Professional Documents
Culture Documents
Why Invest Ink Honk A en
Why Invest Ink Honk A en
Khon Kaen is the second largest of the northeastern provinces of Thailand.The province is the
commerce and political center of Northeastern. Located in the heart of northeast region of Thailand
(Isaan), this community was experiencing one of the fastest growth rates in Thailand until the baht
was devalued in 1997. In the last several years, construction has restarted within the city, including
the widening of Mitaprahp Road on the West side of Khon Kaen (Highway 2 Bangkok-Nong Khai).
The government had endorsed Khon Kaen as the export center for trade into the Indo-China Region,
but politics may play a role in preventing this. Laos and Vietnam have located consulate offices in the
city to process visa applications. The city also hosts the largest university in the North East, Khon
Kaen University.
What is the best time to visit Khon Kaen?
The average temperature in Khon Kaen province ranges between 21.89 to 32.53 degree Celsius
throughout the year and hence a business visit during any time of the year is fine.
Source: http://en.wikipedia.org/wiki/Khon_Kaen_Province
Two main routes could link the whole GMS countries together.
Qualified academic institutions in the province guarantee the quality of educated labors from
unskilled, semi-skilled to skilled labors.
Quality and up-to-date medical service and MICE service are available for everyone.
The huge reservoir, Ubonrat dam, some of the areas in Khon Kaen could generate alternative
energy from natural sources.
The telecommunication system is linked everywhere. The telephone and internet signals are
very good.
The government recognizes the importance of its strategic location.
It launches policies to promote Khon Kaen to become 1 of the ICT town among the three
pilot provinces and the policy to economically restructure in agricultural, industrial, tourism and
service sectors and the arena of trade and investment.
Investment Opportunities
From 2011 2014, Khon Kaen province strategic plan sets its vision to be A safe city which links the
trade, investment, service and transportation in the region with the foreign countries. They plan to
meet the objectives by following these strategic issues;
Strategic issues
1. Agricultural development to
2. Industrial development to
strategic location
hub
export;
export;
tourist activities;
efficiency in transportation;
factories;
ethanol;
f. Increase productivity of
mulberry growing to be the material
for silk;
g. Increase beef cattle production.
Source: Khon Kaen SWOT analysis and Khon Kaen strategy 2011 2014,
Brief information of Khon Kaen province 2010
Opportunities in Tourism
Historically, Khon Kaen is quite a new town, established a little over two centuries ago during the
reign of King Rama I. But prehistorically, this town on the plateau has been home to various cultures
as well as other fascinating creatures, heretofore unknown to the modern world. Artifacts have
proven that millions of years ago the area was occupied by gigantic dinosaurs, several of which were
endemic to the region. People in various cultures later occupied the plateau for thousands of years
until the Ancient Khmer Empire expanded its presence into the area in the 12th century and ruled it
for some time. The ancient cultures, traditions, and historical sites in this area have all
The ancient cultures, traditions, and historical sites in this area have all contributed to shaping the
people and culture of Khon Kaen.
A major source of local wisdom regarding the production of silk is in Amphoe Chonnabot, where
excellent Mudmee Silk is delicately woven by hand using a special tie-dye technique, and Khon Kaen
features both creature comfort, in the form of fine eateries and swanky hotels, and beautiful nature,
including a variety of animal parks and a number of spectacular national parks.
Khon Kaen is the commercial and political center of Northeastern Thailand, featuring a number of
upscale restaurants and hotels, the largest university in the North East, and a busy airport.
In
addition to containing some fascinating historical and archaeological sites, Khon Kaen is also an
excellent place to watch the production of Mudmee Silk or participate in outdoor activities within one
of its several animal reserves or national parks.
Source: www.tourismthailand.org
Macro Economic Indicators
Economic growth of the Khon Kaen province is quite visible through the growth patterns of gross
provincial product and per capita income since last three years as depicted in the graph below.
Gross Provincial Product (GPP) at Current Market Prices by Economic Activities: 2007 2009
Manufacturing
Household Goods
Agriculture, hunting and forestry
Education
Social Security
Mudmee is a unique technique of Isan in creating textile pattern. Silk threads are tied and dyed in
particular patterns, resulting in beautiful textile patterns.
) In most households, weaving a Mudmee cotton and mudmee silk tube skirt is quite a
common business here.
Rice plantation areas are in Muang district, Nongsonghong district, Nong Reau district, Pol
district and Naam Pong district.
Sugar cane for factory are grown in Kra-nuan district, Naam Pong district, Muang district, Kao
suan kwang district, Si Chomphu district and Munjakhiri district.
For cassava, farmers grow them in Kao suan kwang district, Munjakhiri district, Kranuan
district and Baan Pai district.
The new rising star of economic plant in Thailand is rubber which is grown in Kranuan
district, Naam Pong district, Ubonrat district and Si Chomphu district in Khon Kaen.
Major products
Sugar
Sugar
Manufacturing
Leading types of industries of Khon Kaen province are agriculture, metal products, non-metallic,
transport and food. Number of plants/ factories of each industry shown as follow:
Major products
Alcohol
Rice alcohol
Crude alcohol
Alcohol
Khon Kaen
Ethanol
Beer
Paper
Paper pulp
Uncoated paper
Glass containers and non-glass
packaging
111 Highway 208 Khon Kaen Mahasarakarm, Moo 19, Tha Phra sub-district,
Muang district, Khon Kaen
Electricity
Infrastructure Facilities
In the last several years, construction has restarted within the city, including the widening of
Mitaprahp Road on the West side of Khon Kaen (Highway 2 Bangkok-Nong Khai). is quite easy by
bus, air, train, or car. Thai Air has 4 to 5 flights daily to and from Bangkok.
Road system
Road connect to Bangkok and central region by national highway No.2
Road connect to Northern region by national highway No.12
Road connect to Vientiane (Laos) via Udonthani and Nong Khai by national highway No.2
Public bus at Khonkaen city
2 Public bus station (locals bus and inter-province bus).
center
in
the
Major products
Plant Breeding Research Center for
Sustainable Agriculture
Address: 123 Mitraparp Rd., Naimuang
sub-district, Muang district, Khon Kaen,
40002
Contact number:
Tel.: + 66 (0) 43 202 222 ext. 113278, 11365
Fax.: + 66 (0) 43 202 696
Tropical Feed Resources Research and
Development Center
Ruminants
livestock systems.
- The uses of locally available feed resources and their effect on rumen
fermentation.
Contact number:
- Increase the efficient use of locally available feed resources (e.g. cassava,
E-mail.: trofrec@kku.ac.th
- The role of feed resources, including strategic use of high quality materials ,
to improve production of quality animal products.
Non-ruminants
- Investigation into the use of locally available medicinal herb as additives for
non- ruminants (swine, poultry, aquatic).
- Processing of crop by - products for their use as feeds in commercial nonruminant systems.
- Investigation into the role of non-ruminants to utilize crop by - products
within crop livestock farming systems.
- The use of feed resources , including strategic use of high quality materials
, to improve production of quality animal products.
- Monitoring of levels of anti-nutritive factors (especially toxins) in tropical
feed resources.
Forage crops
- Investigation into grass/legume mixes to improve ruminant nutrition.
- Availability of fresh and conservedforages as ruminant feeds during the dry
season.
- Studies on the breeding and selection of appropriate varieties of grasses
and legumes for specific tropical regions.
- Studies on establishment of forage crops in commercial farming systems to
support efficient sustainable ruminant production systems.
Applied Taxonomic Research Center
industries and government for the benefit of the community and the nation
as a whole
Contact number:
Tel.: +66 (0) 43 362 143
Component
Address: Faculty of Engineering, Khon
Kaen University, 123 Mitraparp Rd.,
Naimuang sub-district, Muang district,
Khon Kaen, 40002
Contact number:
Tel.: +66 (0) 43 362 143
Fax: + 66 (0) 43 362 142
Agricultural Machinery and Postharvest
Producing high quality researches and research personnel in the key areas of
biotechnology
Research strategy
Contact number:
63863
Center for Research and Development
of Medical Diagnostic Laboratories
Address: Faculty of Associated Medical
Sciences, Khon Kaen University, 123
Mitraparp Rd., Naimuang sub-district,
Muang district, Khon Kaen, 40002
Contact number:
Tel./ Fax.: +66 (0) 43 202 083
E-mail: supan@kku.ac.th
Center for Research on Plurality in the
123
Contact number:
Natural Resources
Mineral and energy sources in Khon Kaen are:
- Industrial rocks source: Khon Kaen province issued the patent permits for quarry in Si Chomphu
district, Chumpae district and Phu Pa Man district. (Khon Kaen Provincial Industrial Office)
- Natural gas: The gas has been found in Naam Pong district, Kao Suan Kwang district, and
Chonnabot district.
- The Electricity Generating Authority of Thailand produce electricity from the gas from Naam Pong
and Kao Suan Kwang sources.
- Exxon Mobil is the investor in the gas well in Kud Naam Sai sub-district, Naam Pong district.
- Hess (Thailand) Co., Ltd. invests in the Sin Phu Hom gas well in Nong Sang district, Udonthani
province and None Somboon sub-district, Kao Suan Kwang district, Khon Kaen province.
Mineral sources: Potash, especially Carnallite) can be generally found in Khon Kaen province
in Muang district, Baan Fang district and some districts in the southern part of Khon Kaen
province.
Economic Zones
Industrial Estates in Northeastern of Thailand
Regional Investment and Economic Center 3, Khon Kaen is responsible for Green Area
Contact
Address for
177/54 Moo.17 Mitraphap Rd, Muang, Khon Kaen 40000
Industrial
T: 043 271300-2
Estate, BOI
F: 043 271309
and Provincial
E-mail: khonkaen@boi.go.th
Industry
Office
Corporate income tax exemption for eight years provided that projects with capital investment
of 10 million baht or more (excluding the cost of land and working capital) obtain ISO 9000 or
similar international standard certification within two years of its start-up date, otherwise the
corporate income tax will be reduced by one year;
Exemption of import duty on raw or essential materials used in the manufacturing of export
products for five years;
Projects located within industrial estates or promoted industrial zones in 36 provinces including
Krabi, Kamphaeng Phet, Khon Kaen, Chanthaburi, Chai Nat, Chumphon, Chiang Rai, Chiang Mai,
Trang, Trat, Tak, Nakhon Ratchsima, Nakhon Si Thammarat, Nakhon Sawan, Prachuab Khiri Khan,
Prachin Buri, Phangnga, Phattalung, Pichit, Phitsanulok, Phetchaburi, Phetchabun, Mukdahan, Mae
Hong Son, Ranong, LopBuri, Lamphang, Lamphun, Loei, Songkhla, Sa Kaew, Sing Buri, Sukhothai,
Surat Thani, Uttaradit, and Uthai Thani, as well as Laem Chabang Industrial Estate and industrial
estates or promoted industrial zones in Rayong Province(2) are granted the above-mentioned tax
and duty privileges as well as the additional privileges as follows:
Fifty percent reduction of corporate income tax of net profit derived from its investment for
five years after the exemption period.
Double deduction for transportation, electricity and water costs for 10 years from the date of
first revenue derived from promoted activity.
Seventy-five percent import duty reduction of the normal rate on raw or essential materials
used in manufacturing for domestic sales for five years. The Board will give approval for a period of
a year. Similar raw or essential materials to the imports must not be available in the Kingdom in
similar quality and quantity as necessary for the procurement. This incentive is not available to
projects in Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in
Rayong Province.
Tax and Duty
Inside industrial estates/promoted industrial zones+Laem Chabang Industrial Estate and promoted
Privilege
Import duties
Exemption
on machinery
Corporate
8 years
income tax
exemption
50 percent
reduction of
corporate
income tax
Import duty
Exemption
on raw or
essential
materials used
in
manufacturing
of export
products
Deduction of
transportation,
electricity and
water costs
Deduction of
the project
infrastructure
installation
construction
costs
Import duties
75% reduction for 5 years with yearly approval** (excluding Laem Chabang Industrial Estate and
on raw or
essential
materials used
in
manufacturing
products for
domestic scale
*For projects in Laem Chabang Industrial Estates or promoted industrial zones in Rayong Province
application must be submitted by December 31,2014
**Application must be submitted by December 31,2014
lieu of an Export Processing Zone, whereby no export conditions are imposed in accordance with
WTO obligations.
2. The operation of service businesses are allowed in a General Industrial Zone, where service
operators are granted the right to land ownership.
3. Operators in an I-EA-T Free Zone are entitled to additional tax privileges.
4. The administrative process was streamlined to facilitate business operations in an I-EA-T Free
Zone.
5. The process of industrial estate establishment and land allocation was improved to ensure faster
and more convenient implementation.
Enhanced Potential and Opportunity
An investors' potential in operating a business in an industrial estate be it in a General Industrial
Zone or an I-EA-T Free Zone are augmented by a wider spectrum of privileges and facilities that
make each estate an ideal strategic production and service base designed to heighten
competitiveness for both business operators and industrial estate developers.
Investment in General Industrial Zone
Investors in a General Industrial Zone are eligible for following opportunities, options and privileges:
1. Permission to operate service businesses in the General Industrial Zone
I-EA-T provides industrial operators in a General Industrial Zone with comprehensive services
essential for industrial operation such as transportation, warehouses, training centers and clinics
as well as permission to own land required for their operations.
2. Non-Tax privileges for operators in a General Industrial Zone
The right to own land in an industrial estate
The right to bring in foreign skilled workers as well as their spouses or dependents
The right to remit money abroad
Investment in I-EA-T Free Zone
Under the most recent Industrial Estate Authority of Thailand Act, investors in an I-EA-T Free Zone
are entitled to additional tax privileges and other preferences:
1. Privileges
Operators in an I-EA-T Free Zone are afforded the privilege of exporting products without any
restrictions and with the added convenience of being able to bring merchandise or raw materials into
an I-EA-T Free Zone.
Supplies taken into an I-EA-T Free Zone are entitled to improved tax and duty privileges.
Tax burden relief for products taken out of an I-EA-T Free Zone for domestic use or consumption.
Contrary to the previous Act, content or raw material components, if produced domestically, are
entitled to tax and duty exemptions.
Operators in a I-EA-T Free Zone remain entitled to privileges indicated in the previous Industrial
Estate Authority of Thailand Act:
Tax privileges including
import/export tax and duty exemptions; value-added tax (VAT) as well as excise tax on machinery,
equipment, components, raw materials and supplies used for the production of goods and other
merchandise
General privileges consisting of the right to own land, bring in technicians, experts, their family
members and dependents, as well as the ability to remit foreign currency to their home countries
2. Operational preferences
Permission to import into Thailand or bring into an I-EA-T Free Zone, merchandise and raw
materials for production, trade or service offering, without any restriction that importation of such
material is limited to business operators.
Permission, for export goods producers, to bring supplies or raw materials into an I-EA-T Free Zone
for manufacturing, mixing, assembling, packing or any other operations, without requiring any import
permits or particular seals or symbols and with exemptions from standard and quality control
requirements contained in any other laws - except those found in the customs law.
Increased Competitiveness of Industrial Estate Developers
The amended Industrial Estate Authority of Thailand Act was rewritten to increase industrial estate
developer competitiveness, through the following:
The establishment of an I-EA-T Free Zone is now expedited through the issuance of I-EA-T
Announcements instead of Royal Decrees.
The land allocation process is now facilitated by allowing the I-EA-T Governor to grant approval
according to I-EA-T-specified criteria, methods and conditions.
Thailand's Competitive Potential on the Global Arena
The amended Act provides advantages to Thai operators on the global trade stage, through the
following:
Thailand is to earn acceptance and recognition from member nations who also comply with WTO
Financial Service
Bank of Thailand, northeastern branch, is located in Khon kaen province. Moreover, all of the
governments financial institutions have their branches in the province, including:
-
There are also the numbers of private financial institutions provincial wide.
Logistic Providers
Logistics Comp
V Sriprasert Co., Ltd.
Type of service
Goods Transportation
155 Moo 13, Mitrapab Road, Thapra Sub-district, Muang District, Khon Kaen
T.C.S. E-san Transport Co., Ltd.
Goods Transportation
444 Moo 6, Mitrapab Road, Noonsompoon Sub-district, Baan-had SemiDistrict, Khon Kaen Province 40110
RTV Transport Co., Ltd.
Goods Transportation
306-309 Moo 7, Nai Muang Sub-district, Munag District, Khon Kaen Province
40000
Oneway Transportation Co., Ltd.
Transportation
229 Moo 4, Baan Had Sub-district, Semi-district, Khon Kaen Province 40110
King Logistic Co., Ltd.
Agricultural Transportation
596 Moo 16 Maliwan Road, Baan Ped, Muang District, Khon Kaen 40000
Cho Thavee Khon Kaen (1993) Co., Ltd.
Truck Seller
265 Moo 4, Krang Muang Road, Mung Kao Sub-district, Muang District, Khon
Kaen 40000
Kosit Transportation Co., Ltd.
Goods Transportation
Goods Transportation
1 Moo 1, Waeng Nai Sub-district, Waeng Nai District, Khon Kaen 40230
S K Kiecharoen Transportation Co., Ltd.
95 Moo 1, Chuan Chuen, Nai Muang Sub-district, Muang District, Khon Kaen
Goods Transportation
40000
Dowmahachok Transportation Co., Ltd.
Goods Transportation
299/2-3 Hao nadee Road, Muang Kao Sub-district, Muang District, Khon Kaen
40000
Chrapsiri Transportation 2 Co., Ltd.
Goods Transportation
Goods Transportation
Transportation
Transportation
343 Moo 12, Baan Thum Sub-district, Muang District, Khon Kaen 40000
Tang Lieng Ki Co., Ltd.
Goods Transportation
Goods Transportation
Goods Transportation
253 Moo 11, Lieng Muang Road, Muang Kao Sub-district, Muang District,
Khon Kaen 40000
Kittiwat Transportation Co., Ltd.
Goods Transportation
Goods Transportation
16 Moo 21, Baan Ped Sub-district, Muang District, Khon Kaen 40000
Sing Thai (1992) Co., Ltd.
205/74, Klang Muang Road, Nai Muang Sub-district, Muang District, Khon
Kaen 40000
Goods Transportation
Business Associations
Association
Khon Kaen Chamber of Commerce
Activity
- Support trade, service, industry,agriculture, finance or general economics
Address:
trade and economy institutions, product museum, trade fairs and arbitration;-
province
Contact number:
Address:
province
Contact number:
Tel.: + 66 (0) 43 227 832
Fax.: + 66 (0) 43 227 833