BACK Private investment growth in the first quarter of 2021 is at 80%. Medical and Electronics Group boosts sales amid Covid-19 situation
Although the COVID-19 epidemic situation in the country continues to be affected, there is some good news when there is a good sign regarding the investment of private sector in the first quarter (January – March) of 2021 from BOI that there are more than 120 billion in support requests or more than 80% growth. Compared to the first quarter of 2020, the medical and electronics sector showed the highest growth, while industrial estates in the EEC area remained popular as many investors who have reserved the available spaces. This is consistent with the report of industrial estates of Thailand or IEAT, which revealed its operating results during the first 6 months of 2021, had a total investment value of 106,146.56 million baht, an increase of 78,758.09 million baht from the same period last year, or accounted for 287.56%.
There is also the frozen food industry or frozen ready-to-eat meals which is expected to benefit from the declaration of a state of emergency in Bangkok and the red zone provinces where there are more severe viral outbreaks. As a result, people began to hoard products, especially ready-to-eat food in various forms, including the packaging industry that has benefited from it.
The industry that is the hero in driving the economy this time is the medical industry with investments of up to 18,430 million baht, a growth of more than 100 times compared to the first quarter of 2020. The second place is the electronics and electrical appliances industry with investment value as high as 17,410 million baht or 64% compared to the same period of 2020. The key factors contributing to the growth of these two industries are:
- Demand for products related to medical devices used to prevent, treat and care for patients from COVID-19.
- Work From Home trend that has been extended due to more severe outbreaks.
There is also the frozen food industry or frozen ready-to-eat meals which is expected to benefit from the declaration of a state of emergency in Bangkok and the red zone provinces where there are more severe viral outbreaks. As a result, people began to hoard products, especially ready-to-eat food in various forms, including the packaging industry that has benefited from it.
Industrial zones and target areas of domestic and foreign investors
For industrial zones and target areas for investment are still industrial estates and industrial parks because they are granted special privileges for import and export tariffs on certain types of products, convenience in suppliers, and raw materials used in the production process. The Eastern Special Development Zone (EEC) has projects that applied for support more than 39 percent compared to the same period last year. The area is divided into Rayong, Chonburi and Chachoengsao provinces.
Measures to stimulate Thai investment in 2021
As for the BOI's investment stimulus measures in 2021, they are effective from the application submissions submitted from the first day of 2021 to the last day of 2021 with the following conditions:
- Businesses applying for support must be in the specified target groups, namely:
- A1 : Knowledge-based industry, emphasizing design and R&D to enhance the country's competitiveness.
- A2 : Infrastructure projects for country development, high-tech enterprises, important basic industries with little or no investment in the country.
- A3 : Enterprises that use advanced technology and has the ability to develop the country with some production bases.
- Must make an actual investment of not less than 1 billion baht within 12 months after the issuance of the support certificate.
- Will receive a 50 % personal income tax reduction for 5 years in addition to the normal criteria.
In addition, other privileges are granted depending on the location of the factory whether it is in an industrial park or industrial estate, which investors can check tax privileges and other privileges from www.boi.go.th or request advice from the investment advisor of 304 Industrial Park directly via https://www.304industrialpark.com/contact-us or phone number +66 81 304 3041.
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