What Is Board of Investment? Essay
What Is Board of Investment?
Thailand Board of Investment (BOI) is an agency of the Government of Thailand to promote investment in that country. It provides investment information and services for investors, as well as many incentives. And it is operated under the Ministry of Industry and is the principal government agency for encouraging investment. The BOI is available to assist you in numerous ways, including:
Enhancing Competitiveness and Investment Facilitation
• Offers an attractive and competitive package of tax incentives. • Imposes no foreign equity restrictions on manufacturing activities or on some service. • Provide assistance in the provision of visas and work permits to facilitate entry and subsequent operation for a foreign-owned business. • Waives restrictions on land ownership by foreign entities.
Business Support Services
• Provides comprehensive information and advice on establishing operations in Thailand. • Arranges site visits. • Identifies potential suppliers, subcontractors, joint-venture partners. • Provides useful contacts with key public and private organizations. • Coordinates between the foreign business community and other public agencies The BOI also acts as Thailand’s marketing arm and actively promotes the country worldwide as one of the best investment locations in Asia. The BOI’s 13 overseas offices (Tokyo, Osaka, Shanghai, Beijing, Guangzhou, Seoul, Taipei, Sydney, Frankfurt, Paris, Stockholm, Los Angeles and New York) serve as Thailand’s front desks in liaising with potential investors.
• Assistance in Setting Up a Business
• Information on Investment Opportunities
• BUILD: Industrial Subcontracting
• Foreign Experts
• One Stop Service Center
• ASEAN Supporting Industry Database (ASID)
• Foreign Experts Services Unit
• Investment Matchmaking
• Investor Club Association
Assistance in Setting up a Business
The BOI offers a range of valuable business-related services to the international investment community. The office helps prospective investors and promoted firms in obtaining official permits and documents required for conducting business, including visas, work permits and permanent residency permits. The BOI also assists investors in gaining access to utilities such as water, electricity and telecommunications.
Information on Investment Opportunities
The Investment Services Center and the Regional Investment Promotion Division maintain comprehensive information on investment opportunities in Thailand, both by sector and by region. Information and investment advice is readily available to both Thai and foreign investors at no charge.
BUILD: Industrial Subcontracting
The BOI Unit for Industrial Linkage Development (BUILD) encourages growth in supporting industries in Thailand. BUILD provides information on subcontracting opportunities and offers its support to buyer firms seeking sourcing networks in Thailand. It helps small and medium-sized Thai suppliers achieve standards required to enter into productive subcontracting arrangements.
To help investors from Japan learn about the Board of Investment’s policies, procedures, and opportunities, the International Affairs Division includes a Japanese investment expert.
One Stop Service Center
The BOI coordinated the establishment of a One-Stop Service Center for Visas and Work Permits. The center can process applications or renewals of visas and work permits within three hours, assuming all required documents are provided. In addition, the center handles many other transactions, including changing visa status (to non-immigrant status from tourist or transit), payment of fines, and processing of re-entry stamps, all within three hours or less. In order to have working privilege under Thailand Board of Investment (BOI), foreign experts and skilled workers have to follow the Investment Promotion Act 1977 and there are 2 sections to be considered. Section 24 is the permission to foreign nationals for entry into the Kingdom for the purpose of studying investment opportunities or performing any other act benefiting investment.
The foreign experts and skilled workers will allow to stay in Thailand from 3 to 6 months since the companies where they work or own haven’t receive Investment Promotion Certificate yet. Section 25 is the permission to foreign nationals who are skilled workers, experts, spouses and dependents of foreign experts and skilled workers in such number and for such periods of time. The foreign experts and skilled workers will allow to stay in Thailand from 1 to 2 years since the companies where they work or own have already receive Investment Promotion Certificate. The permission periods either 1 or 2 years will base on the kind of activities which stated in Investment Promotion Certificate of the companies.
ASEAN Supporting Industry Database (ASID)
The BOI developed the ASEAN Supporting Industry Database (ASID) on behalf of ASEAN as part of that organization’s efforts to increase awareness of supporting industries in member countries. ASID serves as a regional “Yellow Pages,” through which businessmen can shop for cost-effective products that meet their company’s needs. They can compare designs and specifications and view catalogues online, thereby enabling them to make informed sourcing decisions. ASID also offers ASEAN manufacturers the opportunity to be marketed not only within the region, but throughout the world, as ASID is online, enabling potential customers to access their information around-the-clock.
Foreign Experts Services Unit
To facilitate the process of bringing in foreign experts, either to conduct feasibility studies or who are skilled experts or technicians, the BOI has created a unit to expedite the paperwork involved. The Foreign Expert Services Unit works with companies and experts to certify the expertise of the foreign experts and technicians, and advises applicants about documents required by the One-Stop Service Center for Visas and Work Permits.
The BOI provides investment matchmaking services to both Thai and Foreign investors seeking cooperation in the areas of technology, management and marketing. In additions, the BOI offers a matchmaking service for investors in regional areas looking for joint-venture partners from Bangkok and abroad, as well as for firms that want to invest in provincial areas.
Investor Club Association
The Investor Club Association is a private membership organization within the BOI, serving the interests and needs of Thailand’s investment community. Providing the most up-to-date information on Thailand’s investment environment and rules and procedures concerning investment promotion, the Investor Club Association distributes information and serves as a networking organization for its members.
Investment Support Center (ISC) is one of many services provided by Investor Club Association (IC) which is fully supported by Office of Board of Investment (BOI). Its objective is to assist all investors who are exploring investment opportunity in Thailand through the concept of one stop service.
Functions of the division of the Board of Investment
General Administration Bureau
The General Administration Bureau handles general administration, including finance, issuance of promotion certificates, personnel administration, legal, etc.
Investment Marketing Bureau
The Investment Marketing Bureau serves as the public relations and advertising arm of the Board of Investment in order to enhance both Thailand’s image and foreign investors’ confidence in the Thai investment regime. Its responsibilities involve all aspects of marketing, including development of promotional campaigns, investment missions, customer relationship management, and identification of potential investors. It also coordinates and supports BOI’s overseas offices in Frankfurt, New York, Paris, Shanghai, Tokyo, Los Angeles and Osaka
International Affairs Bureau
The International Affairs Bureau is involved with various aspects of Thailand’s relationships with international organizations. First, it is responsible for negotiation and implementation of both multilateral and bilateral agreements on trade and investment, such as investment protection, treaties on elimination of double taxation, countervailing duty, etc. Second, it coordinates with foreign governments, international organizations, foreign embassies, and chambers of commerce to promote not only foreign investment in Thailand, but also Thailand overseas investment. Third, it participates in discussions pertaining to regional cooperation agreements, such as APEC, UNCTAD, ESCAP, ASEAN, GMS, IMT-GT (Indonesia Malaysia Thailand – Growth Triangle),etc. Fourth, it monitors, studies, and analyzes foreign investment trends and conducts the annual Foreign Investor Confidence Survey, which identifies how investors feel about the Thai investment regime and the overall state of the economy.
Investment Development Assistance Bureau
The Investment Development Assistance Bureau is in charge of providing assistance to investors. First, it fosters development of subcontracting networks through its subsidiary, the BOI’s Unit for Industrial Linkage Development (BUILD). It also manages the ASEAN Supporting Industrial Database (ASID) and its website www.asidnet.org to enhance sourcing not only in Thailand, but also throughout ASEAN. Second, it promotes regional industrial development by providing investors with information on investment locations. It also coordinates and supports BOI’s regional offices in Songkhla (Haadyai), Chiang Mai, Surat Thani, Chonburi (Laem Chabang), Nakhon Ratchasima, Ubon Ratchathani and Phitsanulok. Third, it helps investors solve problems that arise and helps to remove impediments to investment by coordinating with other Thai government agencies, such as the Customs Department, Revenue Department, etc. Fourth,it supports SMEs and community enterprises by identifying business opportunities that will receive marketing support.
Management Information Systems Bureau
The Management Information Systems Bureau (MIS) is responsible for managing BOI’s computer systems, both hardware and software. It provides a database to support the BOI’s marketing and operations and implements e-Government policy to facilitate electronic transmission of data between BOI and investors.
Investment Strategy and Policy Bureau
The Investment Strategy and Policy Bureau develop investment promotion plans and policies. First, it conducts research to identify promising investment opportunities in Thailand and promotes technology transfer. Second, it tracks economic indicators, collects investment statistics, and prepares monthly, quarterly, and annual BOI activity reports. Third, the division handles all budgeting for the organization. Fourth, it evaluates existing policy and procedures to determine how successful they have been in achieving government objectives.
Investment Services Center
The main function of the Investment Services Center is to assist investors who would like to establish their business in Thailand, by providing information about investment opportunities, prospective joint venture partners, development of advertising material and press releases. It also looks after the One-Stop Service Center for Visas and Work Permits, which provides long-term visas and work permits to foreign employees of BOI-promoted companies in 3 hours or less. In addition, it manages a research library for investors and manages the content for the BOI’s Home Page, which is located at www.boi.go.th.
Investment Promotion Bureau
There are 4 Investment Promotion Bureau.
1. Investment Promotion Bureau 1 (Agro-Industry and Light Industries) 2. Investment Promotion Bureau 2 (Metals, Metal Products, Machinery and Transport Equipment) 3. Investment Promotion Bureau 3 (Electronics and Electrical Industries) 4. Investment Promotion Bureau 4 (Chemical, Paper, Plastic, Services and Public Utilities) These Investment Promotion Bureaus take care of all aspects concerning projects in the industries under their responsibility, including project appraisal, review of machinery and raw materials submitted for tax exemption, and project monitoring. Investors find this process quite convenient, as all communication with the BOI can be conducted with only one division. These divisions also are responsible for collecting and analyzing information about industries under their responsibility, and distributing it to interested investors.
Committee the Board of Investment
Mr. Kittirat Na-Ranong (Deputy Prime Minister and Finance Minister) as Chairman Mr.Pongsawat Sawatdiwat (Industry Minister) as Vice chairman
Over the past 20 years, overall international trade with Thailand has grown 600%. Manufacturing exports in particular have increased to where they accounted for 81% of the country’s total exports in 2011. Such growth, aided in part by the nation’s bilateral trade agreements with Japan, Korea, China, India, New Zealand and Australia, has led Thailand to upgrade its logistics infrastructure and expertise. Currently, the logistics industry in Thailand is dominated by foreign companies. Its top 10 freight forwarders are Maersk Logistics, K&N, DHL, UPS, Schenker, Panalpina, Phoenix International, BAX Global, Agility, and UTI. [pic]
Thailand is geographically positioned to become one of Asia’s major trading hubs. This is particularly true for the airfreight, trucking and railway industries. Situated within a 5 hour flight from Asia’s major cities, Thailand has recently aspired to become ASEAN’s air cargo hub after opening the 18th largest international airport in the world. Combining this with Thailand’s well-developed, value-added industries, the country could potentially continue to enjoy its high growth and face an influx in foreign investment from those companies seeking to be a part of Asia’s increasingly complex trade routes. After the completion of the corridor that will link Southeast Asia with China, Thailand will witness heavy trade flows among these countries. Thailand’s trade activity will expand even further when the 10 member countries of ASEAN launch the ASEAN Economic Community, or AEC, in 2015 as a seamless market of 600 consumers.
Due to Thailand’s manufacturing prowess in Southeast Asia, Thailand has potential in becoming a distribution center with these new road linkages and extensive highway system. Additionally, foreign 3PLs are rapidly increasing their market share in the retail and consumer goods sectors. Seeing this opportunity and vast improvement in infrastructure, many LSPs could begin expanding their scope of business from express mail services to freight forwarding. With the Thai government’s approval to increase its budget, the State Railway can revamp the entire railway network in Thailand. Heavy reliance on trucking will then shift to railway, creating greater efficiency for long distance traveling as well as decreasing the overall logistics costs in Thailand. Additionally, because Thailand is a bigger exporter than importer, it sends out more shipping containers than it receives.
Currently, these containers are not manufactured in Thailand itself, and Thai exporters must pay to have about 1 to 1.5 million empty shipping containers sent to the country every year. At a cost of about US$ 200 to 300 per container, the transport of empty shipping containers costs Thailand US$ 450 million per annum. Costs would be greatly reduced if the shipping containers could be built domestically, rather than in Malaysia, the current shipping container production hub.
Building shipping containers in Thailand presents a good investment opportunity not only because it promises to erase or at least reduce the costs associated with sending empty containers to their filling points, but also because the demand for these containers continues to grow. Shipping container building also has great promise throughout Asia, as the main shipping container routes expected to grow in the next 10 years are those within Asia and those from North America and Europe to Asia. Moreover, of the 25 largest container ports in the world, 16 are in Asia, and only six are in Europe and three in North America.
Thailand Board of Investment encourages foreigners to invest in specific activities and investment zones, and there are many Thailand BOI privileges for those who have investments in Thailand. The following are privileges granted to those who invest in Thailand:
BOI Thailand Benefits:
– Permission for foreign investors to own land
– Permission to operate under 100% foreign ownership
– Exemption from work permit and visa rules
– Exemption of import duty on machinery
– Corporate income tax exemption for up to 8 years
– Deduction of Transportation, Electricity and Water Costs
– Deduction of Project’s Infrastructure Installation
– Exemption of import duty on raw or essential materials used in the manufacturing of export products for 5 years
– Permission for foreign technicians, experts and their spouse or dependents to work and stay in Thailand
The following are some promoted activities which BOI Thailand offers special privileges:
– Agriculture & Agricultural Products
– Projects with direct involvement in technological and human resource development
– Industrial zones for environmental preservation, Waste water treatment
– Mining, Ceramics & Basic Metals
– Light Industry
– Metal Products, Machinery & Transport Equipment
– Electronics Industry & Electrical Appliances
– Chemicals, Paper & Plastics
BOI Thailand registration process:
Thailand BOI Certificate
Apply to obtain BOI Thailand promotion privileges and benefits Thai Legal will prepare an application form for the promotion certificate, then fill out and send to the Thailand BOI Office together with other documents required by Thailand BOI. This process will take approximately 4 days. Within 10 days, you will have to make a presentation to the Thailand BOI in regards to your business plan. Our staff will accompany you to the meeting with the Thailand BOI. Once the application has been approved, you will receive an investment promotion certificate within 60 days. The promoted company must follow the conditions laid out in the Certificate.
2nd step: Thailand Company Registration
When you get a notification of approval, we will then assist you to set up a Thai company. After registration is complete, TILA Legal will register the company’s TAX ID card and VAT certificate, then submit them to the Central Filing Office of the Revenue Department. If needed, we will prepare required documents to open a corporate bank account. The company directors will have to present themselves to the bank. This step will take approximately 1 week. If any signatories for the bank account are foreigners, some bank will require each of the foreign signatories to submit a valid work permit prior to opening the account. With our firm’s BOI Thailand service, the application for BOI Thailand privileges is fast and easy. Your company can be free from Thai tax for up to 8 years.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 4 November 2016
Let us write you a custom essay sample on What Is Board of Investment?
for only $16.38 $13.9/page