How BOI Thailand is promoting Food Industry for BCG?

Agriculture and tourism have been the major sources of revenue for Thailand’s economy for a long time. The awareness towards the development of the Bio Circular Green (BCG) Economy has increased on a global level. Therefore, BOI Thailand is seriously looking forward to its development. With the 5-year strategic plan announced by the Thai Prime Minister, the country is expecting a 25% contribution in the GDP from the BCG industry within 2026.

To foster the BCG economy, the Board of Investment (BOI) is adjusting investment privileges and conditions for agriculture categories. A meeting chaired by Prime Minister Prayut Chan-o-cha last year for a new agriculture category applying to high technology. The new technology is the “Plant Factories”, according to Duangjai Asawachintachit, the BOI’s secretary-general. A Plant factory must have the following attributes –

• It is closed farming, growing, and cultivation system.
• It creates a biological environment that artificially takes care of plantation, growth, and cultivation.
• The system uses artificial modes to control light, temperature moisture, carbon dioxide, and minerals, etc. which are necessary for the growth of plants.
• The artificial environment of these systems prevents the contamination of diseases and insects from water, air, and plants.

BOI Thailand Official Framework of Plant Factories

Thailand had been practising the Plant Factory farming tradition earlier as well but was majorly established in the unorganized sector. Now the Royal Thai Government has the official framework to practice the same in an organized way.  Apart from Plant Factories, other initiatives and schemes of the Royal Government and BOI of Thailand are the followings –

• BOI aims to improve the conditions and privileges for existing agriculture categories. Primarily, it is to encourage the use of technology and innovation, which is in line with the BCG economy.
• The board is encouraging the implementation of innovation and technology for categories like silos, cold storage rooms, logistics systems, and animal feed production.
• BOI Thailand promotes the culture and refinement of agricultural byproducts and scraps for the purpose of recyclability.
• The Royal Thai Government announces a tax exception of up to 5 years for industries of the BCG model.
• The Board is willing to develop strategies to increase the use of farm products and biomass in renewable energy, bio-plastics, oleo-chemicals, bio-chemicals, and cosmetic ingredients.

Approved Projects of BOI Thailand

As a part of development related to the BCG economy, the following projects have already received approval from the Board of Investment –

1. 1. Sammitr Group has BOI permission to manufacture battery electric vehicles (BEV) in Phetchaburi Province, with a total investment of 5.5 billion baht. The project will produce 30,000 vehicles a year, with the majority of them going to the domestic market. 
   2. Thai Oil PCL has permission for a power plant worth 24.1 billion baht.  It will produce 250 megawatts of energy from oil waste. The plant, which is located in Chonburi Province’s Si Racha District. Moreover, it will also produce 80,300 tonnes of sulfuric acid per year.
   3. Envico Company Limited secures permission for a 2.476 billion baht investment. Firstly, it is to develop food-grade recycled plastic pellets for beer and food containers. Secondly, HDPE-type recycled plastic pellets, for packaging of body care and household goods like liquid soap and shampoo. And finally, the plant is at Rayong Province’s Asian Industrial Estate.
   4. Grimm Power (Laem Chabang) Company Limited is a power generation company with a 6 billion baht budget. The natural gas-fired power plant would have a 157.32-megawatt capacity and produce 75 tonnes of steam per hour. The electricity produced will be for Thailand’s Electricity Generating Authority. Additionally, distributions will also be for manufacturing facilities in Chonburi Province’s Laem Chabang Industrial Estate.
   5. Bangkok Arena Company Limited invested 3.745 billion baht in a convention hall. It is to boost the meetings, incentives, conferences, and exhibitions (MICE) industry’s potential and tourism growth. However, Bangkok Mall Building, Bang Na-Trat Road, Bangkok is the site of the plant.

Your Take!

From the above projects, it is very much evident that the Board of Investment of Thailand is presently willing to focus on more than one industry for the promotion of the BCG economy. Moreover, the government is majorly concentrating on the farm and food, healthcare and medical, energy and bio-chemicals, and tourism and creative economy industries for the BCG.

If you are interested to start your business in Thailand and are part of a business belonging to any of the above-mentioned industries, now is the right time to plunge into it. Additionally, with promising returns, tax exemptions, and various other business-friendly Thai market factors, you can be assured of your RoI. Shoot a mail to [email protected] for more details.