Since 2019 a total of 116 investment promotion applications for food processing and drinks manufacturing projects in Thailand have been registered, totaling USD 600 million according to data from the Thailand Board of Investment (BOI). For the first half of 2020, despite the COVID-19 outbreak, a total value of USD 184 million worth of investment applications have been submitted to the BOI, demonstrating Thai and international food companies’ confidence in Thailand’s resilient food sector.
The investments focus on manufacturing of food products, including seasonings, plant-based proteins, semi and ready-to-eat food, frozen meats and fruits, processed salmon, cricket powder, healthy beverages and UHT yogurt.
Under the government’s “Thailand 4.0” strategy, which includes high-tech food processing as one of the key industries, the Thai government offers incentives to investors within its local food sector, including exemption of corporate income tax for up to eight years and “smart visas” that enable investors and key employees to stay in the country for up to four years.
Food industry generates about 20% of Thailand’s GDP and despite the disruption caused by the virus to the world supply chain, the country’s food factories remained open and food supply chains intact with agricultural and agro-industrial exports growing by 2.5% in May 2020, with frozen and processed fruit and vegetable exports jumping by 83 % during the same period.
(Sources: BOI; FoodIngredientsFirst; PRNewswire)