The Thailand Board of Investment (BOI) has introduced new measures to promote high-potential startup businesses in targeted industries. These measures, outlined in the Notification of the Commission on the National Competitiveness Enhancement for Targeted Industries Policies no. 2/2567, aim to foster innovation and enhance Thailand’s competitiveness in key sectors.

Background:

The National Competitiveness Enhancement for Targeted Industries Fund, established under the BOI, focuses on supporting business projects in 13 targeted industries. These industries include Digital, Smart Electronics, Agriculture and Biotechnology, High Value-Added Food Processing, Medical Hub, Robotics, Aviation, Tourism, Next-Generation Automotive, Biofuels and Biochemicals, Circular Economy, Defense Industry, and Human Resource Development & Research for Targeted Industries.

Eligibility Criteria:

To qualify for support under these new measures, startups must meet the following criteria:

1. Legal Structure: Be a juristic person established under Thai law, with Thai individuals or juristic persons holding at least 51% of shares, and the Startup Founder holding at least 60% of shares.
2. Industry Alignment: Operate within one of the targeted industries determined by the Commission.
3. Venture Capital Investment: Have secured at least 15 million Baht from Venture Capital (VC) and/or Corporate Venture Capital (CVC) investors.
4. Innovation Focus: Demonstrate high potential through a detailed business plan introducing new products, services, technologies, or advanced production processes.
5. Exclusive Government Support: Not receive monetary support from other government agencies for the same project.

Benefits for Eligible Startups:

Qualified startups can access the following benefits:

1. Innovation Support: Receive up to 20-50 million Baht for innovation development, not exceeding the amount invested by the Listed VC registered with the National Innovation Agency (NIA). This support is disbursed in two parts over a period not exceeding 3 years:
   • Part 1: 50% of the support upon receiving the specified investment from the Listed VC registered with the National Innovation Agency (NIA).
   • Part 2: The remaining 50% upon meeting specified business indicators.
2. Foreign Talent Access: Obtain permission to bring in foreign experts with facilitated visas and work permits.

Key Takeaways:

1. The BOI is actively promoting high-potential startups in 13 targeted industries crucial for Thailand’s economic development.
2. Eligible startups must have significant Thai ownership, secure substantial VC/CVC funding, and operate in targeted industries.
3. The support package includes substantial financial aid for innovation development, with up to 50 million Baht available.
4. The initiative facilitates access to foreign talent, addressing potential skill gaps in the startup ecosystem.
5. This program aims to position Thailand as a regional innovation hub and drive economic growth through technology advancement.
6. The measures reflect Thailand’s commitment to fostering a vibrant startup ecosystem and enhancing its global competitiveness in key industries.

By implementing these measures, the BOI seeks to accelerate innovation, stimulate growth, and enhance Thailand’s competitiveness in targeted industries. This initiative underscores the vital role of startups in driving economic development and technological advancement in the country.