Bio-economy has been one of the most focused agendas of business and strategic importance for the Royal Thai Government. In association with the Board of Investment, the Thai government is formulating various plans and schemes to promote the same. Amazingly, your business in Thailand can also be a stakeholder of the Thai Bio-economy.
The major reason behind this intent is to use the advantage of the growing popularity of the BCG Economy Model across the world. It is also aimed to attract local as well as foreign direct investment.
Thailand BCG Economy Model: Brief
Food and Agriculture, Healthcare and Medical Facilities, Biochemical and Biotechnology and Tourism and Creative Economy are the focus industries of the Thai BCG Model. Various tax exemption policies and regulations have been announced by the BOI to promote these industries.
The outlook of the economy is wide as it is also focusing on creating employment opportunities. The opportunities are in the focus industries to sustain the old citizens of Thailand who are jobless due to the COVID-19 outbreak.
This makes it a great announcement for businesses and investors across the world to invest in any of the four industries of the Thai BCG Economy and have a greater return on investment.
Few BOI regulations also suggest 100% tax exemption for up to additional 8 years for ventures investing in food and agriculture. Before you affirm your decision of investing in the BCG Industries of Thailand, let us take you through some important details of the same.
Key Stakeholders in the Thai Bioeconomy
The primary stakeholders are divided into four categories:
- The Government,
- Private Sector, (here is where your business in Thailand contributes to Bio-economy)
- Civil Society, and,
- Farmers.
All these stakeholders play a role in the bioeconomy’s growth. We define these main stakeholders as –
- Agenda-Setters,
- Coordinators,
- Information Producers, and,
- Farmer Groups.
Agenda-Setters
The Thai Bioeconomy is geared toward corporate goals. The Bioeconomy is dominated by two major industry players:
- PTT Global Chemical, a state-owned energy corporation that extracts and distributes fossil fuels, and,
- The privately-owned Mitr Phol Group, Thailand’s largest sugar producer.
They set the agenda for the growth of the industrial Bioeconomy. They do so by serving in strategic leadership positions within Bioeconomy-related policy working groups.
They form part of a Public-Private Partnership scheme to grow the Bioeconomy. These selected businesses relevant to the Bioeconomy are involved in policy decisions through working groups.
The Office of Industrial Economics (OIE) and the Office of Cane and Sugar Board (OCSB), both under the Ministry of Industry (MOI), are responsible for Bioeconomy oversight. The Office of Industrial Economics is a policy-making body that brings together Bioeconomy stakeholders.
Ministers are members of the Prime Minister’s Cabinet as well as members of the legislature. Under the Public-Private Partnership system, ministers serve their departments and collaborate with companies in working groups.
Coordinators
BOI:
The Board of Investment serves as a liaison between investors, Thailand’s private sector, and the government. It also offers incentives for Bioeconomy investment, such as tax breaks.
EEC:
The Eastern Economic Corridor Office is part of the Prime Minister’s Office. It coordinates the establishment of the Eastern Economic Corridor special economic zone (SEZ). The SEZ spans three eastern provinces: Chachoengsao, Chonburi, and Rayong (EECO).
NESDB:
The National Economic and Social Development Board (NESDB) reports to the Prime Minister’s Office. It is officially responsible for the bioeconomy’s social and environmental aspects. It serves as a liaison between all government agencies.
Although the NESDB is in charge of developing national and sub-national growth policies, its primary responsibilities do not include the Bioeconomy. Rather, they are primarily concerned with working with relevant agencies and state enterprises. They do so to plan and execute various development programmes and serves as a consultative body to the Prime Minister and Cabinet.
BEDO and ONEP:
The Biodiversity-based Economy Development Office (BEDO) and the Natural Resources and Environmental Policy and Planning (ONEP) are under the Ministry of Natural Resources and Environment. They are also coordinators in the Bioeconomy.
BEDO is in charge of organizing the creation of a community-based Bioeconomy. It involves communities, small-medium businesses, and natural resource management agencies (BEDO). ONEP is in charge of evaluating environmental impact assessments of Bioeconomy-related projects.
Knowledge Producers
The Ministry of Science, Technology, and Higher Education is in charge of setting the research agenda. The body also allocates research funding as part of its knowledge-producing and agenda-setting functions. The National Science and Technology Development Agency (NSTDA) provides fund for Bioeconomy research and development.
Now as you are knowing about the key stakeholders, you must be able to identify the appropriate authority to approach and start or expand your business in Thailand. For all types of legal assistance and guidance, leave us a mail at [email protected]
