BANGKOK, April 3, 2013 /PRNewswire/ -- In response to changing global and regional economic situation, Thailand Board of Investment is revising its Investment Promotion Privileges and Strategies. The proposed BOI strategies will be focusing on restructuring Thai economy for sustainable development and to overcome the "Middle Income Trap" type of economic development. The new BOI strategy will aim to promote competitiveness development and value creation of the industrial sector and to promote green industry to create balanced and sustainable growth. The strategy will also promote new industrial cluster in different regions of Thailand to create new investment concentration and to promote Thai outbound investment to increase the competitiveness of Thai businesses.
In the new strategy, BOI will grant investment promotion privileges by prioritizing on the importance of the proposed activities and providing additional incentives based on the merits of the project such as environmental protection standards, location of the factory in the industrial zone or estate, and research and development program. BOI will also abolish the current investment promotion based on zoning system and replace the current system with new regional clusters. Clear guidelines on key performance indicators, outcome of the project and cost-effectiveness of the investment will be used in evaluating the new applications rather than evaluation value of the investment.
Under this new investment promotion direction, the BOI has classified target industries into 10 categories for granting investment promotion which are: basic infrastructure and logistics; basic industry (i.e. steel, petrochemicals, pulp and paper, etc.); medical devices and scientific equipment; alternative energy and environmental services; services that support the industrial sector (i.e. research and development, human resources development, engineering design, software development, etc.); food and agricultural processing industries; hospitality and wellness; advance core technologies (i.e. biotechnology, nanotechnology, and others); and industries in which Thailand can be developed into global manufacturing base such as automotive and transportation equipment and electric and electrical appliances.
The BOI planned to remove a number of activity from the current list of activities eligible for investment promotion privileges. These are the activities that have low technology, low value-added output, less complex production process, low linkage with other industry, and labor intensive production. Also included in the remove list are activities that have high energy consumption and create environmental problems, having concessions or monopoly activities under state protection, and activities that are in conflict with the laws and regulations.
BOI's new investment promotion package is expected to be finalized by July 2013 in which there will be a transition period prior to the full implementation of the new strategy. The revised strategy will not have impact on currently promoted companies. All new applications submitted before the new criteria come into effects will be approved based on the current BOI policy. For more information please visit www.boi.go.th.
For more information, please contact:
INVESTMENT SERVICES CENTER
THE BOARD OF INVESTMENT
MINISTRY OF INDUSTRY
555 Vipavadee Rangsit Road, Chatuchuck 10900
SOURCE The Board of Investment of Thailand