The Board of Investment (BoI) has agreed to enforce a new investment regime by the beginning of 2015, giving more than 19 months for investors to adjust their investment plans to comply with the upcoming industrial-preference criteria.
The BoI board meeting on Friday chaired by Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong agreed investment applications submitted from now to the end of next year are subject to incentives under the current zone-based investment policies. It also feels the new investment criteria will make Thailand a more attractive investment destination.
Industry Minister Prasert Boonchaisuk said the drafting process of the new criteria will be completed this December with a prospect of implementing it starting in 2015. One goal is to enhance transparency in investment and development processes.
Unlike the previous strategy that covers all industrial sectors, the new strategy focuses on 10 targeted sectors including aviation, food processing, hospitality and wellness, infrastructure, logistics, and renewable energy, he said.
The BoI will also support the creation of new regional clusters under the new strategy, aimed at enhancing the development of industrial zones, said Mr Prasert, adding that industries producing non-value-added products and having dreadful environmental records will be gradually reduced.
To increase Thailand's competitiveness in terms of investment, revising rules and regulations is an ideal solution, said BoI secretary-general Udom Wongwiwatchai.
Thai firms will be encouraged to invest and expand abroad given the revised rules, which should be completed before 2015.
Despite the 2011 flood crisis, BoI data shows Thailand remains an attractive location for foreign investment, generating total investment of 510 billion baht for 747 projects in the first four months this year.
Investment value surged by 80% and the number of projects by 26%.