The Thailand Board of Investment (BOI) at a meeting today approved a combined 209.5 billion baht (US 6.2 billion) worth of investment applications in manufacturing and infrastructure projects.
The amount is including 36.1 billion baht by Horizon Plus Co., Ltd., a joint venture between Taiwan’s Foxconn and Thailand’s PTT PCL, to make battery electric vehicles (BEV), and approved enhanced benefits for investment in battery production, building up on the policy to become Southeast Asia’s EV manufacturing hub.
The board also approved a set of improved incentives to promote investments in smart industrial estates and smart systems, including upgrades of existing industrial estates.
“The roll out over the last three years of the measures to boost investment in EVs is already showing clear results and by improving the incentives for battery production, an essential element of the industry’s transition, we hope to further strengthen the supply chain,” Ms Duangjai Asawachintachit, Secretary General of the BOI, told reporters after the BOI meeting chaired by Prime Minister Gen Prayut Chan-ocha.
Both existing and new projects using advanced technology in the production of EV batteries, from battery cells to battery modules, and in the production of high energy density batteries, will under the revised benefits enjoy a 9 0 percent reduction of import duty on raw and essential materials for 5 years in cases where the output is sold domestically, Ms Duangjai said.
So far, a total of 16 projects, with a combined investment value of 4.82 billion baht, by 10 different companies, have been granted promotion benefits for investments in the manufacture of EV batteries, while another 3 projects, with a combined investment value of 6.75 billion baht, have been promoted for investment in high energy density batteries, she said.
Source: Thailand Board of Investment