Objectives of Cluster Development

  1. To strengthen industrial value chain leading to creation of future industry base
  2. To build investment competencies to attract value added investment, from both existing and new projects, to invest in Thailand
  3. To decentralize developments to regional and local areas, and create business opportunities for SMEs

Investment Incentives for Industrial Cluster

1. Tax incentives for super cluster

  • 8 - year corporate income tax exemption and additional 5 - year reduction of 50 %
  • For Future industries with significant importance, the Ministry of Finance will consider granting 10 - 15 years corporate income tax exemption 
  • Import duty exemption on machinery
  • Personal income tax exemption for renowned specialists to work in the specified area, both Thai and foreign

2. Non-Tax incentives for super cluster

  •  Consideration of granting Permanent Residence to the leading specialist
  •  Permission for foreigners to own land to implement the promoted activities

Obligatory Conditions to Receive Cluster Incentives

  • Must have cooperation with academic institution / research institution / Center of Excellence in the cluster to develop human resource and improve the level of technology e.g.
    • Cooperation in the Talent Mobility / Work - integrated Learning / Co - operative Education / Dual systems
    • Cooperation in development of human resource or technology as approved by the Board of Investment
  • Must apply for investment promotion within 2016 and must start operation within 2 017 to accelerate investment, unless under necessity i.e. large - scale project, the BOI will consider relaxation as deemed appropriate.

Cluster Map for Aerospace Industry

Province Competitive Factors
Bangkok Presence of key international airport
Samutprakan Presence of key international airport and large number of industrial estates
Nakhonpathom Presence of MRO center of TAI*
Pathum Thani Close to airport and presence of large number of industrial estates
Chachoensao Close to airport and large number of industrial estates
Chonburi Presence of airport and has sufficient area for developing MRO center and has many industrial estate
Rayong Close to airport and has sufficient area for developing MRO center and has many industrial estate
Chiang Rai Presence of airport and has sufficient area for developing MRO center
Phitsanulok Presence of airport and has sufficient area for developing MRO center
Nakhon Sawan Presence of MRO center of TAI**
Lopburi Presence of electronic part manufacturer for aerospace
Nakhon Ratchasima Presence of airport and has sufficient area for developing MRO center
Surat Thani Presence of airport and has sufficient area for developing MRO center
Songkhla Presence of airport and has sufficient area for developing MRO center

 

Notes:

Study conducted by Kasetsart University
** Proposed by GISTDA
TAI stands for Thai Aviation Industries Co.,Ltd

Aerospace - related Activities Eligible for Additional Incentives

Activities Current Incentives

Manufacture of Advanced / Nano Materials or Products Produced from Advanced / Nano Materials

- Manufacture of Advanced / Nano Materials or Product produced from Advanced / Nano Materials with continued manufacturing process from Advanced / Nano Materials within the same project

- Manufacture of Products produced from Advanced / Nano Materials

A 2 ( 8 years )

A3 ( 5 years )

Manufacture of textile products or parts

- Manufacture of Technical Fiber or Functional Fiber

- Manufacture of Functional Yarn or Functional Fabric)

A 2 ( 8 years )

A3 ( 5 years )

Manufacture or repair of aerospace, including aerospace parts and equipment or onboard equipment

- Manufacture of airframe, airframe components, major components, e.g. engine, aircraft parts, propeller, and avionic equipment

- Manufacture of other aerospace parts including interior (except disposable and reusable - Aircraft, engine and aircraft components MRO

A 1 ( 8 years no cap)

A3 ( 5 years )

A2 ( 8 years )

Manufacture of Telecommunication Products

- Manufacture of emission, transmission and reception devices used in fiber

- optic and wireless communication systems

- Manufacture of other telecommunication products

A 2 ( 8 years )

A 3 ( 5 years )

Manufacture of Parts for Telecommunication Products

- Manufacture of parts for emission, transmission and reception devices used in fiber

- optic and wireless communication systems

- Manufacture of parts for other telecommunication products

A2 ( 8 years )

A3 ( 5 years )

Manufacture of Electronic Control and Measurement for Industrial/Agricultural Use, Medical/Scientific Devices and Automotive Industry A2 ( 8 years )
Manufacture of Electronic Security Control A2 ( 8 years )

Electronics Design

- Microelectronics Design

- Embedded System Design

A 1 ( 8 years no cap)

A 1 ( 8 years no cap)

Software

- Embedded Software

A 1 ( 8 years no cap)

Industrial Zones or Technology Industrial Zones

- Science and Technology Park

A 1 ( 8 years no cap)

 

Source: BOI

Photo : "Airbus plane factory in Toulouse, France" by Nicolas Halftermeyer - Own work. Licensed under CC BY-SA 4.0 via Wikimedia Commons.

 

Smart International Consulting proposes tailor-made services to accompany your investment projects since the early stage until the complete achievement. For further information, please contact us Email: info@smartconsulting.asia Skype: adalidda WhatsApp:+85577778919.

 

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