Think Asia. invest Thailand

Gateway to Asia

Thailand enjoys a strategic location and serves as a gateway into the heart of Asia – home to what is today the largest growing economic market. 

The country also offers convenient trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), and easy access into the Greater Mekong sub-region, where newly emerging markets offer great business potential.

Hub of ASEAN

Thailand was one of the founding members of ASEAN and has been instrumental in the formation and development of the ASEAN Free Trade Area (AFTA). AFTA entered into force on 1 January 2010 for the six original ASEAN (ASEAN-6) members (Thailand, Singapore, Malaysia, Indonesia, Philippines, and Brunei) thereby reducing import duties to zero; the so-called CLMV countries (Cambodia, Laos, Myanmar and Vietnam) will follow suit in 2015. 

   Thailand is ideally located at the crossroads of Asia, with easy access to the region’s dynamic markets, including its own booming domestic consumer market of 67 million people.  Thailand has long been a proponent of free and fair trade and its attractiveness as a production base for leading international companies is enhanced by a number of free trade agreements, and Thailand is certain to be a beneficiary of the ASEAN Economic Community (AEC), which will enter into force in 2015.

Social and political stability

Thailand is a foreigner friendly and welcoming Buddhist country. The country's form of government is a constitutional monarchy, with a high reverence for the Thai Monarchy, and devotion to the teachings of Buddhism. And although the vast majority of the people in Thailand are Buddhist, all religions are welcome, and His Majesty the King is the patron of all religions.

Growing economy

Economically, this country of 67 million people is characterized by steady growth, strong exports and a vibrant domestic consumer market. Abundant natural resources and a skilled and cost-effective work force help attract foreign investors, and enable them to prosper and develop industry in Thailand.

The Kingdom’s position as a global leader in agriculture, one of the top food exporters in the world, and a medical hub of Asia has encouraged the emergence of biotechnology in Thailand. For the past two decades, Thailand has been developing a cutting edge biotechnology industry. This knowledge-based industry has diverse applications across the medical, agricultural, aquatic, and industrial fields. With a greater focus on science and technology, the biotechnology sector has evolutionary implications where industry will move into more value-added activities to support the industry’s growth and competitiveness in years ahead.   

The foundation of Thailand’s biotechnology industry was laid in 1983 with the creation of the National Center for Genetic Engineering and Biotechnology (BIOTEC). Since then, numerous public and private institutions have started conducting biotechnology research. To help facilitate the industry, the National Science and Technology Development Agency (NSTDA) provides resources to develop the critical mass of researchers necessary to achieve Thailand's national research and development (R&D) goals for biotechnology. As the center of biotechnology development in Thailand, BIOTEC established multiple laboratories for conducting research and providing technical services in agricultural, biomedical, and environmental sciences. Additionally, the Thailand Center of Excellence for Life Sciences (TCELS) and the Board of Investment (BOI) have supported the industry, facilitating its progressive growth.

Under the Biotechnology Development Policy Framework 2012-2021, the Thai government is the driving force in stimulating developments in R&D and applications of biotechnology. This initiative aims to transform Thailand into the center of biotechnology in Asia while strengthening the country’s competitiveness. Thailand currently chairs the ASEAN sub-committee on biotechnology and is a regional and global contributor to the industry.

Recognizing the value of biotechnology, biotechnology is classified as a priority activity that has special importance and benefits to the country. As such, projects in biotechnology shall be granted an eight-year corporate income tax exemption, regardless of location and are not subject to the corporate income tax exemption cap. They also receive an exemption of import duties on machinery, regardless of location; and other rights and benefits shall be granted according to BOI Announcement No.1/2543 dated August 1, 2000. Projects that are located in science and technology parks shall receive a five-year additional 50 percent corporate income tax reduction for net profits after the end of corporate income ax exemption period. Projects must use modern biotechnology as approved by the National Science and Technology Development Agency (NSTDA) or the Thailand Centre of Excellence for Life Sciences (TCELS).

Anna Szulc