By Pongpen Sutharoj
To encourage the emergence of the biotechnology business in Thailand,
the National Science and Technology Development Agency (NSTDA) and the
Thailand Centre of Excellence for Life Science (Tcels) are working with the
Board of Investment to promote investment in the biotechnology area.
As Thailand has a strong biotechnology base, especially in food,
biodiversity and healthcare, it could become a hub for
biotechnology-business development in the region, said NSTDA's president
Sakarindr Bhumiratana.

"There is much more biotechnology-related research work being done
within the country and we believe this research could turn into real
business," he said.

To help establish a biotechnology industry, NSTDA together with Tcels,
a government organisation overseeing the development and investment in life
sciences, has collaborated with the BoI to promote investment in this field
by designing privileges for those interested in biotechnology investment in
Thailand.

The collaboration finally came up with a new investment-promotion
programme launched by BoI last year for biotechnology businesses.

Satit Charnjavanakul, the BoI secretary-general, said the board
offered privileges for biotechnology businesses through an eight-year tax
exemption, while investors would also pay zero tariffs when they imported
machinery into Thailand.

Under BoI conditions, businesses which are in NSTDA's Thailand Science
Park will also get additional privileges with a 50-per-cent reduction of
net-profit tax for five years after the eight-year tax exemption expires.

Satit added that the BoI had also determined four key areas of
biotechnology which would get investment promotion privileges. They are seed
production or plant and animal breed improvement businesses;
bio-pharmaceutical business; medical diagnostic kits, agriculture, food and
environment businesses; and biomolecule and bio-active compound production
businesses.

"The privileges will encourage investors to use Thailand as a base for
biotechnology research and development. We also hope to persuade foreign
investors to establish businesses here while encouraging them to join with
local companies to develop biotechnology businesses together," he said.

The BoI has already approved investment privileges for a business to
produce lactic acid for use as a raw material to produce synthetic
components and plastics, a business to produce sugar-free substances and a
scientific testing service business, for example.

With efforts to promote biotechnology investment in Thailand,
Sakarindr added that there were now around 40 biotechnology-related
companies emerging in the country. It's also hoped to encourage the
emergence of around 100 to 200 biotechnology-related companies in the next
three years. As a channel to promote the biotechnology business, Tcels's CEO
Thongchai Thavichachart said the centre planned to set up a new
venture-capital fund to make joint investments in potential biotechnology
businesses.

"The fund will act like a venture capitalist to look for potential
businesses and investment. This will assist new start-ups in the field to
continue their business," he said. Tcels is in the process of drafting a
plan to send to the government for approval. It's expected that the fund
will initially receive seed money from the government and collaborate with
other sources of funds to operate the fund.


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