Tag: Digital Platform

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Thailand’s BOI Incentives: Driving Business Competitiveness

Thailand’s Board of Investment (BOI) has introduced targeted incentives aimed at boosting the competitiveness of eligible businesses across various sectors in the local market. Here is a breakdown of the key programs and their benefits:

  • Upgrading Automotive Industry (BOI’s Notification No. 2/2566)

Existing BOI-promoted automotive projects can reapply for a 3-year corporate tax exemption if their previous benefits have expired. They must invest at least 1 million THB in automation and robotics manufacturers (excluding land and working capital). The new investment project must support the domestic industry by 30% of the total automation system and robotics value to qualify for a 3-year corporate income tax exemption.

  • Community and Social Development (BOI’s Notification No. 1/2567)

Active projects and new investment projects must have a minimum capital investment of 5 million THB (excluding land and working capital costs). Additionally, they must invest a minimum of 500,000 THB in supporting local organizations, such as social enterprises and unions, to qualify for a 3-year corporate income tax exemption.

  • Retention and Expansion Program (BOI’s Notification No. 2/2567)

Businesses with a long-standing presence of not less than 15 years and a significant investment history of not less than 10,000 million THB from at least 3 projects can get benefit from this program. Expansion projects with an investment value of at least 500 million THB (excluding land and working capital costs), will receive corporate income tax exemptions of 3 up to 13 years depending on the business’s category. The range of tax exemptions varies depending on the businesses categorized by the BOI office.

person in welding mask while welding a metal bar
  • Comprehensive Relocation Program  (BOI’s Notification No. 3/2567)

To encourage foreign investors in relocating integrated businesses, including manufacturing facilities, regional headquarters, and research and development centers, new investments that are eligible to receive BOI incentives of 3 up to 8 years of corporate income tax exemption under this promotion must submit manufacturing projects applications for investment promotion of the International Business Center (IBC) and an applicant must undertake the substantial functions of regional headquarters and/or R&D centers as indicated.

  • Economic Recovery  (BOI’s Notification No. 4/2567)

The activities categorized in group A such as businesses related to public utilities or the automotive industry are entitled to receive corporate income tax exemption not exceeding 8 years with the additional rights and benefits of 50% reduction from the standard corporate income tax rate applies to net profits derived from the investment for a duration of 5 years after the expiration of the corporate income tax exemption.  

Author: Panisa Suwanmatajarn, Managing Partner.

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BOI’s Vision: Thailand as a World-Class Events Hub and Electronics Powerhouse

Thailand Board of Investment (“BOI”) is committed to positioning Thailand as a hub for organizing events and electronics powerhouse under significant measures in place which are: 1) promoting investment in events such as music festivals, sports, and international festivals, and 2) promoting investment in Printed Circuit Board (“PCB”) businesses.

  1. Promoting investment in events such as music festivals, sports, and international festivals

To recover the country’s tourism and entertainment sectors from the COVID-19 crisis, BOI grants incentives to attract world-class events by offering benefits to organizers of large international concerts, sporting events, and festivals with investments or expenses not less than THB 100 million (approximately USD 2.8 million). These benefits include exemptions from import duties on equipment to be used in such an event and easing the process of obtaining a visa and work permit for the foreign staffs.

  • Promoting investment in businesses related to Printed Circuit Board (“PCB”) businesses

Thailand Board of Investment has endorsed incentives to boost foreign investment for three supply chain sectors related to PCB businesses as follows:

  • Businesses involved in supporting PCB production processes such as lamination, drilling, plating, and routing;
    • Key manufacturers for PCB production, including flexible CCL (FCCL), copper-clad laminate (CCL), and prepreg; and
    • Producers of essential materials and supplies for PCB manufacturing businesses such as dry film, transfer film, and backup boards.

These supply chain sectors for PCB businesses will be eligible for exemptions on import duties for raw materials and machinery used in product exportation. Additionally, they may qualify for corporate tax exemptions for up to 8 years, based significantly on the materials, technology, and investment scale.

These measures cover a wide range of PCB-related businesses, including producers of PCB components and manufacturers of raw materials, and aim to enhance Thailand’s competitiveness in the electronics manufacturing sectors, the entertainment sectors, and the event industry sectors which in correspond with the Cabinet’s vision – Ignite Thailand – to elevate Thailand into a global hub for major events, aiming to attract the tourists from around the world. These incentives have been granted to those events and PCB related businesses by the BOI since 28 March 2024, enabling the BOI to promote the aforementioned businesses in Thailand.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s e-Workforce Ecosystem Platform: Empowering the Digital Workforce for Industry 4.0

Thailand’s e-Workforce Ecosystem Platform: Empowering the Digital Workforce for Industry 4.0

As Thailand embarks on its ambitious journey towards becoming an innovation-driven economy under the Thailand 4.0 policy, the development of a skilled digital workforce has emerged as a critical priority. To address this challenge, the Ministry of Digital Economy and Society (MDES) has spearheaded the establishment of the e-Workforce Ecosystem Platform (EWE Platform), a comprehensive initiative aimed at building and strengthening the country’s digital talent pool.

The EWE Platform serves as a central hub for skill development, job matching, upskilling, and reskilling programs, catering to the evolving needs of the digital age. Its primary objectives include equipping Thai workers with the necessary digital competencies, facilitating the efficient allocation of skilled talents, and fostering a collaborative ecosystem among various stakeholders.

At the core of the platform lies a robust training infrastructure that offers a wide range of online courses, workshops, and resources focused on high-demand digital skills. These include areas such as data analytics, cybersecurity, cloud computing, and programming, enabling workers to acquire the knowledge and expertise required to thrive in the Industry 4.0 era. Furthermore, the EWE Platform serves as a job-matching marketplace, connecting skilled workers with employers seeking digital talents. This function not only assists companies in fulfilling their talent requirements but also provides opportunities for skilled individuals to find suitable employment opportunities aligned with their expertise. Recognizing the rapidly changing job market landscape, the platform also offers upskilling and reskilling programs, empowering existing workers to adapt and acquire new skills in response to evolving industry demands. This proactive approach ensures that Thailand’s workforce remains agile and competitive in the face of technological disruptions.

Underpinning the EWE Platform is a collaborative ecosystem that brings together various stakeholders, including educational institutions, training providers, government agencies, and private companies. This synergistic approach fosters knowledge sharing, resource optimization, and the development of comprehensive talent development strategies. Moreover, the platform facilitates talent mobility, enabling skilled workers to move across different industries and regions within Thailand and ensuring efficient distribution and utilization of digital talents throughout the country.

To expand the EWE Platform’s reach and impact, The MDES has appointed the Thailand Professional Qualification Institute (TPQI) to oversee national reform activities affecting the country’s integrated workforce management system. The reform plan for culture, sports, labor, and human resource development suggests linking government agencies’ online and offline training curriculums and workforce information to the platform system, allowing officers from all agencies to register on the platform.

monochrome photo of triangle shape digital wallpaper

Target individuals, students, job seekers, freelancers, retired seniors, vulnerable citizens, employers, and government agencies can now benefit from the EWE Platform through the official website of TPQI, which connects workforce data from each agency into big data and creates six key features: a digital competency credit bank to gather knowledge and work experiences; career guidance and skill check to assess users’ skills; an e-coupon to support those in need of upskilling, reskilling, or creating new skills through digital wallet (Paotang); an e-portfolio to record experiences; job matching to connect employers and skilled workers; and labor market data for planning workforce policy for future national improvement.

As the driving force behind this ambitious initiative, the MDES has undertaken a multifaceted role, encompassing policy formulation, funding allocation, stakeholder collaboration, promotion, and performance monitoring. The ministry’s unwavering commitment to developing a future-ready workforce underscores the critical importance of human capital in realizing Thailand’s aspirations of becoming an innovation-driven economy.

The EWE Platform represents a significant step toward preparing Thailand’s workforce for the challenges and opportunities of the digital age. By fostering a skilled and adaptable digital talent pool, this initiative not only supports the adoption of Industry 4.0 technologies but also positions Thailand as a competitive player in the global digital economy.

Author: Panisa Suwanmatajarn, Managing Partner.

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