Focusing on Thailand's Creative Economy

1. Vol.
31
l
July
2021
THE CREATIVE
ECONOMY
The Global Competitiveness
of Local Creativity

2. Unit: US$ (US$ = 33.00 as of 23 July 2021)
Note: Investment projects with foreign equity participation from more than one country are reported in the figures for both countries. Statistics on net
applicationsareadjustedwheneverapplicationsarereturnedtoapplicantsdue toinsufficientinformation. Formore details, please visitwww.boi.go.th
BOI NET APPLICATION
January – June 2021
FOREIGN INVESTMENT BY TARGET SECTORS
Total Investment
801 Projects
US$ 11,703.03 Million
Total Foreign
Investment
403 Projects
US$ 8,444.18 Million
Petrochemicals
& Chemicals
29 Projects l 801.27 M
Automotive
42 Projects l 392.45 M
Electronics
64 Projects l 1,726.58 M
Biotechnology
3 Projects l 598.33 M
Tourism
6 Projects l 305.12 M
Digital
50 Projects l 8.97 M
Medical
23 Project l 566.21 M
Automation
& Robotics
1 Projects l 0.09 M
Aerospace
2 Projects l 16.36 M
First S-Curve New S-Curve
Agriculture
& Food Processing
35 Projects l 380.06 M
FOREIGN INVESTMENT BY MAJOR ECONOMIES
Taiwan
20Projects
430.12 M
Japan
87Projects
1,296.15 M
SouthKorea
16Projects
352.58 M
China
63Projects
564.09M
Singapore
52Projects
563.03 M
HongKong
32Projects
332.42 M
Malaysia
14Projects
33.87M
India
11Projects
104.99M
THAILAND
Netherlands
30Projects
162.18 M
Germany
13Projects
9.19M
UnitedStates
18 Projects
731.24 M

3. Highlights
Creative Industry to Create Job Opportunities
10
Company Interview
Mastering the Fine Details of Animation
17
Executive Talk
Linking Thailand’s Cultural Heritage
and Modern Industry
15
Industry Focus
Creative Industry fora ResilientEconomy
07
Cover Story
The Global Competitiveness of Local Creativity
04
Thai Economy At A Glance
19
Facts & Figures
13

4. THE GLOBAL
COMPETITIVENESS
OF LOCAL CREATIVITY
TheThaigovernmenthasdefined
the creative economy as an
economic engine which utilizes
the country’s rich and diverse
intellectual capital to create
artisanal products and services as
well as digital content that appeal
to global audiences, facilitated
by the country’s advanced digital
technology especially rollout of 5G
and passionate young entrepreneurs
and artists who are more attuned
to global art and social trend.
Thailand’s Creative Economy
Agency (CEA), a central body tasked
with promoting engagement between
the public sector and entrepreneurs
and enhancing the competitiveness
of Thailand’s intellectual property
in the global market, has identified
fifteen categories of goods and
services to be classified under
the creative economy, namely
handicrafts, performing arts, fine
arts, films, publishing, broadcasting,
music, design, fashion, architectural
services, advertising, software,
Thai cuisine, traditional medicine
and cultural tourism.
AccordingtotheCEA,Thailand’s
creative industry had a total value
of approximately US$ 44 billion
in 20191, accounting for nearly
one-tenth of the country’s gross
domestic product. Within this
creative industry, cultural tourism
and the food industry generated
the largest economic gains with
each generating an average value
of approximately US$ 8 billion
during the period of 2014-2019,
followed by advertising at US$ 6
billion.
In 2018, the creative industry
employed approximately 830,000
people, equating to around 1.2%
of the total population. As of the
first quarter of 2016, more than of
one-third of the creative economy
workforce, or around 300,000
people, were engaged in the
handicrafts supply chain. With
global attention shifting towards
environmental sustainability,
products such as natural-dyed
clothing,woodencraftsandupcycled
products are expected to draw
rising demand from consumers
worldwide.
Amid the unprecedented environmental challenges presented by global warming and the
heightenedvolatilityinglobaltradeinlightofthedisruptiveforcesofdigitaltechnology,the
Thai government has focused on the creative economy as a key strategy to drive economic
growth.
COVER
STORY
04 Thailand Investment Review 1 https://www.cea.or.th/en/single-statistic/creative-industry-value

5. COVER
STORY
Thailand Investment Review 05
Providing work for around
200,000 people, advertising is
the second largest employer in
Thailand’s creative industry. Music,
performingartsandfineartseach
employed roughly 70,000 people,
while architecture with 68,000
and design with 64,000 also had
significant workforces. Films,
broadcasting and photography
each employed around 50,000
people, followed by software
(40,000,) museums, galleries and
libraries (14,000), and publishing
(13,000).
The Thai government is also
focusingonenhancingcollaboration
between the public sector and
local entrepreneurs, along with
promotingskillsandideasamong
art students to create new products
from local intellectual capital. Under
the plan to promote products from
localtouristsitesandwisdom,the
Thai public sector plans to push
forward premium handicrafts
and local products through the
promotion of product champions,
to create high-value services, and
toencouragestartupsinthecreative
economy.
An Abundance of
Creative Juices
To promote knowledge of the
creative economy at the grassroots
level, the Thai government has
moved forward with its Creative
City project. Under the Ministry of
Commerce’s Intellectual Property
Department, the Creative City
project is aimed at improving the
participation of various sectors in
the community to combine talent,
knowledge and new technologies
to generate jobs and boost local
income from their uniqueness
and identities.
Ten cites have been selected
as prototypes under the project
to date, with one city chosen
from each from the provinces of
Chai Nat, Chiang Rai, Chiang Mai,
Nan, Phetchaburi, Maha Sarakham,
Yala, Lop Buri, Lampang, and
Ang Thong, based on the United
Nations Educational, Scientific and
CulturalOrganization(UNESCO)’s
criteria.
Chai Nat province, located in
the central region, is recognized
for its variety of rice types and
research that develops rice varieties
through selective breeding. In
ChiangRai,Thailand’snorthernmost
province,DoiTunghasbeenselected
as the city for inclusiveness for
the development project that
nurture social and environmental
sustainability.
Chiang Mai is recognized as
a creative city in terms of crafts
and folk art, while Nan is well-
known for cultural heritage in
architecture and traditional way
of life. Located in the central
region, Phetchaburi is regarded
as a creative city for gastronomy.
Maha Sarakham province in the
northeast of Thailand, is selected
asacityoflearningforcommunity
development.
Yala in the south of Thailand
is recognized as a bird city,

6. COVER
STORY
06 Thailand Investment Review
as it hosts the ASEAN Singing
Dove Competition each year.
Meanwhile,LopBuriinthecentral
region is renowned as a city of
renewable energy innovation,
while Lampang in the north has
beenselectedasacreativecityfor
ceramicwares,andAngThongin
the central region is well-known
for art of making traditional and
made-to-order drums.
At the global level, four cities
inThailandhavebeendesignated
by UNESCO as “Creative Cities”.
They include Chiang Mai and
Sukhothai, which have both been
certified as a ‘Creative City of
Crafts and Folk Arts’, while Phuket
has been selected as a ‘Creative
CityofGastronomy’andBangkok
as a ‘Creative City for Design’.
BOI Offers Incentives
to Support the Creative
Economy
TheThailandBoardofInvestment
(BOI) has classified the creative
industry into three main groups
namely creative business, digital
business and tourism business,
offering both tax and non-tax
incentives to promote investment
in a wide range of activities.
Whilethetaxincentivesprovide
exemption of Corporate Income
Tax (CIT) for three, five and eight
years, non-tax incentives aim to
facilitate the establishment of new
businesses, processing of the
required certification, the entry of
international talents and access
to consulting services.
Among the activities eligible
for maximum tax exemption of
eight years are functional fiber,
creative design and business
development service, embedded
software,highvalue-addedsoftware
and incubation centers.
Under the BOI’s merit-based
framework, activities that are not
eligible for tax incentives may
applyforthree-yearCITexemption
if they invest in research and
business development. Activities
in this group include fashion and
clothing, leather shoes or bags,
furniture, and toys.

7. CREATIVE INDUSTRY FOR
A RESILIENT ECONOMY
Thailand Investment Review 07
INDUSTRY
FOCUS
Leveraging the artistic skills and passionate ingenuity of Thai people together with the
country’s cultural heritage, the Thai government expects the creative industry to play a
more prominent role in Thailand’s economic development across industries.
The creative industry is one of the
areas underscored for development
by the Thai government due to its
potential to enhance the country’s
international recognition and
economic value. As digital
technologies continue to facilitate
access to distinctive Thai contents
and products for global audience
from anywhere in the world, the
unique skills, designs and passion
of Thai artists gain greater
recognition at the international
level.
The creative industry is also
championed by the Thai government
as an effective bridge between the
traditional and the contemporary
that will enable the country to
build on its intellectual capital
and cultural heritage through the
application of new technology and
innovations. Creativity is also
considered fundamental to
distinguishing Thai brands in
the global arena and driving the
service sector to increase the
country’s development.
Based on the United Nations
Conference on Trade and
Development’s definition, the Thai
creative industry covers a wide
range of business activities such
as arts and crafts, advertising,
architecture, design, fashion,
film, video, photography, music,
performingarts,publishing,research
& development, software, computer
games, electronic publishing, and
TV/radio.
It has then pushed for their
development by creating a
conducive environment, promoting
a research and business ecosystem,
and increasing opportunities for
new entrepreneurs through the
collaboration of all agencies.
The Creative Economy Agency
(CEA), the agency entrusted with
the promotion of the creative
economy, has identified fifteen
businesses within the creative
industry, in line with the definitions
put forward at the United Nations
Conference on Trade and
Development. Data compiled by
the CEA revealed that those
businesses accounted for nearly
10% of the country’s gross
domestic product and created
jobs for approximately 2% total
population.
The CEA also found that the
creative industry accounted for
4% of Thailand’s exports in 2019,
withatotalvalueofapproximately
US$ 10 billion. These export items
include design products (US$ 6.5
billion),visualarts(US$1.2billion)
and art and crafts (US$ 1 billion).
Digital Content Skills
Attract Global Audience
As the Thai population has grown
more accustomed to digital content
and tools, the skills of Thai digital
content creators and designers
have risen to a level that has
earned recognition from global
animation projects. Thai digital
content creators and designers
have been offered opportunities
to participate in pre-production,
production and post-production
stages of international projects of
the US and Asian countries. At the
same time, animation work by many
homegrown animation companies
have also been acknowledged at
the international level.

8. 08 Thailand Investment Review
A study by the Ministry of
Commerce showed that the key
competitiveness of the local digital
content industry lies in the skills,
discipline and service-mined
attitude of animators, designers
and production teams as well as
therichcreativityandculturalwisdom
that has long made the country
one of the most cost-effective
service providers in Asia.
The digital content industry
is one of the government’s target
industries for promotion. The
government aims to establish
Thailand as a regional hub for both
owners of intellectual property
and service providers under the
outsourced contracts of multinational
companies in the near term.
To support this, the Ministry of
Commerce has implemented
programstoenhancetherecognition
ofThaidigitalcontentmakersand
creators internationally while also
setting up business matching
programs for animation, gaming,
characters and e-learning.
Meanwhile a study by the
Digital Economy Promotion Agency
(DEPA) showed that Thailand’s
digital content industry, including
animation, games and characters,
andbigdata,grewby10%between
2019 and 2020, to reach a value
of US$ 1 billion1. The study also
showed that the digital content
industryisexpectedtoaccelerate
in 2021 as Thai consumers use
online tools more in their daily
routines and entertainment. With
demand increasing both locally
and globally for gaming, e-learning,
and streaming entertainment
content during the COVID-19
pandemic, new opportunities are
constantly being created for Thai
creators and designers.
Thailand’s vibrant digital content
industry is comprised of more
than 100 registered animation
and gaming companies, of which
60% are animation companies
INDUSTRY
FOCUS
and 40% are gaming firms. The
industry is also supported by an
estimated 1,000 freelancers.
Resilient Exports
of Arts and Crafts
Withglobalconsumersincreasing
their spending on artisanal and
eco-friendly products, the Support
Arts and Crafts International Center
of Thailand (SACICT)2 expects
Thailand’s handicraft exports to
rebound in 2021. This outlook
is also in line with the country’s
overallexportprospectsthanksto
the improvement in international
trade.
Overall, in the first quarter
2021, Thailand’s total exports of
handicrafts fell by 8% to US$
2 billion. However, exports of
Thai handicrafts rebounded by
approximately 12% year-on-year
in March to US$ 0.7 billion after
falling by 12% and 20% in January
and February, respectively.
The products with the highest
export value were silver and gold
handicrafts, worth a combined
US$ 0.3 billion, up 11% year-
on-year from March last year.
The export value of handicraft
products was US$ 0.2 billion, up
21.4%, while ceramic products
were worth US$ 16 million,
up 9.48%. The biggest export
market was the US, followed by
Japan,Germany,HongKongand
the UK in descending order.
The development of handicrafts
at the city level and collaboration
between related sectors in those
targeted cities, which is being
promotedbyrelatedagencies,will
play a key role in encouraging the
growth of handicrafts business.
A study by CEA on Chiang Mai’s
handicrafts industry found that
80% of Chiang Mai residents
prefer to buy handicrafts from
physicalvenuessuchascraftand
artmarketsorshops,asopposed
to online channels.
Given the significant
contributions that handicraft
industries make to income and
employmentinlocalcommunities,
the Thai government has ramped
up its support for the handicraft
market. To achieve this, SACICT
will focus on applying new ideas
and techniques to traditional and
1 https://www.bangkokpost.com/business/2159579/bidc-bullish-on-digital-content-big-data
2 Handicraftexportspoisedtorecover(bangkokpost.com)

9. Thailand Investment Review 09
INDUSTRY
FOCUS
cultural products with the aim of
increasing acceptance among the
local consumers, creating a sense
of pride in the national heritage
and contributing to sustainable
development.
The Ministry of Commerce
has mapped out a plan to push
forwardThailandasthe“Art&Craft
Hub of ASEAN” with emphasis on
the country’s attractive ecosystem
for trade and investment in
handicrafts and materials.
The Ministry of Commerce will
also promote standard certification
for Thai handicrafts for export
as well as the adoption of
environmentally-friendly processes
and zero waste practices. To drive
innovations in these areas and
gain global acceptance, SACICT
is working in collaboration with
the Thailand Textile Institute3, the
NationalNanotechnologyCenter4
and Central Laboratory (Thailand)
Co. Ltd.5
Tourism and Creative
Economy under
BCG Focus
Tourism and the creative industry are
included in the Thai government’s
development plan for the Bio-
Circular-Green Economy, with
the aim of developing sustainable
tourism, creating a tourism
destination management system,
conserving the environment and
advancing high-value tourism
such as wellness tourism, culinary
tourism, eco-tourism, cultural
tourism and sports tourism.
Under the BCG Economy
framework, the country plans to
promote tourism to less-visited
cities through the development
of transportation networks and
promotion with digital tools. The
creative industry is expected
to benefit greatly from cultural
tourism.
Thailand also plans to promote
medical & wellness tourism among
those seeking long-stay vacations
in Thailand. The focus will be on
safe and healthy food, convenient
and high-quality accommodation
equipped with communication
infrastructure and health-promotion
activities, and sports and recreational
activities intended to help visitors
experience local communities
and culture.
A study by CEA showed
that the cultural tourism sector
generated approximately 28% of
income from the creative economy,
followedbytheThaifoodindustry
(19%), advertising (15%), fashion
industry (13%) and design (9%) in
2019.
3 https://www.thaitextile.org/th/home
4 https://www.nanotec.or.th/en
5 https://www.centrallabthai.com/index.php/en

10. 10 Thailand Investment Review
HIGHLIGHTS
CREATIVE INDUSTRY
TO CREATE JOB
OPPORTUNITIES
The migration of large sections of the Thai workforce out of Bangkok to the country’s
provincesduringtheCOVID-19pandemichashighlightedtheimportanceofthedevelopment
of Thailand’s creative industry based on collaboration between various sectors in the local
community.
According to a Bank of Thailand’s study1, approximately
1.5 million people, or 1.5% of the total workforce,
migrated from the previous location of their workplace
in 2020, an increase of 660,000 people from 2019.
Bangkok is the city from which the largest number
of workersmigrated,atapproximately130,000people,
followed by Chonburi with approximately 56,000,
Chiang Mai with approximately 50,000, Phuket with
approximately 43,000 and Rayong with approximately
41,000. These provinces are key locations where
workers typically migrate and key destinations for
tourists.
The Bank of Thailand study found that the
provinces which received the highest volumes of
migrant workers were Bangkok with approximately
84,000, followed by Pathum Thani, Chiang Mai,
Nakhon Ratchasima and Nakorn Srithammarat.
This trend is clearly a result of the business
lockdown and other impacts from the pandemic
which has hit the workforce in the service sector hard,
such as those employed in hotels and restaurants,
forcing people to migrate back to their hometowns
where the cost of living is lower and they can often
findworkintheagriculturalsector.Overall,Bangkok
ranked first in terms of people moving in and out last
year.
These findings are in line with another survey
which focused on the occupations of the migrant
workforce. This second study revealed that the
sectorsinwhichthelargestvolumesoftheworkforce
migrated were the middle- to low-income groups.
The 280,000 migrant workers in the service sector
and 180,000 in “basic jobs” accounted for 44%
of the total migrant workforce. From the income
aspect,thesectionoftheworkforcewithanaverage
daily wage of between US$9.4 and 16 accounted
for 60% of the migratnt workforce.
The study quoted the International Labour
Organization as saying that those who returned to
their home cities were mostly aged between 15 and
24 years old. Workers in this age group represented
the largest single group, estimated to be 320,000

11. Thailand Investment Review 11
HIGHLIGHTS
individuals, representing 31% of the total migrant
workforce.
According to the 2019 Human Achievement
Index,theaveragescoreforThailand’sprovinceswas
0.6219outof1.Therelativelyhighscore,especiallyin
housing and environmental development, suggests
significant potential. Nonthaburi, Bangkok, Pathum
Thani, Phuket and Rayong were the provinces
which achieved the most progress compared to the
previousindex,whileNarathiwat,Pattani,MaeHong
Son,SurinandBuriramrecordedtheleastprogress.
Strong communities with rich resources in terms of
water, land, and forest were considered best able
to support their residents who, in turn, would then
strengthen the food security and local economy.
These local communities have opportunities
to strengthen and reinvent themselves in the new
normal era. The COVID-relief funds offered by the
government can be used to create short-term jobs
and implement long-term development projects.
Local communities could work together and
channel their efforts to produce high value-added
agricultural products, develop new local tourist
sites, promote their cultural heritage, and capitalize
ontheirlocalwisdomaswellasinvestinginstrategic
areas of importance such as food quality standards
and local infrastructure.
Over the past ten years, many cities have been
developed as creative city prototypes. For example,
Chainat province has developed its rice seed
industry; Chiang Mai has focused on handicrafts;
Khon Kaen has developed itself to be an intelligent
city and the best source for silk products.

12. 12 Thailand Investment Review
Local development is part of national efforts
to reduce social inequality, meet the challenges of
the ageing society, and manage the expansion of
urban areas. The capacity-building aims for these
communities are to help them to be able to stand
on their own feet and to achieve development
sustainability.
The close cooperation between businesses,
communities, and the public sector will help local
communities across the country to overcome
the challenges they are facing in the present and
to come out stronger, more independent and
better equipped to create a sustainable future for
themselves.
HIGHLIGHTS

13. Thailand Investment Review 13
FACTS
&
FIGURES
BOI’s Investment Incentives
for the Creative Industry
3-year
CIT
Exemption
8-year
CIT
Exemption
Recycled Fabric
Gems and Jewelry
Functional Yarn and Functional Fabric
Dyeing
Digital printing
Movie and Related Businesses
1
5-year
CIT
Exemption
3-year
CIT
Exemption
2 Clothing And Fashion
Shoes, Bags and Leather or Artificial
Leather Products
Furniture
Toys
4
Functional Fiber
Creative Design and Business
Development Services
3
Creative Business:
(if invest in research, design or
business development)

14. FACTS
&
FIGURES
14 Thailand Investment Review
5-year
CIT
Exemption
Non-Tax
Incentives
Enterprise Software
and Digital Content
Digital Technology Services
Maker Space and
Fabrication Laboratory
Embedded Software
High-Valued Software
Incubation Centers
1
8-year
CIT
Exemption
2
Co-Working Space
E-Commerce
3
Digital Business:
5-year
CIT
Exemption
Conditional
Incentives
Tourism Ferries and Boats
Cultural Centers
Exhibition and Meeting Halls
Tourist Attractions
1 Non-Tax Incentives for Hotels
3-Year CIT Exemption for Hotels
in Less-Visited Cities
2
Tourism Business:

15. Thailand Investment Review 15
LINKING THAILAND’S
CULTURAL HERITAGE
AND MODERN
INDUSTRY
Asidefromconsidering
thebenefitsofthecreative
economyintermsof
thegrossdomestic
product,itisworthnoting
thatthecreativeeconomy
hasalsoplayedanimportant
roleinlinkingthecountry’s
“capital culture”, which
showcases Thailand’s
identity,culturalheritage
andresourcesandincludes
bothtangibleandintangible
iconicassets,withmodern
industry.
Siriorn Hrimpranee
CEA’s deputy director
Showcasingthe greatartisanship ofThaiartistsandenterprises,
the intricacy and versatility of Thailand’s cultural heritage
and craftmanship in areas such as fashion, food and fine
arts have long intrigued the international community. With
cross-borderissuessuchasglobalwarmingandtheCovid-19
pandemicforcingtheworldcommunitytofacemajorchallenges
that require individuals to adapt their lifestyles and businesses
to change how they are run, Thailand’s creative economy
has come to the fore as businesses leverage the country’s
unique cultural capital to differentiate themselves on the global
stageandstrengthenthecountrysustainabilityframework.
The Creative Economy Agency
(CEA) commenced operations in
2018 as a central agency tasked
with enhancing coordination among
various sectors to develop the
enabling factors for the creative
economy, promote a conducive
atmosphere for creativity, and
foster entrepreneurs to develop
innovations. Siriorn Hrimpranee,
a CEA’s deputy director, talked
about the actions taken by the
Thai government to promote the
creative economy.
Q: What roles will
the creative economy
play in Thailand’s
economic development?
A: Theroleofthecreativeeconomy
can be assessed from more than
one dimension. In the traditional
sense, we can measure economic
gains from a diverse range of
activities identified under the
creative industry which are included
in the gross domestic product.
The CEA’s database found that
thecreativeindustriescontributed
1.4 trillion baht of the country’s
EXECUTIVE
TALK

16. 16 Thailand Investment Review
EXECUTIVE
TALK
gross domestic product, or 8%,
employingaworkforceof900,000
and comprising 380,000 small and
medium-sized enterprises, but that
is how the economic gains from
the creative industries are assessed
in a vertical way. In a modern
economy, economic development
should not be measured by the sum
totals achieved by adding the
outputs from each industry together,
but rather the benefits from each
sectorwillinterplaywitheachother.
Aside from considering the
benefits of the creative economy
in terms of the gross domestic
product, it is worth noting that the
creative economy has also played
an important role in linking the
country’s “capital culture”, which
showcases Thailand’s identity,
cultural heritage and resources
and includes both tangible and
intangible iconic assets, with
modern industry. The term “modern
economy” has been identified in
many dimensions. For Thailand, it
is illustrated as 10 S-curve industries,
such as automation & robotics,
digital, automotive, and modern
medicine. The CEA considers the
creative industry as the springboard
from which these industries can
achieve differentiation from their
competitors.
It is clear that design thinking,
which is central to the creative
economy, will become an essential
component of the global modern
economy.Forexample,theemergence
of non-fungible tokens (NFTs), as
a new digital asset among artists,
will become a new platform for
the creative economy as it switches
from physical to online platforms.
Q: What strategies is
Thailand applying to
develop the creative
economy?
A: The CEA has been entrusted
by the government to create an
environment that is conducive
to the creative economy and
fosters entrepreneurs. The creative
economy is also a part of the
government’s Bio-Circular-Green
Economy (BCG) which aims to
promotesustainabilityandequityalong
with the economic development.
The government has also
pushed the creative industry forward
through a committee shared by
the prime minister, which shows
that the creative industry is high on
Thailand’s national agenda. This
has been highlighted through the
promotion of creative tourism, the
BCG Economy and the country’s
overall promotion of investment
overseen by the BOI.
Q: What targets has
the CEA set for its
operations?
A: Wearefocusingonstrengthening
the ecosystem for the creative
industry through many approaches.
Firstly, we have targeted the
development of creative talents,
to leverage their creativity for the
benefitofbusinessandlife.Secondly,
wefacilitateentrepreneurs’abilityto
increase their income from their
creative businesses. Thirdly, we
are developing creative districts to
serve as an important showcase
for the creativity and creative
businesses in the cities. It can
be seen that many countries are
focusing on decentralizing their
resources and city development
strategy, for example, by empowering
them to come up with their own
projects to promote businesses
or tourism.
The CEA has set targets at
two levels. At the first level, which
is the operational level, the
CEA focuses on maximizing the
efficiency of the budget in providing
public services. For example, we
aim to reach 300,000 people
accessing our facilities and services.
As for our resource centers, which
are physical facilities in Bangkok,
Chiang Rai and Kon Kaen, we have
created a linkage between these
centers and 42 academic institutes
country wide. Basically, we enable
these academic institute to access
our resources.
At the second level, we have
a target of providing services to
at least 6,000 SMEs or entrepreneurs
and freelancers each year to
build their capacity with training
courses and booth camps. We
expect that by the end of these
activities, our target is that their
earningshouldincreasebyatleast
26% from their original income
based on sales, profits, branding
and consumer acceptance.
At the third level, which is
the creative district, we target
successfully designating two creative
cities,namelyNanandChiangRai,
from two provinces in the northern
region of Thailand, under the
UNESCOCreativeCitiesNetwork
(UCCN). Our past success in
this area includes our work in
nominating Bangkok as a Creative
City of Design by UNESCO. We
expect to successfully push more
cities forward to receive UNESCO’s
certification in the future, which
requiresadatabaseandanempirical
study among other criteria. We
haveformedanetworktotransfer
the experience and knowhow of
how we successfully nominate a
city for UCCN certification.
We have targeted having 30
cities in this network as our next
step in helping to develop cities
across the country. Under the
same framework of UCCN, we plan
to empower people, entrepreneurs
and cities to develop themselves
and leverage their strengths to
grow businesses. This strategy
will help the cities to develop
‘from within’.

17. Thailand Investment Review 17
COMPANY
INTERVIEW
MASTERING
THE FINE DETAILS
OFANIMATION
Asthepopularityofanimationand
computer graphics has grown as
a business tool and choice for
entertainment driven by cutting-
edge digital facilities and ease of
access to digital content, more
Thai animators have drawn on
their creativity and developed
their skills in the promising digital
content industry.
Thailand has a large pool of
productive animators and artists
who receive solid support from
the public sector to develop the
country’s digital content industry
to the global level. With Thai
youth today being more familiar
with digital content in many
forms, be it cartoon animations,
e-learning, online gaming or AR
and VR, Thailand has become
the most promising place for
investment and production in the
digital content industry.
To produce computer graphics work,
a fundamental requirement is to
understand the culture and sensitivity of
each of the customers. In this respect,
Japan and Thailand have fostered a good
relationship with one another over a long
time. Throughout this period, the people
from both countries have experience in
sharing and exchanging our cultures and
details. This has enabled us to manage
our businesses smoothly in Thailand from
the very beginning of the company’s
operations.
Mr. Hiroshi Ogawa
President of Kyoraku Pictures (Thailand)

18. 18 Thailand Investment Review
with one another over a long time.
Throughout this period, the people
from both countries have experience
in sharing and exchanging our
culturesanddetails.Thishasenabled
us to manage our businesses
smoothly in Thailand from the
very beginning of the company’s
operations.
What are your thoughts
on the development
of Thailand’s digital
content industry?
The most important thing is the
increase in the number of faculties
that offer education in 3DCG in
localuniversities.Fromourmeetings
with lecturers and students in these
universities, the passion and
determination that we have seen
in these students represent a
promising outlook for Thailand’s
CG industry.
Fast-growing technology and
effective innovation for the creation
ofdigitalcontentandeasieraccess
to 3DCG information, tools and
programs on the internet platform
have all reduced the limits of how
we create our work.
In Thailand, the arrival of
streaming technology has become
an alternative channel for local
creators to present their animation
to meet the demand from broader
groups of audiences and customers.
We believe that this process will
lead to far-reaching development
of digital content animation.
HowhastheBOIsupported
Kyoraku Pictures
(Thailand)’s operations?
Primarily we received promotional
incentives in the form of corporate
income tax exemption. This helps
distinguish Thailand’s digital content
industries from other countries.
On top of that, the BOI’s One-
Start-One-Stop Investment Center
is greatly beneficial to us whenever
we need to bring in foreign
specialized experts to work in
Thailand.
Kyoraku Pictures, a Japan-
basedproducerofentertainment,
video contents and Pachislot
Machines and an affiliate of
Kyoraku Industries, founded
Kyoraku Pictures (Thailand) in
2013 under the company’s plan
to expand its operations into
visual effects. Having received
investment incentives from the
BOI, Kyoraku Pictures (Thailand)
aimstoproducemoreanimations
from its Thai team for distribution
in the global market.
Mr. Hiroshi Ogawa, president
of Kyoraku Pictures (Thailand),
talkedaboutthecompany’splans
in Thailand.
What is Kyoraku Pictures
(Thailand)’s business
and what targets do you
hope to achieve in
Thailand?
Our studio’s core business is
comprehensive 3D computer
graphics(3DCG)servicesstarting
from modelling to composite work
for our customers in Japan. The
company focuses on offering
internships to students in Thai
universities all through the year so
that they have first-hand and real
experience in computer graphics
work. At end of the internship,
some of them have applied to
our company and been recruited
to be our designers and full-time
employees. We have a policy
of continuing to enhance our
relationships with local universities
and offer more internships in the
future.
What advantages does
Thailand offer Kyoraku
Pictures (Thailand)?
To produce computer graphics
work, a fundamental requirement
is to understand the culture and
sensitivity of each of the customers.
In this respect, Japan and Thailand
have fostered a good relationship
COMPANY
INTERVIEW

19. THAI ECONOMY At A Glance
Key Economic Figures
GDP (2020*)
US$ 506.4 Billion
GDP per Capita (2020*)
US$ 7,328.2 / Year
Dec 2020*
Unemployment
1.5%
Average 2020*
Headline Inflation
-0.85%
Note: *Estimated value l Source: NESDC
(Data as of March 2021)
Note: *Estimated value
Source: NESDC
Source:NationalStatisticalOffice,
MinistryofCommerce Source:MinistryofLabour
MinimumWage
THB313-336
US$Approximate
US$9.98-10.71
Market Profile
(2019)
Population
66.56
Million
GDP Growth
-6.1%
2020 2021*f
2.5-3.5%
Investment Growth
-4.8%
2020 2021*f
5.7%
Export Value of Goods Growth
-6.6%
2020 2021*f
5.8%
THB 33.00 THB 45.80 THB 39.17 THB 30.27
(100 Yen)
THB 5.16
Source: Bank of Thailand
Exchange Rates
(As of 23 July 2021)
Tax Rate
Corporate Income Tax: 0 - 20%
Personal Income Tax: 5 - 35%
VAT: 7%
Witholding Tax: 1 - 15%
Source: the Revenue Department
(As of May 2021)
15.02%
13.82%
9.49%
5.06%
4.44%
4.29%
4.23%
3.11%
3.06%
2.89%
Share
19,873.77
18,289.22
12,565.02
6,698.42
5,875.91
5,671.60
5,598.49
4,119.51
4,051.66
3,830.93
Value
(US$ million)
Top 10 Export Markets (January-June 2021)
Rank
United States
China
Japan
Vietnam
Malaysia
Hong Kong
Australia
Indonesia
Singapore
India
Export Figures
Export value (USD million)
Jan - Dec 2019 : 246,268.8
Jan - Dec 2020 : 231,468.4
Jan - June 2021 : 132,334.65
Source: Ministry of Commerce
Top 10 Exports
Goods / Products
11.26%
7.92%
5.75%
4.04%
3.44%
3.40%
3.08%
2.94%
2.86%
2.75%
Share
14,900.20
10,486.92
7,603.94
5,343.94
4,553.99
4,496.50
4,074.93
3,896.38
3,778.99
3,640.51
Value
(US$ million)
6. Jewelry Products
7. IntegratedCircuits
8. Machinery andParts
9. RefinedFuel
10. AirConditionersandParts
1. VehiclesandParts
2. ComputersandParts
3. Rubber Products
4. PlasticPellets
5. ChemicalProducts
Source: World Economic Forum
Source: Ministry of Commerce
Source: IMD
Source: World Bank
Global Competitiveness
2018:38th 2019:40th
Ease of Doing Business
2019:27th 2020:21st
World Digital Competitiveness
2019:40th 2020:39th
International
Competitiveness
Thailand Investment Review 19

20. BOI OVERSEAS OFFICES
Los Angeles
Thailand Board of Investment,
Los Angeles Office
Royal Thai Consulate-General,
611NorthLarchmontBoulevard,
3rdFloor
Los Angeles CA 90004, USA
Tel: +1 323 960-1199
Fax: +1 323 960-1190
E-mail : boila@boi.go.th
New York
Thailand Board of Investment,
New York Office
7 World Trade Center
250 Greenwich Street, Suite 34F
New York, NY 10007, USA
Tel: +1 212 422 9009
Fax: +1 212 422 9119
E-mail: nyc@boi.go.th
Stockholm
Thailand Board of Investment,
Stockholm Office
Stureplan 4C, 4th Floor
114 35 Stockholm, Sweden
Tel: +46 8 463 1158, +46 8 463 1174
Fax: +46 8 463 1160
stockholm@boi.go.th
Frankfurt
Thailand Board of Investment,
Frankfurt Office
Investment Section,
RoyalThaiConsulate-General
Bethmannstr.58,5.0G 60311
Frankfurt am Main
Federal Republic of Germany
Tel: +49 (069) 92 91 230
Fax: +49 (069) 92 91 2320
Email: fra@boi.go.th
Paris
Thailand Board of Investment,
Paris Office
8 Rue Greuze 75116 Paris, France
Tel: 33(0)1 56 90 26 00-01
Fax: 33(0) 1 56 90 26 02
E-mail: par@boi.go.th
Mumbai
Thailand Board of Investment,
Mumbai Office
Royal Thai Consulate-General
12th Floor, Express Towers,
Barrister Rajni Patel Marg, Nariman Point
Mumbai 400021, India
Tel: +91-22-2204-1589
+91-22-2204-1590
Fax: +91-22-2282-1525
Email: mumbai@boi.go.th
Osaka
Thailand Board of Investment,
Osaka Office
Royal Thai Consulate-General
Bangkok Bank Building, 7th Floor
1-9-16 Kyutaro-Machi, Chuo-ku
Osaka 541-0056, Japan
Tel: (81-6) 6271-1395
Fax: (81-6) 6271-1394
E-mail: osaka@boi.go.th
Tokyo
Thailand Board of Investment,
Tokyo Office
8th Floor, Fukuda Building West,
2-11-3 Akasaka, Minato-ku,
Tokyo 107-0052 Japan
Tel: +81 3 3582 1806
Fax: 81 3 3589 5176
E-Mail: tyo@boi.go.th
Seoul
Thailand Board of Investment,
Seoul Office
#1804,18th floor,KoryoDaeyeongakCenter,
97 Toegye-ro, Jung-gu, Seoul, 100-706,
Republic of Korea
Tel: (+82)2 319 9998
Fax: (+82)2 319 9997
E-mail: seoul@boi.go.th
Taipei
Thailand Board of Investment,
Taipei Office
Taipei World Trade Center Room:3E40
No.5 Xinyi Rd., Sec.5, Taipei110
Taiwan R.O.C.
Tel: (886)-2-2345-6663
FAX: (886) 2-2345-9223
E-mail: taipei@boi.go.th
Guangzhou
ThailandBoardofInvestment,
GuangzhouOffice
RoyalThaiConsulate-General
No.36YouheRoad,HaizhuDistrict,
Guangzhou510310P.R.China
Tel: +86-20-8385-8988ext.220-225,
+86-20-8387-7770 (Direct Line)
Fax: +86-20-8387-2700
E-mail:guangzhou@boi.go.th
Shanghai
ThailandBoardofInvestment,
ShanghaiOffice
RoyalThaiConsulate General,No.18,
WanshanRoad, ChangningDistrict,
Shanghai 200336,P.R.China
Tel: +86-21-5260-9876,
+86-21-5260-9877
Fax: +86-21-5260-9873
Email:shanghai@boi.go.th
Beijing
Thailand Board of Investment,
Beijing Office
No.21Guanghua Road,
ChaoyangDistrict,Beijing,
P.R. China 100600
Tel: +86 10 85318755-57,
+86 10 85318753
Fax: +86 10 85318758
E-mail: beijing@boi.go.th
Sydney
Thailand Board of Investment,
Sydney Office
Suite101,Level1,234 George Street,
Sydney, NSW 2000, Australia
Tel: +61 2 9252 4884
E-mail: sydney@boi.go.th
Jakarta
Thailand Board of Investment,
Jakarta Office
Royal Thai Embassy,
Jl. DR Ide Anak Agung Gde Agung
Kav. E3.3No.3(Lot8.8),
KawasanMega Kuningan,
Jakarta 12950, Indonesia
Email: jkt@boi.go.th
Hanoi
Thailand Board of Investment,
Hanoi Office
26 Phan Boi Chau Str., Hoan Kiem,
Hanoi, Vietnam
Tel: (84) 24 3823 5092-4
Email: hanoi@boi.go.th
ABOUT BOI
TheOfficeoftheBoardofInvestment(BOI)istheprinciplegovermentagency
thatoperatesunder the Prime Minister’s Office for the purpose of encouraging
investment in Thailand. WeattheBOIserve as the professional contact points
for investors, providing them with useful investment information and services.
We offer business support and investment incentive to foreign investors in
Thailand, including tax and non-tax incentives. A few non-tax incentives include
granting land ownership to foreigners and facilitating visas and work permits.
Besides serving the needs of overseas investors, we also offer consultation
servicestoThaiinvestorswhoareinterestedininvestmentopportunitiesabroad.
Jakarta
Beijing
Shanghai
Seoul
Tokyo
Osaka
Taipei
Guangzhou
Hanoi
Head Office, Office Of The Board Of Investment
555Vibhavadi-RangsitRoad.,Chatuchak,Bangkok10900,Thailand
Tel: (+66) 2553 8111 Fax: (+66) 2553 8315 Email: head@boi.go.th
www.boi.go.th