In order to address the effect of the pandemic on international investment in Thailand, the Eastern Economic Corridor (EEC) Office announced that it will rework and increase promotional privileges for five new S-curve industries – robotics; aviation and logistics; digital; biofuels and biochemicals; and medical services – which are expected to serve as growth engines to accelerate Thailand’s future growth.
Thailand’s Board of Investment (BOI) already offers corporate income tax exemption for 5-8 years for 12 targeted industries, including the five new S-curve industries (the other seven are smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; defense; and education development). The government is also planning to revamp regulations and licensing processes in the food and beauty industry.
During the first five months of 2020, the BOI reported investment applications in the three EEC provinces (Chachoengsao, Chon Buri and Rayong)amounting to THB 74.2 billion (USD 2.4 billion), a 10% year-on-year decline. Applications for 10 targeted industries, excluding defense and education, added up to THB 27.1 billion (USD 872 million) or 37% of the total, while the new S-curve industries accounted for THB 834 million (USD 26.8 million).
The aim is to increase investment applications for the corridor by THB 100 billion (USD 3.2 billion) yearly, for a combined THB 300 billion (USD 9.7 billion) between 2019 and 2021. Thailand’s government expects international investments to be driven by production shifts out of China, the country’s effective outbreak management and its investment attraction measures promoted through its diplomatic network.
(Source: Bangkok Post)
