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Published on March 21, 2008

The Board of Investment (BoI) will propose the Cabinet approve the setting up of a Bt5-billion competitiveness-development fund to encourage manufacturers to undertake not only technology and efficiency development but also explore more investment aboard.

The fund is designed to finance manufacturers for a four-year programme to expire in 2011. It aims to concentrate on four areas of development including technology and innovation, efficiency, the setting up of an incubation centre for small and medium-sized enterprises and encouraging Thai manufacturers to invest overseas.

Industry Minister Suwit Khunkitti said yesterday that the BoI would be a centre for the plan and interested producers can propose their development proposals to the office for approval.

The project is part of BoI's eight measures to promote "Thailand Investment Years" during 2008-2009.

The office said net applications proposed for BoI privileges are expected to reach Bt1 trillion during the two-year plan.

The measures included extending the manufacturing potential of products such as auto and agro-industrial goods and industries with high value creation, manufacturing development for the future such as industry which uses advanced technology and alternative energy, encouraging investment of infrastructure focusing on the Southern Seaboard, strengthening manufacturers' competitiveness by providing tax incentives, encouraging Thai investors to invest aboard, creating aggressive investment promotion to draw more foreign direct investment through a road-show strategy targeting Japan, the European Union and the United States, improving services and the setting up of the competitiveness-development fund.

Suwit also ordered the BoI to conduct a feasibility study to set up an industrial estate for the Southern Seaboard, focusing on four provinces with potential such as Surat Thani, Nakhon Si Thammarat, Chumpon and Pattani. The study will take three to five years to be completed. The plan targets promotion of the steel and petrochemical industries.

"Investors there will enjoy both tax and non-tax privileges," he said.

In addition, the BoI would approve the government promoted eco-car project next week.

Chalida Ekvitthayavechnukul

The Nation