The Board of Investment (BoI) on Monday approved a combined 209.5 billion baht worth of investment applications in manufacturing and infrastructure projects, including 36.1 billion baht by Horizon Plus Co, a joint venture between Taiwan's Foxconn and Thailand's PTT Plc, to make battery electric vehicles (EVs).
The board also approved enhanced benefits for investments in battery production, an improved package for the promotion of investment in smart industrial estates and zones, and an incentive package for upgrading existing industrial estates and zones.
"The rollout over the last three years of measures to boost investment in EVs is already showing clear results and by improving the incentives for battery production, an essential element of the industry's transition, we hope to strengthen the supply chain," said Duangjai Asawachintachit, the BoI's secretary-general.
Both existing and new projects using advanced technology in the production of EV batteries, from battery cells to battery modules, and in the production of high-energy density batteries now enjoy a 90% reduction in import duties on raw and essential materials for five years if the output is sold domestically, Ms Duangjai said.
A total of 16 projects with a combined investment value of 4.82 billion baht from 10 different companies have been granted promotion benefits for investment in the manufacture of EV batteries. Another three projects with a combined investment value of 6.75 billion baht have been promoted for investment in high-energy density batteries, she said.
Ms Duangjai said to apply for promotion or upgrade conventional facilities to smart industrial estates/zones, the projects must provide intelligent system services to customers in five key areas: smart facilities, smart IT, smart energy, smart economy, and at least one of smart good corporate governance, smart living or smart workforce.
Promotional benefits now extend to investments in the development of smart systems for use in industrial estates and zones. Approved projects are granted an eight-year corporate income tax exemption, and those located in the country's Eastern Economic Corridor enjoy a 50% corporate income tax reduction for an additional five years.
While investments in smart industrial estates and zones require at least 51% Thai shareholding to qualify for the benefits, there is no shareholding limit for investments in smart systems.
To facilitate the operations of overseas firms investing in Thailand, the board also approved a measure allowing BoI to promote foreign juristic persons with registered and paid-up capital of at least 50 million baht to own land to set up offices and residential quarters for executives and foreign experts.
"This is a major step as land ownership is essential in attracting foreign investment," she said.