Thailand has long been known as a hub for foreign investment due to its favorable economic climate, skilled workforce, and competitive costs. In recent years, the country has made significant strides in further enhancing its business environment by rolling out various economic and investment policies. One such policy is the approval of new investment opportunities by the Board of Investment (BOI), which aims to attract more foreign investment into the country. In this blog, we will explore some of the new investment opportunities approved by the BOI in Thailand and why they are attractive for foreign investors.
The Board of Investment (BOI)
In Thailand recently approved new investment opportunities in various industries, providing a significant boost to the country’s economy. These new opportunities are expected to create jobs, increase exports, and attract more foreign investment to Thailand. In this article, we will discuss the different investment opportunities approved by BOI and their potential impact on Thailand’s economy.
Here are some of the new investment opportunities that have been approved by the BOI:
Thailand’s government has prioritized the development of its digital infrastructure and technology sector. The BOI has approved investment opportunities in areas such as digital platforms, e-commerce, software development, and data centers. These investments will help Thailand’s digital economy to grow and become more competitive on the global stage.
In recent years, Thailand has seen a surge in the adoption of digital technologies, with the number of internet users increasing from 49 million in 2018 to 59 million in 2020. This growth has been driven by the increasing popularity of e-commerce platforms such as Lazada and Shopee, which have become some of the largest e-commerce platforms in the region.
Thailand’s government has recognized the importance of digital technology to the country’s economic development and has set ambitious targets for its growth. The government aims to have 60% of the country’s small and medium-sized enterprises (SMEs) using digital technology by 2022 and to increase the value of Thailand’s digital economy to 25% of GDP by 2027.
Investors who are interested in Thailand’s digital technology sector can take advantage of several incentives offered by the BOI. These incentives include corporate income tax exemptions for up to eight years, import duty exemptions for machinery and raw materials, and streamlined procedures for obtaining permits and licenses.
Thailand is already well-known for its high-quality healthcare services, and the country is now aiming to become a leading destination for medical tourism. The BOI has approved investment opportunities in medical services, such as hospitals, clinics, and wellness centers. Investors can take advantage of Thailand’s skilled healthcare professionals, modern facilities, and competitive costs.
Thailand has been a leading destination for medical tourism for many years due to the high quality of its healthcare services, modern facilities, and competitive costs. The BOI has approved investment opportunities in medical services, such as hospitals, clinics, and wellness centers, to further enhance the country’s reputation as a destination for medical tourism.
Thailand’s medical tourism industry has been growing steadily in recent years, with the number of medical tourists increasing from 2.81 million in 2018 to 3.42 million in 2019. This growth has been driven by the country’s high-quality healthcare services, which are available at a fraction of the cost of similar services in the West.
Investors who are interested in the medical tourism industry can take advantage of several incentives offered by the BOI. These incentives include corporate income tax exemptions for up to eight years, import duty exemptions for machinery and raw materials, and streamlined procedures for obtaining permits and licenses.
Agriculture and food processing:
Thailand has a strong agricultural sector, which accounts for around 8% of the country’s GDP and employs over 40% of the population. The BOI is encouraging investment in areas such as food processing, biotechnology, and aquaculture to further strengthen the country’s agricultural sector.
Thailand is already a major exporter of agricultural products, including rice, rubber, and seafood. However, the country is looking to further develop its agricultural sector and increase the value of its agricultural exports. In recent years, the government has been promoting the use of advanced agricultural technologies and biotechnology to enhance productivity and reduce costs.
Investors who are interested in the agriculture and food processing sector can take advantage of several incentives offered by the BOI. These incentives include corporate income tax exemptions for up to eight years, import duty exemptions for machinery and raw materials, and streamlined procedures for obtaining permits and licenses.
- Alternative energy: Thailand has set a target of generating 25% of its energy from renewable sources by 2037. The BOI has approved investment opportunities in areas such as solar power, wind power, and biomass energy. These investments will help to reduce Thailand’s reliance on fossil fuels and contribute to the country’s efforts to combat climate change.
- Infrastructure: Thailand has ambitious plans to improve its infrastructure, including the construction of new airports, highways, and railways. The BOI has approved investment opportunities in these areas, as well as in logistics, transportation, and telecommunications. These investments will help to improve connectivity and support the country’s economic growth.
In addition to these specific investment opportunities, the BOI offers a range of general incentives to investors, including:
- Tax exemptions: Depending on the level of investment, investors can enjoy up to 8 years of corporate income tax exemption.
- Import duty exemptions: Investors can import machinery and raw materials duty-free.
- Work permit and visa facilitation: The BOI offers fast-track work permit and visa processing to foreign investors and their employees.
- One-stop service: The BOI provides a one-stop service center for investors, which streamlines the process of obtaining permits and licenses.
The BOI has also approved investment incentives for companies that invest in the production of renewable energy and energy storage systems. This is part of Thailand’s commitment to sustainable development and reducing carbon emissions. Investors who are interested in green technology and sustainability could find this opportunity particularly attractive.
Overall, these new investment opportunities approved by the BOI in Thailand offer a range of potential benefits to investors, including tax incentives, investment promotion privileges, and streamlined procedures for business registration and operation. With Thailand’s strategic location, business-friendly environment, and growing economy, it is a promising destination for investors looking to expand their business and tap into new markets.
Thailand’s new investment opportunities are a testament to the country’s commitment to economic growth and development. By targeting key sectors and offering attractive incentives, the BOI is positioning Thailand as an attractive destination for foreign investment. As the country continues to develop and modernize, these investment opportunities are likely to become even more attractive to investors looking for new growth opportunities.
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