Thailand shifts investment incentive focus

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BOI Thai
Udom Wongwiwatchai, Secretary-General of the Thai Board of Investment

Thailand’s Board of Investment (BOI) has set up a new incentive policy that prioritises remote areas and border regions in the country, according to the institutions secretary-general, Udom Wongwiwatchai.

“Investors in remote areas such as Mae Hong Son and Yasothon and the special economic areas in the three restive southernmost provinces and along border areas should be allowed to enjoy the highest privileges, such as corporate income tax exemption for eight years,” he said.

He added the new investment incentive policy is scheduled to go before the board chaired by Deputy Prime Minister Kittiratt Na-Ranong in Mai, with implementation expected in July 2013.

The BPI plans to scrap the current emphasis on geographic zones. These would be replaced by new regional clusters that promote a concentration of investment, plus one-stop services.

There would also be a strong emphasis on border areas, with companies encouraged to build cross-border supply chains and develop regional clusters with Thailand’s neighbours.

Incentives would be phased out for heavy industries, low-value-added industries, factories that cause environmental problems or consume a lot of energy, and concession and monopoly industries such as telecoms and concession roads.

Meanwhile, investments in the service sector, product champions and research and development would be given preferential treatment by the BOI.

The new policy will be aimed at 10 groups: primary infrastructure and logistics, primary industries, medical and science tools, alternative energy and environmental services, industrial promotion services, advanced technology, food and processed agricultural goods, hospitality and wellness, automotive and transportation, and electronic and electrical goods.

Udom also said that the BOI is also committed to encouraging Thai firms to invest overseas. It recently established the Thai Overseas Investment Support Centre to provide training to business operators wanting to invest abroad, focusing mainly on restaurants, hotels, health services, spas, automotive and parts, petrochemicals and mining, and construction.

 

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Reading Time: 2 minutes

Udom Wongwiwatchai, Secretary-General of the Thai Board of Investment

Thailand’s Board of Investment (BOI) has set up a new incentive policy that prioritises remote areas and border regions in the country, according to the institutions secretary-general, Udom Wongwiwatchai.

Reading Time: 2 minutes

BOI Thai
Udom Wongwiwatchai, Secretary-General of the Thai Board of Investment

Thailand’s Board of Investment (BOI) has set up a new incentive policy that prioritises remote areas and border regions in the country, according to the institutions secretary-general, Udom Wongwiwatchai.

“Investors in remote areas such as Mae Hong Son and Yasothon and the special economic areas in the three restive southernmost provinces and along border areas should be allowed to enjoy the highest privileges, such as corporate income tax exemption for eight years,” he said.

He added the new investment incentive policy is scheduled to go before the board chaired by Deputy Prime Minister Kittiratt Na-Ranong in Mai, with implementation expected in July 2013.

The BPI plans to scrap the current emphasis on geographic zones. These would be replaced by new regional clusters that promote a concentration of investment, plus one-stop services.

There would also be a strong emphasis on border areas, with companies encouraged to build cross-border supply chains and develop regional clusters with Thailand’s neighbours.

Incentives would be phased out for heavy industries, low-value-added industries, factories that cause environmental problems or consume a lot of energy, and concession and monopoly industries such as telecoms and concession roads.

Meanwhile, investments in the service sector, product champions and research and development would be given preferential treatment by the BOI.

The new policy will be aimed at 10 groups: primary infrastructure and logistics, primary industries, medical and science tools, alternative energy and environmental services, industrial promotion services, advanced technology, food and processed agricultural goods, hospitality and wellness, automotive and transportation, and electronic and electrical goods.

Udom also said that the BOI is also committed to encouraging Thai firms to invest overseas. It recently established the Thai Overseas Investment Support Centre to provide training to business operators wanting to invest abroad, focusing mainly on restaurants, hotels, health services, spas, automotive and parts, petrochemicals and mining, and construction.

 

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