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Published on November 20, 2007

Under the pressure of tough competition, the BoI realises that it should encourage manufacturers here to boost their competitiveness by enhancing more advanced technologies and R&D.

It is considering revising its promotion conditions for some industries, particularly labour-intensive ones such as textiles and footwear.    

Secretary-general Satit Charnjavanakul said the BoI expected to complete and announce the new conditions for some industries within the interim government's term.

However, he declined to specify the names of industries.

"In the future, manufacturing projects that do not apply standard technologies will be granted fewer privileges," he said.

The BoI will continue its policy to promote industries and supporting industries that provide benefits to the Kingdom, including steel blast furnaces and automotive and electronic industries.

Moreover, it will promote more alternative energy because these projects have the potential to increase the country's exports in the future, Satit added.

During his roadshow in Japan last week, he said more than 600 operators were interested in investing and expanding their investment in the Kingdom.

"At the moment, we and the Japanese steelmakers have agreed to find out appropriate locations and other possibilities for establishing steel blast furnaces here," he added. 

The BoI has fixed total production capacity of blast furnaces at 2 million tonnes for each project, which would need a minimum investment of Bt100 billion.

Total net applications this year are expected to reach Bt500 billion to Bt550 billion, up around 10 per cent from last year, Satit said.

Net applications in the first 10 months were worth Bt498 billion, an increase of 20 per cent from the same period last year.

Of the total, foreign direct investment made up 63.9 per cent worth Bt378.73 billion.

Chalida Ekvitthayavechnukul

The Nation