Transcription
BOI Measures to Support ThaiSupplier Development inthe EV Supply ChainSonklin PloymeeIndustrial Linkage Development DivisionThailand Board of Investment9 June 2020
Introduction to Thailand Board of Investment (BOI)1. Provide comprehensive information and advice on establishingoperations in Thailand2. Coordinate between the foreign business community and otherpublic agencies3. Grant “Tax-based incentives” and “Non-Tax incentives4. Provide Business Support Services for Investors :Sourcing Services, SMEs CompetitivenessDevelopment2
BOI Investment Promotion MeasuresPolicyTax IncentivesNon-tax Incentives100% foreignownershipExemption of import dutieson machineryLand ownershipNo local contentrequirementsExemption of import duties on raw or essentialmaterials imported for exportWork permit & visafacilitationNo exportrequirementsExemption of import duties ongoods imported for R&DNo restriction onforeign currencyCorporate income taxexemption up to 13 years50% CIT reduction within 10 years3
Investment Promotion Campaign Outlines for the EV IndustryElectric Vehicle * HEV, PHEV, BEV Incentives varied bythe electric drivingtechnologyNote: * The deadline for application submission has expiredSource: Thailand Board of InvestmentEV PartsBattery Charging Station Core technology:Battery, TractionMotor, BMS, DCU, etc. Build a strong supplychain of EV parts inthe country Support the infrastructuredevelopment to encourageEV use Increase customer’sconfidence4
Incentives for the Electric VehicleHybrid Electric VehiclePlug-in Electric VehicleBattery Electric VehicleBattery Electric Bus Exemption of importduties on machinery. 50% deduction ofexcise tax rate if theproject alsoproduces battery Exemption of importduties on machinery. CIT Exemption for 36 years 50% deduction ofexcise tax rate ifproduce battery inthe project Import duty exemptionfor CBU for 2 years Import duty exemptionfor machinery CIT exemption for 5-10years 2% of excise tax rate ifproduce battery in theproject Exemption of importduties on machinery. CIT Exemption for 36 yearsHEV, PHEV and BEV production can be counted as production unit of Eco-car project.* The deadline for application submission has expiredSource: Thailand Board of Investment5
Incentives for EV Parts13 Key Parts for EVs Air ConditioningSystem/PartDCDC converterFront / Rear Axle for EV busElectrical Circuit BreakerPortable EV ChargerSmart Charging SystemOn-board Charger Traction MotorBMSDCUInverterEV ConnectorBatteryA2 - 8 years exemption of corporate income taxExemption of import duties on machinery andraw/essential material50% reduction of the corporate income tax for3-5 years if established in targeted areas: EECMajor Auto Parts for General VehiclesActivitiesHigh technology parts (Fuel injection system,Transmission, Control Unit, etc.)Safety and energy saving parts (ABS, EBD, Idling stopsystem, etc.)Rubber tireTransmission system partsAutomobile engines, Fuel system parts, Engine systemparts, Safety partsBrake system parts, Suspension system parts, Steeringsystem parts, Cooling system parts, Exhaust systemparts, Air conditioning system parts, Body parts usingultimate tensile strength steel, Ball bearing for vehiclesCITExemption8 years8 years8 years5 years3-5 years3 years6Source: Thailand Board of Investment
Incentives for Battery Charging Station 5 Years of Corporate Income Tax Exemption Import Duties on Machinery ExemptionPropose EV SmartCharging SystemDevelopment planReceive ISO 180000 asthe standard within 3years after certified forpromotionBuild at least 40 chargers(with at least 25% are quick type)Applicants mustnot get privilegesfrom othergovernment sectorsPropose procurement planfor parts and equipment7Source: Thailand Board of Investment
Latest Status of EV Promotions5 Projects (5 Approved)USD 1,590 millionHEV352,500 units per year6 Projects (6 Approved)USD 361 millionPHEV10 Projects (10 Approved)USD 214 millionBattery510,360 units per yearNote: Exchange Rate 1 USD 31.6782 THB (Bank of Thailand as of 8 June 2020)Source: Thailand Board of Investment87,240 units per year14 Projects (12 Approved)USD 583 millionBEV109,140 units per year2 Projects (2 Approved)USD 36 million4,496 units per yearCharging Station8
BOI Support Measures of Supply Chain DevelopmentCar Makers and SuppliersLinkage Development Measures Online DatabaseSourcing ServicesBusiness MatchingVenders Meet Customers EventsMarket Place CenterCompetitiveness Development SeminarSubcontract Exhibition - SUBCON THAILAND –9
Structure of the Thai Automotive ty47%(23 Car Makers,12 Motorcycle Makers)ThaiPureMajority Thai30%LSEsLarge ScaleEnterprisesTier 1720 Companies23%Local SuppliersTier 2,3SMEsSmall & MediumEnterprises 1,100 Companies10Source: Krungsri Research Thailand Industry Outlook 2019-21, Auto Parts Industry
Most of auto parts used for Thailand’s manufacturing are producedlocallyImport MarketExport DestinationOthers28.1%USA15%Japan35.4%Japan 9%Others56%Germany 6.3%Indonesia 5.5%USA 5.8%Import30-40%Indonesia8%China18.9%Domestic Production60-70%Domestic MarketChina6%Domestic Sales60-65%Malaysia6%Export35-40%Domestic Production11Source: Krungsri Research Thailand Industry Outlook 2019-21, Auto Parts Industry
Upcoming Event – SUBCON Thailand 2020DATE: 23 -26 September 2020TIME: 10.00-18.00 HRSVENUE: BITEC, BANGKOKAREA: 6,000 SQ.M.BUSINESS MATCHING: Expected over 8,000 business pairs, with business transaction over12 Billion BahtSHOWCASE: INNOVATION SHOWCASE FOR NEW S-CURVE INDUSTRIES12
BOI Supports – Business MatchingThe Industrial Linkage Development Division supports both domestic and foreign investors whois seeking parts producer / Business partner / co-investor / R&D cooperation in Thailand.Linkage Development Activity withMajor Vehicle Makers BMWHARLEY DAVIDSONDUCATIToyotaTriumphFordGeneral MotorsHondaPeugeot13
The New Normal of BOI’s Activities During COVID-19 Pandemichttps://build.boi.go.th/EN/sourcing-data14
For MoreInformationThailand (Head Office) :555 Vibhavadi-Rangsit Road.,Chatuchak, Bangkok 10900,Thailand( 66) 2553 8111( 66) 2553 8315head@boi.go.th
Introduction to Thailand Board of Investment (BOI) 1. Provide comprehensive information and advice on establishing operations in Thailand 2. Coordinate between the foreign business community and other public agencies 3. Grant “Tax-based incentives” and “Non-Tax incentives 4. Provide
