According to the BOI article, Thailand’s economy is at a breakthrough step with a new investment strategy

BANGKOK, March 23, 2023 /PRNewswire/ — Riding on some 20 billion dollars in investment commitments announced throughout 2022 by leading companies such as Foxconn Technology, BYD Co. and Amazon Web Services, Thailand started implementation January 2023 an even more ambitious five-year investment promotion strategy aimed at wooing more advanced technologies and upstream industries to usher in a new era of economic development, according to a special article published by the country’s Board of Investment (BOI).

Modern Bangkok offers a wide range of prime yet affordable office buildings and residential accommodation – all with a well-developed infrastructure that makes the city a top choice for international companies and expatriates looking to do business in Southeast Asia.

The article, which quotes officials and other stakeholders, describes how under the new strategy Thailand offers significantly improved incentives. This includes up to 13 years of corporate tax exemption with no cap for investments in upstream industries and advanced technologies such as wafer fabrication, biotechnology, nanotechnology and advanced materials, involving innovation and technology transfer through research collaboration with Thai institutions.

The strategy should ensure Thailand remains innovative, competitive, inclusive and becomes the arena for digital innovation in South East Asia and a hub for business, trade and logistics, the article said. To support this goal, the BOI offers special privileges to key long-term investors, those building regional headquarters and R&D operations, as well as small and medium-sized enterprises and new economy startups in sectors such as fast-growing digital media. For certain categories, investors and their top foreign talent have the opportunity to apply for a 10-year long-term visa.

“We will use the BOI and the investment as a driving tool Thailand to the new economy,” the article quotes BOI Secretary General Narit Therdsteerasukdi in an interview.

In 2022, the new investment applications came from companies as diverse as Amazon Web Services, the cloud computing arm of US tech giant Amazon.com Inc, which has committed to investing 5 billion dollars over several years; BYD Co., of China largest electric car maker committed to spending $660 million establish its first manufacturing operations in ASEAN; And Taiwan’s Foxconn Technology, branching out into EVs over a more than 1 billion dollars Joint venture with Thai energy giant PTT.

While Thailand remains a major maker of conventional vehicles, EV investments from BYD and Foxconn, and previous EV investments from Chinese rivals Great Wall Motor and SAIC Motor and from of Germany Mercedes-Benz who voted Thailand That means being the first location in the region to build its all-electric Mercedes EQS model Thailand is fast becoming a regional EV hub, the article said.

Contributing to the positive investment mood was Mr Akio ToyodaCEO of Toyota Motor Corp., one of the country’s largest foreign investors, chose to celebrate in Bangkok In December 2022to mark the 60th anniversary of the company’s Thai unit to unveil the first battery electric (BEV) version of its best-selling Hilux truck and to announce a partnership with Bangkok-based CP group to convert agricultural biomass into fuel for hydrogen-powered vehicles. He also described Thailandwhere the company is located today Asia Headquarters, which oversees design and manufacturing in 20 countries and serves as a research and development center, as his second home.

The article identifies five priority sectors at the heart of the strategy, including the critical Bio-Circular Green (BCG), an emerging sector of green, smart, renewable energy-focused foreign and domestic industries. The other four are EV supply chain, smart electronics manufacturing, digital sector and creative industries.

Among the foreign companies BOI Secretary General Narit would like to catch are those facing increasing domestic pressure from stakeholders to adhere to environmental, social and governance (ESG) concerns. “As the world focuses on ESG, investors need clean energy and we can deliver it,” he says in the article. “Thailand has the answer.”

Investors interviewed for the article agree. “It’s a roadmap that recognizes change that aims to reshape the investment landscape and it’s important to engage the industries they’re focused on,” said Vibeke Lyssand Leirvåg, Chair of the Joint Foreign Chambers of Commerce Thailand, which represents 9,000 foreign companies doing business in the kingdom, is quoted as saying about the strategy. “BCG is attractive to many foreign investors and gives the strategy a focus.”

The article also describes how the main source countries of investments in Thailand across geopolitical divisions as the country is considered neutral and resilient. While Chinese companies ranked number one in 2022, they more than accounted for $2.3 billion promised, Japanese investors retained the top spot in terms of the number of approved projects and remain the largest cumulative source of foreign direct investment. In terms of investment size, US companies ranked third, followed by Taiwan And Singapore.

Investors highlighted of Thailand Advantages over competing destinations. These include the kingdom’s geographic location in the heart of Southeast Asia 685 million consumer market, its “viability” and “stability” demonstrated by the predictability of its business environment regardless of the political climate of the day, and its efficient management of the Covid crisis, which allowed business operations to continue uninterrupted. “Quality of life and quality of business are in good Thailand‘ said Ms. Leirvåg.

The series of roadshows that the BOI is conducting in key FDI source countries are being very well received, the article added, citing the example of Japanwhere many companies see investment opportunities Thailand in BCG-related technologies such as hydrogen cell fuel development, while others are interested in automation and robotics and the privileges available to companies that relocate headquarters functions.

“According to our latest survey, many Japanese companies have confirmed that they will expand their operations in Japan Thailand,” June Kurodathe main representative of the Japan Foreign Trade Organization (JETRO) for ASEAN, was quoted as saying.

Thailand is already the world’s second largest exporter of computer hard drives, the tenth largest automaker and one of the world’s leading food suppliers. According to the JETRO survey, these existing industrial clusters, robust supply chains and good infrastructure including ports, roads and power supply are among the main attractions for Japanese investors.

Investors recognize that they also face challenges Thailand. The nation of 70 million people faces headwinds ranging from traffic congestion to an aging population to an education and training system that sometimes struggles to keep up with the country’s transformation into a knowledge-based economy. “Although we have relatively strong human resources, the challenge now is to find the staff of Thailand workforce to a higher level,” says Dr Somkiat TangkitvanichPresident of the Thailand Development Research Institute, an independent, private, not-for-profit think tank.

dr Somkiat, who also serves as an advisor to the BOI board, sees the new investment strategy as crucial to addressing these challenges. He points to the BOI’s increasing flexibility towards different types of companies and says additional incentives for incumbent investors would encourage them to up their game. “You have to be dynamic and move up the value chain,” said Dr. somkiat. “The country needs to move forward and investors need to move forward too.”

To read the full story, please click on the link below:

https://www.boi.go.th/un/advertorial14

For more information, please contact:
Thailand Board of Investments
Tel +66 (0) 2553 8111
Website: www.boi.go.th
YouTube: Think Asia, invest in Thailand

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SOURCE Thailand Board of Investment (BOI)