Thailand Approves USD 6.2 Billion in Investments, Including Foxconn-PTT’s EV Venture

July 2022

The Thailand Board of Investment (BOI) has approved a combined USD 6.2 billion worth of investment applications in manufacturing and infrastructure projects, including USD 1 billion by Horizon Plus, a joint venture between Taiwan’s Foxconn and Thailand’s PTT PCL, to make battery electric vehicles (BEV). It also approved enhanced benefits for investment in battery production, building up on the policy to become Southeast Asia’s EV manufacturing hub. In addition, the board approved a set of improved incentives to promote investments in smart industrial estates and smart systems, including upgrades of existing industrial estates.

Both existing and new projects using advanced technology in the production of EV batteries, from battery cells to battery modules, and in the production of high energy density batteries, will under the revised benefits enjoy a 90% reduction of import duty on raw and essential materials for 5 years in cases where the output is sold domestically.

So far, a total of 16 projects by 10 different companies, have been granted promotion benefits for investments in the manufacture of EV batteries, while another 3 projects have been promoted for investment in high energy density batteries, she said.

The BOI also approved an improved package for the promotion of investment in smart industrial estates/zones as well as an incentive package for upgrading existing general industrial estates/zones. To apply for promotion or upgrade conventional facilities to smart industrial estates/zones, the projects must provide intelligent system services to their customers in five key areas.

Investment promotion benefits now also extend to investments in the development of smart systems for use in industrial estates and zones. The approved projects will be granted an 8-year corporate income tax exemption, and those located in the country’s Eastern Economic Corridor (EEC) area, will enjoy a 50% corporate income tax reduction for an additional period of 5 years.

While investments in smart industrial estates and zones require at least 51% Thai shareholders to be eligible for the benefits, there is no shareholding limit for investments in the development of smart systems.

Besides the Horizon Plus project, the investment applications approved by the board today comprise the following:

  • Asia Era One Co., Ltd. received approval for its USD 4.4 billion investment to build a high-speed rail project connecting the three airports located in Bangkok and the EEC.
  • The Kingboard Holdings Group, a Chinese company, received approval for its total USD 230 million investment in technical fiberglass yarn and fabric for use in the production of multi-layer PCB.
  • IRPC Clean Power Co., Ltd. received approval for the USD 8 million expansion of its cogeneration power plant.

(Source: Board of Investment of Thailand)

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