A NOTE FROM THE DIRECTOR OF BOI NEW YORK, VORAWAN NORASUCHA

On behalf of the Thailand Board of Investment’s New York based team, I would like to welcome you to the first edition of our 2020 newsletter. 

As we usher in this new decade, I reflect on the industries and issues that dominated global headlines and our collective thoughts.  Technology continues to propel us forward, and the pace of change and innovation continue to amaze, especially those of us who did not grow up with mobile technology. 

Countries like Thailand are embracing this change and the challenge of it, as we take our first steps into the new decade.  Thailand’s commitment to infrastructure is a top government priority, with over USD$45 billion being invested in rail, roads, ports mass transit, and airports.  Developing our infrastructure and connectivity is a strategic priority for Thailand, because it enhances our connections to the ASEAN market of nearly 650 million people and the rest of Asia, giving our existing corporate investors greater market reach.  Improvements in infrastructure, along with our growing number of multilateral trade agreements, will add additional value to companies setting up operations in Thailand.  These are exciting times for the Thai economy.

Our top exports remain Automotive, Integrated Circuits, Computer Devices, Hard-Disk Drives, and Rubber Tires, and our top industry sectors represent a cross section of the Aerospace, Alternative Energy, Electronics, Food, Information Technology, Advanced Machinery, Automotive, and the Life Sciences industry.  Our economy is diversifying, our infrastructure is connecting us to more global markets and Thailand’s prospects for foreign direct investment remain strong. 

I thank you for being part of the Thailand Board of Investment’s network and I look forward working with you over the coming months and years.

Best of wishes,

Vorawan Norasucha
Director, New York
Thailand Board of Investment

Thailand Board of Investment New York Office and East-West Associates, will be holding a series of briefings highlighting real-world experiences from investing in Thailand. East-West Associates will present a case study featuring a commercial laundry equipment manufacturing operation they located to Thailand.

Please join us at one of the following events taking place in the cities listed below.

Thailand: An Emerging Key Player in Today’s Changing Global Economy

Milwaukee, Wisconsin: Tuesday March 24, 2020 (8:00 AM – 10:30 AM)

To register as our guest, please visit: https://news.foley.com/cv/267f3f0467069067240a20eea4a41f5c11c35cd6

Minneapolis, Minnesota: Thursday March 26, 2020 (9:00 AM-10.30 AM)

Thailand Expansion Case Study: A Boots on the Ground Analysis

Alex Bryant, East West Associates

Since 2005, East West Associates (EWA) has been successfully enabling U.S. companies to establish and grow their manufacturing and industrial operations in the ever-changing China and Asia markets.  To say that we’ve seen and experienced a lot, would be a major understatement; together with our clients, we have expanded into new markets and mastered numerous business and cultural challenges.

Recently, my colleagues and I completed a large manufacturing footprint optimization project for a U.S. based global manufacturer of industrial products with operations in the U.S., China, and Europe.  For this project, we recommended and implemented the expansion of manufacturing operations into Thailand to meet the growing demand in the Asia-Pacific markets.

The selection of Thailand was the result of an extensive location strategy development process which included an in-depth, 6 country analysis (Thailand, the Philippines, Malaysia, Indonesia, Vietnam and China) as well as detailed assessment and evaluation of multiple key location decision factors such as government incentives, labor supply, labor costs, inflation rates, availability of raw materials, land costs, utility costs, ease of doing business, the corruption index, domestic market size and transport – selection criteria.

Alex Bryant is the President and Founder of East West Associates.

Following the country selection, we began looking for a 200,000 square foot facility with site requirements of about 400,000 to 500,000 square feet.  Estimated job numbers for the operation were at 200, 150 production staff and 50 management and engineering staff. 

We looked at five sites, selected two, and conducted soil testing and environmental analysis.  From there, we discussed our terms and incentives with a BOI executive, presented the comprehensive plan to the Board, and the plan was approved for implementation. 

From the time we purchased the land in October of 2017, the project moved quickly.  We had all blueprints, construction partners and plans, timelines, and everything in place by November 2017.  Construction began in January of 2018 and was completed in October 2018, one year from the time we were given the green light to move forward on the project. 

Moving the operation to Thailand was a good decision, not only from a financial perspective, but also with regards to productivity and market reach within the targeted consumer markets. The business case for Thailand was strong, but what made the process even more effective was the partnership we had with the Thailand Board of Investment (BOI).

The BOI team worked with us, hip-to-hip to help facilitate all aspects of the project. Their counsel and assistance made a difference to our timeline and the ease in which we were able to enter the market.

Some of the Key Attributes of the Thai Market Include:

• Thailand is one of the world’s fastest growing economies
• There is enormous market reach from Thailand, almost 650 million people in ASEAN
• Thailand has a strong economy
• There are financial benefits
• The Thai Government is investing in infrastructure
• It is easy to do business in Thailand