1. Business Opportunities in Thailand Nattinee Netraumpai Assistant Director Thailand Board of Investment Frankfurt Office Nattinee Netraumpai Assistant Director Thailand Board of Investment Frankfurt Office

2. Various Wonders

3. Today’s Topics  Why Thailand  Renewable Energy  Environtment  Seafood Processing  Biotechnology  Furniture Industry

4. Why Thailand

5. Strategic Location at the Heart of Asia ASEAN: 570 million AFTA Australia: 20 million TAFTA China: 1.3 billion Early Harvest :China-Thailand China-ASEAN FTA India: 1.1 billion Early Harvest Agreement Japan: 128 million Japan- Thailand Economic Partnership Agreement Taiwan: 23 million Thailand: 64 million No. of Tourists >13 million/yr New Zealand: 4 million Closer Economic Partnership

6. 1United States11Korea 2Switzerland12Hong Kong 3Denmark14Taiwan 4Sweden21Malaysia 5Germany28Thailand 6Finland34China 7Singapore48India 8Japan54Indonesia 9United Kingdom68Vietnam 10Netherlands71Philippines Global Competitiveness Index 2007-2008 Source: World Economic Forum, October 2007

7. 1Singapore12Japan 2New Zealand15THAILAND 3United States24Malaysia 4Hong Kong30Korea 5Denmark50Taiwan 6UK83China 7Canada91Vietnam 8Ireland123Indonesia 9Australia133Philippines 10Iceland164Laos PDR Ease of Doing Business Source: World Bank Study: Doing Business 2008

8. Most Attractive Economies for the Location of FDI 2007-2009 1China11Thailand 2India12France 3United States13Malaysia 4Russian Federation14Indonesia 5Brazil15Singapore 6Vietnam16Italy 7United Kingdom17Ukraine 8Australia18Japan 9Mexico19Canada 10Poland and Germany20Republic of Korea Source: UNCTAD World investment Prospects Survey, 2007-2009

9. Promising Countries for Overseas Business Operations Medium-Term (next 3 years) RankCountry 1China 2India 3Vietnam #4Thailand 5U.S. 6Russia 7Korea 8Indonesia 9Brazil 10Taiwan Includes production, sales, R&D, outsourced operations Long-Term (next 10 years) RankCountry 1China 2India 3Russia 4Vietnam 5U.S. #6Thailand 7Brazil 8Indonesia 9Korea 10Malaysia Includes production, sales, R&D, outsourced operations Source: JBIC FY 2006 Survey: Outlook for Japanese FDI (18 th Annual Survey)

10. Number of Surveyed Companies Looking to Strengthen or Expand in ASEAN-4 Source: JBIC 18 th Annual Survey Report on Overseas Operations by Japanese Manufacturing Companies

11. Renewable Energy

12. Source: Bangkok Post 2007 Economic Review

13. Alternative Energy in Thailand SolarBiogas Wind Bio Cluster GarbageWaterBio Diesel Ethanol

14. Target of Power Generation using Renewable Energy in 2011 Energy Type Current RE Generation (MW) Target of RE Generation (MW) Amount of Increased Capacity (MW) Biomass1,9772,800823 MSW410096 Biogas53025 Hydro44156112 Wind1115114 Solar304515 Total2,0613,2461,185

15. RE Power Generation Situation (Mid-2006) 100 100 MW (4.25 MW) 43 43 MW (0.55 MW) 10 10 MW (4.60 MW) 85 85 MW (25.48 MW) 2,800 2,800 MW (1,761.29 MW) 200 200 MW (44.33 MW) Biogas in livestock farm and Agro-industry - Bangkok - Municipality - Industry estate - Remote area - Roof top - Industry - Wind farm in south of Thailand - Hybrid with diesel -Sugarcane Industry -Biomass power plant -Community power plant - mini/micro hydro plant Biomass Wind Biogas Hydro Photovoltaic MSW

16. CDM Projects in Thailand Classified by type of project Source: DEDE 2006

17. Feed-In Tariff for Renewable Energy VSPPs Fuel/TypeFeed-In Tariff (Baht/kWh) Biomass, Biogas0.30 Mini Hydro (50-200 kW) 0.40 Micro Hydro (<50 kW) 0.80 MSW2.50 Wind2.50 Solar8.00 SPPs Fuel/TypeFeed-In Tariff (Baht/kWh) MSW2.50 Wind2.50 Solar8.00 Other RE types0.30 (Bidding)

18. GeographyYearly average photometry ( Megajoule / m2 per day) Energy Capacity (1,000 ton equivalent to oil) Over all country18.2554,070.6 Photometry and solar energy capacity of country RegionAmount (System)Installation Size (Kilowatt) Central107286.675 North5211,255.241 North East52164.75 South128510.95 Total8082,217.616 Solar power development by DEDE Energy Installation from 1993-2005

19. Source:http://www.egat.co.th/re/e gat_heater/heater_prince.htm Solar Potential (Dispersive surface energy) Average: 18.2 MJ/m2/day or 554,070.6 ktoe

20. Solar Cell Installation Source:Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy http://www.dede.go.th/dede/index.php?id=958

21. Solar Energy Utilization by Type Source:Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy http://www.dede.go.th/dede/index.php?id=498 PV Battery Charging System 1,401, 4% SPP 3,382, 10% Water Pump 328, 1% Telecommunication 1,142, 4% Power Generation 25,997, 81%

22. Solar Energy by Location Source:Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy http://www.dede.go.th/dede/index.php?id=430

23. Source:http://www.egat.co.th/re/e gat_heater/heater_prince.htm Solar Potential (Dispersive surface energy) Average: 18.2 MJ/m2/day or 554,070.6 ktoe

24. Solar Cell Installation Source:Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy http://www.dede.go.th/dede/index.php?id=958

25. Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm Wind Potential Unit: Watt/Sq.m. Kilometer Map of Thailand

26. Wind speed and direction in Thailand Wind speed and direction in Thailand The mean wind speed is varies from 2.5 m/s in the Northern part up to 4.0 m/s in the Southern part of Thailand. Some specific sites of Phuket Island have been measured and evaluated by EGAT, the result show that the monthly wind speed is varies from 4.0 to 6.1 m/s NE- MONSOON November-April SW- MONSOON May-October Phuket Island Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

27. Yea r JanFebMa r AprMa y JunJulAu g SepOctNo v DecAvg. 19 9 4 4.5 4.73.56.96.16.45.56.03.43.54.45.0 19 9 5 5.44.94.43.94.35.34.16.16.84.14.94.84.9 19 9 6 5.06.24.54.04.23.55.86.27.64.35.04.95.1 19 9 7 5.24.24.43.75.8NA2.17.34.03.34.64.9 4.5 19 9 8 5.1NA 6.54.75.85.96.05.14.6 5.5 19 9 9 3.85.24.56.34.39.87.62.3NA3.94.84.95.2 20002000 4.6NA 3.73.6NA 7.04.23.34.4 20012001 4.84.74.23.23.98.06.27.85.54.54.34.15.1 20022002 4.45.54.63.84.54.35.05.26.24.23.24.54.6 20032003 4.95.0 4.26.04.05.76.06.85.54.04.75.2 Av g. 4.85.04.54.54.04.04.85.95.95.35.86.14.64.44.54.9 Monthly mean wind speed (m/s) at 36 m. above ground Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

28. Wind Power Generation Technology has been introduced in Thailand since 1983. This is mainly attributed to field test works by Electricity Generating Authority of Thailand (EGAT). There are several institutions that concerning in the field of assessment wind energy, developing performance testing and monitoring of wind turbine for generating electricity. Background Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

29. The annual energy supply to the distribution grid Month1996199719981999200020012002200320042005 Jan019,19518,9118,454010,00232,94620,14835,13621,858 Feb010,14714,62016,4646,504**23418,94218,01215,0369,974 Mar06,65313,17614,7244,24212,33011,37612,59415,76218,804 Apr05,20212,08026,0761,28410,6085,6284,7046,5226,546 May022,8144,0904,656**026,55615,79221,63621,300- Jun013,37123,5067,72848,94230,4268,8203,63634,818- Jul*29,01012,11919,10746,02023,10624,16221,12611,82620,190- Aug14,03435,9768,94433,82821,84650,18428,91426,172***6708- Sep38,63411,96518,35415,61812,708**46024,85436,780***1566- Oct14,2435,98029,86821,80437,84213,626**4815,36610,740- Nov15,10911,14516,97211,1307,28420,040**2,9344,31410,722- Dec11,48316,97413,817**9966,34213,6266,28817,71815,330- Total93,503171,541193,445206,502170,100211,560157,668192,906193,83057,182 Remark* Installed/Start in July1996 ** System errors / Maintenance *** Transformer Failure Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

30. Wind Turbine Generator Components & Specification Type : NTK 150/25 Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

34. Promthep Alternative Energy Station Phuket Island Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

35. 1. Total Investment Cost 13,100,000 Baht. 2. Electrical Energy generated 197,000 kWh/year 3. O&M 260,000 Baht/year 4. Cost of generation (Discount rate 9.5%) -: Without subsidy 9.45 Baht/kWh 5. FIRR 14.00 % 1. Total Investment Cost 13,100,000 Baht. 2. Electrical Energy generated 197,000 kWh/year 3. O&M 260,000 Baht/year 4. Cost of generation (Discount rate 9.5%) -: Without subsidy 9.45 Baht/kWh 5. FIRR 14.00 % 150 kW Wind Turbine Generation Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

36. 1. Total Investment Cost 42,843,000 Baht./set 2. Electrical Energy generated 985,000 kWh/year 3. O&M 850,000 Baht/year 4. Cost of generation (Discount rate 9.5%) -: Without subsidy 6.18 Baht/kWh 5. FIRR 14.00 % EGAT plans to install large wind turbine generation with capacity 750 kWx3 in 2008 Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

37. Future Installation of 3x750 kW Wind Turbine Generation Source: Electricity Generating Authority of Thailand http://www.egat.co.th/re/egat_wind/egat_wind.htm

38. Seafood Processing

39. Food Industry: Production & Domestic Sales Products Unit: Tons ProductionDomestic Sales 2006200720062007 Jan-Sep Livestock531,335.20500,479.80434,286.00397,717.90 Fishery524,746.20454,538.8049,548.9044,627.30 Vegetable & Fruits374,389.80288,985.7022,091.4017,202.70 Vegetable Oil965,078.40918,561.70666,677.70614,441.80 Dairy329,812.30302,991.40201,667.10219,309.60 Cereal & Flour679,723.60588,172.90425,723.10404,001.30 Animal Foods2,203,657.402,110,322.102,207,962.902,108,361.70 Sugar2,674,611.403,159,592.50789,106.50912,370.10 Instant Noodle310,973.20563,616.40313,418.30557,022.70 Total41,433,202.4041,609,957.305,110,481.905,275,055.00 Source: Office of Industrial Economics

40. Food Industry: Exports Products20062007 Jan-Sep Seafoods143,199.8140,314.0 Livestock23,172.924,869.5 Vegetable & Fruits52,899.451,254.2 Rice & Cereal118,116.0128,883.4 Sugar22,468.238,840.9 Others24,587.930,702.3 Total384,444.2414,864.3 Source: Office of Industrial Economics

41. ExportsExports Products20032004200520062007 Q'TYValueQ'TYValueQ'TYValueQ'TYValueQ'TYValue Shrimp234,09271,800267,36674,772279,33471,354336,81086,275350,35180,390 Cephalopod109,75015,682116,06418,52599,34116,01293,93915,83593,38715,526 Fish431,90119,110454,80320,487421,62321,422444,33320,924507,90622,299 Total580,40551,191621,75759,981649,37365,444695,63168,525694,45271,092 Others291,73417,316345,45120,622310,80819,854377,71222,428273,49015,493 Grand Total1,647,884175,1011,805,442194,3881,760,478194,0861,948,425213,9861,919,586204,800 Q'TY = Tons Value = M.Baht Source: Fisheries Foreign Affairs Division Department of Fisheries http://www.fisheries.go.th/foreign/mainexport.htm Export Markets by Value in 2007

42. JTEPA: Thailand-Japan FTA TypeProducts/Import DutyExport Volume from Thailand to Japan (Tons) Total Japan's Import Volume (Tons) Out of NegotiationCuttlefish / 5%7,62743,309 Preserved Cuttlefish / 10.5%2,17246,553 Fillet Fish / 10%2,15267,857 New Negotiation within 5 yrs.Yellowfin Tuna / 3.5%2,01019,077 Other Preserved Fish / 9.6%3,8279,639 Big Eye Tuna / 3.5%82115,876 Frozen Skipjack / 3.5%3,07050,448 Mackerel / 9.6%1,46910,511 0% NowFrozen Shrimp / 1%20,097229,948 Preserved Shrimp / 5.3%21,61350,016 Simple Preserved Shrimp / 4.8%9,56418,269 0% within 5 yrs.Other Frozen Foods / 3.5%41,640119,692 Canned Tuna / 9.6%19,19828,587 Frozen Mongohika / 3.5%11,24820,114 Canned Skipjack / 9.6%4,2697,314 0% within 7 yrs.Other Preserved Fish / 9.6%7,10582,928 Extracts from Fish / 9.6%1,0874,267 Canned Salmon / 9.6%5541,327 Sensitive GoodsItoyori (Surimi) / 2%29,23554,709 Source: Fisheries Foreign Affairs Division, Department of Fisheries http://www.fisheries.go.th/foreign/JTEPA.pdf

43. BiotechnologyBiotechnology

44. New Incentives for Biotechnology  Exemption of import duty on machinery and an eight-year corporate income tax break without investment cap and zone.  Projects located in science and technology parks will receive a 50% reduction of corporate income tax for 5 years after the exemption period.

45. Biotech Infrastructure National Center for Biotechnology (BIOTEC) Thailand Science Park (TSP) Research Services Kasetsart University (Plant Genetic Engineering Unit, DNA Fingerprinting Unit, and the Bioservice Unit, which provides biomolecular resources for researchers from both the public and private sectors) Mahidol University (Microbial Genetic Engineering Unit and Medical Biotechnology Center at Siriraj Hospital) Chulalongkorn University (Marine Biotechnology Laboratory) King Mongkut's University of Technology (Biochemical Engineering and Pilot Plant Unit)

46. Science Park Thailand Science Park: an incubation center for science- related investment  Support includes: –Assistance in finding and acquiring technology –Analytical and technical services –Intellectual property services –Quality management services –Maximum BOI Incentives 80 acre park  lab space  greenhouses  accommodations

47. National Biotechnology Policy Framework 2004 – 2011 (1 of 2)  Collaborative plan between the NESDB, National Science and Technology Development Agency, and National Center for Genetic Engineering and Biotechnology  Promotional activities and tax incentive packages expected to bring THB 5 billion investment in R&D and lead to THB 30 billion of revenue a year in the sector  Increase food production to become “The Kitchen of the World,” along with increased safety and quality inspection capacity

48.  Support expansion of biomedical infrastructure and human resources, promote locally produced health care products  Applications for agricultural outputs to be used in alternative energy production  Use of biotechnology to promote a self-sufficient economy National Biotechnology Policy Framework 2004 – 2011 (2 of 2)

49. Established in 1983  Part of the National Science and Technology Development Agency (NSTDA)  Allocates approximately $200 million annually for research  30% for research infrastructure and services  70% for direct grants  BIOTEC have a total of 490 staff members. As of 30 September 2005, BIOTEC had a total of 490 full time staff, of which 63% were devoted to research. The number of Ph.D. researchers is 119 and this is expected to grow to 220 by 2017, the majority of which will come from overseas education on government scholarships. BIOTEC is publicly funded. National Center for Biotechnology (BIOTEC)

50.  BIOTEC, through Thailand Science Park, provides basic research services  Private companies and university research labs provide specialized services  TSP offers support importing products not found locally Research Services

51. Biotech Specialties  Agriculture (Rice, Pest resistant Tomato, Pepper and other vegetables, Cassava, Ornamental Flowers, Shrimp)  Animal Testing Alternatives  Tropical Diseases  Food Handling

52. Furniture Industry

53. Furniture Industry Overview Employees (persons)*300,000 Manufacturers*(Companies) Small size (<=50 employees)2,220 Medium size (51-200 employees)294 Large size (>=200 employees)86 Total2,600 ISO**(Companies) ISO 900073 ISO 140007 QS 90001 Source: * Department of Export Promotion ** Thailand Industrial Standards Institute

54. ExportsExports Export Structure(%) Wood Furniture51.31 Other Furniture23.12 Furniture Parts16.31 Bedclothes5.00 Metal Furniture4.34 Exports in 2006 (Estimated) Value (M.USD)1,363 Growth (%)10 Source: Department of Export Promotion

55. Export Markets Country Value (M.USD)Growth (%)Share (%) 2003200420052006 (Q1-Q3) 200420052006 (Q1-Q3) 200420052006 (Q1-Q3) 1 USA351.57435.07405.58271.2523.75-6.78-9.6336.0432.7330.12 2 Japan318.11316.73306.99210.82-0.43-3.07-7.9226.2324.7723.41 3 UK89.96119.07126.0293.0432.375.832.139.8610.1710.33 4 Australia27.3831.2333.3640.6014.086.877.152.592.004.51 5 Malaysia10.1213.419.7419.2732.45-26.4831.841.112.14 6 Canada43.4746.5334.2118.387.0347.26-25.813.852.072.04 7 Netherlands13.4914.4821.4216.667.2947.97-0.721.201.761.85 8 Germany21.8324.6525.7814.8212.914.59-14.842.041.691.65 9 Italy11.3113.516.5114.2719.3522.2720.891.121.651.58 10 UAE12.0811.8914.1612.97-1.5219.0826.900.991.411.44 11 Spain10.481316.2811.0723.9925.28-9.441.081.311.23 12 France11.5913.7913.3910.8418.960.563.831.141.121.20 13 Belgium6.748.7411.619.9129.5732.8813.690.720.941.10 14 Philippines4.916.3911.399.5630.1078.1216.780.530.921.06 15 S. Africa1.183.167.389.42167.70133.8663.100.260.601.05 16 S. Korea8.7910.210.679.1415.944.6418.370.840.861.01 17 India3.695.999.569.0362.3859.4824.200.500.771.00 18 Singapore7.127.827.698.889.83-1.7161.660.650.620.99 19 Vietnam3.323.657.328.6210.12100.4190.600.300.590.96 20 Sweden7.7510.1412.367.8630.8721.85-16.100.841.000.87 Total964.901,109.441,111.88806.4014.980.22-1.4792.7889.7289.55 Others75.0797.88127.4294.1330.4030.17-0.967.2210.2810.45 Grand Total1039.971207.321,239.30900.5316.092.65-1.42100.00 Source: Department of Export Promotion 77.15 New Market Thailand-Australia FTA New Market 90.60 New Market 63.10 New Market 61.66 Australia S.Africa Singapore Vietnam

56. Investment Incentives

57. Thailand Investment Year 2008-2009 Promote industries for the future -To promote investment in and hi-tech industries such as life science, biotechnology, bio- degradable materials, RFID, LED, LCD panels etc. -To promote investment in alternative energy such as ethanol, bio-fuels, biogas, solar and wind energy -To gear the entrepreneurs towards higher value-added and more advanced technology development Promote the country’s infrastructure to accommodate the future industrial expansion –Southern Seaboard to accommodate the expansion of fundamental industries such as petrochemicals, steels, energy crops, shipbuilding and tourism –To push forward the high-quality upstream steel industry to accommodate the rising demand of automotive, electronics and electrical products, food packaging and other related industries Promote industrial competitiveness -companies to change or upgrade their machinery and to develop technology and IT systems in order to improve efficiency and reduce environmental impacts -To promote R&D activities among local industry and to upgrade the industrial workforce in collaboration with educational institutions and research centers The R&D and human resources development in the industrial sector by collaborating with other agencies such as National Science and Technology Development Agency (NSTDA) The establishment of “incubation center”for product and process development as well as research and development cooperation among private sector, research centers and educational institutions

58. BOI Net Applications Sector200620072008(Jan-Feb) No. Of Projects Value (M.Euro) No. Of Projects Value (M.Baht) No. Of Projects Value (M.Baht) Agricultural Products46517.646185.51583.74 Minerals/Ceramics32536.427573.97177.6 Light Industries/Textiles73194.959186.21650.53 Automotive/Metal Processing2201080228319938153 Electrical/Electronics1801495153164525363.8 Chemicals/Paper80842.4129207717114.1 Services1921743203260049171.8 Total8236410845104671671115 1 Euro = 48 Baht

59. BOI Net Applications from Europe 20062007 2008 COUNTRY (Jan.-Feb.) No. of Projects TotalNo. of Projects Total No. of Projects TotalNo. of Projects Total Invest. Austria3 14 13 - - - - Belgium6 505 10 - - 2 0 Cyprus1 0 - - - - - - Denmark5 716 375 1 9 2 1 Finland - -4 15 - - - - France10 919 18 2 1 5 2 Germany21 2736 773 3 8 3 7 Ireland1 0 - - - - - - Italy12 1710 27 - - - - Luxembourg - -1 4 - - - - Netherlands26 13320 182 6 18 4 98 Norway5 164 6 - - 3 1 Slovakia1 0 - - - - - - Slovenia1 1 - - - - - - Spain7 2171 0 - - - - Sweden5 188 21 1 1 2 16 Switzerland9 8311 36 - - - - United Kingdom31 15724 142 7 13 8 64 Total Europe140 735153 1,582 16 46 29 189 1 Euro = 48 Baht

60. TAX INCENTIVES  Corporate income tax holidays up to 8 years  Import duty reductions or exemptions on machinery and raw materials NON-TAX INCENTIVES  100% Ownership  Land rights for foreign investors  Permission to bring in foreign experts and technicians  Work permit & visa facilitation Basic BOI privileges and incentives

61. BOI Basic Promotion Packages 3 Investment Promotion Zones to promote industrial decentralization Zone: 1 2 3 Incentives: Lower Higher

62. Incentives by Location IncentivesZoneInside Industrial Estate Outside Industrial Estate Import Duties on Machinery Zone 150% Reduction Zone 2Exemption**50% Reduction Zone 3*Exemption Corporate Income Tax Zone 13 YearsNo Exemption Zone 27 Years**3 Years Zone 38 Years Import Duties on Raw Materials Zone 1Exemption Zone 2Exemption Zone 3Exemption More Info: http://www.boi.go.th/english/about/eligible_activities.asphttp://www.boi.go.th/english/about/eligible_activities.asp For projects in Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong Province, Applications must be submitted by December 31, 2009 ** Applications must be submitted by December 31, 2009

63. Tax Incentives for Manufacturing of Solar Cell Incentives: Machinery Import Duty Exemption for 8 years, regardless of zone Corporate Income Exemption for 8 years, regardless of zone Condition: Production process must be approved by BOI

64. BOI Bio-tech incentives granted to:  1. R&D and manufacturing activities using biotech in seed industry, and in plant and animal improvement industry.  2. R&D and manufacturing activities of biopharmaceutical agents using biotech. (For example, drugs, vaccines, and therapeutic proteins).  3. R&D and manufacturing activities of diagnostic kits and reagents for health, agriculture, food and environment applications. (For example, diagnostic kits for pure line breeding, diagnostics for disease screening, biosensors and gene chips.)  4. R&D and manufacturing activities of biomolecules and bioactive compounds using microorganism, plant and animal cells. (For example, enzymes, probiotics, flavors, monoclonal antibodies and recombinant proteins.)

65. SeafoodsSeafoods 1.Deep sea fisheries 2.Inspection, analysis of diseases of crops, livestock or aquatic animals 3.Cold storage and cold storage transportation Incentives: 1.Exemption from import duty on machinery, regardless of location 2.Maximum 8-year corporate income tax holiday, regardless of location 3.Additional incentives according to zone in which project is located

66. FoodsFoods Tax Incentives: Maximum Incentives regardless of location or zone for 8 years Corporate Income Tax Exemption Machinery Import Duty Exemption In addition, projects may receive extra zone-base incentives including: Raw Material Import Duty Exemption for up to 5 years Double Deduction from Taxable Income of Utility and Transport Costs for up to 10 years in Zone 3 Food production, preservation or packaging Research and Development Cold storage and cold storage transportation Crop drying and silo facilities using modern technology Inspection analysis for diseases Production of farm and food-processing machinery Grading, packaging and storage of plants, vegetables, fruits or flowers Trading centers for agricultural goods

67. % of First Three Years’ Sales Add. Income Tax Exemption, No cap 1% or at least 150 million baht1 year 2% or at least 300 million baht2 years 3% or at least 450 million baht3 years Additional incentives for skills, technology, and innovation (Optional) Investment and Expenditures on: Research and development or design Advanced technology training Funding of educational and research institutes Note: Corporate income tax holiday may not exceed eight years.

68. 14-17 MAY 2008 BITEC BANGKOK THAILAND

69. BOI Support Services: Sectoral Divisions to guide you through the process Overseas offices Country desks 1-Stop for visas & work permits: work permits in 3 hours Interaction with other govt. agencies on behalf of investors Industrial Subcontracting Services Vendors meet customers program (BUILD Unit) Investment Matchmaker Program ASEAN Supporting Industry Database (ASID)

70. Thailand—Each Piece Fits Perfectly.