Thailand’s Board of Investment (BOI) has launched an ambitious five-year investment promotion strategy for 2023-2027, designed to transform the country’s industrial landscape. This strategy focuses on high technology, innovation, and sustainability, aiming to position Thailand as a regional hub for business, trade, and logistics. Here, we delve into the key aspects of this strategy, exploring the five strategic industries identified by the BOI and the measures introduced to support them.
- Bio-Circular-Green Economy (BCG)
The BCG model is central to Thailand’s sustainable development goals. This industry encompasses agriculture, food, medical sectors, and clean energy. The BOI aims to promote sustainable practices and technologies within these sectors, fostering an economy that is not only efficient but also environmentally friendly. This initiative aligns with global trends towards sustainability and addresses critical issues such as food security, renewable energy, and environmental preservation.
- Automotive Industry
Thailand has long been a major player in the automotive industry, and the BOI’s new strategy focuses on the transition to electric vehicles (EVs). The plan includes significant incentives for the EV supply chain, including battery production and the establishment of charging infrastructure. By promoting EV technology, Thailand aims to reduce its carbon footprint and enhance its position as a leader in the automotive sector. This shift is expected to attract global automakers and technology firms to invest in the country.
- Electronics Industry
The electronics industry, particularly the upstream and smart electronics sectors, is another key area of focus. The BOI intends to make Thailand a hub for advanced manufacturing by encouraging investments in high-tech and innovative electronics. This includes support for the development of smart devices, semiconductor manufacturing, and other cutting-edge technologies. These initiatives are designed to enhance the country’s technological capabilities and integrate it further into the global electronics supply chain.
- Digital and Creative Industries
In the digital age, the importance of digital and creative industries cannot be overstated. The BOI’s strategy includes significant incentives for investments in digital technologies and the creative sector. This encompasses a wide range of activities, from software development and digital content creation to creative arts and media. By fostering innovation and creativity, Thailand aims to build a robust digital economy that can compete on a global scale.
- Regional Headquarters and International Business Centers
Thailand is positioning itself as a prime location for regional headquarters and international business centers. The BOI’s strategy includes special incentives for global companies that set up their regional operations in Thailand. This move is intended to attract multinational corporations, enhance business connectivity, and create more business opportunities. By becoming a hub for international business, Thailand can leverage its strategic location and robust infrastructure to facilitate trade and investment across the region.
Incentive Measures and Strategic Goals
To support these strategic industries, the BOI has introduced a range of measures aimed at improving the ease of doing business, encouraging technological development, attracting talent, and promoting green transformation. Here are some of the key measures and goals outlined in the strategy:
- Technological Advancement and Innovation
One of the core pillars of the BOI’s strategy is to foster technological advancement and innovation. This involves providing premium incentives for industries involving high technology and innovation, such as biotech, nanotech, and advanced materials. Projects that cooperate with local research institutions and universities are particularly encouraged, ensuring that technological developments are integrated into the broader economy.
- Green and Smart Industries
The BOI is committed to accelerating the transition to green and smart industries. This includes investments in automation, digital adoption, and decarbonization. By promoting sustainable industrial practices, Thailand aims to reduce its environmental impact and improve its global competitiveness. Special incentives are provided for projects that contribute to this transition, such as those involving renewable energy production and green technologies.
- Talent Development and Inclusiveness
Developing a skilled workforce is essential for the success of the BOI’s strategy. The BOI aims to attract and nurture talent through various programs and incentives. This includes support for education and training initiatives that equip workers with the skills needed for the new economy. Furthermore, the strategy emphasizes inclusiveness, ensuring that economic growth benefits all regions and communities in Thailand.
- Regional Development and Clusters
The BOI has identified the development of economic corridors and special investment zones across different regions as a priority. These zones are designed to attract investments by offering a range of incentives tailored to the specific strengths and potentials of each region. For instance, the Northern Economic Corridor focuses on sustainable agriculture and food production, while the Eastern Economic Corridor targets high-tech industries and advanced manufacturing.
- Ease of Investment
A crucial aspect of the BOI’s strategy is to streamline the investment process and enhance the overall ease of doing business in Thailand. This involves the creation of a Sub-Committee on the Resolution of Obstacles and Facilitation of Investment, which works closely with the Prime Minister’s Office and other state agencies to address specific pain points flagged by investors. This committee aims to simplify regulatory procedures, reduce bureaucratic hurdles, and provide a more efficient and investor-friendly environment.
Conclusion
Thailand’s Board of Investment has charted a bold course for the country’s economic future with its 2023-2027 investment promotion strategy. By focusing on high technology, innovation, and sustainability, and identifying five key strategic industries, Thailand is setting the stage for significant industrial transformation. This strategy not only aims to enhance the country’s global competitiveness but also ensures inclusive and sustainable growth, paving the way for Thailand to become a leading hub for business, trade, and technology in the region.
Leave a Reply