What Is Board of Investment? Essay Example
What Is Board of Investment? Essay Example

What Is Board of Investment? Essay Example

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  • Pages: 9 (2256 words)
  • Published: September 30, 2017
  • Type: Essay
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The Thailand Board of Investment (BOI) is a government agency responsible for promoting investment in Thailand. It operates under the Ministry of Industry and serves as the main agency for investment promotion. The BOI offers various services to investors, including information, incentives, and assistance in enhancing competitiveness and facilitating investment. These services include attractive tax incentives, no foreign equity limitations on certain activities, help with visas and work licenses, and exemption from restrictions on land ownership by foreign entities.

Furthermore, the BOI provides business support services such as advice on setting up operations in Thailand, arranging site visits, identifying potential suppliers and partners, and connecting with key public and private organizations. In addition to its local efforts to promote investment, the BOI also acts as Thailand's global marketing arm.The overseas offices in Tokyo, Osaka, Shanghai, Beijing, Guangzhou, Seoul, T


aipei, Sydney, Frankfurt, Paris, Stockholm, Los Angeles and New York serve as front desks for engaging with potential investors. The services provided include assistance in setting up a business, information on investment opportunities and industrial subcontracting. The BOI also offers foreign experts services and operates a one-stop service center. They have the ASEAN Supporting Industry Database (ASID) and an Investor Club Association to aid in setting up businesses. The BOI provides valuable business-related services to international investors such as obtaining licenses and papers required for conducting business. They also help with access to utilities like water, electricity and telecommunications. Information on investment opportunities is available by sector and region at no charge through the Investment Services Center and Regional Investment Promotion Division. Additionally,BUILD aims to encourage growth in supporting industries in ThailandBUILD offers support to buyer houses i

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Thailand seeking sourcing networks and provides information on outsourcing opportunities. Thai providers benefit from farm outing agreements that help them meet required criteria. The Board of Investment has a division dedicated to assisting Japanese investors understand policies, procedures, and opportunities, which includes a Nipponese investing expert. Additionally, the Board of Investment has established a One-Stop Service Center for Visas and Work Permits that can process visa and work permit applications within three hours as long as all necessary documents are provided. This center also handles other transactions such as changing visa status or paying fines within three hours or less. Foreign experts and skilled workers must follow the Investment Promotion Act 1977 in order to work under the Thailand Board of Investment (BOI). There are two sections to consider: Section 24 allows foreign subjects to enter the country for investment purposes, while Section 25 permits skilled workers and experts to work in Thailand even if their companies have not yet received an Investment Promotion Certificate. The text describes provisions for partners and dependents of foreign experts and skilled workers, specifying their duration of stay in Thailand based on the companies' Investment Promotion Certificate.The BOI has developed the ASEAN Supporting Industry Database (ASID), which allows businesses to browse and compare cost-efficient products. ASID also provides global marketing opportunities for ASEAN manufacturers. To simplify the process of bringing in foreign experts and technicians, the BOI has created a unit that expedites paperwork. This unit, known as the Foreign Expert Services Unit, works with companies and experts to verify expertise and offers guidance on necessary documents for visas and work permits at the One-Stop Service Center. Moreover, the

BOI offers matchmaking services for investment opportunities in engineering, direction, and selling within Thailand and abroad. It also assists regional countries seeking joint-venture partners from Bangkok or overseas, as well as companies interested in investing in provincial areas. The Investor Club Association, an organization within the BOI, represents Thailand's investment community by providing up-to-date information on regulations and procedures related to investment promotion while serving as a networking platform for members.The Investing Support Center (ISC) is a service provided by the Investor Club Association (IC) and supported by the Office of Board of Investment (BOI). Its aim is to assist investors researching investment opportunities in Thailand through a comprehensive one-stop service.

The organization chart of the Board of Investment's Division consists of three key components: the General Administration Bureau, the Investment Selling Bureau, and the International Affairs Bureau. The General Administration Bureau handles various administrative functions such as finance, legal matters, publicity certifications, and asset disposal.

The Investment Selling Bureau plays a crucial role in enhancing Thailand's image and building foreign investors' confidence in the Thai investment government. It takes care of marketing activities including developing promotional campaigns, organizing investment missions, managing client relationships, and identifying potential investors. Furthermore, it provides coordination and support to BOI's overseas offices located in Frankfurt, New York, Paris, Shanghai, Tokyo, Los Angeles, and Osaka.

The primary responsibility of the International Affairs Bureau is Thailand's engagement with international organizations. It negotiates and implements both multilateral and bilateral agreements on trade and investment which include investment protection as well as double taxation agreements.The bureau collaborates with foreign governments, international organizations, foreign embassies, and chambers of commerce to promote foreign investment in Thailand and Thai

investment abroad. It actively participates in discussions regarding regional cooperation agreements like APEC, UNCTAD, ESCAP, ASEAN, GMS, IMT-GT (Indonesia Malaysia Thailand – Growth Triangle), etc. Additionally, it monitors and analyzes foreign investment tendencies and conducts the annual Foreign Investor Confidence Survey to assess investor sentiment towards the Thai government's investment policies and the overall state of the economy.

The Investing Development Assistance Bureau (IDAB) aids investors by fostering the development of farm outing webs through its subordinate agency called BOI’s Unit for Industrial Linkage Development (BUILD). IDAB also manages the ASEAN Supporting Industrial Database (ASID) and its website www.asidnet.org to facilitate sourcing not only in Thailand but also throughout ASEAN. Furthermore, it promotes regional industrial development by providing investors with information on suitable investment locations. IDAB coordinates and supports BOI’s regional offices located in Songkhla (Haadyai), Chiang Mai, Surat Thani, Chonburi (Laem Chabang), Nakhon Ratchasima, Ubon Ratchathani, and Phitsanulok.The main role of the Investment Services Center is to assist investors interested in establishing businesses in Thailand by providing information about investment opportunities, potential joint venture partners, and developing advertising materials and press releases. The Management Information Systems Bureau (MIS) of the BOI manages the organization's computer systems, creating and maintaining a database to support marketing and operations. The MIS also implements e-Government policies for electronic data transmission. The Investment Strategy and Policy Bureau conducts research to identify investment opportunities, promotes technology transfer, monitors economic indicators, collects investment statistics, prepares activity reports, handles budgeting, and evaluates existing policies and procedures. Additionally, it coordinates with other Thai government bureaus such as the Customs Department and Revenue Department to solve problems and remove obstacles to investment.The One-Stop Service Center

for Visas and Work Permits manages the issuance of long-term visas and work permits to foreign employees of BOI-promoted companies in three hours or less. It also oversees a research library for investors and manages content for the BOI's Home Page. There are four Investment Promotion Bureau located at World Wide Web.boi.travel, each responsible for different industries. The first bureau focuses on Agro-Industry and Light Industries, while the second bureau handles Metallic elements, Metallic element Products, Machinery, and Transport Equipment. The third bureau focuses on Electronics and Electrical Industries, and the fourth bureau covers Chemical, Paper, Plastic, Services, and Public Utilities industries. These bureaus handle all aspects of projects within their respective industries including project assessment, review of machinery and raw materials for tax exemption, as well as project monitoring. Investors find it convenient to communicate with the BOI through a single division that also collects and analyzes information about their industries to distribute it to interested investors. The Committee of the Board of Investment is chaired by Mr. Kittirat Na-Ranong who is also the Deputy Prime Minister and Finance Minister while Mr. Pongsawat Sawatdiwat serves as Vice President of the committee in his role as Industry Minister.
In the past two decades, Thailand has witnessed a remarkable growth of 600% in its international trade. The majority of this growth can be attributed to the increase in manufacturing exports, which accounted for 81% of the country's total exports in 2011. This surge in trade presents lucrative business opportunities for investors.

Thailand has entered into bilateral trade agreements with countries like Japan, Korea, China, India, New Zealand, and Australia. These agreements have prompted the country to enhance its

logistics infrastructure and expertise. However, currently, foreign companies dominate Thailand's logistics industry. Maersk Logistics, K;N, DHL, UPS, Schenker, Panalpina Phoenix International BAX Global Agility UTI are the top 10 cargo forwarders in the country.

Given its strategic location within Asia and its excellent airfreight facilities along with efficient hauling and railroad industries,Thailand is poised to become a major trading hub. With major Asian cities just a five-hour flight away and boasting one of the world's largest international airports (18th), Thailand aims to position itself as ASEAN's air cargo hub . Additionally , Thailand's well-developed value-added industries further contribute to its potential for high growth and attraction for increased foreign investment from companies seeking access to Asia's intricate trade routes.

As soon as Southeast Asia-China corridor is completed , it will lead to an upsurge in trade among these countries.The launch of ASEAN Economic Community (AEC) by 2015 will also result in further expansion of Thailand's trade activity.Thailand's manufacturing prowess in Southeast Asia positions it as a potential distribution center, thanks to new road linkages and an extended highway system. Additionally, the retail and consumer goods sectors are witnessing a growing presence of foreign third-party logistics providers (3PLs). This presents an opportunity for logistics service providers (LSPs) to expand their offerings from express mail services to freight forwarding.

To improve transportation efficiency and reduce overall logistics costs, the Thai government has increased the budget for the State Railway. This will enable the overhaul of Thailand's entire railway network, shifting away from heavy reliance on hauling towards railway transportation for long-distance travel.

As Thailand exports more than it imports, there is a higher demand for shipping containers leaving the country than

those arriving. However, these containers are not manufactured domestically, resulting in Thai exporters having to pay for approximately 1 to 1.5 million empty shipping containers annually at a cost of about US$200 to 300 per container – totaling US$450 million each year. By producing shipping containers within Thailand instead of relying on Malaysia as the current hub for production, significant cost reductions can be achieved.Investing in domestic container production in Thailand has several advantages. Firstly, it helps to reduce the costs associated with shipping empty containers. Additionally, it meets the growing demand for these containers, especially as container transportation routes within Asia and from North America and Europe to Asia are expected to increase over the next decade.

Asia is a key region for container edifice, with 16 of the top 25 largest container ports located there. In comparison, Europe has six and North America has three. This highlights the potential for investing in container production in Thailand.

The Thailand Board of Investment (BOI) actively promotes foreign investment in specific activities and investment zones within Thailand. Investors can enjoy various privileges and benefits granted by the BOI. These include permission for foreign investors to own land and operate under 100% foreign ownership, exemption from work license and visa regulations, exemption of import duty on machinery, corporate income tax freedom for up to eight years, deductions for transportation, electricity, water costs, project infrastructure installation expenses,and exemption of import duty on raw materials used in manufacturing export products for five years.

Foreign technicians, experts, partners or dependents can also work and reside in Thailand thanks to BOI's provisions.

Furthermore,BOT provides special privileges for activities related to agriculture including technological advancements as

well as human resource development involving agricultural products
The text describes the various industrial sectors dedicated to environmental conservation in Thailand, including waste water treatment. These sectors include Mining, Ceramics, and Basic Metals; Light Industry; Metal Products, Machinery, and Transport Equipment; Electronics Industry and Electrical Appliances; Chemicals, Paper, and Plastics; and Software.

The text also outlines the enrollment procedure for BOI Thailand. In the first step, applicants must apply for BOI Thailand promotion privileges and benefits by completing an application form provided by Thai Legal. The completed form along with required documents should be submitted to the Thailand BOI Office. This process typically takes about 4 days. Within 10 days of submission, a business plan needs to be presented to the Thailand BOI during a meeting where staff members will accompany the applicant. If approved, an investment promotion certificate will be issued within 60 days. The promoted company is obligated to comply with the conditions specified in this certificate.

In the second step of the procedure, after receiving notification of approval from BOI Thailand, assistance will be provided in establishing a Thai company. TILA Legal will handle registration tasks such as obtaining TAX ID cards and VAT certificates if necessary. Additionally, all required documentation for opening a corporate bank account will be submitted as needed.
The managers of the company will have to arrange a personal meeting with the bank, which is expected to take around one week. In case any of the signatories for the bank account are foreigners, certain banks may insist on each foreign signer presenting a valid work permit before opening the account. By utilizing our firm's BOI Thailand service, you can

easily and swiftly apply for BOI Thailand benefits. Your company can benefit from exemption from Thai taxation for up to eight years.

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