The continuous development of Thai industries is driven by different government measures that mainly aim to boost investment from both the government and private sectors. The Eastern Seaboard is a tangible outcome of the government's promotion and support of industrial investment. The Eastern Seaboard is the largest industrial area in Thailand. Investment in this area creates jobs, adds significant value to the economy, continuously attracts foreign direct investment, affects economic growth and expands GDP.
Since 1997 Thai industry has been affected by several economic crisis, including Tom Yam Kung Disease in 1997, the subprime crisis in 2008 and the recent global oil price crisis which led to a slow-down in private sector investment in industry.
The government aims to improve the capacity and competitiveness of industry in Thailand by determining targeted industries for promotion, encouraging utilization of advanced technology, supporting R&D activities and strengthening the value chain of industries. Moreover, the government is pushing forward cooperation among academic and research institutions under the cluster policy.
The Board of Investment has two types of cluster policies: Super Cluster and other targeted clusters. Super Cluster includes clusters of activities using advanced technologies and clusters of future industries, for example:
1) Automotive & Parts
2) Electrical Appliances, Electronics & Telecommunication Equipment
3) Eco-friendly Petrochemicals & Chemicals
4) Automation & Robotics
5) Aerospace
6) Food Innovation
7) Digital
8) Medical Hub
Each relevant cluster shall be located in designated provinces.
Other targeted clusters include for example:
1) Agro-processing -- Targeted areas in different regions:
- Northern region (processed vegetables and fruits, herbal products)
- Northeastern region (livestock, tapioca, sugar cane, maize)
- Lower-central region (sugar cane, pineapple, rubber)
- Eastern region (processed fruits, rubber)
- Southern region (palm, seafood, rubber)
2) Textiles and Garments -- targeted activities for textiles and garments clusters include production of natural and synthetic fibres, yarns or fabrics, garments, apparel and textiles, creative design and product development
Moreover, the Board of Investment promotes over 10 types of business activities which support and strengthen cluster development, including loading and unloading facilities for cargo ships, commercial airports, rail transports, international distribution centres (IDC), research and development and others. Each relevant activity shall be located in designated areas.
Investment Incentives for Industrial Clusters
In order to develop human resources and improve technology skills, promoted investors must have cooperation arrangements with academic institutions, research institutions or centres of excellence in the designated areas
Applications must be submitted by the end of 2016 and revenue must be generated by the end of 2017 (extension may be possible if deemed appropriate).
www.boi.go.th
E-mail: head@boi.go.th
Tel: 0 2553 8111
Application: BOI Thailand
