The Thai Board of Investment Seoul Office held a seminar in mid-July to promote the country’s rising digital economy and attract investors and specialists.

The venue titled “Thailand: Moving forward to digital economy” gave an overview of developments in the second largest economy in Southeast Asia, as it transitions toward a knowledge-based society.

Through the ambitious government initiative “Thailand 4.0,” Bangkok aims to transform the country into a regional innovation hub, housing research and development centers, universities with cutting-edge competitiveness and talented professionals in information communications technology.

Particular focus will be on nurturing “smart farming” technologies and management practices; “smart enterprises” with new entrepreneurial energy, without excessive dependence on state support; and high-value-added services and high-skilled expertise. 

“Our current economic model has over time led the country into not only a middle-income trap, but also exacerbated inequality and widened the development imbalance,” noted in a speech Chokedee Kaewsang, deputy secretary general of the Thailand Board of Investment.

While explaining that previous development models relied on agriculture, light industries and heavy industries, he said the Thai economy had grown from 3 to 4 percent annually since 1994.

The targeted “new engines of growth” are food, agriculture, biotechnology, health, smart devices and robotics, the Internet of Things, artificial intelligence and cultural services.

To materialize the scheme, Bangkok has unveiled its National Digital Economy Master Plan with over $105 million invested in digital projects this year. Furthermore, the government will provide over 10,000 Wi-Fi spots across the country; double the capacity of submarine cables and lower the cost of ICT services; create 600 digital community centers in each sub-district nationwide; and train farmers and the elderly to use digital technology.

Phuket and Chiang Mai will be turned into “smart cities” over the next two years by attracting technology startups.

“The board of investment offers a range of attractive incentives to promote the government’s vision and secure foreign investment,” he highlighted. “Our policy aims to cultivate ‘super clusters’ across nine provinces to facilitate various businesses, strengthen industrial value chains and spread the fruits of development to regions and localities.”

Activities related to software development and infrastructure, IT services, electronic design, cloud computing, mobile advertising, data centers and science and technology parks will receive an eight-year corporate income tax exemption, without being subject to a cap. These businesses will also receive an additional five-year reduction of 50 percent, including an exemption of import duty on machinery.

In the nontax category, a permanent residence permit for specialists is being considered, and foreigners are permitted to own land for their enterprises.

Between 2009 and 2015, total Korean investment approved by the board was $1.2 billion. Pointing out that the number is lower than other countries in the region, Kaewsang said a diverse portfolio of investment is welcome.

Last year, the board approved 183 projects in the digital economy category worth some $540 million.

By Joel Lee (joel@heraldcorp.com)