Thailand’s Board of Investment has approved the country’s next Five-Year Investment Promotion Strategy. The strategy aims to identify industries and sectors that are essential to Thailand’s long-term development and competitiveness.
The strategy will take effect at the start of 2023 and run through 2027.
Thailand has adopted a new five-year investment promotion strategy, highlighting the country’s efforts to attract investment in innovative, high-tech, and green industries.
On October 17, 2022, Thailand’s Board of Investment (BOI) announced that it approved the new Five-Year Investment Promotion Strategy which identifies industries and sectors that are strategic to Thailand’s long-term development and competitiveness. The strategy will be in effect between 2023 and 2027.
BOI will create supportive policies and services to encourage both domestic and foreign investment in these industries.
The strategy’s seven pillars
The strategy states that the restructuring of Thailand’s economy to the new economy era will follow three core concepts. These are:
- The upgrade of existing industries, in parallel with the building of new industries in which Thailand has a high potential, and an overall strengthening of the supply chain.
- The acceleration of the industrial transition to green and smart industries through investments in automation, digital adoption, and decarbonization.
- The promotion of Thailand as a business center, and an international trade and investment gateway for the region.
- The strengthening of SMEs and startups, ensuring they are connected to the global market and supply chain.
- The promotion of investments in the different regions of Thailand fits the potential of each area and enables inclusive growth.
- The promotion of investments that will promote community and social development.
- The promotion of Thailand’s overseas investment to expand business opportunities for Thai companies.
The seven pillars strike a number of shared themes. Areas highlighted across the pillars include the need to digitize the economy, create green industries and processes, and promote inclusive growth across Thailand’s regions and communities.
Industries that stand to benefit under these pillars include electric vehicle manufacturers, bio-circular green (BCG) industries, and automated manufacturing systems, among others. Further, Thailand will put increased focus on developing innovation and R&D capabilities, as well as a stronger knowledge-based economy.
The BOI will promote these seven pillars through a combination of incentives, service support, and policies that improve the business environment. According to Narit Therdsteerasukdi, the Secretary General of the BOI,
“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.”Narit Therdsteerasukdi,, Secretary General of the BOI
This statement suggests that over the next five years, the BOI will put greater emphasis on increasing support for both domestic and foreign investors by improving Thailand’s business environment and ease of doing business. At the same time, Thailand will continue to offer tax benefits and other incentives to encourage investment in target industries and regions.
This article was first published by AseanBriefing which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to [email protected].
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