Executive Talk with BOI

Chatrudee Theparat

BOI’s investment promotion strategy revision planned challenged by global factors

The Board of Investment will revise its investment promotion strategy (2023-2027) to conform five global trends.

Secretary General to the Board of Investment (BOI), Narit Therdsteerasukdi said the BOI board meeting chaired by Deputy Prime Minister Panpree Bahiddha-Nukara this October 10, the agency will propose the board to revise the investment promotion strategy (2023-2027) for the remaining four years.

Approved in October last year, the investment promotion strategy during the year of 2023-2027 was aimed at promoting investment to restructure the country’s economy around three core concepts of innovation, technology and creativity; competitiveness and the ability to adapt quickly and inclusiveness, taking into account environmental and social sustainability.

“The investment strategy was implemented for a year, five factors of the global trend has challenged the movement of global investment. So, Thailand should revise its investment promotion strategy to drive foreign direct investment in the rest of four years.  The strategy revision will keep focus on the targeted industries that Thailand should promote and create powerful tools to attract them.”

He said the five challenges included geopolitical tension, climate change, technological change to digital, demographic change to aging society and the new tax rules of the Organization for Economic Co-operation and Development (OECD).

The challenges have caused a relocation of production bases and offered new opportunities for new investment to companies such as green investment and green logistics, clean energy, investment for carbon neutrality and net zero, as well as those in need to transform their production to automation and smart manufacturing.

“Those factors have caused a trend of global investment movement to Southeast Asia. And Thailand shines out as an outstanding country with strong points of good location, quality infrastructure ranging from logistics system, deep seaport, airports and industrial estates, supply chain such as automotive and electronic industries, as well as quality human resources.  In addition, the country is still high potential to supply clean energy and a significant point as the safe zone in the region because of having no conflict to other countries.”

He said Thailand should focus on technology- based industry because our workforce is shrinking due to the coming aging society and should upgrade the country’s value chain.
So far, the country is quite successful to develop supply chain, especially automotive industry which is currently on the road to shift to electrical vehicles (EVs). The government will put more attempt to attract more EVs manufacturers to invest in Thailand after many manufacturers have already established factories here.

“We are in the process of negotiating to big manufacturers to establish production base here. I’m confident that the country can achieve the target to become the top ten of the world of EVs, thanks to the government’s ongoing supporting plan to build the eco-system of EVs.”

Regarding to electronics industry, the government is in talks to wafer fabrications-upstream industry of electronics- to invest in Thailand. The government will create incentives schemes as tool to attract wafer fabrication manufacturing, including to support human resource, tax exemption, energy supply, and financial support with the competitiveness enhancement fund.

“Adding bio-circular-green industry (BCG), medical and digital are also on the list for BOI to attract investors to pour their investment here”

Furthermore, BOI plays a significant role to support the match-making scheme among foreign companies and Thailand’s supply chain to shift to automation system and high technology aimed
at enhancing and upgrading the role of Thailand’s 2000 supply chain in the global supply chain.

Mr. Narit said the outstanding role of Thai Prime Minister Srettha Thavisin is head of the country’s team to tap foreign investors because this role can create more confidence among foreign investors.

The latest Thai PM visit to the US to attend the 78th session of the United Nations General Assembly in New York last week, Mr. Srettha met executives of Microsoft Corp and Google in order to convince the US companies to invest in Thailand. This is a big effort of Thai government to help boost Thai economy.

The prime minster will meet international investors in countries soon, including the official visit to China this October, Saudi Arabia, Asia-Pacific Economic Cooperation (APEC) Leaders’ meeting between Nov 15-Friday 17, 2023 in San Francisco, the US and Japan by the end of this year.