Thailand EV hub ambition recharged by soaring investment: BOI
Thailand’s ambition to become a regional hub for three industries – electric vehicle (EV) manufacturing, upstream electronic manufacturing, and digital and creative – has received a significant boost from soaring investment, the Board of Investment (BOI) reports.
The BOI informed caretaker PM Prayut Chan-o-cha recently that total investment value surged to 185.7 billion baht from January to March, up 77% from the same period last year.
The BOI was briefing Prayut on new incentives and tax measures to lure investment in EV, upstream electronics, the digital and creative, and BCG (bio-circular-green) businesses, government spokesman Anucha Burapachaisri said on Sunday.
To support the growth of small and medium-sized enterprises (SMEs) in the supply chain for these three industries, the BOI has implemented six measures:
1. SMEs engaged in technology and innovation-related businesses are granted a full exemption from corporate tax up to 200% of their investment.
2. SMEs that achieve sustainability targets by utilising alternative energy and minimising environmental impact are eligible for a corporate tax exemption on 50% to 100% of their investment for up to three years.
3. Large corporations are exempted from corporate tax at a rate of 200% of the value of the financial assistance they provide to SMEs.
4. Large corporations are eligible for 200% corporate tax reduction on financial support they provide to communities to develop farming and water resources, community tourism, education and public health, as well as the environment.
5. Tax privileges will be granted to SMEs that invest in the 20 provinces with lowest per capita income.
6. Subcon Thailand, BOI’s online business-matching system for manufacturers and suppliers, will enhance SMEs’ participation in global supply chains for the EV, electronics, machine, and automation industries. The platform has successfully matched 8,500 pairs of companies, leading to trade worth 20 billion baht.
The BOI is also offering guidance to SMEs’ seeking international expansion through its training course called “Thai Overseas Investment Support Centre”, the spokesman added.
