Thailand

The Board of Investment (BOI) is in the process of reviewing its investment policy. The priorities of the BOI promotion policy will be knowledge-based, innovative and sustainable industries. Under the new policy draft, the BOI plans to shift its investment promotion focus to 10 target industries, including:
– Infrastructure and logistics
– Primary industries
– Medical & scientific equipment
– Renewable energy and environmental services
– Business support services
– Advanced core technologies
– Food and agricultural processing
– Hospitality & wellness
– Automotive and other transport equipment
– Electronics and appliances

The BOI promotes Thai overseas investment more actively in order to increase competitiveness of Thai businesses. The BOI has established a Thailand Overseas Investment Center to assist Thai nationals to invest abroad.

The BOI and the Joint Foreign Chambers of Commerce in Thailand (JFCCT) have organized the BOI-JFCCT Consultative Meeting on June 30, 2014. This forum has been aimed to be a platform for public and private participation, which would discuss in details about how to improve investment climate and investors’ confidence.

The One Start One Stop Investment Center (OSOS) has launched a new website to facilitate investors. The website osos.boi.go.th gives new investors a clear overview on how to start a business in Thailand. Over 20 agencies are available at the OSOS to help investors with different applications to make sure investors understand what is needed to register a company, obtain investment promotion privileges, obtain a foreign business license, complete an environmental impact assessment, request permission to use land for industrial operations, obtain utilities, etc.

To improve the investment facilitation, the BOI offers several paperless transactions, i.e. The Electronic Machine Tracking System (eMT Online), the E-Expert System for foreign skill workers, BOI investment promotion online application.

1.3. Developing competitiveness effectively, equally, and fairly with the following
guidelines:
1) To develop financial market and capital market as well as workforces to support the
economic restructure
2) To develop Intellectual Property management system

3) To develop local infrastructure and logistics to support the connectivity both intra-
nationally and internationally with an aim to increase effectiveness and be

consistent with international standard4) To build energy security by promoting clean energy, developing alternative energy,
and increasing effectiveness in energy consumption in every level
5) To review and amend laws, rules, and regulations relating to economy to promote
the increase of competitiveness as well as to be consistent with the world’s
changes.

2.1 Develop transportation and logistics networks under the framework of sub-regional
cooperation by improving services, relevant laws and regulations, and human resources
in these particular sectors
2.2 Develop investment hub by increasing competitiveness in sub-regional level by
promoting cross-border trade, developing economic zone along the borders
2.3 Prepare for the ASEAN Economic Community by developing co-operation between
public and private entities, strengthening the educational system, leverage the quality
of skilled-labours, and setting-up standards for products and services to prevent the
importation of low-quality products
2.4 Play a creative role as a party to international and regional cooperation in global forum
by taking part in shaping strategy as well as keeping balance between the relationship
with super powers and emerging powers
2.5 Develop economic partnership in the region, focusing on human resource
development, workforce movement, and the promotion of Thai overseas workforce
2.6 Participate significantly in creating international society with high quality of living
2.7 Strengthen international cooperation to promote economic growth in an ethically and
environmental friendly way
2.8 Accelerate the utilization of enforced FTAs with the preparation for their impacts
2.9 Promote Thailand as an investment and business hub in Asia as well as a hub of
cooperation on regional development
2.10 Improve and strengthen development network in local communities in order to create
awareness on domestic and global changes

In November 2014, the Board of Investment (BOI) has approved its “Seven-Year
Investment Strategy” (2015-2021), with a focus on promoting investments that create
value for Thailand and those that have a positive impact on society and the environment.
The new investment promotion policy will give priority to investments that are beneficial
to and supportive of the country’s overall development strategy. These industries include
high-tech and creative industries, service industries that support the development of a
digital economy, and industries that utilize local resources. The new policy is effective for
applications submitted from January 1, 2015

BOI policy is divided into activity-based or merit-based incentives as follows:
– Activity-based incentives are ranked A1 to B2, with A1 offering the highest
incentive, including an un-capped 8 year CIT exemption; A2, an 8 year capped CIT;
A3 get and A4 get 5 year and 3 year exemptions, respectively.
– Merit-based incentives are offered to encourage competitiveness, decentralization
and industrial area development, and offer extended CIT exemptions and other
fiscal benefits. Merit-based incentives can be earned through activities such as
research and development; donations to a Technology and Human Resources
Development Fund, or product and packaging design, etc.

The BOI zoning system will be abolished under the new policy, although investment
projects located in 20 lower-income provinces, as well as projects in industrial estates, will
be offered special incentives as follows:
– Projects located in one of Thailand’s more than 60 industrial estates or promoted
industrial zones are granted 1 additional year of corporate income tax exemption.
– If investors locate in one of 20 designated provinces, they can receive 3 additional
years of tax holiday.

The list of eligible activities still includes most activities which are significant to the supply
chain and have the potential to be strengthened. In addition, the number of such activities
has not been significantly reduced, as there are still more than 200. Corporate income tax
privileges will be granted to 180 of them and the rest will receive non-tax incentives along
with exemption on import duties on machinery and raw materials used for export
products

The Board agreed on a policy to enhance SME capacity building in order to strengthen
their competitiveness at the international level. 38 eligible activities from the Seven-Year
Investment Strategy will be selected for SMEs to receive incentives. The measure will offer
an additional two-year corporate income tax exemption to enhance their competitiveness
and encourage investment. This policy will be effective from January 1, 2015 – December
31, 2017

The Board also agreed with the policy to promote investment in special border areas.
Investment projects located in the five Special Economic Development Zones (SEZ) will
receive an additional three-year corporate income tax exemption on top of basic
incentives. These special zones include areas within the five provinces of Tak, Trad, Sa
Kaeo, Songkhla and Mukdahan.

The Board had agreed with the proposal made in a resolution adopted by the Special
Economic Development Policy Committee to 13 targeted industries covering 61 business
activities if they locate in one of the special economic zones, as follows:
1) Agro- industry, fisheries and related businesses
2) Ceramic products manufacturing
3) Textile, clothing, and leather manufacturing
4) Furniture manufacturing
5) Gems and jewelry manufacturing
6) Medical devices manufacturing
7) Automotive, machinery and parts manufacturing
8) Electronics and electrical appliances manufacturing
9) Plastics manufacturing
10) Pharmaceuticals manufacturing
11) Logistics businesses
12) Industrial zones or industrial estates
13) Businesses that support tourism

The Office of the Board of Investment will offer maximum incentives to these targeted
activities. The list of eligible activities will differ in each zone (Tak, Mukdahan, Sakaeo, Trat, and Songkhla) according to the respective potential, limitations, and needs in the
zone. Qualified projects investing in special economic zones will receive the maximum
incentives which include an 8-year corporate income tax exemption and an additional 5-
year 50% corporate income tax reduction. Businesses that are not one of the categories
listed above, but which are on the list of BOI promoted activities, are also eligible to apply
for additional incentives if they locate their facilities in a SEZ.

The board also reviewed rules and regulations on utilizing imported used machinery in BOI
promoted projects and agreed to allow promoted projects to use machinery older than 5
years but not exceeding 10 years. On general cases, imported used machinery must not
exceed 10 years. In cases when a production base is relocated into Thailand machinery
over 10 years old will be allowed to be used in the project. In both cases, no offer of
import duty exemption on machinery will be made and the project will be required to
submit a performance certificate issued by a trusted institute identifying the efficiency of
the machinery, its environmental impact, safety standard and energy usage, as well as its
maintenance profile and its fair value must be obtained

From January – February 2015, the BOI has organized seminars to create an understanding
of the new strategies for Thai and foreign investors in 4 regions around Thailand, and will
also hold Road Shows in major countries to inform foreign investors about these new
strategies

According to the current situation of global economic uncertainty, Thai economy has to
rely more on domestic consumption and investment for economic growth. Therefore, the
Cabinet has decided to postpone the planned increase in the Value Added Tax rate (from
7% to 10%) in 2014 to stimulate the domestic consumption and investment, which are
essential for the recovery of the country’s economy.

Thailand has reduced the corporate income tax from 30% to 23% in 2012 and to 20% in
2013. The corporate income tax rate will remain at 20% in 2015 year to continue
improving Thailand’s competitiveness.

No Investment Promotion and Protection Agreement have been signed since August 2012.

Thailand is in the process of negotiation for the following bi-lateral agreements:
– Thailand – India FTA
– Thailand – EU FTA
– Thailand – Canada FTA
– Thailand – Turkey*
– Thailand – Peru
– Thailand – Pakistan*

 § Thailand’s new incentive regimes on International Headquarters (IHQ) and
International Trading Centers (ITC)
– The Cabinet has approved the promotion scheme – along with supporting tax and
non-tax incentive packages – for companies that set up the International
Headquarters (IHQ) and International Trading Center (ITC) in Thailand.
– General Requirements for the IHQ and ITC regimes
§ Must be a Thai incorporated entity with a paid-up capital of at least THB 10
million in each accounting period
§ Must provide qualifying services to an overseas associated enterprise§ Must have annual operating expenses of at least THB 15 million which are
paid to recipients in Thailand
§ Must submit application and obtain the IHQ status from the Director-General
of the Thai
§ Revenue Department in accordance with the rules, procedures and
conditions as prescribed by the Director-General of the Thai Revenue
Department
§ Must comply with other rules, procedures and conditions as prescribed by
the Director General of the Thai Revenue Department

– Tax Incentives:
§ Foreign investors setting up an IHQ in Thailand will be entitled to a 10% cut
in corporate income tax available from services, rights and dividends from
local affiliated entities. They are exempted from withholding tax on dividends
received from/paid by the local headquarters to foreign entities.
§ There is also an exemption from income tax for sales available through the
purchasing and selling of goods abroad, and a 10% cut in income tax
charged on sales available through the purchase of raw
materials/intermediate products in the country that are sold to affiliate
branches abroad for production use. There would be many more non-tax
breaks, such as easier visa requirements.
§ Personal income tax of foreign experts and high-ranking executives working
for the IHQ are also cut to 15%. There are also exemptions from specific
business tax that are provided for lending to affiliated companies – both in
Thailand and abroad.
§ ITCs will enjoy exemption from corporate income tax from sales made
available through purchasing and selling goods abroad. There is a 10% cut
in income tax on sales from purchasing raw materials or intermediate goods
domestically for sale to foreign affiliates or branches for production
purposes. There is also an exemption from withholding tax on dividends paid
by the ITC to foreign entities.

– Non-Tax Incentives:
§ IHQ: Exemption of import duty on machinery used in R&D and training
activities
§ ITC: Exemption of import duty on machinery
§ Other non-tax incentives
– Permission to bring expatriates (and their spouses) into Thailand to work
on the BOI business activities for a period as deemed appropriate by the
BOI;
– Permission to own land for carrying BOI-promoted business activities;
– Permission to remit foreign currency abroad; and
– Permission to operate the restricted business under 100% foreign
ownership

propel Thailand into a new stage of economic development. According to the BOI,
there needs to be change, as there are many problems with our current economic
path which include:
§ Low competitiveness
§ Low investment in R & D
§ Growing labor shortages, both for skilled and unskilled workers
§ Increasing restrictions on heavy industry – with less land available and
tougher regulations
§ Potential problems in energy security

– The BOI’s aims to help Thailand become a high value economy and a regional
hub. The key ingredients include more research and development, a focus on

services and high-value industries, better care for the environment, and cross-
border regional clusters.

The Thailand Board of Investment (BOI) has amended its Investment Promotion Act which entered into force on January 25, 2017. Under this amendment technology and innovation development has been assigned as a new category eligible for investment promotion. Incentives will be granted to technology development activities which are divided in four groups, as follows:
1. Bio-Technology
2. Nano-Technology
3. Advanced Material Technology and
4. Digital Technology

Moreover, the BOI will exempt the import duty on imported material for research and development purposes.

Thai Government pays attention on border areas with neighboring countries to improve trade and investment, quality of life of people in the area, and preparing for AEC integration. The Special Economic Zones in ten locations in ten different provinces will be established and can be detailed into two phases, as follows:

Phase 1: There are 6 provinces – Tak, Nong Khai, Mukdahan, Sa Kaeo, Trad, and Nong Khai
Phase 2: There are 4 provinces – Narathiwat, Chiang Rai, Nakhon Phanom, and Kanchanaburi

Development of Basic Infrastructure
In targeted areas under the first phase of five SEZs, from 2015 to 2016, the Government is investing in the development of basic infrastructure, including public utilities, and customs checkpoints (6 checkpoints) with a budget of 10,000 million Baht.

Investment Promotion Measures under the Thailand Board of Investment
In reference to BOI Announcement No. 4/2557 dated 18 December 2014 regarding investment promotion in the Special Economic Development Zones, fiscal incentives are granted to projects investing in the SEZ in 2 cases, as follows:
If the activities carried out in the project are listed in the eligible list of activities under BOI Announcement No. 2/2557 regarding policy and criteria for investment promotion dated 3 December 2014
If the activities carried out in the project are as listed by the National Policy Committee on Special Economic Development

The BOI extends investment promotion incentives for SEZs to the end of 2018
Targeted Activities for Special Economic Development Zones
The National Policy Committee of Special Economic Development Zones has stipulated target industries for Special Economic Development Zones. Each zone will have different targeted activities depending on competencies, limitation and demands, which are categorized into 13 sectors, as follows:

Agricultural, fishery and related industries
Ceramic products
Textile, garment, and leather industries
Manufacture of furniture
Gems and jewelry
Medical equipment
Automotive, machinery, and parts
Electrical appliances and electronics
Plastics
Medicine
Logistics
Industrial estates/ zones
Tourism related industry

For further details please visit:
http://osos.boi.go.th/index.php?page=agency_detail&group_id=238

One Stop Service Center (OSS)
Every SEZ will have a One Stop Service Center (OSS) that is set up to facilitate investors by emphasizing trade and investment service, as well as labor issues, public health and security, in a fast and complete manner. Investors can contact many government agencies at one location, a One Stop Service Center providing information and coordination with related government agencies for submission of applications. Services provided by the OSS comprise of three forms, as follows:
Providing information and recommendations with database related to business operation in the SEZs, both regulation related information, database for carrying out business in the district and contacts of related government agencies.
Acceptance of matter, submission to concerned agencies and follow up.
Approval and Permission (only where the stationed official has the complete authority)

9 Targeted industries
Next-Generation Automotive
Smart Electronics
Affluent Medical and Wellness Tourism
Food for the Future
Automation and Robotics
Aviation
Biochemical, Petrochemical & Eco-Friendly Products
Digital
Medical Hub
Enabling Services
Development of Infrastructure and Logistics
Development of Tourist Destinations
Research and Development
Technology Support Services
Investors invest in the above mentioned targeted industries and services in the EEC will receive a 50% reduction on the corporate income tax (CIT) for 5 years after the regular CIT exemption period has ended.

The application for the investment promotion incentives in the EEC must be submitted before December 29, 2017.

Economic and Social development during the period of the 12th National Economic and Social Development Plan (2017-2021) is anticipated to pursue four national agendas, as follows:
1. Alleviate poverty and income distribution imbalances
2. Enhance Thailand’s competitiveness
3. Promote social capital development
4. Promote sustainable development

The implementation of the 12th Plan began on 1 October 2016 and will continue until 30 September 2021. The Office of the National Economic and Social Development Board reported that the 12th Plan was worked out in accordance with the 20-year national strategy, 2017-2036.

The 20-year national strategic plan consists of six areas, six primary strategies, and four supporting strategies. The six areas include:
1. Security
2. Competitiveness enhancement
3. Human resource development
4. Social equality
5. Green growth and
6. Rebalancing and public-sector development

The six primary strategies seek to enhance and develop the potential of human capital; ensure justice and reduce social disparities; strengthen the economy and enhance competitiveness on a sustainable basis; promote green growth for sustainable development; bring about national stability for national development toward prosperity and sustainability; and enhance the efficiency of public sector management and promote good governance.
As for the four supporting strategies for efficient national development, they involve:
1. Infrastructure development and the logistics system
2. Science and technology, research, and innovation
3. Urban, regional, and economic zone development and
I4. nternational cooperation for development

The 12th Plan will continue to focus on the Philosophy of Sufficiency Economy, which had become the guideline of the country’s development since the Ninth Plan, beginning in 2006. The philosophy aims to change the priority of economic policy from “growth” to “social development.” The main objective is to improve the people’s well-being.
It has been followed as a shared value by the Thai people, guiding the transformation to a new national management system, based on the goals of efficiency, quality of life, and sustainability and it is geared to reduce income disparity and poverty, strengthen the Thai economy and enhance the country’s competitiveness, promote natural capital and environmental quality.

Thailand is currently embarking on a major economic reformation process that includes a number of initiatives aimed at facilitating the business process and transforming business environment in the country. Technological advancement has been progressing very rapidly in exponential fashion. Many of the technologies such as robotic, machine learning, or Artificial Intelligence have entered in the new age of digital transformation and the Fourth Industrial Revolution.

The Thai government is striving to push Thailand forward to a new chapter or “Thailand 4.0”, where science, technology, innovation, value addition, and R&D are the central forces driving economic growth. Under this initiative, the government aims to strengthen internal economic fundamentals in all dimensions and to transform Thailand into a developed economy within 20 years. The government also aims to achieve a GDP per capita of $15,000 US dollar, an annual growth of between 5 and 6 percent per year, and a position of better than 20th in any competitiveness index rankings.

Thailand 4.0 focuses on four key areas:

Digital government transformation;
The amendment and revocation of laws and regulations that are not business-friendly, and the enactment of new ones that are beneficial to both Thai and foreign investors;
The simplification and review of the processes of obtaining approval and permits, and a reduction in the amount of paperwork by using standardized forms and digital channels;
The development of infrastructures and the country’s logistical structure in order to support domestic and regional business activities.

The World Bank announced the results of their latest Ease of Doing Business Index at the end of last year, it showed that Thailand’s ranking had improved by 20 positions, rising from 46th to 26th place. The results also confirm that Thailand is the second-most improved nation, with a strong hike in the rankings of six of the index’s sub-factors such as Starting a Business, Getting Electricity, Protecting Minority Investors and Enforcing Contracts.

The government has already abolished some of the minor requirements of the business registration process. These, and other similar measures, have led to a significant reduction in the number of days required to register a company, from 27.5 days to 4.5 days.

In terms of real estate registration, the Department of Lands, Ministry of Interior, has created the LandsMaps application. This application can provide all kinds of information related to a certain piece of land, including the plot chart, location, surface conditions, estimated market price, and associated fees or charges.

The National Single Window, which was jointly developed by the Thai Customs Department, the Port Authority of Thailand, and other privately-owned seaport companies, has been designed as a digital customs procedure. Functions that can be processed electronically through the National Single Window include the vessel-to-vessel transition of goods and cargo permit matching.

The Court of Justice has launched its e-Filing system, which allows lawsuits to be filed electronically. Although it is currently only on a trial run – limited only to certain courts and certain bodies of law – the government expects the system to be expanded to run nationwide once the final version is ready to be rolled out.

Over the past 20 years, many countries have enacted a great number of laws, the unintended impact of which has been that operating a business has become, in many ways, more difficult. Some countries have overcome this already by taking steps to simplify or even eliminate unnecessary laws and regulations. Such countries include, for example, South Korea and Mexico.

In Thailand, there are currently more than 700,000 manuals on business approval and license application, produced by local governments across the country. In an effort to bring this number down to a more reasonable level, the government is in the process of examining and revising all of the processes concerned. While it is a large undertaking, the government intends to reduce the number of licenses and associated manuals at the local-government level to an absolute minimum, and retain only licenses issued by the central government. Through this process, it is estimated that the number of licenses should be reduced to not much more than 6,000. Looking to the longer-term, the government hopes to be able to reduce this number further still to less than 1,000.

The country vision as stipulated in the National Strategy is “to become a developed country with security, prosperity and sustainability in accordance with the Sufficiency Economy Philosophy” with the goals aimed to maintain national security and ensure people’s welfare; boost multidimensional national competitiveness to ensure consistent economic growth; empower human capital at each and every stage of life to manifest competent and moral citizenry; broaden opportunities to improve social equality; promote environmentally-friendly growth with improved quality of life; and develop governmental administrative efficiency for greater public benefits. There are six groups of indicators which will be used to evaluate the National Strategy’s success, which are:
Well-being of Thai people and society
National competitiveness, economic growth and income distribution
Development of human capital
Social equality and equity
Sustainability of national biodiversity, environmental quality and natural resources
Government efficiency and better access to public services

National development during the Strategy’s time-frame shall focus on an appropriate balance between social and economic development and environmental stewardship. The six key strategies are:
national security;
national competitiveness enhancement;
human capital development and strengthening;
social cohesion and just society;
eco-friendly development and growth; and
public sector rebalancing and development.

Economic and Social development during the period of the 12th National Economic and Social Development Plan (2017-2021) is anticipated to pursue four national agendas, as follows:
Alleviate poverty and income distribution imbalances
Enhance Thailand’s competitiveness
Promote social capital development
Promote sustainable development

The implementation of the 12th Plan began on 1 October 2016 and will continue until 30 September 2021. The Office of the National Economic and Social Development Board reported that the 12th Plan was worked out in accordance with the 20-year national strategy, 2017-2036.The 12th Plan will continue to focus on the Philosophy of Sufficiency Economy, which had become the guideline of the country’s development since the Ninth Plan, beginning in 2006. The philosophy aims to change the priority of economic policy from “growth” to “social development.” The main objective is to improve the people’s well-being.
It has been followed as a shared value by the Thai people, guiding the transformation to a new national management system, based on the goals of efficiency, quality of life, and sustainability and it is geared to reduce income disparity and poverty, strengthen the Thai economy and enhance the country’s competitiveness, promote natural capital and environmental quality.

The Board of Investment’s (BOI) investment promotion measure in the Eastern Economic Corridor (EEC) is especially designed to boost targeted investment activities in designated areas in three provinces: Chachoengsao, Chonburi and Rayong. Private sector is encouraged through this measure to involve in human resources development in the businesses.

The development of the EEC Area is one of the government’s policies to drive Thailand towards the new era of Thailand 4.0. Investments in targeted industries in the aforementioned areas are entitled to additional incentives.

The World Bank announced the results of their latest Ease of Doing Business Index, it showed that Thailand’s ranking had improved significantly over the past years, rising from 46th in 2017 to 27th in 2019. Thailand has made the second-highest number of reforms since first being ranked in the Doing Business survey in 2003 and has also made great strides in four areas — starting a business, getting electricity, paying taxes and trading across borders — through the new reforms. Starting a business was made less costly by introducing fixed registration fees, while getting electricity was made easier by streamlining the number of procedures needed to obtain a new connection, and making electricity tariff changes more transparent.

According to the World Bank’s “Doing Business 2019” report, Thailand earned the highest score in getting electricity with 98.75, followed by 92.72 for starting a business, 84.65 for trading across borders, 77.72 for paying taxes, 76.64 for resolving insolvency, 75 for protecting minority investors, 71.86 for dealing with construction permits, 70 for getting credit, 69.47 for registering property, and 67.91 for enforcing contracts.

With the digital infrastructure base being developed under the government’s Thailand 4.0 policy, The Office of the Public Sector Development Commission (OPDC) expects to shorten the regulatory process by 50% by the end of 2019 and hence improving operational efficiency.

Thailand’s 5-rank rise in the 2019 IMD World Competitiveness Rankings reflects the business-friendly environment and the dynamism of the economy which are the key factors attracting foreign direct investment (FDI) to the country.

Overall, Thailand moved up to 25th, from the 30th rank in 2018, in rankings of a total of 63 countries issued by the Lausanne, Switzerland-based International Institute for Management Development, better known as IMD. Thailand’s new ranking shows sustained foreign investment and the improvements Thailand has made in the areas of knowledge, talent, training, technology, and regulatory framework in every part of the government’s Thailand 4.0 policy.

Thailand’s improved overall ranking, the highest in 10 years, was due to better marks in the areas of Economic Performance, notably due to an increase in international investment, Government Efficiency, and Infrastructure, according to IMD data. Thailand ranks 21st in the area of international investment, 6th in tax policy, 16th in public finance, and 6th in international trade. The country’s ranking in the area of Technology improved to 28th, from 38th five year ago, according to IMD’s country report.

In 2019, Thailand advancing 19 places from 2018 to rank 40th globally and first in ASEAN in the United Nations Sustainable Development Goals (SDGs) Report bolsters the country’s competitiveness as more investors see sustainability performance as relevant to their business operation decisions.

According to the recently released report compiled by the New York-based Sustainable Development Solutions Network and Bertelsmann Stiftung, ranking how 162 countries are performing in their implementation of the 17 SDGs, Thailand scored 73 points in the SDG Index 2019. That places Thailand higher than the regional average score of 65.7.

Thailand’s performance is most outstanding in the areas of poverty reduction, where it scored 100 points, quality education (88.7 points), affordable and clean energy (82.9 points), decent work and economic growth (80.2 points), sustainable cities and communities (83.0 points) and climate action (93.9 points). Thailand’s achievement in SDGs is underpinned by the Sufficiency Economy Philosophy (SEP) which has been adopted as the core principle of the National Economic and Social Development Plan since 2002 and integrated in the 20-Year National Strategy Framework. Meanwhile, Thailand’s recent election as a member of the United Nations Economic and Social Council for the term 2020-2022 demonstrates the country’s strong commitment and active role in advancing social and development agendas on both the national and international fronts.

Since 2016, The Thai government has been striving to push Thailand forward to a new chapter or “Thailand 4.0”, where science, technology, innovation, value addition, and R&D are the central forces driving economic growth. Under this initiative, the government aims to strengthen internal economic fundamentals in all dimensions and to transform Thailand into a developed economy within 20 years. The government also aims to achieve a GNI per capita of 450,000 THB or approximately $14,632 US dollar, an annual growth 5 percent per year, and a position of better than 20th in any competitiveness index rankings.

The country vision as stipulated in the National Strategy is “to become a developed country with security, prosperity and sustainability in accordance with the Sufficiency Economy Philosophy” with the goals aimed to maintain national security and ensure people’s welfare; boost multidimensional national competitiveness to ensure consistent economic growth; empower human capital at each and every stage of life to manifest competent and moral citizenry; broaden opportunities to improve social equality; promote environmentally-friendly growth with improved quality of life; and develop governmental administrative efficiency for greater public benefits. There are six groups of indicators which will be used to evaluate the National Strategy’s success, which are:
1. Well-being of Thai people and society
2. National competitiveness, economic growth and income distribution
3. Development of human capital
4. Social equality and equity
5. Sustainability of national biodiversity, environmental quality and natural resources
6. Government efficiency and better access to public services

National development during the Strategy’s timeframe shall focus on an appropriate balance between social and economic development and environmental stewardship. The six key strategies are:
1) national security;
2) national competitiveness enhancement;
3) human capital development and strengthening;
4) social cohesion and just society;
5) eco-friendly development and growth; and
6) public sector rebalancing and development.

Economic and Social development during the period of the 12th National Economic and Social Development Plan (2017-2021) is anticipated to pursue four national agendas, as follows:
1) Alleviate poverty and income distribution imbalances
2) Enhance Thailand’s competitiveness
3) Promote social capital development
4) Promote sustainable development

The implementation of the 12th Plan began on 1 October 2016 and will continue until 30 September 2021. The Office of the National Economic and Social Development Board reported that the 12th Plan was worked out in accordance with the 20-year national strategy, 2017-2036.

The 12th Plan will continue to focus on the Philosophy of Sufficiency Economy, which had become the guideline of the country’s development since the Ninth Plan, beginning in 2006. The philosophy aims to change the priority of economic policy from “growth” to “social development.” The main objective is to improve the people’s well-being.
It has been followed as a shared value by the Thai people, guiding the transformation to a new national management system, based on the goals of efficiency, quality of life, and sustainability and it is geared to reduce income disparity and poverty, strengthen the Thai economy and enhance the country’s competitiveness, promote natural capital and environmental quality. incentive

In order to drive forward Thailand’s national policy as “Thailand 4.0”, the SSL project is implemented as a part of the urgent Law-Reforming Plan. This project will take actions by reviewing any legal acts, licenses, procedures or regulations which are no longer necessary, out-of-date and constraint on living and doing businesses in Thailand. The key principles for these revisions derive from the 20-Year National Strategy and National Reforming Plan.
Goals
– Result-oriented Law Reform.
– Facilitating people’s living and reducing difficulties in obligations.
– Enhancing Country’s Economic Competitiveness.
– Preventing Corruption and misconduct in Administrative Governance.

Objectives
– To revise or repeal any legal acts which are no longer necessary, out-of-date and constraint of living and doing business in Thailand.
– To enhance business sectors’ competitiveness and reduce high duties in public sectors management.
– To progress legal reviews in accordance with Thailand 4.0 policy.
– To drive forward Thailand’s National Strategy together with the National Reform Plan.

Major Benefits
– Cost-reduction
– Time-saving
– Transparency

Stakeholders
– Public Stakeholders: coordinating with Government agencies will be faster, more convenient, and cost-saving.
– Business: upgrading business working functions by reducing processing steps and documents. These improvements can save cost and increase productivity.
– Government Agencies: reducing working process and saving time. In addition, the database is prepared for further effective overview analysis on repealing the legal acts, licenses, and procedures.

5Cs Framework
After the reviews of licenses or procedures according to the Conceptual Framework and cost calculations from all the difficulties in obligations, Government agencies can utilize such information for revising the legal processes towards the objectives, goals, necessity, and suitability. These lead to the initiative development, consistency of chosen methods to problems or situations, and foster public interests. To achieve all aspects, recommendation papers for reviewing the licenses or procedures are based on the 5Cs Framework as follows:

– Cut: implies the repeal of legal acts, regulations, and related procedures.
– Change: refers to the improvement of legal acts, regulations, and related procedures.
– Combine: indicates the combination of legal acts, regulations, and related procedures.
Continue: tells the continuation of present legal acts, regulations, and related procedures.
Create: means drafting the new legal acts, regulations, and related procedures.

BCG model will focus on four following sectors:
Food and Agriculture: The goal is to migrate from low-value commodities to value-added and premium products, as well as diversify products.
Medical and Wellness: The goal is to build capacity on drug and biopharmaceutical production, medical devices and implants, precision medicine and become a hub of healthcare services and clinical research.
Bioenergy, Biomaterial and Biochemical: The goal is to achieve energy security and convert biomass to high-value commodities.
Tourism and Creative Economy: This sector aims to develop sustainable tourism, tourism destination management system, conserve the environment and link tourism with other service industry in order to advance to high-quality tourism such as wellness tourism, culinary tourism, eco-tourism, cultural tourism and sports tourism.

The Bio-Circular-Green Economy (BCG) Policy Board convened on 12 July 2021 with Prime Minister General Prayut Chan-o-cha serving as the board chairman. The meeting reviewed the performance of Thailand in the global stage with regards to BCG. Thailand’s Global Green Economy Index (GGEI) improved from the 45th position in 2014 to the 27th position in 2018, whereas its SDG Index rose from the 55th place in 2017 to the 43rd place in 2020.

Thailand Board of Investment (BOI) offers investment promotion incentives to a wide range of activities in BCG notably biotechnology, biochemical production, biogas and biomass energy generation, energy service companies (ESCO) and recycle facilities.

In Thailand, entrepreneurs are driving transformative innovation through the integration of value-added services and digitized processes. Improvements in technology and automation are being implemented to enhance and augment operational and manufacturing functions. The Thai government has created policies, including the “Thailand4.0” initiative, that support research and development, innovation, and advanced manufacturing methodologies to enable growth in several targeted industries. The Thailand 4.0 model is supported by investment incentives and human resource development efforts designed to accelerate growth in an innovation and technology-focused ecosystem.

In order for the country to achieve the goals of Thailand 4.0, there must be actions in 4 main areas, as follows:

1. Digital government transformation by using digital technology as a tool to bring equal access to public services of all citizens;
2. The amendment and revocation of laws and regulations that are not business-friendly, and the enactment of new ones that are beneficial to both Thai and foreign investors by reviewing, amending, revising certain existing laws, rules and regulations, and removing unnecessary ones, to improve Thailand’s ease of doing business.
3. The simplification and review of the processes of obtaining approval and permits, and a reduction in the amount of paperwork by using standardized forms and digital channels by determining the bottleneck of the review processes and working towards efficiency; and
4. The development of infrastructures and the country’s logistical structure in order to support domestic and regional business activities, by focusing on speed, reliability, accessibility and frequency.

Thailand’s accelerating development has changed the way industries operate, creating significant opportunities in the following sectors: