THAILAND – The Thailand Board of Investment (BOI) has unveiled new measures to strengthen the country’s agricultural sector and agro-industry by promoting investment in sector based on the BCG (Bioeconomy, Circular Economy, and Green Economy) model.

The agency has agreed to adjust the investment promotion terms and benefits for the agricultural industry to encourage the development and adoption of technology and innovation in order to add value to the sector’s output and help improve its productivity.

As part of the measures, the Board has added a new activity, Plant Factory, to the list of activities eligible for BOI incentives to ensure steady production of high-quality vegetables all year round by artificially controlling the cultivation environment allowing growers to plan production.

BOI said that this new technology will enable Thailand to improve both the quality and quantity of agricultural produces for both domestic consumption and exports. According to the board, businesses will be eligible for corporate income tax exemption for a period of 5 years.

BOI has also amended the scope, terms and benefits for certain types of agriculture related activities to encourage the use of technology and innovation and sustainable development.

The sectors included in the new amended bill include pet food and animal feed, the grading, packaging and storage of plants, vegetables, fruits or flowers, and products from agricultural wastes.

The agency has additionally approved Envico Company Limited’s investment of 2.476 billion baht to produce food grade recycled plastic pellets, as part of four other large-scale projects with a total investment value of 41.8 billion baht (US$1.35 billion).

Envico facility will be used to produce food grade recycled plastic pellets for the manufacture of beverage and food containers and other packaging for the consumer good industry. The project is set at the Asian Industrial Estate, Rayong Province.

“It is very encouraging to see that despite the global economic situation due to COVID-19, Thailand which has done well in containing the outbreak sees a continuous flow of investment.” Ms Duangjai Asawachintachit, Secretary General of the BOI said.

“Setting a clear direction for the future, the board today also committed to focus our policies and investment incentives on the BCG model and sustainable investment.”

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE