Industry 4.0 investments getting incentives from Thailand
Businesses that upgrade their factories or plants could get lucrative tax cuts and privileges from Thailand’s Board of Investment (BOI), which approved a package of incentives last week to spur manufacturers to adopt more advanced technologies.
The BOI designed the incentives to help accelerate the evolution to “Industry 4.0” standards among businesses in the Kingdom, including those of foreign investors. Part of the Fourth Industrial Revolution, Industry 4.0, is the use of automation, artificial intelligence (AI) and other advanced technologies in place of traditional manufacturing and industrial practices.
“The government really wants to support entrepreneurs upgrading their efficiency and technology,” said Duangjai Asawachintachit, BOI Secretary-General.
The new incentives include a three-year corporate income tax exemption, covering 100 percent of investment for Industry 4.0 upgrades. Eligible investors are required to use local content for at least 30 percent of their production. They must file their applications by the end of 2022.
These new incentives add to existing measures and privileges to support the adoption of automation systems and digital technology.
Meanwhile, the government said last week that it would be developing a new package of lucrative incentives for six new promotion zones in the Eastern Economic Corridor (EEC). The Corridor is Thailand’s advanced development zone.
The six special promotion zones are the Eastern Economic Corridor for innovation platform (EECi); Eastern Economic Corridor for digital park (EECd); Eastern Economic Corridor for aviation (EECa); Eastern Economic Corridor for the medical hub (EECmd); Eastern Economic Corridor of high-speed rail (EECh); and Eastern Economic Corridor for genomic medicine (EECg).
Photo courtesy of: https://www.eeco.or.th/en/promotional-zone