BOI encourages smart industries under country’s new economic programme
Thailand Board of Investment offers incentives to next-generation vehicles, smart electronics, aerospace, robotics, bioplastics and innovative food products
Country Business Reports interviews and articles by Discovery Reports www.discoveryreports.com
When the government launched its latest economic programme billed Thailand 4.0, foreign investors lined up to take a slice of the action. Across the first nine months of this year alone, the Thailand Board of Investment (BOI) received 1,095 investment applications, up 56 per cent from 703 during the same period in 2015. Moreover, this year has been dominated by bigger undertakings as overall investment value increased by 149 per cent to 369 billion Thai baht (HK$ 82 billion).
The feverish pace is not at all surprising. With its strategic location and fast connectivity to other countries, locators in Thailand have easy access to more than 3 billion Asian consumers. As the final stage in its economic development, Thailand 4.0 aims to maximise these advantages by transforming the country into its most technologically advanced form yet, focusing on high-value creation through innovation.
BOI leads the campaign offering incentives to target verticals such as next-generation vehicles, smart electronics, aerospace, robotics, bioplastics and innovative food products. Companies in these segments get to enjoy corporate income tax exemptions of up to eight years, land ownership and support from Thai academic and research institutions.
These perks have attracted many foreign businesses, especially from China where three out of BOI’s 14 overseas offices are located. To illustrate, Thai and Chinese companies are working together to make Thailand’s Food Innopolis project a success by innovating on food production and packaging of speciality items such as organic and halal.
Thailand, however, is an excellent place for expatriates as it is for setting up companies. Foreign expatriates can look forward to a high-quality lifestyle at a low cost. Thailand is ranked 21st in AT Kearney’s 2016 Foreign Direct Investment Confidence Index and ranked second among Asean countries. It is also ranked eighth among 39 expat destinations in terms of overall positive experience according to HSBC’s 2015 Expat Explorer Survey.
Thailand Board of Investment