The Board of Investment (BOI) of Thailand has announced a series of significant updates to its investment promotion measures, targeting both the digital technology sector and other strategic industries. These changes, approved on 14 June 2024, represent a comprehensive approach to fostering innovation, sustainability, and economic growth across multiple sectors.

Digital Technology Sector Enhancements:

The BOI has revised its promotion categories for digital technology businesses, particularly focusing on software development, digital platforms, and digital content (Category 8.1). Projects in this category must have a minimum investment of 1.5 million baht per year in IT personnel salaries. Eligible companies can receive corporate income tax exemptions based on qualifying expenses, including salaries for new IT staff, training costs, and quality certification expenses.

For digital infrastructure, the Data Center category (8.2.1) has been updated with specific technical requirements, including a minimum IT load capacity of 2 MW and high-speed communication links. Data Centers meeting these criteria are eligible for Category A1 investment incentives.

New Investment Categories:

1. EV Battery Service Centers: A new category has been introduced to cover service centers for the repair, repack, and reuse of used electric vehicle (EV) batteries and energy storage systems. This addition complements the BOI’s existing EV supply chain policy and incentives, supporting the growing EV industry in Thailand.
2. Data Hosting Business: To meet the rising demand for data hosting services and support the digital industry’s development, the BOI has approved a new category specifically for this business activity. This aligns with Thailand’s ambition to become a regional hub for digital services.
3. Quarantine Facilities for Animals: A new promotion package has been approved for quarantine facilities for animals intended for export. This measure aims to enhance quarantine and certification services for the international trade of livestock, improving Thailand’s competitiveness in the agricultural sector.

Automotive Sector Incentives:

The BOI has approved new incentives for automotive parts manufacturers. These incentives are designed to encourage:

1. Upgrading of technological capabilities
2. Improvement of productivity
3. Transition of operations to serve new industries, such as medical equipment or aviation sectors

This move aims to support the automotive industry’s evolution and diversification, ensuring its continued competitiveness in the global market.

These comprehensive updates to the BOI’s investment promotion measures reflect Thailand’s commitment to fostering innovation, environmental sustainability, and technological advancement across multiple sectors. By offering targeted investment incentives, Thailand aims to position itself as a hub for future-focused industries and a leader in Southeast Asia’s economic landscape.

The new measures are expected to attract both domestic and international investors, contributing to Thailand’s economic growth and sustainability. Investors and entrepreneurs are encouraged to capitalize on these opportunities to participate in Thailand’s dynamic and evolving economy.

Key Takeaways:

1. New investment categories were introduced for EV battery service centers and data hosting businesses.
2. Quarantine facilities for animal export are now eligible for promotion.
3. Enhanced incentives for automotive parts makers to upgrade technology and diversify.
4. Digital technology sector promotions updated, focusing on software development and data centers.
5. These measures aim to boost Thailand’s competitiveness in key industries and support economic growth.