglobal mobilitytrends.
MAKING A FORAY
INTO NEXT-GENERATION
TRANSPORTATION

EXECUTIVE
TALK
DRIVING THAILAND’S
ECONOMIC
TRANSFORMATION
The emergence of new digital technology
suchasbigdata,theInternetofThings,AI,
machine learning, robotics, 3D printing
and biotechnology along with growing
concernsoverclimatechangehaveshaped
bothpeople’swayoflifeandbusiness’s
activitiesworldwide,withrapidchanges
in consumer behaviors, product innovations
andcompanyproductivity.Asthecountry’s
main organization entrusted with the
mission of promoting investment, the
Thailand Board of Investment (BOI) has
played a significant role in each of the
developmental stages of the country’s
moderneconomy.Now,theBOIisdirecting
Ms Duangjai Aswachintachit
BOI Secretary General
TheBOI’sactivitiesareaboutmuchmorethan
grantingtax andnon-taxincentivestoattract
investment. Withtheongoingtechnologydisruption
and thehighlyuncertainworld,Thailandneeds
to beresilient.OneoftheBOI’sobjectivesinthis
respect istoensureourincentivepoliciesareused
asatooltotransformThailand’seconomic
structureinthefaceoftheserapidchanges.

EXECUTIVE
TALK
its investment promotions towards helping the country leverage
the opportunities arising from global mega trends, while
coordinating with other government agencies to strengthen
Thailand’s position in the new global economic landscape.
With many global challenges disrupting global trade and
investmentsuchastheCOVID-19pandemicsinceearly2020,
the BOI has introduced new investment privileges aimed
at promoting the adoption of digital, automation, and green
technology as well as the uptake of sustainability certification
among eligible industries. Ms Duangjai Asawachintachit, the
Secretary General of the BOI, explained that the aims of the
BOI are that its incentives, targeting both foreign and local
firms, will help drive Thailand’s economic transformation into
a more competitive player in the global arena with stronger
local supply chains making it a key investment destination in
the Association of Southeast Asian Nations (ASEAN).
What are Thailand’s key
competitive advantages?
Thailandoffersawiderangeofcompetitiveadvantages.Firstly,
being situated right at the heart of Southeast Asia, Thailand
enjoys a strategic location that is enhanced by connectivity
across mainland Indo-China. The Thai government has invested
significantly in infrastructure facilities for many years and will
continue to do so in the years to come. With an equivalent of
US$ 68 billion, the government’s investment plan covers all
types of infrastructure and will lead to excellent connectivity
with our neighboring countries and beyond.
Secondly, we also have a very strong supply chain in
many key industries, with over 10,000 companies operating
in the food industry and 2,000 companies in the automotive
supply chain. For electronics industry, Thailand is one of the
world’s most important manufacturers of hard disk drives and
storage devices. We also put great effort into transforming
our digital infrastructure. Over the past few years, Thailand,
has invested in a total of eight submarine cables connecting
us to the rest of the region and the world. We are probably
the most interconnected of all ASEAN countries, making
Thailand ideally suited to serve as a digital hub. In addition,
the Thai government is focusing on developing the Eastern
Economic Corridor (EEC) to be the new growth hub, not
just of Thailand but of ASEAN, attracting high technology and
foreign talents.
The government’s focus on the EEC includes major
investment and activities in a number of projects, such as
the high-speed train linking it with Bangkok, the expansion of
deep seaports and airports, along with the development of an
innovationhub,ortheEECi,whichwillincreasecompetitiveness
and support high-technology industries.
What are the BOI’s target industries?
We have identified a number of sectors to be targeted for
investment. In addition to the advantages mentioned earlier
of Thailand’s strategic location as a regional business hub, its
well-established infrastructure facilities and the strong supply
chainfacilitatingefficient,resilientandcost-effectivebusiness
activities,wearealsoimprovingthelegalecosystemtoensure
we offer a business environment that is highly conducive to
attracting multinational companies to use Thailand as their
regional hub.
One of important sectors is the so-called BCG (Bio,
Circular and Green), which is the concept that the Thai
government announced will be the key driver of the Thai
economy in the years to come. This is an initiative that makes
a lot of sense because Thailand is one of the world’s very few
net exporters of food. The country is also a major producer of
agricultural produces, for which we can add more value by
incorporating more technology. The BCG initiative will unlock
our potential in this and other industries.
In terms of the circular economy, we have a lot of raw
agricultural waste lying around that can be turned into value-
added products. Last but not least, we want to make sure
we can create and develop industries and services that
apply greener technology so that we can pass on a good
environment to the next generation. As part of our promotion
of new technology, Thailand has become the ASEAN hub of
the bioplastics industry.
Another key sector is the medical industry, with the
country having established itself as a medical hub in terms
of medical tourism. The value of medical tourism in Thailand
reachedaround600millionU.S.dollarsin2018,whichranked
Thailand as the fourth-most popular countries worldwide for
medicaltourism.Nowwiththecountry’sefficiencyinhandling
the pandemic, this position as a medical hub has been further
reinforced and the government has taken steps to ensure that
we can further leverage this potential. Among the initiatives

EXECUTIVE
TALK
introduced is the BOI’s recent support measures for clinical
research as we believe there are highly-promising prospects
for this activity in Thailand.
The electronics industry has served as a key sector
for Thailand for decades. Over the past two years, Thailand
has played an even stronger role in the supply chain with the
relocation of smart electronics operations to Thailand.
Lastly, while the automotive industry has played a
significantroleinthecountry’sexportandGDPformanyyears
already, we see there is still huge potential to be unlocked in
this sector, particularly with the new trends for EVs.
What roles have the Thai government
and the BOI played in supporting
the EV industry?
The automotive industry has been on top of the BOI’s agenda
for many decades, in fact, ever since this industry first started
in Thailand during the 1960s. Thailand has been successful
in creating product champions, producing one-ton pick-up
trucks as well as developing automotive clusters with strong
localization.NowwiththeriseofEVtechnology,thechallenge
at hand is in turning the existing cluster into an EV cluster
to ensure we retain our position as the region’s leading
automotive producer.
The BOI has recently introduced a second round of
support measures for EVs. We have also expanded the
promotional scope of our incentives to cover even more
types of vehicles this time. We now cover two-, three- and
four-wheelers as well as ships and trucks in recognition of
the fact that these types of vehicles can also be electrified.
We aim to promote the automotive industry’s transformation
from ICE clusters to EV clusters as the incentives aim to
attract newcomers and to support existing players. We are
also working with government agencies such as the Ministry
of Finance to ensure we are offering the right ecosystem to
support the development of EVs.
What are the key directions
for the BOI’s investment promotions?
The BOI’s activities are about much more than granting tax
andnon-taxincentivestoattractinvestment.Withtheongoing
technologydisruptionandthehighlyuncertainworld,Thailand
needs to be resilient in term of our policy measures.
One of the BOI’s objectives in this respect is to ensure
our incentive policies are used as a tool to help companies
make adjustments to rapid changes. In doing this, we have
incentivized companies to transform themselves with our
productivity enhancement scheme, which allows existing
companies to apply for tax incentives even if they do not
increase their production capacity. The scheme encourages
companies to take actions that will lead to productivity
improvement. These include investments in (1) reducing energy
consumption or reducing impacts on environment or using
renewable energy (2) adopting automation/robotics systems
(3) adopting digital technology (4) obtaining sustainability
certification such as FSC and PEFC (5) undertaking R&D
activities/engineering designs. We believe that investments
or expenditures for these purposes will lead to more productive
and efficient operations, resulting in enhanced competitiveness.
If existing companies are investing in any of these purposes,
they can apply for this scheme even whether they have ever
been BOI-promoted or not as long as they are engaged in
manufacturing or services eligible for BOI promotion. A quick
example of these actions is the installation of solar power
systems and replacement of existing machinery with more
efficient machines or automation systems such as automatic
storage and retrieval system (ASRS).
Given its goal in attracting investments in higher technologies,
the BOI has been administering the so called “smart visa”
schemewhichwaslaunchedin2019.Thisschemeformspart
of our efforts in attracting foreign technologies and talents
in the targeted sectors. We are continuously coordinating
between government agencies and the private sector and
talking to all our counterparts and relevant stakeholders so
that we can obtain opinions that will be used to improve the
business environment.
Is there any final message
you would like to share?
Thailand has been continuously improving its investment
environment, such as through the development of its infrastructure
facilities, its legal system including business regulations, its
industry ecosystem, and its supporting measures as well as
its workforce through extensive reskilling and upskilling efforts.
With all these factors combined, I believe Thailand offers a
very competitive location for investors now and in the future.
The future is here.

COMPANY
INTERVIEW
Energy Absolute Plc (EA ) - often referred to locally as the “Tesla
of Thailand” for its ambitious ventures into the EV industry - is
aiming to play a significant role in driving the EV revolution
forward in Thailand and beyond. Following its acquisition of a 77%
stake in Amita Technologies Inc. in 2016, EA has tapped into
the Taiwan-based energy storage manufacturer’s lithium-ion
technology to develop ASEAN’s largest lithium-ion polymer
battery production plant which will have an annual production
capacity of up to 50 gigawatt per hours when it becomes fully
operational in the next year. In total, the project is worth US$
3.3 billion.
Situated in Thailand’s flagship high-technology special
economiczoneknownastheEasternEconomicCorridor(EEC),
the first phase of EA’s battery production is scheduled to begin
in the first half of 2021 with an annual capacity of one gigawatt
perhour.Aspartofanend-to-endsupply,thebatteriesproduced
at the plant will serve the fast-growing market for passenger
and commercial EVs while also meeting the demand for
clean power generation in the ASEAN region. Underlining its
leadership position in the lithium-ion battery technology in
“ Energy Absolute has acquired a controlling
share in Taiwan-based Amita Technologies,
a company which has been in the lithium-ion
battery industry for almost 20 years.
With this move, we have brought Amita’s
technology and some of their key engineers
to Thailand to close the missing link
in local EV technologies. By combining
the acquired technology with our own,
we have seized the opportunity to get into
the industry at an early stage.”
Somphote Ahunai
CEO and Founder
Energy Absolute Plc
Asia, Amita Technologies (Thailand),
the joint venture formed through the
acquisition, has already won a major
award from R&D100 for its research
and development work on solid-state
lithium-ion batteries under a collaboration
with Taiwan’s Industrial Technology
Research Institute.
Meanwhile,EA’swhollyownedEV
assemblingbusinessbrand,MINEMobility,
is scheduled to begin production in the
second quarter of this year, with a
capacity of 10,000-15,000 units annually.
EA’s first target for this year is to produce
4,500 of its Mine EVs, all equipped with
EA batteries, that were pre-ordered in
2018. EA Anywhere, the company’s
subsidiary operating in the area of
charging station construction and
operation, has already built the majority
of the EV charging stations in Thailand,
with 400 out of the total 650 charging
stations countrywide owned by EA
Anywhere.
INTERVIEW WITH
Somphote Ahunai,
CEO and founder of
Energy Absolute Plc
Powering ASEAN’s EV Revolution

As one of Thailand’s fastest growing
companies with the largest market
capitalization among renewable energy
companies on the Stock Exchange of
Thailand, EA expects its battery production
andEVassemblyoperationstogenerate
steady and sizeable revenues, with as
much as one-fifth of its total revenue
expectedtocomefromEVsinthisyear.
For 2020, EA reported total revenues
of US$ 575 million, an increase of 15%
from 2019, driven mainly by the sale of
B-100 and bio-chemicals as well as
from its solar- and wind-based power
generation businesses. EA’s evolution
intotheEVbusinesshastaken16years,
after starting a biodiesel business in
2006 and then diversifying into power
generation in the form of solar and wind
energy. EA has earmarked a sizeable
portion of its investment budget, 45%
of US$ 203 million, for its EV business
in 2021.
EA’s proactive investment approach
reflects the confidence of its founder and
CEO,Mr.SompoteAhunai,inThailand’s
potential to become the hub of EV
business activities in ASEAN in line with
the plan of the Thai government. With
a competitive automotive supply chain,
a large pool of skilled engineers and
the Thai government’s robust support,
Thailand is attracting huge investment in
its EV and parts industry from automakers
worldwide.
How do you see
the opportunities in
Thailand’s EV industry?
A:Thailandisanestablishedautomotive
production base as well as a clean energy
hub in the ASEAN region. With many
automotive companies having already
established production bases in Thailand,
we already have a large pool of skilled
and experienced engineering professionals.
With its human resources, Thailand is
wellpreparedtotakeitsEVindustrytothe
next level and become a regional leader.
We can already see that Thailand’s
automotive industry has begun to
understand EV technology, even though
it is quite different from traditional
automotive technology.
While Thailand has the missing
link in EV’s core technologies, namely
batteriesanddrivetrains,Thaiengineers
and the local automotive supply chain
havebeenquicktotransformthetraditional
automotive industry so that it is ready to
produce EVs with the technology needed
for the other parts and components
of EVs. Filling this gap was the reason
why EA acquired a controlling share in
Taiwan-based Amita Technologies, a
company which has been in the lithium-ion
battery industry for almost 20 years.
With this move, we have brought Amita’s
technology and some of their key
engineers to Thailand to close the missing
link in EV technologies. By combining
the acquired technology with our own,
we have seized the opportunity to get
into the industry at an early stage. If we
wait to get into the industry after it has
already matured, the opportunities for
newcomers will be very limited.
Please share with us
your vision for EV and
battery businesses
in ASEAN.
A:Weaimveryhigh.Webelievethatwe
can be one of the leading global battery
manufacturers. Before we started this
project, we had conducted many studies
on the global landscape of the EV
market and found that many of the firms
were focusing on passenger cars rather
than commercial EVs. We found that
one reason why not many people were
looking at the commercial EV segment
was that it they were heavy duty cars,
they would need durable batteries for
both everyday and long-distant use.
Secondly, it would be necessary to
be able to charge the battery quickly.
Basedontheexistingecosystem,these
two factors were difficult obstacles for
practical commercial EVs. With our
joint venture with Amita Technologies,
EA has now overcome these obstacles
by developing a special battery which
take less time to fully charge and lasts
longer.
In this promising market of EVs, we
COMPANY
INTERVIEW

COMPANY
INTERVIEW
believe that the key for transportation
is commercial vehicles, not passenger
vehicles. The high margin has driven
most businesses to passenger EVs.
However, the market will soon overcome
the obstacles for commercial EVs and
EA will become an early player in the
market. With the supply chain linking
upstream to downstream businesses,
we are well-poised to be a major player
in this segment.
How do you foresee
the growth of
the EV sector in ASEAN?
A: Infrastructure is the key factor for
the development of EVs in each
country in ASEAN. When it comes to
infrastructure and the strength of the EV
supply chain, we believe that Thailand
is the most competitive country. The
most important underlying factors that
Thailand has to support EV market
growth are GDP per capita and the
sizeable local market. With these two
factors combined, Thailand has a suitable
foundation to jump start its market
for EVs, which currently have a more
expensive unit price than traditional
combustion engine vehicles.
In terms of infrastructure, Thailand
has an abundant supply of electricity
with almost a 50% overcapacity of power
generation and one of the best quality
transmission networks, reflecting the
country’s energy security and readiness
forEVs.Thailandisalreadyakeyproduction
base for many global automakers so
they will only have to increase their
investments by marginal amounts to
convert their existing production facilities
so that they can use Thailand as their
EV production base and help make
Thailand an EV production hub .
What roles have the BOI
and the Thai government
played in supporting
the EV sector?
A: The Thai government and the BOI
haveplayedanimportantroleinattracting
investment to support the development
of local EV technology, particularly for
overcoming the missing links in the
technologychain,whichwerethebatteries
and the drive trains. The BOI has granted
very high privileges to attract investors.
EA has worked closely with the BOI and
we have always been very well supported
whenwehadanyproblems.Itisimportant
to have such an environment that is
so conducive to business. The Thai
government has committed to developing
the ecosystem for the EV sector, which
is one of the country’s new S-curve
targeted industries. The government
has introduced many incentives with
the aim of supporting the local demand
for EVs because having the demand is
an important factor for ensuring that an
investment can successfully grow. The
government’s support, coupled with
the country’s robust automotive supply
chain and skilled workforce, is driving
Thailand to become one of the world’s
largest EV production hubs.
How confident are you
thatThailandwillbecome
ASEAN’s EV hub over
the next five years?
A:TheThaigovernmenthasunderstood
that the global transition to EVs has
been slowed down by the COVID-19
pandemic. While we are waiting for the
pandemic to subside, there has still
been a surprising demand for EVs. It’s
just a matter of time before the region
sees a transition to EVs. However,
this also depends on how quickly our
neighboring countries can develop
their EV infrastructure. Here in the Thai
market, there is great enthusiasm for
EVs which will escalate into demand
which will then drive Thailand to be the
most competitive EV hub in ASEAN.

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$9.98-10.71
Market Profile
(2019)
Population
66.56
Million
GDP Growth
-6.1%
2020 2021*f
2.5-3.5%
Investment Growth
-4.8%
2020 2021*f
5.7%
Export Value of Goods Growth
-6.6%
2020 2021*f
5.8%
THB 31.36 THB 43.49 THB 37.08 THB 28.69
(100 Yen)
THB 4.84
Source: Bank of Thailand
Exchange Rates
(As of 31 March 2021)
Tax Rate
Corporate Income Tax: 0 - 20%
Personal Income Tax: 5 - 35%
VAT: 7%
Witholding Tax: 1 - 15%
Source: the Revenue Department
(As of March 2021)
14.83%
12.85%
9.88%
4.88%
4.82%
4.25%
4.10%
3.77%
3.30%
3.25%
Share
34,343.71
29,754.18
22,876.34
11,292.25
11,163.82
9,828.83
9,508.92
8,734.50
7,650.26
7,525.32
Value
(US$ million)
Top 10 Export Markets (January-December 2020 )
Rank
United State
China
Japan
Hong Kong
Vietnam
Australia
Singapore
Malaysia
Indonesia
Switzerland
Export Figures
Export value (USD million)
Jan - Dec 2019 : 246,268.8
Jan - Dec 2020 : 231,468.4
Jan - Feb 2021 : 39,925.6
Source: Ministry of Commerce
Top 10 Exports
Goods / Products
3.09%
2.91 %
2.82%
2.31%
2.27%
9.19%
8.07%
7.87%
5.23%
3.44%
Share
7,155.14
6,735.69
6,528.00
5,354.92
5,251.81
21,266.84
18,668.85
18,207.33
12,113.82
7,971.54
Value
(US$ million)
6. IntegratedCircuits
7. ChemicalProducts
8. Machinery andParts
9. RefinedFuel
10. AirConditionersandParts
1. VehiclesandParts
2. ComputersandParts
3. Jewelry
4. Rubber Products
5. PlasticPellets
Source: World Economic Forum
Source: IMD
Source: World Bank
Global Competitiveness
2018:38th 2019:40th
Ease of Doing Business
2019:27th 2020:21st
World Digital Competitiveness
2019:40th 2020:39th
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, February 2021

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