Exploring Business Opportunities in Thailand: Unlocking Investment Incentives

In September 2022, the Thai government introduced the Long-Term Resident Visa (LTR visa) scheme to attract foreign talent. Successful applicants receive a 10-year renewable visa, permission to work in Thailand, and other benefits. The application process includes submission to the BOI, payment of government fees, and maintenance of qualifications for renewal.

• The Board of Investment (BOI) in Thailand offers various incentives, including tax exemptions and import duty exemptions, to promote investment in four main categories: Agricultural, Food, Biotechnology, and Medical Industries; Machinery, Automotive, Electrical Appliances, and Electronics Industries; Metal, Material, Chemical, and Petrochemical Industries, and Public Utilities; and Digital, Creative Industries, and High-Value Services.
• The BOI provides additional incentives for merit-based competitiveness enhancement, establishment of Strategic Talent Centers, and area-based decentralization, with each having specific conditions and benefits.
• The Thai government has introduced the Long-Term Resident Visa (LTR visa) scheme to attract affluent and talented foreigners, offering a 10-year renewable visa, permission to work in Thailand, and various other benefits.

The Investment Promotion Act of 1977 in Thailand grants the Board of Investment (BOI) the authority to attract investment and foster economic and social development. The BOI focuses on four main categories: Agricultural, Food, Biotechnology, and Medical Industries; Machinery, Automotive, Electrical Appliances, and Electronics Industries; Metal, Material, Chemical, Petrochemical Industries, and Public Utilities; and Digital, Creative Industries, and High-Value Services.

The BOI provides various incentives to encourage investment in these sectors, including tax exemptions, import duty reductions, and streamlined processes for obtaining work permits and visas for foreign experts. Additionally, the BOI supports regional development by promoting investment in less-developed areas, aiming to reduce economic disparity across the country. By aligning its policies with Thailand’s strategic goals, such as the Thailand 4.0 initiative, the BOI seeks to drive innovation, enhance competitiveness, and ensure sustainable growth.

Incentives for applicants include Basic Incentives, Additional Incentives, and Area-based Incentives. Basic Incentives are based on the type of activity, while Additional Incentives include Merit-based Incentives for Competitiveness Enhancement and the establishment of a Strategic Talent Center. Area-based Incentives are available for businesses established in certain economic zones.

The Eastern Economic Corridor (EEC)

The Eastern Economic Corridor (EEC) is a special development zone that promotes investment in targeted industries in Chachoengsao, Chonburi, and Rayong. EEC applicants can receive additional incentives, subject to certain conditions. These incentives may include tax benefits, streamlined regulatory processes, and access to enhanced infrastructure designed to support industrial growth. The EEC primarily focuses on sectors such as advanced robotics, aviation, biofuels, digital technology, and healthcare, aiming to position the region as a hub for innovation and economic advancement.

To be eligible for investment promotion, applicants must meet certain qualifications, such as value-added, utilization of modern production processes, and an environmental protection plan. Foreign shareholding is allowed under certain conditions.

The application process for investment promotion is based on the project’s economic value, employment potential, and alignment with government policies. Once approved, applicants receive an investment promotion certificate.