Additional investment privileges are likely to be offered to seven business clusters to be located in special economic zones (SEZs).
Deputy Prime Minister Somkid Jatusripitak recently urged the Board of Investment (BoI) and Industry Ministry to speed up studying the possibility of offering additional privileges to those who invest in seven business clusters in SEZs, according to Charnvit Amatamatucharti, deputy secretary-general to the National Economic and Social Development.
The study is due to be completed within a month.
The seven business clusters are food processing, automotive and parts, electronics and parts, petrochemical, information technology, rubber and textiles.
The petrochemical cluster should be developed in Map Ta Phut after the National Industrial Development Committee agreed to maintain the industrial area in Rayong province at 30,000 rai.
The committee last month endorsed the Industry Ministry's proposal to reduce the present industrial area by 10,000 rai -- less than the 20,000 rai proposed by Map Ta Phut municipality.
Map Ta Phut municipality earlier proposed a new city plan halving the industrial area from 40,000 rai and designating 9,475 rai surrounding it as a buffer zone between industries and the community.
However, Mr Somkid said petrochemical industry development must be based on environment preservation.
"Mr Somkid has assigned the BoI and Industry Ministry to reconsider what privileges should be attractive enough to lure foreign investors," said Mr Charnvit.
"The privileges should be competitive to even entice those who plan to relocate their production base to other countries."
The agribusiness cluster will be the first cluster to be implemented because Thailand is rich in agricultural products.
Kanchanaburi and Songkhla are the most appropriate locations for agribusiness clusters.
Currently, investors in SEZs are entitled to generous BoI privileges including exemption from corporate income tax for eight years, a 50% tax reduction on net profit from investment over five years, double tax deductions for the cost of transport, electricity and water for 10 years and an additional 25% tax deduction for the cost of installation or construction of facilities.
Other privileges include exemption from import duties on machinery, a five-year exemption for raw or essential materials for use in the production of exports and a permit for the employment of unskilled foreign workers at promoted projects.
The BoI itself is proposing the reinstatement of investment privileges to consumer product makers who invest in SEZs.
Hiranya Sujinai, BoI secretary-general, earlier said returning investment privileges to makers of consumer products, which Thailand is famed for among consumers in neighbouring nations, would help stimulate actual investment in SEZs.
Privileges offered to consumer product makers were withdrawn early this year after the government announced the new seven-year investment strategy, which based privileges on the type of project, favouring those that support the digital economy such as high technology, research and development, design and specific industries in the same designated cluster.
Previous promotional privileges fell under zone-based incentives.