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As published in the Business Handbook for Royal Thai Embassies and Consulates-General 2000, by the Ministry of Foreign Affairs, Kingdom of Thailand. View the original document in PDF format Ministry of Foreign Affairs Business Handbook Section 6 Government institutions and policies relating to business Section profile This section includes the roles and responsibilities of the various government organisations that affect business development in Thailand. In addition, the various government policies and laws relating to investment and development of the country as a whole are overviewed. In addition, the increasing importance of public-private co-operation is examined. Section contents 6.1 Brief overview of the responsibilities of major government institutions 2 6.2 National Economic and Social Development Board 7 6.2.1 Eighth National Plan (1997-2001) summary 8 6.3 Ministry of Foreign Affairs 12 6.4 Board of Investment 13 6.5 Ministry of Industry, including Department Industrial Promotion 15 6.6 Ministry of Agriculture and Co-operatives 18 6.7 Ministry of Finance, including the Department of Customs 21 6.8 Bank of Thailand 24 6.9 Ministry of Commerce, including the Department of Commercial Registration, Department of Export Promotion, Department of Foreign Trade and Department of Intellectual Property 26 6.10 Ministry of Science, Technology, and Environment including the Department of Science Service 30 6.11 National Science and Technology Development Agency 31 6.12 Ministry of University Affairs 33 6.13 Ministry of Education 34 6.14 Ministry of Public Health, including Food and Drug Administration 34 6.15 One-Stop Service Centre 36 6.16 Department of Immigration 36 6.17 EXIM Bank 37 6.18 Joint Public-Private Sector Consultative Committee (JPPCC) 37 6.19 Policy statement of the Council of Ministers of Prime Minister Chuan Leekpai delivered to Parliament Thursday, 20 November 1997 52 6.20 Thai Government Websites 68 Appendix 6.1 Matrix of activities and policy responsibilities 71 Section 6: Government institutions and policies relating to business Page 1 Ministry of Foreign Affairs Business Handbook 6.1 Brief overview of the responsibilities of major government institutions Ministry of Foreign Affairs (MFA) · Responsible for foreign policy on issues of international diplomacy and economic relations. · Provides information on trade and investment opportunities abroad to local companies and provides information on Thailand to foreign investors and traders. · Assists Thai firms investing and trading abroad by providing information on the enforcement of international agreements and new trade regulations. · Represents Thai companies in trade and other international disputes. Board of Investment (BOI) · Grants a wide range of fiscal and non-fiscal incentives and guarantees to investment projects that meet national economic development goals. · Offers comprehensive business-related services to investors and potential investors ranging from assistance in obtaining required licences and permits, to the identification of promising investment projects and joint venture partners. · Provides a wide variety of publications and information including a home page on the Internet. · Provides support to both foreign and Thai businesses that are either planning to invest, or have already committed to invest in Thailand. · Assists Thai firms investing overseas, especially in Indochina and ASEAN countries. Ministry of Industry (MOI) · Issues industrial policies, plans, and industrial development projects. · Monitors and inspects industrial factories nation-wide. · Administers and manages the supply of key mineral resources. · Promotes productivity upgrading for existing industries. · Encourages the decentralisation of small and medium-scale industries to the regions. · Issues industrial products standards and certifies product quality by issuing trademarks and managing product registration. · Involved in the development of industrial estates throughout the country. Department of Fisheries, under the Ministry of Agriculture and Co-operatives · Performs according to the laws concerning fisheries, reservation and protection of wild animals, promotion and maintaining the national environment, hazardous materials and other related laws. · Studies, researches and experiments on fisheries. · Surveys, analyses and research on fishery sites in international waters and co-operates on fishery with other countries. · Promotes and develops the fishery industry. Royal Forest Department, under the Ministry of Agriculture and Co-operatives · Performs according to the law concerning reservation and protection of wild animals, forest, national reserved forest, national parks and other related laws. · Promotes and develops natural resource conservation and environment revival in forests. · Studies, researches, experiments and develops technology on forests, wild animals and other related issues. · Other tasks assigned or according to the law. Section 6: Government institutions and policies relating to business Page 2 Ministry of Foreign Affairs Business Handbook Department of Agriculture, under the Ministry of Agriculture and Co-operatives · Studies, researches, experiments and develops technologies relating to plants, silk and agricultural machinery. · Provides analysis and inspection services and advice on soil, water, fertiliser, plants and other related issues. · Disseminates research results relating to agriculture to government officers. · Other tasks assigned or according to the law. Co-operative Promotion Department, under the Ministry of Agriculture and Co-operatives · Performs according to the law concerning co-operatives, land allocation (only on co- operative estates) and other related laws. · Promotes and disseminates information on co-operatives. · Other tasks assigned or according to the law. Agricultural Land Reform Office, under the Ministry of Agriculture and Co-operatives · Performs tasks relating to the distribution of private agricultural land, and the management of farmers on public land. · Provides land development assistance of reformed land areas through the development of infrastructure and farmers' productivity. Office of Agriculture Economics, under the Ministry of Agriculture and Co-operatives · Analyses agricultural policy and agriculture and co-operative development plans for the consideration of the Committee for Agriculture and Co-operative Development on plans and policy. · Studies and analyses agricultural production plans, plantation and livestock cultivation sites according to the weather, environment, water resources, types of agriculture and market demand to propose to the Committee for specifying economic agricultural zones. · Studies and analyses marketing, transportation, market development, prices and demand of agricultural products. · Studies and analyses agricultural resources, resource utilisation, production economics and efficient plantation and cultivation systems. · Collects all agricultural statistics including production, the agricultural economic situation, income, expenditure, debt status, market status and other related information necessary to analyse agricultural policy and agriculture and co-operative development plans, prepare and publicise documents on agricultural economics statistics. · Analyses and assesses investment in agricultural projects, monitors and assesses the progress of projects and implementation plans of units under the Ministry of Agricultural and Co-operatives and proposes and suggests ways to solve urgent problems or obstacles to the Committee. · Analyses economic development, including agricultural economics necessary for agriculture and co-operative development planning. · Prepares an agricultural business directory by agricultural sector. · Co-ordinates in the development of agricultural policy and agriculture and co- operative development plans with other government agencies, state enterprises and the National Economic and Social Development Board. · Other tasks according to the law. The Royal Irrigation Department, under the Ministry of Agriculture and Co-operatives · Provides water to be kept, controlled and distributed for agriculture, energy, utility and industry. · Prevents damages from water and water transport within irrigation areas. Section 6: Government institutions and policies relating to business Page 3 Ministry of Foreign Affairs Business Handbook Department of Co-operatives Auditing, under the Ministry of Agriculture and Co-operatives · The main agent for providing auditing, advice and accounting system development services to co-operatives and farmers' groups so that the systems are transparent and efficient. · Provides and disseminates information relating to financial and accounting to co- operatives and farmers' groups. · Provides technical assistance and training relating to financial and accounting systems to farmers. Department of Livestock Development, under the Ministry of Agriculture and Co-operatives · Performs according to the law concerning animal epidemics, control and treatment of animal epidemics, animal breeding, feed quality control, animal hospitals, rabies and other related laws. · Produces or procures supplies to prevent and eradicate animal disease and produces or procures semen for artificial insemination. · Improves and increases animal breeds, animal health, disease treatment and meat processing. · Promotes the cultivation of economic livestock. · Controls the quality of meat and meat products. · Other tasks assigned or according to the law. Land Development Department, under the Ministry of Agriculture and Co-operatives · Studies, surveys, analyses and researches soil and land for policy and planning development of land utilisation and land development. · Provides analysis, inspection and advice services relating to soil, water, plants, fertiliser and other issues relating to land development. · Disseminates research results and provides land development services to related government agencies and farmers. · Other tasks assigned or according to the law. Department of Agricultural Extension, under the Ministry of Agriculture and Co-operatives · Develops, promotes and transfers technology on plantation and agricultural business to farmers. · Promotes and supports farmers for the exchange and dissemination of information. · Other tasks assigned or according to the law. Ministry of Finance (MOF) · Collects taxes and manages government revenues. · Manages public finances and international aid. · Sets fiscal policy and drafts the government's annual budget. · Monitors financial institutions and capital markets in tandem with the Bank of Thailand. · Allocates government budget funds. · Monitors state enterprises. Department of Customs, under the Ministry of Finance · Collects customs. · Controls and monitors imports and exports to conform to regulations. · Collects import and export taxes on behalf of other government agencies (such as VAT and excise taxes). · Prevents and suppresses smuggling, avoidance of customs payment and any actions against customs regulations. · Develops tax measures to promote exports. Section 6: Government institutions and policies relating to business Page 4 Ministry of Foreign Affairs Business Handbook · Suggests and develops policies and tax measures to be in line with the economic situation. · Prepares and disseminates import and export statistics. Department of Internal Revenue, under the Ministry of Finance · Collects tax according to the Revenue Code as follows: ! Personal income tax ! Corporate income tax ! Value-added tax ! Specific business tax ! Stamp duty. · Collects tax according to other laws ! Petroleum tax · Bird nest duty ! Other revenue tax. · Studies and proposes to the Ministry of Finance improvements of tax collection. · Other tasks according to the law. Bank of Thailand · Formulates monetary policy to maintain monetary stability · Supervises financial institutions to ensure that they are secure and supportive of economic development · Acts as banker to the Government and recommend economic policy to the government · Acts as banker to financial institutions · Manages the international reserves · Prints and issues bank notes Ministry of Commerce · Negotiates international trade agreements for both bilateral and multinational co- operation to solve problems and maintain trading benefits. · Inspects, monitors, and provides services on trading registration, accounting, measuring, and fuel trading according to the law. · Issues regulations and promotion plans for major export and import products and identifies standards for exported products. · Promotes trading and marketing domestically and internationally. · Promotes the protection of intellectual property rights. · Collects, processes, and distributes commercial and statistical information as the central information base on commercial activity for public and private agencies. · Co-ordinates export promotion activities, including trade and marketing. · Promotes Thai products overseas, and collects and provides trading information services for Thai producers and exporters and foreign importers. · Promotes insurance development, manages the operation of insurance companies and brokers, and protects the interests of insured persons. Department of Commercial Registration, under the Ministry of Commerce · Provides registration services, and inspection and application services for corporate names. · Processes applications for the establishment of alien businesses, agencies of foreign corporations and offices of overseas companies. · Provides business information: Record searches, certificates of registration, statistical data on commercial registrations, corporate status and financial statements. · Controls business accounting. · Issues licences for certified auditors. Section 6: Government institutions and policies relating to business Page 5 Ministry of Foreign Affairs Business Handbook · Improves accounting and auditing techniques and amendments of laws and regulations. · Organises training in accounting and auditing. · Provides consultation and advice on accounting for auditors and accountants. · Sets international standards for weight, volume and length measuring devices and issues licences to producers. · Inspects and controls measuring devices to ensure compliance with the law. · Issues licences for oil traders, service stations, and operators involved in fuel oil transportation. · Sets standards and inspects fuel oil to ensure that consumers receive good quality oil of the standard required by law. · Prescribes the types and amounts of fuel oil to be reserved for emergencies. · Improves, amends, revises and drafts laws, ministerial regulations, rules, announcements and orders. · Inspects draft copies of agreements and other legal acts. · Takes action against wrongdoers within the scope of its power under the law and files cases to courts. · Answers legal questions raised by concerned agencies. · Provides support to the department's divisions on budgeting, personnel management, project planning, supplies management, public relations and publicity of the department's activities. Department of Export Promotion (DEP), under the Ministry of Commerce · Conducts research and planning for export development and promotion. · Provides trade information. · Promotes international recognition of products made in Thailand. · Proposes guidelines for solving export problems. · Assists foreign buyers who want to trade with Thai manufacturers and exporters. Department of Foreign Trade, under the Ministry of Commerce · Regulates merchandise importation and exportation. · Expands markets and improves trade relations. · Protects trade benefits. · Monitors and verifies merchandise quality and standard for importation and exportation. · Provides services to public. Department of Intellectual Property, under the Ministry of Commerce · Enforces Intellectual Property law and other related law. · Disseminates knowledge and information on intellectual property to public. · Gives advice to the public on trademark, copyrights, patent and other intellectual property related issues. · Registers intellectual property. Ministry of Science, Technology, and Environment (MOSTE) · Supports projects in basic sciences and technology to encourage technology transfer and to upgrade technical skills in the labour force. · Serves as the government's scientific and technological laboratories. · Makes policy, supports project plans, and monitors efforts of various agencies to wisely utilise natural resources and to dispose of industrial and agricultural waste. · Supports educational research projects to develop technology for production and marketing of commercial goods. Section 6: Government institutions and policies relating to business Page 6 Ministry of Foreign Affairs Business Handbook · Collects, compiles and disseminates the results of research projects and international developments related to science, technology, energy and environment. National Science and Technology Development Agency (NSTDA) · Provides financial support to private companies to increase investment in research and development and education (RD&E) for commercial use. · Provides services in industrial consulting, technology transfer at the company level, standards and testing, business and technical information, and quality control to raise domestic industrial standards to an international level. · Assists private companies by identifying opportunities to obtain new technologies from abroad. · Supports private sector technology investment through its Science and Technology Research and Development Park. · Provides technical information and support to high-technology industries through its three national centres: The National Centre for Generic Engineering and Biotechnology (NCGEB), the National Metal and Materials Technology Centre (MTEC), and the National Electronics and Computer Technology Centre (NECTEC). National Economic and Social Development Board (NESDB) · Develops five-year economic and social plans in co-operation with other ministries and agencies to provide guidance and direction to government planning and projects across all sectors. · Monitors progress made on the national five-year economic and social plans. · Provides analysis and statistical forecasts across a multitude of sectors and industries. · Analyses world economic trends for possible effects on Thailand. 6.2 National Economic and Social Development Board (NESDB) Early attempts at Thailand's development planning started in 1950 when the National Economic Council (NEC) was established to undertake economic studies and give advice to the Thai government on general financial and economic matters. The NEC, chaired by the Prime Minister, divided its work into five sectors, namely: agriculture, finance, commerce, industry, and communications. Members of each sector were appointed by the NEC, and served under the NEC's Secretary-General. To remedy shortcomings due to a lack of clear and comprehensive national economic objectives, the Thai government asked the World Bank to send a mission to study the economic situation of the Kingdom in 1957. The mission report, entitled A Public Development Program for Thailand was finished in 1958. Based on this report, the World Bank recommended that the Thai government set up a central planning agency responsible for drawing up economic development plans. Following the World Bank's recommendation, the National Economic Development Board (NEDB) was established in 1959. Its name was changed to the National Economic and Social Development Board (NESDB) in 1972 to emphasise the significant role of social development in the country's development process. NESDB is essentially a central planning agency, mainly responsible for drawing up the National Development Plans, along with undertaking continuous studies on the social and economic situation of the country. The prime duty of the Office of the NESDB is to formulate the National Economic and Social Development Plan. Up to now, NESDB has already put out eight Development Plans; we are now in the period of the Eighth Plan (1997-2001), formulated during 1995-1996. Section 6: Government institutions and policies relating to business Page 7 Ministry of Foreign Affairs Business Handbook Other functions of the NESDB are mostly related to the process of planning: · Survey, study and analyse historical, current, and forecasted data involving economic and social situations at both the macro and the micro level. · Analyse economic and social development projects as proposed by other government agencies and state enterprises to ensure consistency with the Development Plan framework before submission of the projects to the Cabinet for final approval. · Monitor and evaluate approved development projects, at both the macro level and the program/project level, at the mid-point and final stage of each National Economic and Social Development Plan. · Improve communications and the flow of information concerning the Plan in order to disseminate the results to target groups in all occupations to create a common ground of understanding which will lead to co-operation among all parties concerned. Secretariat for Development The NESDB plays a role as the secretariat of various national committees which are chaired by the Prime Minister, including, among others, the Co-ordinating Committee for the Royal Development Projects, the Eastern Seaboard Committee, the Southern Seaboard Committee, and the National Rural Development Committee etc. Provides Information and Forecasts The NESDB conducts numerous studies and surveys to provide background information for the national plans, and to monitor progress made toward development goals and targets. The NESDB reports are a good source of information, especially forecasts of statistical indicators across a broad range of topics. 6.2.1 Eighth National Plan (1997-2001) In March 1996, the Cabinet approved the final draft of the Eighth Plan which is more directly focused on increasing the potential of human resources across the board to improve conditions and alternatives, increasing participation in the sustainable development of the country, strengthening economic capability and efficiency, and identifying guidelines for improving the state's administrative management. Objectives and goals of the Eighth Plan The trend of change in Thailand's society and development will be unsustainable if the focus remains on economic growth without considering problems of a societal nature. In order to improve the vision of development for the five-year period of the Eighth Plan, the following objectives and goals have been laid out: Objectives 1 Increase the people's potential in terms of physical well-being, intellect, health vocational skills, and ability to adapt to changes in the economy, society, and political administration. 2 Develop a stable society, strengthen family and community, support human development, increase quality of life, and increase community participation in national development. 3 Achieve balanced economic growth with greater stability and open up opportunities for people to participate in fostering and receiving a fair share of the benefits of growth. 4 Utilise, preserve, and rehabilitate the natural resources and environment such that they can advance economic and social development and quality of life. Section 6: Government institutions and policies relating to business Page 8 Ministry of Foreign Affairs Business Handbook 5 Reform the administrative system in order to increase the opportunity for non- governmental organisations, the private sector, community, and individuals to participate in national development. Targets To achieve the stated objectives, the following targets will be used as indicators for the achievement and progress toward the main objectives of the Eighth Plan: 1 Increase the efforts and quality of the all round preparation for children up to five years of age. 2 Increase the quality of the education system at all levels, especially the expansion of nine years basic education to every child. Prepare to extend the basic education requirement to 12 years and continuous training for all teachers. 3 Upgrade the skills and knowledge of workers in factories, giving the first priority to the 25-45 years age group. 4 Ensure that less fortunate individuals receive the opportunity for self development and good quality social infrastructure services. 5 Reduce work-related accidents to the level not exceeding the world standard, and reduce the number of accidents related to traffic, transportation of toxic substances, and fires in tall buildings. 6 Maintain the stability of the Thai economy by reducing the current account deficit to a level of 3.6 of GDP in the last year of the Eighth Plan and control inflation at the level which will not cause excessive burden to consumers. 7 Mobilise household savings to equal at least 10 percent of GDP in the last year of the Eighth Plan. 8 Increase the quantity and quality of basic services to the regional and rural areas. 9 Reduce the poverty ratio to less than 10 percent by the end of the Eighth Plan. 10 Preserve and rehabilitate conservation forests to at least 25 percent of the total area of the country as well as protect the mangrove area to not less than 1 million rai (400,000 acres) by the end of the Eighth Plan. 11 Create opportunities and alternatives in the agricultural sector in forms of natural farming, organic farming, and integrated farming. 12 Invest in the control and improvement in the quality of environment in order to increase the quality of life of urban, regional, and rural dwellings. Section 6: Government institutions and policies relating to business Page 9 Ministry of Foreign Affairs Business Handbook Major development targets of the Eighth Plan (1997-2001) Estimated Averages Eighth Plan of the Seventh Plan Target Averages Period (1992-1996) (1997-2001) 1. Economic growth 8.0 4.9 (% per year at constant prices) 1.1 Agriculture sector 3.3 3.0 1.2 Non-agriculture sector - Industry 10.6 10.1 - Construction 10.0 11.3 - Services and others 8.2 7.2 2. Per capita income (baht/year)1/ 62,526 134,277 3. Expenditures (% per year at constant prices) 3.1 Private sector - consumption 8.1 6.8 - Investment 8.3 9.9 3.2 Public sector - consumption 7.0 7.3 - Investment 17.4 15.7 4. Exports of goods 4.1 Average value (billion baht) 1,169 2,551 4.2 Average growth rate per year (%) 17.7 15.1 5. Import of goods 5.1 Average value (billion baht) 1,442 2,905 5.2 Average growth rate per year (%) 15.7 12.6 6. Trade balance 6.1 Average Value (Billion baht) -273 -354 6.2 Trade balance/GDP (%) -7.3 -5.4 7. Income from tourism 7.1 Average Value (Billion baht) 154 321 7.2 Average growth (%) NA 13.8 8. Current account balance 8.1 Average Value (Billion baht) -231 -314 8.2 Current account balance/GDP (%) -6.5 -3.6 9. Inflation (%) 4.8 5.6 10. Number of population (million) 58.9 61.8 Population growth rate (%) 1.05 0.95 11. Employment (million persons) 32.8 33.6 Unemployment rate (%) 0.39 0.38 Source: NESDB Note: 1/ Estimates and targets for the last year of the Seventh and Eighth Plans, respectively. Revision of the Eighth Plan Due to the changing economy and current needs of the country since the economic crisis in 1997, it was required to revise the Eighth National Plan. On September 9, 1997, the Cabinet approved a proposal submitted by the NESDB, recommending a revision of the Eighth Plan according to the following guidelines: · Maintain the Eighth Plan's objective to develop human resource to full potential in order to achieve sustainable development. · Revise macroeconomic target, taking into account the current economic situation and the agreement between the Thai government and the IMF. · Revise the investment plan. · Set up criteria to scale down and re-phase public investment projects. · Revise the economic structural adjustment part of the Eighth Plan to accommodate the IMF agreement and the structural adjustment loans from the World Bank and the Asian Development Bank. Section 6: Government institutions and policies relating to business Page 10 Ministry of Foreign Affairs Business Handbook According to the above guidelines, the main objective to increase people's potential remains unchanged. The committee took into account the agreement between the Thai government and the IMF; the new Constitution; free trade and investment agreements; and economic co- operation at various levels. The revision was mainly focused on a) Economic and financial stability leading to confidence in the country. b) Economic restructuring for self-sufficient production bases to be competitive in world markets. c) Ease the adverse economic and social effects of the crisis. d) Give more importance to the poor and under-privileged groups. The Eighth Plan was revised in four major frameworks: · Macro-economic · Human resource and social development to ease the adverse effects of the economic crisis · Economic restructuring for a strong production base · Management restructuring. Macro-economic framework Objectives of the overall economy 1997 1998 1999 2000 2001 Economic 2.5-3.5% 2.5-3.5% 5.5-6.5% 5.5-6.5% 5.5-6.5% growth Inflation rate 7.5% 7.5% 4.4% 4.4% 4.4% Account deficit 5% of GDP 3% of GDP 3.4% of GDP 3.4% of GDP 3.4% of GDP · Maintain price stability, external stability, current account balance and balance of payments. · Investment in government projects will be prioritised according to the guidelines of the Eighth Plan. Private investment and foreign loans will be closely monitored in order to generate benefits to the whole economy. · In order to maintain economic stability, importance will be given to measures controlling the inflation rate and reducing government budgets and expenses. Also, household savings will be promoted and the current account deficit will be reduced. · Strengthen the financial and banking system and monitoring systems. Framework of human resource and social development to eliminate the effects of the economic crisis · Eliminate the rate of total unemployment and unemployment in cities. · Develop job opportunities in rural areas to absorb returning labour force. · Develop and assist poor people by providing social security services, and both education and health services. · Prevent and solve social problems, as well as promote good values. · Improve budget allocation and management systems for increased efficiency as well as increase decentralisation. Framework of economic restructuring for a strong production base · Develop a sustainable agriculture production base for domestic and abroad markets. · Develop a strong industrial production base in terms of technology development and alliances in the private sector. · Develop the service sector to generate more income and employment. · Revise and develop management systems by increasing co-operation between the public and private sector. · Prioritise infrastructure projects according to investment policy. · Privatise state enterprises. Section 6: Government institutions and policies relating to business Page 11 Ministry of Foreign Affairs Business Handbook Framework of management restructuring · Restructure government systems by reducing the government's role and the number of employees. Promote continuous restructuring mechanisms and expedite planning processes to raise efficiency in the government sector. · Increase efficiency in budget management. · Push for effective decentralisation. · Increase public participation. · Develop information systems that assist in policy making and evaluation, such as an Early Warning System. 6.3 Ministry of Foreign Affairs (MFA) The Ministry of Foreign Affairs (MFA) is the principal foreign policy agency. In today's world, trade and diplomacy are no longer considered separate fields of activity. International relations in bilateral, multilateral, and regional settings include discussions of issues of trade, investment, and labour migration, alongside issues of defence, security, and official diplomatic relations. The Ministry is therefore active in negotiations on international agreements, both diplomatic and trade-related, as well as Thailand's activities in ASEAN, APEC, the WTO, and a host of other organisations and initiatives. The Ministry performs the following functions via its embassies and consulates around the world: · Providing information on trade and investment opportunities abroad to local companies and providing information on Thailand to foreign investors and traders. · Assisting Thai firms investing and trading abroad by providing information on the enforcement of international agreements and new trade regulations. · Assisting Thai companies in trade and other international disputes. Thai embassies and consulates abroad can be a first stop for business people who are interested in trading with, or investing in, Thailand. Similarly, the embassies and consulates perform a supporting role for Thai companies that invest or trade abroad by providing information, advice, and support. Department of Economic Affairs This department is tasked with the responsibility for issues of international trade, investment, and international economic relations. Departments of International Organisations and Geographic Regions These departments are separated into geographic regions and include the following: International organisations (such as the United Nations), European affairs, East Asian affairs, America and South Pacific affairs, and South Asia, the Middle East, and African affairs. These "desks" are hubs of information about each of the geographic regions of the world. Department of ASEAN Affairs The department is responsible for the promotion of regional relations in ASEAN framework. Department of Treaties and Legal Affairs Thailand is a signatory to most of the major conventions and international agreements on trade and international diplomacy. The Department of Treaties and Legal Affairs is the focus for activity which relates to Thailand's compliance with, and point of view on, international agreements. Section 6: Government institutions and policies relating to business Page 12 Ministry of Foreign Affairs Business Handbook Department of Information This department is responsible for the distribution of information to the Thai embassies and consulates abroad, as well as press relations, public relations for Thai cultural events, and distribution of the Ministry's analysis of the local press. 6.4 Board of Investment (BOI) The Board of Investment is the principal government agency responsible for providing incentives to stimulate investment in Thailand. The BOI also conducts extensive investment promotion activities both in Thailand and abroad. Although investment promotion in Thailand stretches back more than three decades, the BOI is officially governed by the 1977 Investment Promotion Act. The agency is chaired by the Prime Minister, with economic ministers, senior civil servants, representatives of major private sector organisations, and academicians serving as Board Members or Advisors. The day-to-day investment promotion activities are carried out by the Office of the Board of Investment (OBOI) under the Office of the Prime Minister. The BOI promotes projects which: · Strengthen Thailand's industrial and technological capability · Use domestic resources · Create employment opportunities · Develop basic and support industries · Earn foreign exchange · Contribute to the economic growth of regions outside Bangkok · Develop infrastructure · Conserve natural resources · Reduce environmental problems. The BOI is empowered to grant a wide range of fiscal and non-fiscal incentives and guarantees to investment projects which meet national economic development goals. As part of a new strategy, the BOI has begun to promote the existence of regional offices located in Thailand. Eligible regional offices opening in Thailand will be provided with investment promotion which exempts them from the restrictions of the Alien Business Law, allowing them to function more freely in the country. In addition to investment incentives, the BOI offers comprehensive business-related services to investors and potential investors. These services range from working with investors to help them obtain required licenses and permits, a wide variety of publications including a home page on the Internet, identification of promising investment projects and joint venture partners. In addition, the BOI offers assistance to Thai firms interested in investing overseas, especially in Indochina and ASEAN countries. The investment services of the Board of Investment Assistance in setting up a business The BOI offers a range of valuable business-related services to potential and actual investors in Thailand. The office helps prospective investors and promoted firms in obtaining official permits and documents required for conducting business, including visas, work permits and permanent residency permits. The BOI also assists investors in gaining access to utilities such as water, electricity and telecommunications. Section 6: Government institutions and policies relating to business Page 13 Ministry of Foreign Affairs Business Handbook Information on investment opportunities The Investment Services Centre and the Regional Investment Promotion Division maintain comprehensive information on investment opportunities in Thailand, both by sector and by region. Information and investment advice is readily available to both Thai and foreign investors at no charge. Industrial sub-contracting The BOI Unit for Industrial Linkage Development (BUILD) encourages growth in supporting industries in Thailand. BUILD provides information on subcontracting opportunities and offers its support to buyer firms seeking sourcing networks in Thailand. It helps small and medium-sized Thai suppliers achieve standards required to enter into productive subcontracting arrangements. BUILD's extensive database on subcontractors in Thailand provides matchmaking services for firms seeking specific components or raw materials. BUILD recently set up the Vendors Meets Customers Program, which promotes subcontracting by arranging factory visits to electronics and automotive assemblers. Investment matchmaking The BOI provides investment matchmaking services to both Thai and foreign investors seeking co-operation in the areas of technology, management and marketing. In addition, the BOI offers a matchmaking service for investors in regional areas looking for joint-venture partners from Bangkok and abroad, as well as for firms that want to invest in provincial areas. Promoting Thai investment overseas The BOI also offers assistance to Thai investors looking to venture abroad. The International Affairs Division maintains a library about overseas investment in order to provide Thai businessmen with information to help them make informed decisions about where to invest. In addition, the Division offers Thai investors a consultancy, enabling them to take advantage of the public and private sector contacts obtained by the BOI on their overseas missions. Investor Club Association The Investor Club Association is a private membership organisation within the BOI, serving the interests and needs of Thailand's investment community. Providing the most up-to-date information on Thailand's investment environment and rules and procedures concerning investment promotion, the Investor Club Association distributes information and serves as a networking organisation for its members. The club's Raw Material Tracking System allows members to gain customs clearance for importing raw materials duty free within three hours. The Investor Club is located at: TP & T Tower, 16th Floor, 1 Soi 19, Vibhavadee Rangsit Rd. Tel: 936-1429-40. Foreign Expert Services Unit In order to facilitate the process of bringing in foreign experts, either to conduct feasibility studies or who are skilled experts or technicians, the BOI has created a unit to expedite the paperwork involved. The Foreign Expert Services Unit works with companies and experts to certify the expertise of the foreign experts and technicians, and advises applicants of documents required by the One-Stop Service Centre for Visas and Work Permits. The Foreign Expert Services Unit is located within the Board of Investment offices. One-Stop Service Centre for Visas and Work Permits The BOI co-ordinated the establishment of a One-Stop Service Centre for Visas and Work Permits, jointly with Department Employment and Immigration Bureau. The centre can process applications or renewals of visas and work permits within three hours, assuming all required documents are provided. In addition, the centre handles many other transactions, including changing visa status (to non-immigrant status from tourist or transit), payment of Section 6: Government institutions and policies relating to business Page 14 Ministry of Foreign Affairs Business Handbook fines, and processing of re-entry stamps, all within three hours or less. Its service has been run since July 1, 1997 onwards. Investors or experts granted privileges under the Investment Promotion Act of 1977, the Petroleum Act of 1971, and the Industrial Estate Authority of Thailand Act of 1979 who are allowed to stay in the Kingdom of Thailand on a temporary basis to undertake investment or business activities, can have access to the services provided by the One-Stop Centre. Foreigners who work for the international business offices and at the regional offices, including foreign correspondents can also have access to the services. To support science and technology research and development in private sector, foreign scientists and the families are allowed to have access to the services as well. The One-Stop Service Centre cuts through red tape. The centre is located on the 3rd floor of Krisda Plaza, 207 Rachadapisek Road, Dindaeng, Bangkok 10310. Telephone: (662) 693- 9333-9. 6.5 Ministry of Industry (MOI) The MOI administers industrial economic policies and industrial development projects that are suitable for the economic and social development of the country. The Ministry also monitors industrial factories throughout the country and promotes the decentralisation of small and medium-scale industries to regions outside Bangkok and nearby provinces. The Ministry consists of offices, departments, institutes and foundations as follows: Office of the Secretary to the Minister The office is responsible for the overall activities of the Ministers of Industry which includes: · Co-ordination with various government agencies and ministries · Political affairs and general administration; monitoring political movements · Gathering and processing information for the ministers' meetings · Making arrangements for the ministerial inspection visits and press conferences · Conducting complaint investigations · Scrutinising the issues prior to submission for the ministers' consideration. Office of the Permanent Secretary The office has authority and responsibilities for official affairs of the ministry and others that the Cabinet has not assigned to specific departments, supervising and accelerating official performance in line with the MOI's policy measures and action plans. Its responsibilities can be summarised as follows: · Co-ordinate with organisations and agencies related to industry and mineral resources · Carry out tasks in accordance with the Sugarcane and Sugar Act · Direct and execute works of provincial industrial offices in accordance with the Factory Acts and other related laws and regulations. Department of Mineral Resources The department is responsible for the supervision, management and development of the mineral, energy and ground water resources of the nation as well as their related metallurgical and mineral base industries. The department's key focus is in ensuring environmental preservation and the efficiency of the industry for the benefit of the entire country. Section 6: Government institutions and policies relating to business Page 15 Ministry of Foreign Affairs Business Handbook Department of Industrial Works The department is responsible for the following: · Control and oversee businesses in the environmental preservation, sanitation and energy saving sectors · Enhance the capabilities and efficiency of industrial operations in order to ensure ongoing growth and competitiveness in global markets · Be a national information resource on industrial machinery, chemicals, and hazardous and toxic materials · Safeguard the interests of the country in international forums · Deal with environmental, industrial safety and industrial security issues. Department of Industrial Promotion Key responsibilities of this department are: · Prepare policy guidelines for the development and improvement of the capabilities of small and medium scale industries. An emphasis is placed on upgrading the responsiveness of these industries to changes in both the domestic and international environments and in improving their capability to compete in the global marketplace. · Cultivate, support and develop small and medium scale industries in accordance with national industrial development policies · Develop skilled personnel for industry, focusing especially on key management and technological skills, in order to ensure that the industrial outputs of the country are of world class standard. · Thai Industrial Standards Institute Responsible for the administration of the country's industrial standards, with the objective of complying with international standards. Ensures fair trade and eliminate trade barriers. Its main focus is: · Formulate industrial standards, product standard certification, laboratory accreditation · Register and test products · Implement WTO agreements · Participate in international standards organisations. Office of Industrial Economics · Synchronise the ministry's policies in line with those of the National Economic and Social Development Plan, other government policies, and the Minister of Industry's policies · Establish strategic master plans, co-ordinate action plans and advise on the planning and allocation of the budgets of the various agencies of the ministry · Monitor and evaluate all plans and projects of the ministry · Prepare reports on prevailing conditions in the various domestic industrial sectors that can serve as a basis for industrial policy formulation e.g. industrial and technological developments in various industries · Recommend industrial development and co-operation policies inn an international setting · Inform other agencies in the ministry on the conduct of industrial surveys and the use of industrial data · Serve as the ministry's industrial information centre. The Industrial Estate Authority of Thailand Responsible for facilitating the government's policy of ensuring an equitable distribution of industry throughout the country. Major responsibility is to establish provincial industrial estates that are fully serviced by proper infrastructure and public utilities. Section 6: Government institutions and policies relating to business Page 16 Ministry of Foreign Affairs Business Handbook The Petroleum Authority of Thailand Serves as the national petroleum company. Its principal focus is the support and development of the petroleum industry and related upstream and downstream businesses. Its operations are focused on the overriding principles of safeguarding the vital interests of the people of Thailand and ensuring maximum prosperity and energy stability. It is also responsible for ensuring full alignment of state and private sector strategies. Thailand Productivity Institute It was established with the following objectives: · Improve the productivity of the industrial sectors · Strengthen the competitiveness of industries targeted in the international market · Develop personnel in the industrial sectors at all levels to be more qualified · Instil a higher and better attitude towards productivity development · Act as a focal point for promoting productivity nation-wide. Thai-German Institute The institute provides practical training for industrial workers in a factory-like working environment both in short term and long term in order to upgrade the manufacturing efficiency of the Thai industrial sector. The institute provides information, technical advisory services on advanced manufacturing technologies and carries out research and development to meet the requirements of the industrial sector and to keep track of technological development on an on-going basis. National Food Institute It provides information consultative services, seminars, training courses and quality testing, and technical services for food manufacturers, carries out research and development and monitors transfers of technology. Thailand Textile Institute The institute provides technical services, training courses and seminars, research and development and testing services for textile manufacturers. It also provides information and news on trade, production investment, technology, and world textile data. The Management System Certification Institute The Management System Certification Institute provides quality certification services in accordance with ISO standards and other future standards, and conducts appraisals in order to maintain the quality of certification. Foundation for Cane and Sugar Research Institute · Carries out studies and research · Disseminates information and data · Provides analysis and testing services · Certifies sugar quality · Gives technical advice on cane and sugar. Automotive Institute The institute supervises activities on automobile industrial development by giving consultative services, training and seminars on production, technology, human resource development, standards, product testing, and information services. Electrical and Electronics Institute It serves as a centre for the development of the electrical and electronics industry by providing consultative services, HRD training courses and seminars on production technology, product standards, product testing and information services. Section 6: Government institutions and policies relating to business Page 17 Ministry of Foreign Affairs Business Handbook 6.6 Ministry of Agriculture and Co-operatives Department of Fisheries, under the Ministry of Agriculture and Co-operatives Major tasks: 1 Develop and propose fishery development plans, monitor and evaluate performance and projects, survey and collect fishery information, study and research on fishery economics (Fishery Planing and Policy Division). 2 Study and research on aquatic animals and resources, develop marine fishery, revive coastal resources, study and develop marine fishery machinery and technology (Marine Fisheries Division). 3 Survey, analyse and research on oceanic fisheries sites, develop fishery machinery and technology for oceanic fisheries (Oceanic Fisheries Division). 4 Study, research and develop fresh water animal cultivation, production, breeding, environment and resources, improve freshwater resources for breeding (Inland Fisheries Division). 5 Study, research and experiment on utilisation of aquatic animals, develop equipment to process aquatic animals, analyse, inspect and certify the quality of aquatic animals and products for export (Fishery Technological Development Institute). 6 Study, research, experiment and develop coastal aquaculture and the coastal environment and provide information and technical services to interested person (National Institute of Coastal Aquaculture). 7 Plan and specify directions and methodology to promote and develop fisheries, aquaculture, aquatic animal processing and marketing, develop curriculum to train farmers and interested person, disseminate information relating to fishery, support and provide aids to fishermen and those relating to fisheries (Fishery Extension Division). 8 Specify measures to conserve fishery resources, improve laws and regulations relating to fisheries and prepare and improve a register of ships, fishery equipment and fishery sites (Fisheries Resources Conservation Division). 9 Plan and research on fresh water animals and provide information and technical services to interested person (National Inland Fisheries Institute). 10 Research and develop feed suitable for aquaculture with high nutrition and low cost, control the quality of feed, issue permits and monitor import, sales and advertisement of feed and feed raw material (Feed Quality Control and Development Division). 11 Develop fishery environment plans and co-ordinate with related agencies to control and investigate pollution problems affecting fisheries (Fishery Environment Division). 12 Support and facilitate foreign fisheries affairs, fishery trading, joint-venture and international agreements, co-operation and co-ordination, control of oceanic fisheries and protect fishermen's right abroad (Foreign Fisheries Affairs Division). 13 Control and inspect fishery products and processing, develop standards for production process, product quality, certification process and regulations relating to export (Fish Inspection and Quality Control Division). 14 Study, experiment and research to prevent and eradicate decreases of aquatic animals and provide information relating to aquatic animal decreases (Aquatic Animal Health Research Institute). 15 Research to improve breeds of aquatic animals, distribute improved breeds, provide technical assistance relating to breeding to farmers, inspect and certify both domestic and imported aquatic animal breeds and conserve all Thai aquatic animal breeds (Marine Biological and Fishery Research Institute). Section 6: Government institutions and policies relating to business Page 18 Ministry of Foreign Affairs Business Handbook Department of Livestock Development, under the Ministry of Agriculture and Co-operatives The Livestock Development policies and objectives are: 1. Promote export of livestock products 2. Promote import substitution of livestock products, such as milk and meat 3. Promote research and technology transfer relating to livestock. Directions: 1. Increase the capability to export livestock products 1.1 Specify livestock development zones for export - Eastern Region will be specified to be pork export zone by promoting export farm registration, control of livestock movement and establishment of modern slaughterhouses and meat processing factories. - Southern Region will be specified to be buffalo, cow, buffalo meat and beef export zone by promoting cultivation of good breeds of buffalo and cow to export them alive to OPEC and establishment of modern slaughterhouses. 1.2 Specify quality standards of livestock products according to international demand and standards and certify private laboratories to test meat quality in order to be accepted by the market. 1.3 Prepare a project to support export of livestock products, increase export market and improve regulations and import tax structure of raw materials. This project will continue for six years (1996-2001) with a budget of 618.3 million baht. 2. Promote research and increase livestock production to substitute imports as follows: 2.1 Production and breed improvement - The Department of Livestock Development has a policy to conduct research for new breeds that are suitable for Thailand. - Improve and increase breeds by artificial breeding. The Department of Livestock Development has established a frozen semen centre in Nakorn Rachassima to keep semen of good breeds, both from within the country and from abroad Royal Forestry Department, under the Ministry of Agriculture and Co-operatives Major tasks: 1 Inspect and approve movement of wood and wild products (Permission Division). 2 Prevent and subjugate any actions against the law responsible by the department (Forest Protection office). 3 Study, plan, co-ordinate, promote and support plantation of forests in the form of community forest, agricultural forest and forest (Reforestation Office). 4 Perform tasks relating to conservation of forests and wild animals (Natural Resources Reservation office). 5 Survey, prepare a map and perform forestry engineering tasks (Natural Resources Reservation office). 6 Control and inspect forest utilisation, allow people to utilise deteriorated forest and maintain forests in good condition (Regional Forest Office). National forest policies: 1 A long-term forest management and development plan shall be specified to the best benefit of the country. 2 Promote both the public and the private sector to participate in management and development of forest resources. Section 6: Government institutions and policies relating to business Page 19 Ministry of Foreign Affairs Business Handbook 3 Improve the management and administration of national forests to be in line with changing situations. 4 Specify at least 40 percent of the total country's area as forest area as follows: ­ 15 percent shall be assigned as conservation forest to conserve the environment, soil, water, plants and animals, prevent natural disasters such as floods, and for research and relaxation of the people. ­ 25 percent shall be assigned as economic forest to produce wood. 5 Utilise science and technology to increase agricultural productivity and reduce deforestation. 6 The forest development plan will be a part of the natural resource development plan in the National Economic and Social Development Plan. 7 Improve city and town planning and clearly specify forest areas to prevent forest encroachment. 8 Disseminate information, educate people and instil a positive attitude about the importance and usefulness of forests. 9 Promote reforestation both in the public and the private sector and provide incentives to the private sector. 10 Support continuous factories and pulp factories so that all parts of wood can be utilised, and promote wood substitution. 11 Improve the law so that forest conservation is effective and efficient. 12 Instead of establishing a national forest research institute, the Royal Forest Department should ask for co-operation on forest research from universities and education institutes. 13 In order to reduce imports of fuel, reforestation should be promoted so that wood can be used as fuel. 14 Specify areas with at least a 35 percent gradient as forest areas and do not allow utilisation of these areas. 15 Specify clear and effective ways to reduce deforestation. Department of Agriculture, under the Ministry of Agriculture and Co-operatives Policies: 1 Improve agricultural technology management utilising agricultural information systems. 2 Expedite research and development of quality and standards of agricultural products. 3 Support research and development of agricultural products and product processing according to market demand. 4 Support research and development for less pollution and energy saving. 5 Provide agricultural information to interested persons. 6 Establish a unit responsible for training and technology transfer. The Co-operative Promotion Department, under the Ministry of Agriculture and Co-operatives Major tasks: 1 Establish and promote co-operatives. 2 Provide training and public relations on co-operatives. 3 Support manufacturing, marketing and finance of co-operatives. Major activities: 1 A project to promote co-operatives and co-operative membership. 2 A project to prepare a database of co-operatives and members. 3 A project to establish and develop a market for co-operative products. 4 A project to develop quality standard and quality certification for co-operative products. 5 A project to prepare a co-operative product directory. 6 A project to create co-operative network. 7 A project to improve and increase production. Section 6: Government institutions and policies relating to business Page 20 Ministry of Foreign Affairs Business Handbook Agricultural Land Reform Office, under the Ministry of Agriculture and Co-operatives The Agricultural Land Reform Office was established in 1975 as a government unit equivalent to a department under the Ministry of Agriculture and Co-operatives. The Agricultural Land Reform Office is a unit under the Agricultural Land Reform Board which is responsible for overseeing the Agricultural Land Reform Office, agricultural land reformation and development of policies, measures and regulations relating to agricultural land reformation. Authority and responsibilities: Perform tasks relating to improvement of possession of agricultural land by distribution of possession of private land, management of farmer utilisation of public land and providing land development assistance of reformed land area by development of infrastructure and farmers' productivity. In order that the Agricultural Land Reform Office can perform land reformation in any area, the decree to specify the area to be the land-reformed area has to be issued. At present the Agricultural Land Reform Office has announced land-reformed area in 69 provinces. Of this, 40.16 million rais are government land and 477,361 rais are private land. Office of Agriculture Economics, under the Ministry of Agriculture and Co-operatives The Office of Agriculture Economics is equivalent to a department under the Ministry of Agriculture and Co-operatives. There are two offices in Bangkok and 24 representative offices nation-wide. The Office of Agriculture Economics is assigned to be a centre for agricultural information for the Ministry. 6.7 Ministry of Finance (MOF): including the Department of Customs The Ministry of Finance has similar functions to government treasuries in other countries. It is the government's financier and manages the allocation of government spending. Ministry officials enforce tax and revenue codes, collect import and export taxes, manage government debt, and administer international aid. The Minister works closely with the governor of the Bank of Thailand and manages several public finance companies such as the Krung Thai Bank, Bank for Agriculture and Agricultural Co-operatives, Government Housing Bank, and the EXIM bank. Important policies and projects of the Ministry of Finance include the following: 1 Financial liberalisation The MOF continues to liberalise the financial sector, as it has since 1991. Of particular interest are the liberalisation of the banking and insurance industries. Several new domestic and foreign banks will be licensed. Under the leadership of the MOF and the Bank of Thailand, an online network was established in 1995, the Bahtnet system, to facilitate more efficient transfers of funds from one banking institution to another. The banking sector has also introduced same-day check clearance. The insurance industry has been opened to greater competition. 2 Improve domestic savings In order to reduce the savings-investment gap in Thailand, the MOF is restructuring tax rates to promote long-term domestic savings and improving government pension fund management. 3 Decentralisation of financial activity. Previously most banks were established in Bangkok and then expanded to major provinces as the bank developed. Incomes at the provincial level have expanded Section 6: Government institutions and policies relating to business Page 21 Ministry of Foreign Affairs Business Handbook rapidly over the past 10 years, and banking operations are moving to keep up with new opportunities and new demand for project financing. The MOF is also expanding the scope of business operations of the Bank of Agriculture and Agricultural Co-operatives (BAAC) to cover non-agriculture credit to farmers. Public financial institutions such as Krung Thai Bank, Housing Support Bank, Government Savings Bank, Bank of Agriculture and Agricultural Co- operatives, Industrial Finance Corporation of Thailand, Small Industry Finance Corporation and Integrated Fund Security Company are also increasing their role in allocating credits to individuals and industries in the regions outside of Bangkok. 4 Development of Thailand as a financial centre To facilitate trade with neighbouring countries, the MOF has launched an initiative to make Thailand a hub for financial business and transactions in the sub-region. Efforts are underway to improve the necessary procedures and regulations. Specific fiscal and monetary policies for the year 1997-1998 are as follows: · Implement fiscal and monetary policies in line with the development policies in other sectors, namely, agriculture, industry, commerce, foreign affairs, transportation and communication, energy, science, technology and environment, education and public health; · Develop money, capital and foreign exchange markets to achieve greater efficiency and international standards: the supervision of the financial institutions, in which important savings and investment activities of the country are conducted, will be significantly improved; · Promote investment activity in private and public sectors in order to increase economic efficiency, productivity, and the overall competitiveness of Thailand; · Mobilise savings in both the private and public sectors in order to reduce the existing savings-investment gap; · Restore and maintain the stability of the economy by actively implementing policies and measures to control inflation and reduce the current account deficit; · Liberalise the financial system in an orderly manner to ensure greater efficiency of the system; · Encourage greater participation by the private sector in the development of public infrastructure; Promote a more equitable distribution of income and generate prosperity to all regions of the country; · Improve budget procedures and management and promote greater fiscal discipline; · Improve laws and regulations on taxation to ensure greater transparency and flexibility. Department of Customs, under the Ministry of Finance It has a five-year implementation plan: 1 Procedure Development Plan 1.1 A plan to apply paperless procedures - Train officers on computer utilisation - Issue laws and regulations relating to paperless procedures 1.2 A plan to develop customs broker system - Develop on-line customs broker system - Issue laws and regulations to control and support customs broker 2 Development Plan for International Standards 2.1 A plan to develop price information system - Develop price information system - Expedite the issuance of the law to support GATT price information system Section 6: Government institutions and policies relating to business Page 22 Ministry of Foreign Affairs Business Handbook 2.2 A plan to improve customs tariff and tax structure - Improve customs tariff and tax structure to facilitate economic development and international agreements - Improve classification code system so that they are compatible and can be linked with ASEAN countries system - Implement pre-classification information system 2.3 A plan to develop procedures according to Kyoto and other agreements 2.4 A plan to develop a laboratory according to the World Customs Organisation 3 A Plan to Promote Exports 3.1 Modify regulations and improve procedures to facilitate exports 3.2 Establish Customs Free Zone 4 A Plan for Administration Development 4.1 Human resources development 4.2 Organisation development 4.3 Public relation development 5 A Plan to Prevent and Subjugate Illegal Actions 5.1 Develop intelligence system network 5.2 Develop risk assessment system 5.3 Implement post-auditing The Customs Department has improved its services by introducing computerization in the execution of Customs procedures between entrepreneurs and the Customs Department, linking the transfer of data regarding Customs entries with exporters or Customs brokers by using the Electronic Data Interchange (EDI) system. Export via the EDI system can help entrepreneurs save costs and time to a great extent, because they can rapidly file the data concerning Customs entries for preliminary verification by Customs officers, which takes no more than 5 minutes. The most important thing is that the entrepreneurs will have a chance to directly meet the officers only during the verification of documents; the rest will be processed through the EDI system. The EDI system has been implemented in an effort to develop Thailand's import and export system to meet the international acceptable standard. It is expected to substantially reduce the management and administrative costs of the trading community and to simultaneously expedite the Customs clearance process. The Department has opened its first EDI service system for export at the Bangkok International Airport Customs Bureau on April 1, 1998. The system involves the following process: · Exporters/ authorised agents transmit the information concerning their exportation from their computers to the Department's computers. · The Department's computers will then process the received information. If correct, entry numbers will be issued and the exporters will be notified through computers. If incorrect, correction orders will be transmitted. · Exporters/ authorised agents will prepare the entries by using the computer data and submit them to certain officials, depending on the types of entries: 1. The entry that requires no checking (Green Line) must be lodged at the warehouse designated as the port of export. In this case, a warehouse official will record the number of airway bill in the computer, and the computer will automatically specify the name of official for the clearance of goods. A Customs chief inspector stationed at the warehouse will review the completeness of all documents and endorse them prior to the release of goods. Section 6: Government institutions and policies relating to business Page 23 Ministry of Foreign Affairs Business Handbook 2. The entry that fails under the checking conditions specified in the system must be lodged at the Export Formality Sub-Division. This type of entries consists of less than 1 percent of the total number of entries. After being checked, the entry will be ready for the next step: the release of goods. A warehouse official will record the number of airway bill in the computer. 6.8 Bank of Thailand According to the Bank of Thailand Act, the Minister of Finance is empowered to oversee the overall affairs of the Bank of Thailand with the general control and direction being entrusted to a Court of Directors which comprises the Governor and Deputy Governors, appointed by His Majesty the King, as Chairman and Vice Chairman respectively and at least five other members appointed by the Cabinet. The Bank is presently organised as follows: 1. The Head Office 1.1 Banking Department · Conducts monetary and foreign exchange policies related to both the domestic and international money markets · Manages the international reserves · Manages domestic and foreign assets of the currency reserve · Administers foreign currency loans and credit facilities and executes international settlements 1.2 Financial Institutions Policy Department · Studies, plans and formulates the regulatory policies · Monitors, conducts research and analyses the development of financial institutions and systems on a macro level 1.3 Deposits and Bonds Department · Provides depository facilities for the Government, state enterprises, commercial banks and other financial institutions · Responsible for the transfer of fund between the central region and other parts of the country · Manages the issue of government, public organisation and Bank of Thailand bonds 1.4 Examination I Department · Examines, analyses and supervises the operations of commercial banks, finance companies and credit foncier companies by business groups · Develops efficient procedures for examining and analysing commercial banks, financial companies and credit foncier companies 1.5 Examination II Department · Examines, analyses and supervises the operations of commercial banks, finance companies and credit foncier companies by business groups · Develops efficient procedures for examining and analysing commercial banks, financial companies and credit foncier companies 1.6 Note Printing Works · Designs and prints banknotes and other security papers as assigned by the Bank 1.7 Issue Department · Oversees the circulation of bank notes and verifies the authenticity of bank notes in circulation · Maintains the currency reserve and the interest accrued therefrom as well as the special reserves Section 6: Government institutions and policies relating to business Page 24 Ministry of Foreign Affairs Business Handbook 1.8 Financial Institutions Development Fund Department · Manages the operations of the Financial Institutions Rehabilitation and Development Fund 1.9 Legal Department · Oversees all legal mattress related to the Bank 1.10 Litigation Department · Undertakes all actions related to litigation under laws and legal practices under the Bank's authority 1.11 Foreign Department · Supervises foreign exchange transactions as well as monitors and analyses inflows and outflows of foreign exchange related to trade, capital and service transactions · Supervises foreign exchange operations and position of authorised agents 1.12 Accounting and Budget Department · Oversees all matters related to the Bank's accounts and relevant receipts and payments · Responsible for budgetary matters 1.13 Human Resources Department · Responsible for the human resources management, organisation management and staff training 1.14 Internal Audit Department · Responsible for the internal auditing of the Bank's operations 1.15 Information Technology Department · In charge of computerisation analysis, planning and development 1.16 Economic Research Department · Monitors, studies, analyses and researches on domestic and international economic and financial developments 1.17 Payment System Department · Undertakes the study, analyses, oversees and develops the operations of the country's payment system and Electronic Clearing House 1.18 Bank of Thailand Museum · Studies the evolution of Thai currency 1.19 General Administration Office · General Administration Office 1.20 Bank Building Office · Responsible for all matters related to construction and engineering works 1.21 Office of the Governor · Acts as secretariat of the Court of Directors and is in charge of public and international relations · Provide information related to the Bank · In charge of saving promotion, strategic planning, and the Bank's master planning · Maintain close liaison between branches and the headquarters 1.22 Security Office · Responsible for all matters related to security 1.23 Library and Information Centre · Manage and operates the library, the information system and the activities 2 Bank of Thailand Regional Branch Offices perform central banking activities in areas under their responsibilities throughout the country. Section 6: Government institutions and policies relating to business Page 25 Ministry of Foreign Affairs Business Handbook 3 Bank of Thailand Provincial Representatives, except provinces overseen by the regional branch offices, are assigned by the Bank of Thailand to act as the Bank's Provincial/ District Representatives responsible for administering the depository function and to facilitate fund transfer for the Government, state enterprises, commercial banks and all other financial institutions. These offices are also assigned to administer the Bank of Thailand's account deposited with them and to make payments against the Bank's bills of exchange, to exchange damaged bank notes, to act as distributing and administering agent for government bonds, and to provide check clearing services in provinces with clearing house facilities. 4 Overseas Representative Offices are responsible for gathering and compiling information related to the general economic condition and technical developments abroad for the benefit of international reserve management and banking development. These offices also manage international reserves as assigned by the Head Office and act as coordinator with the central banks in the countries where they are located. Moreover, they are in charge of the assessment of the financial institutions with which the Bank of Thailand has business operations. The overseas representative offices are located in New York and London. 6.9 Ministry of Commerce (MOC): including the Department of Commercial Registration The MOC has the following responsibilities: · Negotiates international trade agreements for both bilateral and multinational co- operations. · Monitors and provides services on trading registration, accounting, measuring, and fuel trading. · Promotes major export and import products and identifies standards for exported products. · Promotes trading and marketing domestically and internationally. · Registers companies and promotes the protection of intellectual property rights. · Distributes statistical information on commercial activity for public and private agencies. Industry market studies The MOC has allocated budget funds for studies and surveys of the production and demand of 64 target products raw and processed agricultural products and manufactured products. Dissemination of price information The MOC disseminates pricing information and market trend information for farmers and the general public through the mass media at the national and local level. This information is also distributed through special rural commercial reporters. Participation in the private sector The MOC has organised its support for co-operation with the private sector at both the national and provincial level by providing marketing information to businessmen and farmers for production decision-making. The MOC also provides support for expanding trade with neighbouring countries. Provincial development projects The MOC through its provincial commercial offices supports a variety of projects related to occupational development including installing sub-district and village central weight measurers, establishing commercial centres for trading promotion and export, and organising seminars to provide knowledge on trading and exports. Section 6: Government institutions and policies relating to business Page 26 Ministry of Foreign Affairs Business Handbook Problem-solving for agricultural products The MOC supports various agricultural products by supporting the price of rice, organising government-to-government sales of agricultural products, managing export quotas, restructuring import and export regulations, and negotiating on behalf of Thai agricultural products in international trade agreement discussions. Export promotion The MOC operates a number of programs to promote Thai products abroad through the inclusion of Thai products in international procurement agreements, through negotiations with other countries to allow more Thai import products, and the issuance of export-import licenses. Consumer Protection The MOC monitors the price movements and production costs of various industrial products to monitor product quantity and to prevent price irregularities. The MOC also designs and implements quality control standards and quality assurance and credibility symbols. Department of Export Promotion (DEP), under the Ministry of Commerce The Department of Export Promotion focuses on serving foreign buyers looking to source from Thailand. The majority of the DEP's resources and services are geared to helping the foreign buyer, in Thailand or around the world, source Thai products quickly and cost effectively. In addition, the DEP acts as the Secretariat for the Export Development which is a co-ordinating body representing all major commercial and government agencies involved in export activities. Access to information services The DEP's wide-ranging support services can be accessed though a world-wide network of offices. To date, DEP has 19 Thai Centres and operates closely with all Thai Commercial Affairs Offices attached to Royal Thai Embassies. For the foreign buyer, the typical sequence of inquiry will include information gathering, prior to paying a visit to Thailand, followed by appointment scheduling to meet potential suppliers and then contract negotiations. In all of these areas DEP offers services, mostly free of charge, to facilitate the buyer's goals. The DEP's Trade Information Division maintains a computerised trade information database which foreign buyers can access either through the overseas Thai Trade Centres, or at its headquarters in Bangkok. Buyers can access the database by means of fax, telex or electronic mail. The database contains current information on export-import statistics by product volume and value, and country of origin; it contains lists of selected exporters and manufacturers and other relevant data useful to foreign buyers. Networking links among DEP offices via electronic mail are available, including access to ITC and APEC Databases in Switzerland and Singapore. The foreign buyer will also benefit from the DEP's overseas trade promotion activities which include participation in some 30 foreign trade fairs each year where groups of 15-20 Thai exporters will showcase the best of their products. In addition, the DEP organises overseas selling missions which are warmly received. Section 6: Government institutions and policies relating to business Page 27 Ministry of Foreign Affairs Business Handbook Buying in Thailand Product specialists from the DEP's Export Service Division offer advice on market opportunities for a particular product, the capacities of specific manufacturers, as well as the current status of international trade regulations such as tariff and quotas. These product specialists have data on more than 2,000 selected exporters, each of which has been inspected by DEP staff. The DEP also offers business services to foreign buyers such as telephone, photocopying, and meeting rooms for business meetings. The DEP has established a network of Regional Trade Centres within Thailand in Chiang Mai, Khon Kaen, Songkhla, Chanthaburi and Surat Thani ­ all of which can supply buyers with product information and the latest sourcing opportunities. Increasing competitiveness of Thai suppliers While serving the needs of foreign importers, in terms of information and access to Thai manufacturers, is the DEP's front-line assistance, the Trade Training Centre provides equally valuable services to Thai exporters by helping them to upgrade specific export-related skills. The centre runs specific courses on such diverse topics as product design development, quality control and trade financing in order to improve the international competitiveness of Thailand's exports. This continuous process of skill-upgrading has played a vital role in the continuing dynamic performance of Thailand's export trade. Department of Foreign Trade (DFT) (under the Ministry of Commerce) DFT is responsible to provide services in five main aspects to the public. Regulates merchandise importation and exportation · Recommends policy and issue rules relating to merchandise importation and exportation · Studies and resolves trade problems · Coordinates with government and private agencies · Develops rules and regulations obstructing trade · Administers and promotes important exports such as rice, textile and tapioca · Issues import and export authorisation · Regulates agricultural product import according to WTO rules Expands markets and improves trade relations · Study and analyses trade situation and foreign markets including marketing strategies for new market · Studies and analyses policy, measures and regulations relating to importation of current trading countries and potential markets · Negotiates to resolve trade issues and to seek new cooperation in order to maintain and expand markets which includes market share increase · Establishes and organises Joint Trade Committee and other meetings to extend cooperation and resolve trade issues · Arranges and welcomes trade missions for better trade relationship and mutual trade interests · Proceeds to trade benefits and promotes the benefits Protects trade benefits · Negotiates bilaterally or multi-laterally trade issues and obstacles with trading countries and international trade organisations · Processes when a trading countries calls for an investigation of dumping action · Operates agreeable trading between the partners. Section 6: Government institutions and policies relating to business Page 28 Ministry of Foreign Affairs Business Handbook Monitors and verifies merchandise quality and standard for importation and exportation · Recommends policy and standardises import and export products · Issues regulations and inspection processes for import and export products · Inspects quality and standard of import and export products · Provides registration services for exporters who meet the standard, companies carrying out product inspection, and inspectors · Issues quality and standard certifications for imports and exports Provides services to public · Creates and disseminates trade information and services through computer system · Formulates administration system and certification issuance as well as import/ export authorisation · Establishes communication and information system that allows information exchange among agencies within the countries and abroad Department of Intellectual Property (DIP), under the Ministry of Commerce The Department of Intellectual Property consists of the following: The Office of the Secretary is responsible for general office works of the Department and other office works which are not specific responsibilities of any division. Administrative work, general support, budget control, finance and accounting, personal administration and public relations also fall under the Office of the Secretary. Moreover, the Office is responsible for planning the works in accordance with the National Economic and Social Development Plan and policies of the government and Ministry of Commerce. Promotion and Development Division is responsible to provide information and technological knowledge on intellectual property and the intellectual property library. Officers working in the Division also have to educate the target groups on intellectual property as well as study, analyse and develop the system mode and procedures for the protection of intellectual property rights. In addition, they have to enhance cooperation with other countries and develop as well as administrator the information through computerisation. Legal Affairs and Appeal Division undertakes legal affairs concerning the patent law, trademark law, copyright law and other laws related to the Department. The Division is also responsible for undertaking appeal matters including analysis and development of the system, mode, and procedures of appeal according to the patent law, copyright law and other laws related to the Department. Patent Office provides advisory registration services on industrial design, patent for invention, utility models in accordance with the patent law as well as layout design and other related intellectual property. Trademark Office provides advisory and registration services on trademark, service mark, certification mark, collective mark in accordance with the trademark law as well as trade secret, geographical indications and other related intellectual property. Copyright Office advises and recommends in accordance with the copyright law. The Office also undertakes activities concerning suppression and deterrence of intellectual property rights infringement as well as collective administration. Section 6: Government institutions and policies relating to business Page 29 Ministry of Foreign Affairs Business Handbook 6.10 Ministry of Science, Technology and Environment (MOSTE) MOSTE was established as the Ministry of Science, Technology and Energy in 1979. It brought under its umbrella five government agencies and a state enterprise engaging in science, technology and energy related activities. Since there were many agencies under the jurisdiction of several ministries with responsibilities for carrying out science and technology activities, MOSTE was created as a central co-ordinating agency. In April 1992, the Ministry of Science, Technology and Energy changed its name to the Ministry of Science, Technology and Environment. MOSTE has the following functions: · Supports projects in basic sciences and technology to encourage technology transfer and upgrade technical skills in the labour force. · Serve as the government's scientific and technological laboratories. · Makes policy, supports project plans, and monitors efforts to wisely utilise natural resources and dispose of industrial and agricultural wastes. · Supports educational research projects to develop technology for production and marketing of commercial goods. · Collects, compiles, and disseminates the results of research projects and international developments related to science, technology, energy and environment. The Department of Science Service (DSS) The Department of Science Service is the government's central laboratory. The DSS has the capability to analyse and test a wide range of materials and products for physical, chemical and biological properties such as chemicals, gases, fertiliser, industrial products, car tires, plastics, minerals, metals, car accessories, cement, electrical appliances, construction equipment, food, paper, active carbon, ceramic products, etc. Its main functions include the following: · Serves as the government's scientific and technological laboratories. · Provides chemical, physical and biological analysis services to governmental and private organisations. · Carries out research on the utilisation of the nation's natural resources and industrial and agricultural wastes for economic benefit. · Provides analysis and testing services in order to control and certify the quality of industrial products, food and beverages. · Provides training for students of analytical chemistry of the various governmental and industrial laboratories. · Provides scientific and technological information services. The DSS also has its own research projects in both the agricultural and industrial sectors, including pulp and paper, food, plastics and others. Finally, the DSS has a library which collected 384,841 documents on science and technology as well as on patents and standards. Some of MOSTE's other activities are described below. 1 Office of Science and Technology counsellors MOSTE has offices of Science and Technology Counsellors in Washington D.C., Tokyo, and Brussels. They have established three associations of Thai S&T personnel in their respective areas with the objective of facilitating information exchange, encouraging research collaboration with Thailand and reversing the brain drain. These counsellors also act as an intermediary for transferring technology, arranging S&T joint ventures, sourcing technological information from overseas, and providing information on scholarships and research grants. Section 6: Government institutions and policies relating to business Page 30 Ministry of Foreign Affairs Business Handbook 2 Technothani (Technology City) MOSTE is constructing Technothani in Pathumthani province north of Bangkok. This area of 87 hectares will house a number of buildings for MOSTE agencies and will also be the site of a science museum. For example, the Department of Environmental Quality promotion has built a building for the Centre of Environmental Research and Training, the Office of Atomic Energy for Peace is constructing a building for the Centre of Research and Development on Rare Earth Materials, the Department of Energy Development and Promotion plans to build a model building for energy conservation, and the Thailand Institute for Scientific and Technological Research has completed a building for the Laboratory of Industrial Technology, and for the Centre of Material Development and Analysis. 3 Technology promotion MOSTE promotes technology transfers through printed and audio-visual media. MOSTE produces a monthly newsletter to promote manufacturing technology, a monthly newsletter to promote rural technology, a quarterly journal, and a number of other publications. Technology databases have been developed for agriculture, for industry, and for five sectoral areas: factories, tool making, food products, metals, and plants. MOSTE also promotes technology development through research grants. The Revolving Fund for Technology Research and Development provides soft loans for R&D, or for improvement of research or testing laboratories, at not more than 5 million baht per project with an interest rate of 4 percent. The Fund for Technology Development provides soft loans for the improvement of production process and commercialisation of R&D projects at not more than 10 million baht per project with an interest rate of 6 percent. The Inventions for Rural Development Project and the Co-operative Project for Technology Utilisation in Agriculture and Industry provided nearly a dozen grants to universities in the north, northeast, and southern regions of Thailand. 6.11 National Science and Technology Development Agency (NSTDA) The National Science And Technology Development Agency was created by the promulgation of the Science and Technology Development Act in December 1991 with a broad mission to develop science and technology, especially in the areas of biotechnology, material, electronics and computer technology. It merged 4 existing agencies, namely the Science and Technology Development Board, National Centre for Genetic Engineering and Biotechnology (BIOTEC), National Metal and Materials Technology Centre (MTEC) and National Electronics and Computer Technology Centre (NECTEC), into one, the NSTDA. NSTDA has three major goals: · Achieve an effective system and program for support of research, development and engineering (RD&E), · Perform RD&E services within the agency itself, and · Invest or support the private sector in investment which leads to technological development. To achieve these goals, the NSTDA has initiated programs to support public and private sector RD&E support in the forms of grants and loans, institutional strengthening, fellowship, training, consulting, technical information access support, establishment of national laboratories, of science and technology research and development park, and commercialisation and investment in science and technology. Section 6: Government institutions and policies relating to business Page 31 Ministry of Foreign Affairs Business Handbook In particular, NSTDA has several important projects underway: 1 Private Sector RD&E support NSTDA provides soft loans and grants to private companies for S&T development projects. The soft loan has a ceiling of 10 million baht and the grant has a ceiling of 3 million baht. For a loan, the receiving company must provide equal matching funds; for a grant, the receiving company must provide matching funds equivalent to one-third the amount of the grant. 2 Industrial consulting services. NSTDA officials assist small- and medium-size industries improve their product quality and productivity by providing them with experts from universities and research institutes in Thailand as well as foreign experts from agencies such as International Executive Service Corps (USA), Canada Executive Service Organisation (Canada) and Senior Expert Service (Germany). Studies have shown that small- and medium-size companies have significantly improved their products, production processes, and production machinery. NSTDA's Technical Information Access Centre provides information services to private sector businesses, universities, and government agencies. The development of databases received contributions from 121 institutions, and has over 40,000 records. A large number of public and private agencies have on-line access to the database. 3 Activities in standards, testing and quality control NSTDA has contracted a number of foreign experts to provide consulting services to various government agencies in order to improve agency capability in standards, testing and quality control. In some cases, items of equipment were donated to these agencies. The NSTDA also organises conferences and seminars on standards, testing, and quality control. 4 Science and Technology manpower development NSTDA provides several hundred overseas scholarships each year for students pursuing higher education in the areas of biotechnology, materials and electronics and computer science. Scholarship recipients have returned to work in government agencies, research institutes and universities. Scholarships are also granted for study in local universities for students pursuing Ph.D. and Masters degrees in science and technology fields. 5 Science and Technology Research and Development Park (STRDP) STRDP is located between Thammasat University and the Asian Institute of Technology in the Rangsit area outside Bangkok. Its construction began at the end of 1995. The first phase will occupy an area of about 18 hectares. The next phase is expected to occupy an additional 12 hectares. A major objective of the Park is to promote and facilitate tripartite co-operation between the private sector the academic institutions and NSTDA. The park will be equipped with techno-business incubators, the main NSTDA office building, the three National Research Centres, and will provide base camp for NSTDA operations and activities. STRDP will also provide business area rental services for small and medium size companies with research and development activities as well as for large or multi-national corporations who can either rent of construct their own R&D facilities on long-term leased land. This is a unique opportunity for private sector since NSTDA offers tax incentives for companies with R&D facilities interested in establishing offices in the STRDP which are: · Import tax exemption for machines, equipment and materials for R&D · Exemption of corporate income tax for eight years · 200 percent deduction of research expenses · Accelerated depreciation of machinery and equipment · Working permit and visa for foreign researchers and experts · Allowance for foreign ownership. Section 6: Government institutions and policies relating to business Page 32 Ministry of Foreign Affairs Business Handbook Due to the economic crisis in 1997, the construction was ceased but re-continued in July 1999. The four buildings in the first phase can be fully operated in early 2001. NSTDA, with its three National Research Centres, namely the National Centre for Genetic Engineering and Biotechnology (BIOTEC), the National Metal and Materials Technology Centre (MTEC), and the National Electronics and Computer Technology Centre (NECTEC), will move their offices to the new building at that time. Currently, NSTDA is recruiting a partner establishing a joint-venture company to manage the STRDP, expected to be successful by the end of 1999. Major task of the new established company will be heavily marketing of the STRDP. 6.12 Ministry of University Affairs (MUA) Prior to 1972, state universities were administered under the Office of the Prime Minister until the Office of State Universities was established. Subsequently the administration of private colleges was added to the Office of State Universities in 1974 and it was raised to ministerial status and named the Office of University Affairs. In 1982, the name was changed to the Ministry of University Affairs. The MUA administers institutions and programs of higher education and the Ministry of Education administers primary, secondary, and vocational education. The main activities of the MUA are as follows: 1 Administration of State and Private Universities and Colleges For state institutions of higher education, the MUA administers all aspects of policy-making and planning relative to institutions throughout Thailand, including the areas of organisation and expansion, curriculum development and evaluation, university personnel administration, budget allocations, institutional research to support policy planning. For private institutions of higher education, the MUA is responsible for accreditation, supervision and monitoring of educational standards, consideration of requests to establish new institutions, compilation of statistical data, and inspections and evaluations according to the Private Higher Education Institution Act. 2 Support for education and research MUA offers financial support for faculty research projects, development of new research degree programs, and student scholarships. MUA promotes international educational co- operation with other countries as well as joint academic research projects. 3 National education development MUA planners continually seek to improve the standards of higher education in Thailand by establishing requirements and guidelines that will improve educational institutions and practices. International co-operation and aid is actively pursued. Specifically, the University Development Commission was formed in the late 1960s to improve the supply of capable and qualified staff and to generally improve the quality of teaching in institutions of higher education, particularly in the fields of English, mathematics, sciences and economics. The Commission supports programs for short-term faculty exchange, and the dissemination of academic information. The Commission serves as an intermediary for international co- operation and faculty exchange. Section 6: Government institutions and policies relating to business Page 33 Ministry of Foreign Affairs Business Handbook 6.13 Ministry of Education (MOE) The Ministry of Education is responsible for primary, secondary, and vocational education nation-wide. The MOE also includes the Fine Arts and Religious Affairs departments. Ministry staff are responsible for curriculum development, production of textbooks and supplementary materials, evaluation, and provision of support services aimed at promoting qualitative aspects of education such as educational research and innovation. 1 General education The MOE staff under the Department of General Education organise, administer, and promote primary and secondary education, as well as special and welfare education. The MOE staff monitor both public and private schools. 2 Vocational and non-formal education The Department of Vocational Education was formed in 1941 and its main focus is to provide various types of vocational education and training to the general public. The Department organises a three-year course in five major areas: Agriculture, Trade and Industry, Home Economics, Arts and Crafts, and Commerce for students who have completed lower secondary education. After this three-year course, students who wish to continue their studies at a higher level can take a two-year Diploma course in the following areas: Agriculture, Industrial Technology, Home Economics, Arts and Crafts and Business Administration. Additionally, the Department is responsible for various short courses, both formal and non- formal, and a 1-year skill-training certificate course for those who have completed grade 9. The Department of Non-Formal Education is responsible for providing general education for the out-of-school and underprivileged population in order to give people of all ages opportunities to study and improve their occupations and living conditions. Programs are offered in basic literacy and vocational skills through radio, correspondence, and skills training centres. 3 The Fine Arts Department The Fine Arts Department was established in 1933 and is responsible for the restoration and promotion of artistic and cultural subjects which include the arts, literature, classical dance, history, and archaeology. The Department staff also organise educational programs and presentations of cultural arts for the general public. The Department administers the National Library, National Archives, National Museum, and National Theatre. 4 Religious affairs The staff of the MOE's Religious Affairs Department administers and registers religious organisations and manages policy issues that deal with the practices and proselytising of religions in Thailand. This department also has a committee that administers and receives reports related to the sangha of Buddhist monks. 6.14 Ministry of Public Health The Ministry of Health has important responsibilities to promote and coordinate activities relating to physical and mental health as well as public good living conditions. Health services provided by the Ministry have the following objectives: 1. To strengthen physical and mental healthiness in order to live in the society happily 2. To prevent sickness and disease that cause labour loss or inability 3. To extend living span and prevent death before appropriate age 4. To protect people from pollution and poisonous substances Section 6: Government institutions and policies relating to business Page 34 Ministry of Foreign Affairs Business Handbook The Ministry consists of the following agencies: · Office of the Permanent Secretary · Department of Medical Services · Department of Communicable Disease Control · Department of Health · Department of Medical Sciences · The Food and Drug Administration · Department of Mental Health · The Government Pharmaceutical Organisation (State Enterprise) · Health System Research Institute (State Enterprise) Food and Drug Administration (under Ministry of Health) The Food and Drug Administration (FDA) is a unit under the Ministry of Public Health. The FDA consists of 10 divisions, one unit and two centres: · Office of the Secretary · Medical Device Control Division · Cosmetic Control Division · Drug Control Division · Toxic and Hazardous Substance Control Division · Narcotic Control Division · Food Control Division · Public Relations and Advertisement Control Division · Technical Division · Inspection Division · Legal Affairs Task Group · FDA Information Technology Centre. The FDA is responsible for consumer protection in public health and supports all activities regarding consumer protection and promotes quality of life for all people. The FDA complies with eight Acts and six conventions or international agreements to set standards and regulations. These cover safety surveillance of the health products, food, drugs, cosmetics, hazardous substances, narcotics and psychotherapeutic substances, and medical devices. Its activities are undertaken under the supervision of six committees appointed by the Minister of Public Health: · Food Committee · Drug Committee · Cosmetic Committee · Psychotropic Substance Committee · Narcotic Control Committee · Medical Device Committee. In addition, another three committees co-operate with other government agencies to support development in public health: · National Drug Committee · National Food Committee · National Chemical Safety Committee. Section 6: Government institutions and policies relating to business Page 35 Ministry of Foreign Affairs Business Handbook 6.15 One-Stop Service Centre The establishment of the One-Stop Service Centre for Visas and Work Permits resulted from co- operation between the Board of Investment of Thailand, the Department of Immigration and the Alien Occupational Control Division. The centre can process applications or renewals of visas and work permits within three hours, assuming all required documents are provided. In addition, the centre handles many other transactions, including changing visa status (to non-immigrant status from tourist or transit), payment of fines, and processing of re-entry stamps, all within three hours or less. Investors or experts granted privileges under the Investment Promotion Act of 1997 who are allowed to stay in the Kingdom of Thailand on a temporary basis to undertake investment or business activities, can also have access to the services provided by the One-Stop Centre. The One-Stop Service Centre cuts through red-tape. The centre is located on the 3rd floor of Krisda Plaza, 207 Rachadapisek Road, Dindaeng, Bangkok 10310. The telephone number is (662)693-9333-9. 6.16 Department of Immigration The Immigration Bureau falls under the Royal Thai Police Department, Ministry of Interior. It is responsible for the inspection of persons and conveyances coming in and going out of the Kingdom in accordance with the provisions of the Immigration Law, including the investigation, suppression and detention of offenders against woman and young girls who are the victims of white slave trafficking and other criminal offences which lead to illegal immigration. The bureau is divided into four divisions and one sub-division level unit : 1. The General Staff Division The division is responsible for central administration of the bureau for correspondence, personnel administration, public and foreign relations, technical and planning, finance and budget, office supplies, transportation, communication, data preparation, statistics and records, the supervising immigration doctor, taking action against aliens who have their permission to enter or stay in the Kingdom revoked, including detention and deportation matters, and it is in charge of the Immigration Detention Centre. 2. The Immigration Division I The division is responsible for the procedures of permanent residence, residential certificates, alien registration, re-entry permits, extension of stay, issuance of permits, registration and carrying out all matters which are under the authority of the Immigration Commission. 3. The Immigration Division II The division is responsible for air transport control in order to inspect persons and all air transport entering and leaving the Kingdom through Bangkok International Airport, and other matters. 4. The Immigration Division III The division is responsible for supervising the official activities of immigration officials attached to immigration check points in rural areas to ensure their strict compliance with the laws, regulations, orders and notices concerned. A rural administration is divided into four levels of 52 check points. It is also responsible for the procedures of immigration activities, inspection of persons and entering and leaving the Kingdom by air, on land, and is responsible for the investigation and suppression of violators against the Immigration or Anti- White Slavery Laws and other criminal offences which lead to illegal immigration. Section 6: Government institutions and policies relating to business Page 36 Ministry of Foreign Affairs Business Handbook 5. The Investigation and Interrogation Group This is a sub-division level unit which reports direct to the Commissioner and is responsible for the inspection of illegal aliens, investigation and suppression of violators against the Immigration or Anti-White Slavery Laws and other criminal offences which lead to illegal immigration. 6.17 Export-Import Bank of Thailand (EXIM Bank) The Export-Import Bank of Thailand was established in September 1993 with an initial fund of 2,500 million baht and a 30,000 million baht loan from the Bank of Thailand. Subsequently, the Bank has sourced operational funding through loans from