If you are planning to multiply your investment in Thailand, go for the BCG Economy Model. Irrespective of the fact whether you are a Thai National or a Foreign Direct Investor, this is a grand opportunity. This article circumvents a series of recent events which will help you analyze this fact.
Investment in Thailand: Overview of BCG Economy
The Thailand Board of Investment (BOI) received 128.4 billion baht (around USD 3.8 billion) in investment applications for environmentally friendly activities. These are classified as Bio-Circular-Green, or BCG, in the first nine months of 2021. This accounts for a quarter of totally new applications and confirms a trend seen in recent years, according to BOI.
Investment applications in the BCG sector total 49.3 billion baht from January to September of last year. From 2015 to the third quarter of 2021, the total value of BCG investment proposals from both local and international investors was 677.2 billion baht. The BCG data includes investment applications for biotech projects, environmentally friendly food production, recycling, sustainable energy production, bioplastics, and biofuels, among other things.
BOI Reasons to Increase BCG Economy Investment in Thailand
The applications come after the BOI announcement of a series of policies and processes to encourage BCG investment. Moreover, this is in adherence with the government’s policy of declaring BCG a national agenda and the backbone of Thailand’s post-Covid-19 economic recovery.
The APEC Summit in 2022, planned by Thailand, will have BCG as one of the key issues. Thailand expects BCG sectors to account for roughly 24% of GDP during the next six years.
According to BOI Secretary-General Duangjai Asawachintachit, “The BCG economy model is very much consistent with Thailand’s international commitment and also our aims. To achieve this goal, we must set out to promote measures in both public and private investment in a number of specific areas as essential drivers.”
Thailand will reduce greenhouse gas emissions by 20% to 25% by 2030 under the Paris Agreement. Moreover, the nation aims towards carbon neutrality by 2050, she said.
BOI Policies to Increase BCG Economy Investment in Thailand
Thailand’s BCG industries are attractive to investors for a variety of reasons, including the country’s high biodiversity. Moreover, it ranks 15th out of 193 nations, and its highly competitive food business, which ranks 13th globally. Thailand’s strategic location and accessibility in the heart of Southeast Asia, and the vast availability of bio-based resources, are also drawing investors.
“We still have roughly 40 million tonnes of biomass that we haven’t used yet.” “There’s a lot of room for value addition here,” Ms. Duangjai said.
To add to this, the government has made investments in scientific and technological infrastructure. The Thailand Science Park is growing throughout the country and collaborating with local universities.
According to Ms. Duangjai, a Biorefinery Pilot Plant is being built in the Eastern Economic Corridor. It will be operational in 2023 and make bio-based investments even more competitive.
While all projects with BOI certification must adhere to strict environmental rules, particular industries have provisions to exceed existing requirements through a number of methods.
According to Ms. Duangjai, outside of BCG operations, the BOI seeks to promote environmental protection. It will be through collaboration with government agencies and the private sector. For example, the Thailand Greenhouse Gas Management Organisation under the Ministry of Natural Resources and Environment boosts CO2 reduction.
Thailand is injecting new or strengthening tax incentives for projects that utilize eco-friendly technologies. Additionally, the BOI is barring other unnecessary operations. According to Ms. Duangjai, “We utilize both carrots and sticks at the same time”.
In keeping with that strategy, financial incentives were recently established to encourage enterprises. This is in the petrochemical and natural gas separation industries. Moreover, it majorly aims to use Carbon Capture, Utilization, and Storage (CCUS) technologies to reduce emissions.
The Bottomline
Therefore, on this verge, where the Thai economy is in a phase of transformation to its greener version, you can also take benefit from it. The major advantage for Foreign Direct Investors in BCG Economy Model will be –
- Smooth Company Registration Process
- High chances of getting 100% Foreign Ownership of the firm
- Avail tax and non-tax benefits from the Board of Investment of Thailand
- Assured Return on Investments with BOI promotions
If you are serious about opening a business in Thailand, craft your idea with an eco-friendly texture. This will help you attract great possibilities for success in your venture. Email us at [email protected] for Company Registration or Board of Investment promotions in Thailand.
