The pandemic has given rise to greater investment opportunity for Thailand in medical services, wellness and high technology. The Thai government aims for next year to be a year of economic restructuring and investment with the goal being to upgrade industry and services to be better equipped with high technology and innovation.
Narit Therdsteerasukdi, deputy secretary-general of the Board of Investment (BoI), explained the role of the board in supporting Thai and foreign investors to apply more high technology and develop human resources to help hone Thailand's competitive edge to attract more investments.
Q: What are the ongoing efforts from the BoI to improve human resource development to attract highly skilled and high tech workers?
A: The Centre for Economic Situation Administration, chaired by Prime Minister Prayut Chan-o-cha, approved in principle on Oct 7 improving the smart visa scheme for overseas "technology freelancers". Those tech experts will play a significant role in supporting Thailand's high technology development, innovation and startups.
The BoI also aims to create a talent pool in Thailand, enabling private companies or government agencies to hire tech freelancers while they stay in the country.
Many tech freelancers live across Thailand, spread out across the country in places such as Bangkok, Phuket, Chiang Mai or Phangan Island in Surat Thani. Most of them hold a tourist visa that allows them to stay for only three months, but many end up overstaying illegally in Thailand.
The agency is scheduled to propose the cabinet approve the revised smart visa scheme targeting technology freelancers this month.
To be eligible for the scheme, technology freelancers are required to earn at least 50,000 baht as a minimum monthly income. Small and medium enterprises can also hire these freelancers to work for their companies.
Successful applicants will be allowed to enjoy privileges equivalent to those awarded to technology-based startup entrepreneurs, with a renewable visa for up to two years maximum, no work permit requirement, 90-day reporting to the Immigration at the One-Stop Service Center extended to one year, no re-entry permit requirement and access to a fast-track service at international airports in Thailand (where this service is available).
The spouses and children of successful applicants will be granted permission to stay in Thailand. Spouses will be granted permission to work with no work permit requirement for the same duration as smart visa holders.
The BoI initiated the original smart visa programme since Feb 1, 2018, for highly skilled experts, senior executives, smart investors, start-up entrepreneurs and their spouses. They can enjoy a maximum of four years visa exemption for startup entrepreneurs. Between February 2019 and Nov 30, 2020, the BoI approved 514 applications for smart visas.
The BoI recently implemented a special promotional scheme to attract Thai and foreign companies who agree to upgrade their human resources to conform with new technology and innovation, invest in research and development and automate production. The policy will help workers upgrade their skills and cope with drastic changes from technology disruption.
Q: What is BoI's policy to support Thailand as a regional headquarters and support Thailand in becoming a global sourcing hub?
A: On Nov 4 the board approved reinstating the international procurement office category with an aim to strengthen Thailand's position as a regional business and investment hub.
Businesses in this category will receive import duty exemptions on machinery and raw materials to produce exports, as part of a policy to promote the development of the country's supply chain.
The BoI expects international procurement offices to help support the policy of enhancing Thailand to become an international business centre and international headquarters.
BoI first approved the International Business Center (IBC) and International Headquarters (IHQ) categories in 2015. As of Nov 30, 318 projects had won BoI approval for IBC and IHQ privileges. Some 40% of these projects belong to Japanese companies, while the remainder is made up of projects run by companies from Singapore, the US, Hong Kong and France.
Some 16% of the projects in the auto industry, 10% in electrical appliances and electronics, 10% in machinery and equipment and 8% in chemicals. The remainder includes projects relating to a variety of other industries. Well-known companies that have already established headquarters in Thailand include ExxonMobil, Ajinomoto, Hoya Corporation, Huawei, Mitsubishi, Sharp, and Panasonic.
Q: What is BoI's policy in support of productivity improvement?
A: The BoI board on Nov 4 approved an extension of the productivity improvement measure. The deadline for applications for benefits provided under the productivity improvement measure has been extended by two years to end 2022.
The package of measures, which includes a 50% corporate income tax exemption for three years, has been reworded. "Production" was removed, to make it clear the measures apply to both the manufacturing and service sector. The terms were previously limited to investments in the upgrade of agro-industry operations, but this has been expanded to promote sustainable development in related activities in the supply chain, such as furniture factories and paper mills, to encourage the implementation of international sustainability standards.