Which Industries is the Board of Investment targeting?
The whole purpose of the Board of Investment is to encourage investment in Thailand for the long term benefit of Thailand. Therefore some industries are not eligible to join the Thai Board of Investment as they are not seen as being in the long term interests of the country. The industry sectors that are eligible however are quite broad and as mentioned in other articles comprise of the 7 following groups:
Agriculture and Agricultural Products
Modern farming methods are encouraged as much of Thailand is still very rural. If western farming methods are products can help get the most out of the land, this can only be good in the long term.
Mining, Ceramics and Basis Metals
Mining, ceramics and basic metals are another area that Thailand can benefit from western knowledge. The country has large reserves of natural resources waiting to be tapped into, hopefully generating more income for Thailand as a whole.
Light industry is something that Thailand has previously had little experience – so is making the most of foreign skills and experience to develop in these areas.
Metal Products, Machinery and Transport Equipment
Machinery and tools are something that Thailand has in abundance, but many of the machines are out dated and not in line with modern standards. Foreign companies are again coming into help train staff and make the most of an already knowledgeable workforce.
Electronic Industry and Electrical Appliance
This is an area where many Far Eastern countries such as Japan and Korea can come in and share their knowledge. This is an area that for decades they have been market leaders in and can now use this to help Thailand develop.
Chemicals, Paper and Plastics
Another area that companies will be looking to take full advantage of Thailand’s natural resources. Foreign companies will bring their skills to help Thailand make the most from all the natural resources that are available, many of which are used to make these products.
Service and Public Utilities
The service industry is an area that Thailand had previously had little experience. Using the experience of overseas countries they too can become competitive and attractive propositions in the service industry and public utilities.
All of these 7 industries area areas where the Thai government and in particular the Board of Investment see as areas that foreign influence can help the country to develop. Obviously, this has article has given a slightly one sided view of the benefits that Thailand gets but individual companies are encouraged to come in and help in return for these incentives which will hopefully enable them to turnover tidy profits. If you’re interested to learn how your business can benefit from the Board of Investment promotion scheme, contact the team at Sutlet Group today.
The information provided is correct at the time of writing but is subject to change. It is always advisable to speak to an expert to get correct, up to date advice prior to commencing your business.