Ms. Duangjai Asawachintachit, BOI Secretary General, said last week after a Board meeting chaired by Prime Minister Prayut Chan-ocha, that the BOI approved five more Food Innopolis sites as science and technology zones, as proposed by the Ministry of Higher Education, Science, Research and Innovation. The additional sites are located in Thammasat University, King Mongkut University of Technology Ladkrabang, Ubon Ratchathani University, Walailak University and Naresuan University. This move will further enhance the network of Food Innopolis previously approved namely Thailand Science Park in Pathum Thani province, Chiang Mai University, Khon Kaen University, Prince of Songkhla University, Kasetsart University, Chulalongkorn University, Mahidol University, and King Mongkut University of Technology Thonburi.
"Investment projects in the targeted industries and located in any of the 13 Food Innopolis locations will receive additional privileges on top of the normal package of 5-10 years of corporate income tax exemption depending on the type of business. These top-up privileges comprise a 50% corporate income tax deduction for five years or an additional two years of corporate income tax exemption. The target activities qualifying for investment promotion include plant and animal breeding, research and development, and scientific testing services, among others. This arrangement aims to help drive Thailand towards its goal of becoming a global food innovation hub." said Ms. Duangjai.
Extension of the investment incentives for EV charging stations
The Board also approved today to a new set of investment incentives to promote charging stations for a wider range of electric powered modes of transport, including electric powered boats, after the previous scheme, which applied only to charging stations for cars, ended in December 2018. To increase the coverage area of the EV charging stations, the new scheme sets additional requirements for projects seeking to receive BOI incentives, including a minimum of 40 chargers per project, at least 25% of which must be quick chargers. Investors will receive 5 years corporate income tax exemption among other privileges.
Revised conditions and privileges for investment in "E&E activities"
To keep up with the changing technologies in the electrical appliances and electronics (E&E) industry, the Board agreed to revise the conditions and privileges for the sector with the aim to make Thailand a base for the manufacturing of smart electronics and electrical appliances. To stimulate investment that will increase the country's competitiveness, projects that will undertake R&D and design activities in Thailand will receive additional privileges.
Approve natural gas power plant project
The Board also approved to grant investment incentives to a natural gas power plant project in Chachoengsao province, with a generation capacity of 560 megawatts and a total investment value of 22.27 billion baht.
Thailand's FDI growth momentum continued in the first nine months of 2019
Thailand continued to attract rising foreign direct investment (FDI) in the first nine months of 2019, with increased number of investment project applications, particularly in targeted industries, the Thailand Board of Investment (BOI) said.
The total value of FDI applications received by the BOI in the nine months to September increased 69% from the year earlier period, to a total value of 203.37 billion baht, according to the latest data from the BOI. Applications for investments in the targeted industries, led by electronics and electrical sector, digital sector and automotive sector, represented 131.78 billion baht, or 65 percent of the total.
In terms of the source of the foreign direct investment applications, out of a total of 689 projects, Japanese companies, which have long been the largest source of Thailand's FDIs, ranked first with applications for 167 projects worth 59.19 billion baht, followed by China, with 139 projects worth 45.44 billion baht, and Switzerland, with 15 projects worth 11.71 billion baht, BOI data showed.
"The data for the applications we received in those nine months confirms Thailand's continued attractiveness as an investment destination, despite the fluctuations seen in the global economy," said Ms Duangjai Asawachintachit, Secretary General of the BOI. "With the recently-rolled out investment promotion privileges under the Thailand Plus Package aimed at investment acceleration and further measures to improve the country's investment ecosystem and ease of doing business, we expect the growth momentum of FDI and overall investment in Thailand to continue to expand into 2020."
Meanwhile the overall investment applications, including domestic investments, submitted to the BOI in the nine-month period amounted to 1,165 projects, an increase of 11% from the same period last year. About half of these applications or 585 are for projects in the targeted industries, including the digital sector, which came on top with 143 projects, followed by agriculture and food processing with 132 projects, and the electronics and electrical sector, which saw 103 projects.
For more information: www.boi.go.th
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