An important player in Thailand’s economic scene, the Thailand Board of Investment (BOI) promotes FDI and acts as a growth engine for the country’s economy. Established with a mission to attract and facilitate investments, the BOI plays a crucial role in propelling Thailand’s industrial and technological advancements. In order to better understand the Thailand Board of Investment and its crucial role in encouraging company expansion and development, this article explores the board’s relevance, duties, incentives, and application procedure.
I. Board of Investment in Thailand: Its Origin
The Thailand Board of Investment has been in operation since 1954 and reports directly to the Prime Minister’s Office. The government of Thailand established it to promote and ease investment in key sectors for both domestic and international companies.
II. Our Goals at BOI
A. Encouraging Investment: Securing capital for sectors that contribute to Thailand’s economic growth is the main objective of the BOI.
B. Economic Competitiveness: The Bank of Thailand (BOI) offers various incentives with the goal of making Thai industries more competitive internationally.
C. Promoting Technological Progress: The BOI promotes the use of cutting-edge technology and innovation to boost industrial growth and productivity.
III. Priority Industries and Investment Promotion
The BOI classifies industries into various categories, offering different sets of incentives to attract investments. Priority industries include sectors like manufacturing, agriculture and agro-industry, mining, and services.
IV. BOI Investment Incentives
A. Tax Privileges: The BOI provides industry- and location-specific tax breaks, such as reduced corporate income taxes or exemptions, for a set period of time.
B. Import Duty Exemption or Reduction: For certain projects, import duties on machinery, raw materials, and essential components may be waived or reduced.
C. Land Ownership and Use Rights: A right to own land for promoted activities, which is otherwise restricted, can be granted to foreign investors.
D. Permission for Foreign Workers: The BOI grants permissions for foreign specialists, technicians, and skilled workers to work in Thailand.
V. Application Process
A. Eligibility and Project Proposal: Investors must meet the eligibility criteria and submit a comprehensive project proposal detailing their investment plan.
B. BOI Application Submission: The application, along with the required documents, is submitted to the BOI.
C. BOI Evaluation and Approval: The BOI reviews the application, and upon approval, the investment project is granted BOI promotion privileges.
VI. BOI and Economic Growth
The BOI has been instrumental in attracting a substantial influx of foreign direct investment, catalyzing industrial expansion, technological advancement, and job creation in Thailand.
VII. Challenges and Future Endeavors
While the BOI has played a pivotal role in Thailand’s economic development, it continues to evolve to address new challenges and capitalize on emerging opportunities in the global business landscape.
The Thailand Board of Investment remains a cornerstone of Thailand’s economic success, driving investment, technological advancement, and industrial growth. The Board of Investment (BOI) maintains Thailand’s status as a worldwide market competitor by attracting both domestic and international investors with a variety of incentives. As it adapts to new economic landscapes and embraces emerging industries, the BOI stands poised to play a pivotal role in Thailand’s future economic prosperity.