According to Krung Thai Compass, the leading financial organization of Thailand, the country needs to invest at least 820 billion baht within the next 5 years. It is to promote, implement and execute its initiatives, policies, and schemes of the bio-circular green (BCG) economy. On the other hand, BOI Thailand has the intent of implementing strategies and finances for the BCG ventures. Thailand is pushing the Bio-, Circular and Green Economy (BCG) as a model to accelerate economic growth. It is in line with development towards value addition to the economy in response to global economic problems and international efforts to combat climate change.
Thailand’s stagnant expenditure ratio relative to GDP is expected to rise as a result of BCG-related programs. Thailand’s investment rate was 25.2 per cent of GDP in 2018. It shows a significant decrease from 42.5 per cent in the mid-1990s. Thailand’s 25.2 per cent investment to GDP ratio is higher than Malaysia’s 23.9 per cent. But it is lower than Vietnam’s 26.3 per cent and South Korea’s 31.5 per cent. According to Krung Thai Bank’s research house, Thailand’s investment level is forecast to be 24 per cent of GDP in 2024.
Industries of Strategic Importance of BOI Thailand
BOI Thailand has listed five sectors as potential new drivers of economic development in the coming decades. They are food, biotechnology, biochemical and biofuels, medical and health, and smart electronics technology. These industries support the production of BCG taking advantage of the country’s strong agriculture sector. It also promotes the advancement of biotechnology competitiveness and expanding the pool of qualified workers.
Thailand’s overall favourable market climate is reaffirmed by two World Bank reports. Thailand stands 21st out of 190 economies in the 2020 Ease of Doing Business Index. Thailand ranks 32nd out of 160 countries in the Logistics Performance Index biennial survey in 2018, second only to Singapore in ASEAN.
Alliance Situations of BCG Model in Thailand
On its 2018 Global Green Economy Index, consulting company Dual Citizen ranked Thailand 2nd in ASEAN and 27th out of 130 countries. This demonstrates the country’s success in reducing greenhouse gas emissions. The rating is on the basis of the country’s success in various strategic areas. Some of the notable areas are leadership and climate change, resource efficiency, economies and expenditure, and environmental indicators.
Thailand’s strategic advantages in BCG are improving. The government pushes through proposals to encourage BCG industries and drive major investment ventures in the bio-economy. It also involves biochemical and bio-refinery facilities, as well as food industry technical upgrades.
Your Take
If you are thinking to invest in Thailand, now is the time to act. The new announcements and schemes are very much investor-friendly and one of the major purposes behind their formulation is to attract FDI.
If you are a non-Thai and want to invest in Thailand, then you must check whether your business complies with the industries of BCG importance. If it does, then stay assured of a higher return on your investments. For more detailed information, mail us at [email protected] and get a free consultation.
