On April 7, 2008, the Board of Investment of Thailand (Website www.boi.go.th) gave a presentation on opportunities for investment in the biotechnology and alternate energy sectors of the Thai economy.  Honorary Consul General of the Kingdom of Thailand for the Oregon and Washington state areas, Mr. Nicholas Stanley, opened the seminar.  Mr. Stanley noted that Thailand continues to be one of the most enticing locations for investment in the Asia region and that strong intellectual protection, strong rule of law, a free and open society, high quality medical and health care, a supportive government and low costs all were serving to attract new U.S. business investment.  Mr. Stanley noted the recent meetings between the new U.S. Ambassador to Thailand, Mr. Eric Johns and the Prime Minister of Thailand and the U.S. Ambassador’s statement that the U.S. congratulated Thailand on its recent election and the formation of a representative and democratic government.  Ambassador Johns announced his intention to push for resumption of all U.S. – Thai programs.  Later in the week this message was further articulated by U.S. President George Bush in a call with the Prime Minister in which he made the same statements and in a 25-minute talk promised a return to the normal friendly relations which have characterized the 175 year relationship anchored by the U.S.-Thailand Treaty of Amity.


The leader of the delegation, Assistant Secretary General Ajarin Pattanapanchai, followed Consul General Stanley.  Ms. Pattanapanchai who heads U.S. programs for the 42 year-old Board of Investment (BOI) gave a very rich and diverse presentation that demonstrated that Thailand has continued to be looked at by U.S. and other international investors as an advantageous investment location.  Ms. Pattanapanchai noted that project approvals by the BOI had reached 18.7 Billion U.S. dollars last year while Thailand as a country still achieved a respectable GDP growth of 4.6 and kept inflation relatively low at only 2.3 percent.  Inflation, primarily driven by increased petroleum prices is raging in China at over 12 percent and in Vietnam at over 14 percent so Thailand’s ability to achieve good GDP growth while limiting inflation speaks to government economic management.


Ms. Pattanapanchai went on to speak specifically about the Thai government’s initiatives in promoting investment in alternate energy and biotechnology.  There are over 34 ethanol projects with a total capacity of 8.89 million lit./day.  Feedstocks are primarily molasses and cassava.  Additionally 18 bio-diesel projects have been approved with a total capacity of 5.11 million/lit./day.  Primary feedstock is crude palm oil.  Additionally there are 18 biogas projects from wastewater treatment of tapioca & starch plants, palm oil processing plants, animal farms, food processing facilities, etc.  One unique new investment is a diesel oil from biomass facility that is just commencing.    Ms. Pattanapanchai also noted in her presentation that according to a 2006 report by F.P. Licht that Thailand’s feedstock cost for ethanol production was second only to Brazil and that Thailand was narrowing the difference. 

Ms. Pattanapanchai then went on to note Thailand’s advantages as a site for biotechnology.  These advantages include the strong medical infrastructure of Thailand (Thailand is the most successful country in the world in terms of medical tourism), strong opportunities for clinical trials, opportunities for marker assisted selection of plants which supports Thailand’s leading role in agriculture and the strong government incentives Thailand offers for biotechnology. (Click here to download Ms. Ajarin of Thailand Board of Investment's presentation)


Chris Runckel, President of Thailand based Delphi Health Services (www.DelphiHealthServices.com) and also U.S. based President of Runckel & Associates (www.business-in-asia.com), then spoke about what it was like to operate a biotechnology company – in this case – Delphi Health Services in Thailand.  Mr. Runckel noted that Delphi Health Services was currently in its second year of operation.  The company because cash positive after the third quarter of operation and has found success in Thailand.  Mr. Runckel attributed this to strong Thai government support particularly the tax and other incentives offered by the Board of Investment.  Runckel noted that Thailand offered complete infrastructure, good intellectual property protection and rule of law, high quality human resources with very favorable salaries for securing Master’s level and below staff.  Runckel recommended Thailand as a more supportive and lower cost environment for biotechnology and agricultural biological research and development than neighboring countries like Malaysia and Singapore which are much higher in cost and have more Human Resource constraints and as a better location than China or India where increasing costs, intellectual property issues and infrastructure constraints are more of a concern.  (Click here to download Delphi Health Services presentation)

 

- Comparing infrastructure: Thailand & ASEAN
- Comparing with other Asian Countries