18 August, 2016
Recently, the BOI announced additional super clusters following on from the super clusters plan that came into effect late 2015.
By one Announcement, the BOI created two additional super clusters, namely, aerospace industrial cluster, and automation and robotics industrial cluster.
Projects for the aerospace industrial cluster must be located in any of the following: Bangkok, Samut Prakarn, Nakhon Pathom, Pathum Thani, Chachoengsao, Chonburi, Rayong, Chiang Rai, Phitsanulok, Nakhon Sawan, Lopburi, Nakhon Ratchasima, Surat Thani, or Songkhla.
The promoted activities include:
- manufacture or repair of aircraft or aerospace devices and equipment
- aircraft or aerospace industrial zones
Projects for the automation and robotics industrial cluster can be located in any province.
The promoted activities include:
- manufacturer of automation machinery
- assembling of robots or automation equipment
Further, in a separate Announcement on the same date, the BOI also announced that certain activities located in Food Innovation Industrial Zones (Food Innopolis) are eligible for the BOI's super cluster incentives. Such activities include (i) plant or animal breeding (only those that are not related to biotechnology), (ii) creative product design and development centers, (iii) research and development.
The Food Innopolis must be located in the areas approved by the Ministry of Science and Technology and the BOI.
Thus, in addition to the four super clusters that came into effect late 2015, there are now seven super clusters in effect by virtue of the BOI’s Announcements, that is:
1. automobiles and automotive parts
2. electronics, electrical appliances, and telecoms equipment
3. environmentally-friendly petrochemicals and chemicals
4. digital
5. aerospace
6. automation and robotics
7. food innopolis
Applications for promotion of activities in super clusters must be submitted to the BOI by 30 December 2016. Projects must generate revenue by 31 December 2017, unless the BOI grants an exemption.
Note that in various public statements, the Thai government also refers to plans to add other industries as super clusters, e.g. medical hub, but to date, official announcements by the BOI are still pending.
We will monitor the progress and keep you informed of any developments.
For further information, please contact:
Benedict Yong, Baker & McKenzie
en.yong@bakermckenzie.com
