Published date: 15/10/2021
Bio-Circular-Green (BCG) Economy in Thailand creating more opportunities for Foreign Investor
In the middle of July 2021, European Union announcing its “Fit for 55” policy with the aim to cut GHG emission by 55% by 2030, China with its target to achieve zero emission by 2060, and Taiwan, South Korea, and Japan have a similar target by 2050, Thai Government has announced Bio-Circular-Green (BCG) Economy concept as part of the national agenda for country’s development.
Investment in BCG economy concepts will help Thailand retain the competitiveness of local products and services in the global market, where Environmental, Social, and Corporate (ESG) factors are increasingly influencing consumers and investors, as well as pushing economic growth by increasing foreign direct investment in Thailand.
The four-pronged strategies are mainly focused on
- Increasing the economic value of agricultural and food products through the use of biotechnology to develop new goods and suit the needs of global customers.
- Building Technology and human capital in R&D of medical and pharmaceutical technology
- Promoting bioenergy, biomaterials, and biochemicals, such as renewable energy from waste, biomass, and biogas, as well as community-based power plans linked via blockchain-enabled microgrids.
- Linking tourism to the country’s intellectual capital in order to generate niches and encourage tourism in less-traveled cities.
For foreign investors who are planning for their overseas business expansion into Thailand could benefit from the incentives offered by BOI within BCG Ecosystem.
The BOI offers the following exemptions on Corporate Income Tax (CIT) for companies to start a business in Thailand. Among the benefits of establishing a Thailand Company are
Agricultural and Food Industries
- 5-year CIT exemption for the manufacture of biofertilizer and the breeding of plants and animals; the manufacture of modified starch, plant, and animal oil extracts; the manufacture of food and beverages preservatives and additives; trading centers for agricultural goods; and the manufacture of modern agricultural products and plant factories.
- 8-year CIT exemption for the manufacture of natural extracts using advanced technology, the manufacture of active ingredients, the manufacture of natural rubber products, and the manufacture of active and intelligent packaging or packaging made from eco-friendly pulp and paper.
- 5-year CIT exemption for the manufacture of biomass briquettes or pallets, the manufacture of eco-friendly polymers, and the manufacture of conventional medicine
- 8-year CIT exemption for R&D or the manufacture of products that adopt advanced biotechnology; the manufacture of fuel from farm products, waste, or scraps; and the manufacture of eco-friendly chemicals or polymers
- 8-year CIT exemption for the manufacture of medical food and food supplements, active pharmaceutical ingredients, and targeted medicines
- 5-year CIT exemption for the manufacture of pulp and paper
- 8-year CIT exemption for the manufacture of hygienic pulp and paper
Energy & Public Utilities
- 5-year CIT exemption for recycling and reuse of unwanted materials
- 8-year CIT exemption for power production from steam from garbage and renewable energy, waste treatment or disposal, and energy service companies.
The Thai government will sharpen the country’s capacity in science, technology, and innovations to boost the competitiveness of players across farm and food, healthcare and pharmaceuticals, bioenergy and biomaterials, tourism, and creative economy under a framework that will be in effect from 2021 to 2026.
The new framework will definitely be beneficial for foreign investors to establish a Company in Thailand in the next few years that are within the Bio-Circular Green industry.
For more details on business opportunities in Thailand provided by BOI for Bio Circular Green (BCG) Industry, you may visit the BOI website.
HIS OCS is an overseas expansion service provider that provides business consulting services in Thailand. Please contact us for more information on the company registration procedures in Thailand and foreign investment in Thailand guidelines for foreign investors. You may visit our website for more info.