The American Chamber of Commerce in Thailand (AmCham) strongly urges you to examine the opportunities the Kingdom of Thailand offers as a market, a manufacturing bas and a center to support and serve your customers in the Asia Pacific Region.

Thailand, with the assistance of the IMF and World Bank, is on a path of economic reform and recovery which will improve its competitive position in the Global Trading Community.

A number of structural and procedural changes are under way, which will make it even easier for American companies to invest and operate in a nation long known for its pro-American political and business posture.

In particular, the following positive initiatives are noteworthy:

• Legal reforms which facilitate the handling of commercial proceedings, including bankruptcies, are being considered by parliament.
• Privatization of state enterprises to reduce market distortions and cost of doing business is underway — foreign participation is encouraged.
• Ways to further relax land ownership restrictions are being considered.
• Foreign ownership restrictions in respect of finance companies, banks, and brokerage houses have been lifted.
• Customs reforms designed to reduce the potential for corruption and ease the movement of goods in and out of the country are now in place.
• The list of incentives offered by the Board of Investment (BOI) has expanded and the 30% export requirement to qualify for import duty exemptions removed.
• Efforts to simplify visa and work permit procedures are underway.
• Amendments to the Alien Business Law (ABL) are actively supported by the Prime Minister’s Office.

These improvements serve to accentuate a pro-business and investment sentiment manifest by the policies and actions of various Thai Governments over the last 15 years. Moreover, they accelerate a process of deregulation, begun over 10 years ago, designed to invite greater foreign participation in Thailand’s economy. And they accentuate a business environment which already has the following positive features:

• Treaty of Amity and Commerce granting American owned companies national treatment.
• Investments approved by the Board of Investment (BOI) given tax holidays, up to 100% foreign ownership, import duty exemptions, and the right to own land.
• The distribution of products and services, whether direct or indirect, isn’t subject for unusual or onerous impediments.
• Foreign Brands and products are favored by Thai consumers and businesses.
• Income and profit tax rates comparable to those of other emerging markets.
• A growing middle class, with increased purchasing power, forms the backbone of a large domestic market.
• Import duties are declining in line with Thailand’s commitments to regional and international trade organizations.
• Non-tariff barriers are non-existent.
  

Thai workers are young, willing to learn and less prone to violent union activities than those of other Asian nations.