Thailand BOI Approves New 5-Year Investment Promotion Strategy Focused on Innovative, Competitive and Inclusive Approach to New Economy

BANGKOK, Oct. 17, 2022 /PRNewswire/ — The Thailand Board of Investment (BOI) at a board assembly held final week permitted the framework of its new Investment Promotion Strategy for the following 5 years, which is able to focus on getting into the brand new economy period by encouraging technological development, the transition to inexperienced and sensible Industries, expertise growth, in addition to creativity and innovation, to strengthen the nation’s standing as a regional hub for business, commerce and logistics.

The new funding promotion technique (2023-2027) units out to promote funding to restructure the nation’s economy round three core ideas, specifically 1) innovation, know-how, and creativity, 2) competitiveness and the flexibility to adapt rapidly, and 3) inclusiveness, making an allowance for environmental and social sustainability.

“In view of the challenging, volatile and highly competitive global environment, the BOI will stay ahead of changes and keep promoting investment in a way that achieves concrete results, helping to lead Thailand into the new economy,” Mr. Narit Therdsteerasukdi advised reporters throughout his first press convention since he took workplace as Secretary General of the BOI on October 3. “To reach that objective, the BOI will broaden its role from that of a ‘Promoter’ providing tax and non-tax benefits, to focus on becoming an ‘Integrator’ of investment support tools, a ‘Facilitator’ providing services, and a ‘Connector’ linking industries to create more business opportunities.”

To implement the technique and its imaginative and prescient of the brand new economy, the BOI will articulate its funding promotion insurance policies round seven pillars:

1. The improve of present industries, in parallel with the constructing of latest industries by which Thailand has a excessive potential, and an total strengthening of the provision chain
2. The acceleration of the commercial transition to inexperienced and sensible industries by means of investments in automation, digital adoption and decarbonization
3. The promotion of Thailand as a business middle, and a global commerce and funding gateway for the area
4. The strengthening of SMEs and startups, guaranteeing they’re linked to the worldwide market and provide chain
5. The promotion of investments within the totally different areas of Thailand that matches the potential of every space and allows inclusive progress
6. The promotion of investments that can promote group and society growth
7. The promotion of Thailand’s abroad funding to develop business alternatives for Thai corporations

Further particulars of the insurance policies and sector-specific incentive packages might be offered to the board and introduced in coming weeks, Mr. Narit stated.

January-September Investment Applications

The board additionally acknowledged the funding pledges filed in the course of the first 9 months of 2022.

From January to September 2022, overseas and native buyers filed with the BOI a complete of 1,247 functions for funding promotion, price a mixed 439.1 billion Baht (US$ 11.6 billion), Mr. Narit stated.

While the variety of functions rose 8.5% in comparison to the 1,149 initiatives seen within the first 9 months of 2021, the mixed worth fell 14.1%, from 511 billion Baht, reflecting a smaller common challenge measurement.

Thailand’s Eastern Economic Corridor (EEC) space noticed 376 initiatives making use of for promotion, representing a mixed funding worth of 246.7 billion baht, or 56% of the entire worth of functions within the first 9 months, Mr. Narit stated. Most are investments in Rayong and Chonburi provinces.

Foreign direct funding (FDI) functions decreased 25% from the yr precedent days to 275.6 billion Baht

The important supply of FDI functions within the first 9 months was China with 45 billion Baht, adopted by Taiwan (39.3 billion Baht), Japan (37.6 billion Baht), the U.S. (34.3 billion Baht), and Hong Kong (26.3 billion Baht).

During the primary 9 months, FDI functions information for China, Hong Kong and Taiwan all included investments within the manufacturing of latest electrical autos (EV) and elements. Major EV investments introduced in Thailand this yr contain crops by BYD, whose funding is coming by means of its Hong Kong-based unit, and Foxconn.

Over the 9 months to September, the BOI has issued promotion certificates to 1,101 initiatives, a rise of 17% from the yr precedent days. The mixed funding worth of the certificates amounted to 357.6 billion baht, a rise of 57%, Mr. Narit stated.

“The promotion certificate statistics, the closest data we have to actual investment, are sending a clear signal that over the next one to two years there will be a significant increase in actual investment flows,” Mr. Narit stated.

For extra data, please contact:

Thailand Board of Investment

Tel. +66 (0) 2553 8111

Website: www.boi.go.th

YouTube: Think Asia, Invest Thailand

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