Explore Thailand's business landscape: from the Eastern Economic Corridor to Smart Visa, 5G, and e-commerce, Thailand offers vast opportunities for foreign investors

On July 15, 2021, at 11 am GMT+3, the Worldwide Business Alliance of Russian-speaking Women hosted an online discussion over morning coffee on topical issues of international partnership

The Eastern Economic Corridor [EEC] is a cornerstone of Thailand's "Thailand 4.0" development strategy. Focused initially on Rayong, Chonburi, and Chachoengsao provinces, the EEC aims to revitalize the Eastern Seaboard, offering a proven path for successful investment and business growth over the past 30 years

Thailand's GDP contracted by 6.1% in 2020 — the worst since the 7.6% decline during the 1998 Asian Financial Crisis. For 2021, SCB EIC projects a 2.2% growth. On June 24, 2021, the Bank of Thailand revised the growth forecast to 1.8%

Thailand’s Board of Investment [BOI] operates under the Office of the Prime Minister to attract and facilitate investment. BOI provides:

• Investment incentives [tax and non-tax]
• Business support services for investors
• Coordination with government agencies
• Guidance on establishing operations in Thailand

BOI Investment Incentives

Tax incentives

• Corporate income tax [CIT] exemption
• 50% CIT reduction after exemption period
• Investment Tax Allowance [ITA]
• Exemption from import duties on machinery and raw materials for export/R&D purposes

Non-tax incentives

• 100% foreign ownership
• Land ownership rights
• Work permit and visa facilitation for top management and experts
• No restrictions on foreign currency

Special Incentive Schemes

• Standard: Activity-based [8 years CIT exemption], Technology-based [10 years CIT exemption]
• Merit-based: R&D support, academic collaboration, advanced technology training, development of local suppliers, product and packaging design
• Area-based: EEC [3 provinces], SEZ [10 provinces], southern border provinces, industrial estates, science & technology parks
• Agenda-based: Measures to stimulate investment, enhance productivity, and support grassroots economy

Smart Visa is a new type of visa specially designed to attract highly skilled manpower, investors, executives, and startups entrepreneurs wishing to work or invest in the following targeted industries in the Kingdom of Thailand. Smart Visa holders will be granted a maximum of 4-year permission to stay, exemption from the work permit requirement, and entitled to additional privileges

The following categories of Smart Visa will be allocated to Smart Visa applicants, depending on the purpose or activity that foreigners wish to conduct in the Kingdom of Thailand

• Smart T [Talent] is a highly qualified specialists in the target industries
• Smart E [Executive] is a senior executives in technology-based companies in the targeted industries
• Smart I [Investor] is an investors in the technology-based business in the targeted industries
• Smart S [Startup] is a technology-based startup entrepreneurs in the targeted industries
• Smart O [Other] is referring to the legal dependents, spouse,s and children of the main Smart Visa holders to live and work in Thailand equivalent to Smart Visa holders

The most popular SMART Visa privileges ranking

• Permission to work without a permit
• Exemption from 4:1 employment ratio
• Maximum 4 years Visa to be collected in Thailand
• The 90-day report becomes a 1-year report
• Fast track service at international airports

StartupThailand is a government-supported platform for startups, overseen by the National Startup Committee, promoting innovative businesses and unicorn development in the Kingdom

The Joint Foreign Chambers of Commerce in Thailand represents 34 chambers and over 9,000 companies, supporting foreign businesses with networking and strategic collaboration

A smart city is an urban area that uses different types of electronic methods and sensors to collect data. Smart City Thailand include:

• Smart Environment: minimizing environmental impacts from urban living
• Smart Economy: using digital technology to create added value to the economy
• Smart Mobility: developing connected and environment-friendly transportation systems
• Smart Energy: enhancing energy management efficiency
• Smart People: facilitating life-long learning opportunities for residents
• Smart Living: maximizing the health, safety, and quality of life of residents
• Smart Governance: improving people’s trust in public services

To date, the Smart-City Development Steering Committee has received proposals for evaluation from 39 cities across the country, out of which ten cities have already been approved in seven provinces, namely Bangkok, Phuket, Kon Kaen, Chiang Mai, Rayong, Chonburi, and Chachoengsao. The DEPA targets achieving 100 smart cities spread across all of the country’s 76 provinces by 2022

• 81.6% of Thais have an account in a financial institution
• 83.6% buy goods online [any devices]
• 9.08 billion dollars the total annual cost of consumer payments with digital technology support
• 361 dollars the average cost of an annual transaction per user

Beginning with Project Inthanon, conducted during 2018- 2020 in collaboration with leading financial institutions, the Bank of Thailand created a proof-of-concept wholesale Central Bank Digital Currency [CBDC] prototype using distributed ledger technology in different use cases, ranging from enabling automated regulatory compliance processes to tackling high fees in cross- border payments. In late 2020, the CBDC work was extended to the corporate level to explore how CBDC can be used for innovative business applications, such as invoice financing and conditional payments

Thailand, which has already made a significant investment in its digital ecosystem, including by taking the lead in ASEAN in building a 5G infrastructure, has long attracted investment from around the world in the electronics sector, with a promotion policy that covers the entire supply chain. Thailand is currently the 13th largest exporter in the world for electronic products and parts

The Thai Securities and Exchange Commission [SEC] announced on Friday the details of the country’s cryptocurrency and initial coin offering [ICO] regulations. The measures were approved at the regulator’s June 2018

The SEC allows seven cryptocurrencies, used for initial coin offerings [ICOs], to be traded as trading pairs. They are bitcoin, ethereum, bitcoin cash, ethereum classic, litecoin, ripple, and stellar

Crypto accounts in Thailand have grown from 160,000 accounts last year [2020] to 700,000 this year [2021]. As of April 26, Thailand has 12 licensed digital asset intermediaries in operation, including four ICO portals. There are currently a total of 697,780 digital trading accounts registered with the local exchanges

Anti-Money Laundering Office [Amlo] announced local digital exchanges must verify their customers' identities through a "dip-chip" machine that requires clients to be physically present. The dip-chip requirement comes into effect in September 2021

Effective on May 9, 2021, the Royal Thai Government Gazette has published the official postponement of the enforcement of the Thailand Personal Data Protection Act B.E. 2562 [2019] [PDPA] to June 1, 2022

Thailand’s PDPA was originally scheduled to come into effect on June 1, 2021. The PDPA is considered the first local law designed to govern data protection in the digital age. It is comparable to the European General Data Protection Regulation [GDPR]. Key aspects of the PDPA include data processing, data collection, data storage, and data consent protocols