Unveiled with the moniker “Thailand’s Next Step”, this innovative initiative aims to drive the nation into the future with an emphasis on bio-circular-green (BCG) sectors, electric vehicles (EV), intelligent electronics, the digital space, and the creative industry. This ambitious plan is spear-headed by Narit Therdsteerasukdi, the distinguished secretary-general of the BOI.
“Thailand’s Next Step” is a progressive strategy that will extend beyond typical tax incentives. Its focus will not only be on nourishing an environment conducive to investment within Thailand but also creating effective infrastructure that attracts foreign investment. The goal? To turn Thailand into a thriving international business hub, loaded with top-tier talent and robust supply chains, particularly in sustainable and intelligent industries.
Don’t be surprised if you spot the BOI representatives globe-trotting, as they will be conducting roadshows in China, Japan, the United States, and numerous other countries in a bid to charm potential investors.
Moreover, the BOI also envisages stimulating region-specific investments by leveraging the global minimum tax rate, effectively reducing dependency on regular tax privilege measures.
If we turn to the recent past for evidence, we note the five key industries applied for BOI investment privileges amounting to an impressive 680 billion baht over three years (2020-2022). Here’s the breakdown:
- The BCG industry approached them for 287.8 billion baht worth of allowances; the requests were majorly associated with renewable energy, waste processing, and green technology.
- In the EV industry, requests amounting to 78 billion baht for grants came mainly from the EV infrastructure, charging station initiatives, and battery production sectors.
- Smart electronics sought 210.3 billion baht in allowances predominantly related to wafer fabrication, manufacturing of automotive electronics, and research and development into electronic design.
- The digital industry put forth applications amounting to 60.85 billion baht, largely oriented towards data centres, cloud services, and digital ecosystems.
- The creative industry, valued at 52.81 billion baht, wanted privileges for facets like filmmaking, graphic games, animation, and gem and jewellery craftsmanship.
In just the first half of this year, the BOI has received 891 applications vying for tax and investment privileges on projects totalling 364.42 billion baht—an 18% surge in projects and a whopping 70% growth in project values compared to the same term in the previous year.
Thailand is indisputably taking a “Next Step” towards becoming an international business powerhouse, with strategies tailored to make the most of the anticipated global trends in various industries.