New Investment Strategies

(07/11/2012)

The Board of Investment (BOI) has launched new investment strategies, with an emphasis on promoting various sectors of the creative industry and environmentally friendly practices. BOI Secretary-General Udom Wongviwatchai said that the strategies were intended to attract more investment in target industries and investment projects classified as industries of the future. Apart from creative industries, these industries include “green” industries, high value-added industries, alternative energy development, tourism, health service, and logistics. The direction of the investment policy also aims to bring about balances in the country’s economic, social, and environmental development, especially in agricultural, industrial, and service sectors. The BOI Secretary-General said that the investment promotion policy would not be measured by only the value of investment projects seeking promotional privileges from BOI. The projects must also contribute to Thailand’s development and be in line with global industrial trends. Concerning creative industries, they can be defined as the cycles of creation, production, and distribution of goods and services that use creativity and intellectual capital as primary inputs. A study shows that nine creative industries have contributed about 10 percent of Thailand’s economy and could grow quickly with strengthened value chains. The nine creative industries include printing and publishing, information technology, wooden furniture, medicines, jewelry, research, movie production, movie theaters, and radio and television. In the new investment strategies, BOI will increase promotional privileges for investment in research and development and environmental management. The existing zone-based incentives will be scrapped, while the promotion of clusters of industries in each area will be emphasized. The strategies, to be implemented from 2013 to 2017, also seek to improve existing rules regulations in order to create an atmosphere conducive to investment through non-tariff incentives and full-cycle services. In addition, Thai investors will be encouraged to invest more in foreign countries. According to BOI, the number of investment project applications from January to September 2012 exceeded the set target. Investors sought BOI promotional privileges for a total of 1,583 projects, valued at 804 billion baht, during the nine-month period. The number of projects represents an increase of 21.6 percent over the same period of 2011, when only 1,302 projects were submitted. The investment value accounts for a rise of 97 percent, compared with only 407 billion baht recorded in the same period of 2011.