BoI/Investment hub

Chatrudee Theparat

Thailand plans to announce the country to become No. 1 in Asean of printed circuit board manufacturing by this year.

The Board of Investment (BoI) has improved incentives to attract electronics investors to expand their PCB manufacturing to cover the entire supply chain. The agency expects to attract applications for promoted investment worth 100 billion baht this year.

Narit Therdsteerasukdi, BoI’s secretary general, said in order to further promote foreign investment in the manufacturing of printed circuit board (PCB), and cover the entire supply chain, the BoI approved a modification of the definition of qualified types of business, including manufacturers of parts and providers of related services such as lamination, drilling, plating, routing, and electrical testing.

The new PCB business definition also covers the producers of PCB parts such as copper clad laminate (CCL), flexible copper clad laminate (FCCL), and PREPREG, as well as the producers of raw materials such as dry film, transfer film, and backup board.

He said the policy is expected to attract the remaining 10 out of the top 20 global electronic companies to establish a production base in Thailand, as well as to attract existing electronic companies in Thailand to expand their investment, with projected additional applications worth 100 billion baht by this year. Currently, 10 of the top 20 global companies have already invested in Thailand.

“Under this policy, Thailand plans to announce the country to become the number one in Asean of printed circuit board manufacturing by this year.”

Narit Therdsteerasukdi

In 2023, the BoI approved investment promotion benefits to PCB projects by 40 companies representing a combined investment of US$2.66 billion, or around 96 billion baht which accounted for one third of total 350 billion baht of total electronic applications.

The applications for promoted investment came from companies based in China, Taiwan and Japan by moving their PCB production hub to Thailand, as week as Thai companies with more active role with investment in the industry. Currently, China and Taiwan investment accounts for 60% of the global PCB manufacturing.

The meeting, chaired by Deputy Prime Minister Parnpree Bahiddha-Nukara, also as chairman of the BoI, approved incentives to attract organizations in the country, which organize large international concerts, sporting events, and festivals that support the government’s vision to promote Thailand as a tourism hub, move aimed at bringing the entertainment sector as a tool to help the country’s tourism, hit by the covid-19 pandemic, recover fully.

The BoI will grant organizers of large international events by requiring an investment, or expenses, of not less than 100 million baht (USD2.8 million), an import duty exemption on equipment and will facilitate the temporary entry into the country of required foreign staff. Applicants will need to prove their ownership of the rights to organize the project applied for promotion. This measure does not cover the organization of conferences and trade shows.

“By unlocking the tax and regulatory issues, the BoI will facilitate the organization of world-class events, as that will significantly reduce the costs, lead time, and obstacles for organizers.”

He said previously BoI consulted to the operators of world-class events that obstacles of the organizing world event were an import of equipment and visa procedures for artists and team of an organizer.

“In doing so, we are playing our part in helping the next stage of development of the tourism sector, which is an important economic driver for Thailand, accounting for around 20% of GDP, and reaffirming the BoI’s mission to consistently emphasize the ease of doing business.”