Starry Research | "BOI Series" Issue 4: Analysis of the Latest Revisions to BOI-Promoted Industrie
When
discussing investment and establishment in Thailand, the topic of
"BOI" is almost always unavoidable. However, most people do not have
an accurate understanding of what BOI is, and there are even quite a few
misconceptions about it. Starry will publish a series of articles on
"BOI," providing a detailed introduction to all aspects of BOI to
help more enterprises understand it.
In the
first three issues, we primarily introduced what BOI is, the preferential
treatments, conditions and criteria offered by BOI, and the application
process. In this issue, we will focus on the major changes to the promoted
industries catalogue in the Investment Promotion Guidelines 2025 (the "BOI
Guidelines (2025)") issued by the Thailand Board of Investment (BOI),
providing a detailed analysis of the policy direction behind the new version of
the catalogue, so that enterprises can better align with local investment
promotion policies when establishing themselves in Thailand.
In
2023, the Thailand Board of Investment (BOI) issued the Investment Promotion
Guidelines (2023) (the "BOI Guidelines (2023)") together with a
Chinese version, which greatly facilitated Chinese-funded enterprises in
applying to the BOI for investment promotion certificates.
On
June 28, 2024, the Thailand Board of Investment (BOI) issued an announcement
regarding the "Revision of the List of Activities Eligible for Investment
Promotion" (Announcement of the Board of Investment No. Sor 5/2567). In
order to ensure that investment promotion measures remain consistent with the
current situation, the BOI revised the list of business activities eligible for
investment promotion.
In
January 2025, the Thailand Board of Investment (BOI) published the BOI
Guidelines (2025), incorporating the abovementioned revisions to the promoted
industries. Compared with the BOI Guidelines (2023), the main adjustments made
by the BOI to the list of business activities eligible for investment promotion
in this revision are as follows:
•
Introduction of new investment areas: 10 new
business categories have been added, including the category of "low-income
residential projects."
•
Optimisation of existing policies: The support
criteria for 17 business categories have been refined and adjusted.
•
Elimination of outdated capacity: Preferential
policies for certain traditional industries characterised by high pollution and
low efficiency have been abolished.
The
BOI's revision of the promoted industries catalogue aims to use policy levers
to direct capital towards key industrial sectors that are technologically
advanced, high in added value, and environmentally friendly — such as
semiconductors, new energy vehicles, digital technology, data centres, and
green economy-related industries. The objective is to enhance the country's
competitiveness in global supply chains, drive the development of
high-value-added industrial clusters, and thereby accelerate the transformation
of Thailand's economic structure towards innovation-driven and sustainable
development.
II. Detailed
Analysis of the Revisions
10 New Business Categories Added
|
No. |
Business Category |
Incentive Levels |
|
1.1.5 |
Animal quarantine facilities for export purposes |
A4 |
|
4.2.4.5 |
Provision of key service processes to support printed circuit board
manufacturing |
A4/B |
|
4.2.4.6 |
Manufacturing of printed circuit board raw materials: copper-clad
laminates (CCL), flexible copper-clad laminates (FCCL), and prepregs |
A2/A3 |
|
4.2.4.7 |
Manufacturing of raw materials or necessary materials for printed
circuit boards, such as dry film, transfer film, backing board, etc. |
B |
|
7.4.1 |
Service centres for refurbishing used electric vehicle batteries |
A4 |
|
7.4.2 |
Service centres for repacking or repurposing electric vehicle
batteries and/or energy storage systems |
A4 |
|
7.3 |
Low-income housing projects |
A4, eligible for corporate income tax exemption only |
|
8.1.2 |
Modification of software, digital platforms, or digital content |
B |
|
8.2.4 |
Data hosting services |
A2 |
|
10.8.11 |
Organisation of world-class music, sports, and international festival
events |
B |
Notably,
the inclusion of "low-income housing projects" as a promoted category represents one
of the rare instances in recent years where the BOI has added a residential
real estate development category to the investment promotion catalogue. This
reflects the Thai government's intention to use policy guidance, against the
backdrop of accelerating inflows of foreign industrial investment and rapidly
rising consumption and residential demand in areas surrounding factories, to
supplement the basic living infrastructure required for industrial development and
to promote the coordinated development of industrial and residential zones.
17 Business Categories Modified
|
No. |
Business Category |
Incentive Level |
|
4.2.4.1 to 4.2.4.4 |
Manufacturing of circuit boards and its raw materials, or necessary materials |
A2/A3/B |
|
5.4.2.2 |
Manufacturing of other intermediate steel, namely slabs, billets, and
blooms |
A4 |
|
5.4.3.1 |
Manufacturing of high tensile
strength steel |
A2 |
|
5.4.3.3 |
Manufacturing of long steel products for industrial use, namely steel
wire rods, wires,
shafts
and bars |
B |
|
5.4.3.4 |
Manufacturing of long steel products for construction use, namely
steel wire rods, wires,
shafts
and bars |
B |
|
5.4.3.5 |
Manufacturing of flat rolled steel products
for industrial use, namely hot-rolled or cold-rolled stainless steel sheets, steel plates, hot- or cold-rolled steel plates, and coated steel
plates |
B |
|
5.4.3.6 |
Manufacturing of flat rolled steel products
for construction use, namely hot-rolled or cold-rolled stainless steel
sheets, steel plates, hot- or cold-rolled
steel plates, and coated steel plates |
B |
|
6.4.4.1 |
Manufacturing of aseptic plastic
packaging certified by cleanroom standards |
A3 |
|
6.4.5 |
Manufacturing of aseptic plastic
packaging |
A3 |
|
6.6.1 |
Manufacturing of products from hygienic pulp or paper certified by cleanroom standards |
A3 |
|
6.6.6 |
Manufacturing of products from eco-friendly
pulp or paper |
A4 |
|
7.2.3.3 |
Gemstone and jewellery industrial zone |
A3 |
|
8.1.1 |
Development of software, digital platforms, or digital content |
A2 |
|
8.2.1 |
Data centres |
A1 |
Among
the revisions, the adjustments to the steel products manufacturing category are
the most significant. The BOI has removed the eligibility for new projects in
long steel and flat steel products (project codes 5.4.3.3 to 5.4.3.6) to apply
for investment promotion, permitting only existing capacity projects to apply
for investment incentives provided they meet the "Smart and Sustainable
Industry" criteria. At the same time, the incentive tier for the relevant
projects has been downgraded from A4 or B in the previous catalogue to B together. This adjustment
reflects the Thai government's clearly restrictive stance on the addition of
new steelmaking capacity against the backdrop of the domestic steel industry
continuing to face significant pressure from large volumes of imported steel
and dumping.
1 Business Category Deleted
|
No. |
Business Category |
Incentive Level |
|
6.5 |
Manufacturing of pulp or paper |
A2/A3/A4 |
In the
new version of the catalogue, the BOI has completely removed the category of
"manufacturing of pulp or paper," with the 5 specific sub-categories
involved also deleted accordingly. This marks Thailand's formal termination of
investment promotion policies for the paper manufacturing industry. This move
reflects the government's intention to use policy regulation to restrict the
development of highly polluting and resource-intensive industries, reduce the
negative impact of paper production activities on water resources, forests, and
the environment, and further advance the implementation of the green economy
and sustainable development strategy.
The
BOI's revision of the promoted industries catalogue clearly reflects a shift in
the Thai government's attitude towards industrial investment — moving away from
the previously broad
promoting approach to support in favour of more selective
encouragement of high-technology, environmentally friendly, and
high-value-added industries. This change not only reflects the BOI's intent to
guide the transformation of the national economic structure, but also reflects
the clear industrial policy preferences of the new Thai government. For Chinese
enterprises planning to invest in Thailand, thoroughly studying the new
investment guidance catalogue and accurately understanding its policy direction
have become key prerequisites for formulating investment strategies. Only by
precisely positioning the intended business activities can enterprises
effectively improve their chances of obtaining BOI investment incentives and
thereby achieve a more robust development layout in the Thai market.
