BoI buzzes in pursuit of Thailand 4.0

• Dec 18, 2017

The government’s Thailand 4.0 scheme — meant to usher in the country into more value-added, innovative and creative sectors — has made the Board of Investment (BoI) one of the busiest state agencies as it reworks its processes and structures to promote technological changes.

One of the novelties is the establishment of the five new BoI divisions: bio and medical industries; advanced manufacturing; basic and support industries; high-value services; and creative and digital industries. These divisions are expected to handle the new generation of S-curve industries and those slated for the much-touted Eastern Economic Corridor.

The government’s 10 targeted industries are: next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

The BoI also upgraded its BoI Unit for Industrial Linkage Development (BUILD) to become a new division.

BUILD is tasked with encouraging growth in support industries in Thailand. It provides information on subcontracting opportunities and offers support to purchasing firms seeking sourcing networks in Thailand. The unit helps small and medium-sized Thai suppliers achieve standards required to enter into productive subcontracting arrangements.

Its extensive database on subcontractors in Thailand provides matchmaking services for firms seeking specific components or raw materials. BUILD has a vendors-meet-customers programme, which promotes subcontracting by arranging factory visits to electronics and automotive assemblers.

Moreover, the BoI has signed a memorandum of understanding with Chulalongkorn University to help entrepreneurs commercialise existing researches.

Plans are also afoot to work with other universities to support the private sector in commercialising the R&D.

In addition, the BoI has been assigned by the government to oversee the Strategic Talent Center, which has been jointly established by the BoI and other key organisations to provide services in identifying available specialists or researchers in the fields of science and technology to support the private sector in conducting R&D and innovation activities.

The other organisations include the Digital Economy and Society Ministry, the Foreign Affairs Ministry, the Interior Ministry, the National Research Council of Thailand, the Science and Technology Development Agency, National Science Technology and Innovation Policy Office and Thailand Research Fund.

The centre provides a mechanism that recognises the qualifications of foreign experts who wish to live and work in Thailand. Once their qualifications are recognised, these experts will then be assisted with their visas and work permits.

The centre is expected to start running in January.

The BoI is also sharpening its focus on human resource development, vowing to provide training to its existing 400 human resource personnel both in domestic and overseas offices to give them greater capability and flexibility to switch to work for different divisions.

“The BoI is one of the four state agencies that have volunteered to restructure the organisation to support the government’s ambitious Thailand 4.0 policy and promote S-curve industries. The BoI’s new restructure was approved by the cabinet in September,” said newly appointed BoI secretary-general Duangjai Asawachintachit who was promoted in October, replacing Hiranya Sujinai who retired.

The three other state agencies are the Office of the Public Sector Development Commission, the State Enterprise Policy Office and the Legal Execution Department.

“I intend to upgrade the agency’s efficiency and capability to handle an economy of speed and technology change, as technology is expected to be used more in the manufacturing and service sectors,” said Ms Duangjai. The BoI workforce also needs to be equipped with better knowledge before approving any investment applications.

Ms Duangjai said the BoI is establishing new overseas office, including one Hanoi in Vietnam, another Jakarta, Indonesia, and a mobile unit in Myanmar.

The BoI operates 14 overseas offices: in Tokyo, Osaka, Seoul, Beijing, Guangzhou, Shanghai, Stockholm, Taipei, Sydney, Frankfurt, Paris, New York, Los Angeles and Mumbai.

Via its overseas offices, the BoI has also pledged to support and promote Thai entrepreneurs to invest in neighbouring countries including Myanmar, Laos, Vietnam, Cambodia, Indonesia and Philippines.

Thailand needs to support SMEs in investing more overseas because of higher wages at home and relatively low economic growth, Ms Duangjai said. The agency has provided training to more than 500 entrepreneurs, around 89 of whom have already invested overseas.

A Bank of Thailand report put Thailand’s investment in Asean at 874 billion baht in 2016, making up for 29% of overseas investment. The investment focuses largely on food, chemical, beverage, wholesale, retail, finance and insurance, mining and construction.

For investment at home, Ms Duangjai is confident that total investment applications proposed to the BoI would reach the target of 600 billion baht in 2017.

The BoI reported it approved investment applications for 987 projects in the first 10 months of this year, down 6% from the same period last year, but the investment cost amounted to 377 billion baht, up 8% from the same period last year.

The investment applications in the 10 targeted industries totalled 460 projects, accounting for 47% of total applications. Their investment cost was worth 172 billion baht, making up for 46% of the total investment.

The BoI also reported foreign direct investment in the first 10 months amounted to 604 projects, down 3.8% of the same period last year, with investment of 169 billion baht, up 6.4% from the same period last year.

Source: https://www.bangkokpost.com/business/news/1380911/boi-buzzes-in-pursuit-of-thailand-4-0