Thailand’s Board of Investment (BOI) has approved a series of measures [1] aimed at mitigating risks posed by global trade policies, including the removal of investment incentives for solar panel and downstream steel manufacturing. The decision, announced on Monday by BOI Secretary General Narit Therdsteerasukdi, reflects the government’s broader strategy to strengthen Thai businesses, particularly small and medium-sized enterprises (SMEs), while safeguarding economic stability against market fluctuations.
The BOI’s policy adjustments respond to concerns about oversupply and trade-related vulnerabilities in key industries. As part of the reforms, investment incentives will no longer be granted to solar cell and panel manufacturing, lead-acid battery production, automotive components, metal cutting, and non-recyclable waste sorting. Additionally, downstream steel manufacturing incentives—including those for long-form steel, hot-rolled and thick steel sheets, and steel tubing—will be withdrawn.
Beyond addressing trade risks, the initiative seeks to enhance Thai entrepreneurs’ ability to compete in global markets. A special incentive scheme will encourage SMEs to adopt new machinery, automation, digital technologies, and energy-efficient production methods. Tax exemptions for efficiency improvements will increase from three years (covering up to 50% of investment value) to five years (covering 100% of investment value), further incentivizing modernization.
Stricter production criteria will be imposed on industries exposed to US trade measures, such as automotive parts, electrical appliances, electronics, metal products, and light industries. These industries must now demonstrate significant raw material transformation—measured by customs classification shifts at the four-digit level—to ensure exports yield clear benefits for Thailand.
The BOI is also introducing new foreign employment conditions to balance domestic workforce needs with global expertise requirements. Companies with more than 100 employees seeking investment promotion must maintain a Thai workforce comprising at least 70% of their staff. A new minimum income threshold for foreign personnel will be implemented: executives must earn at least 150,000 baht per month, while specialists must earn 50,000 baht. The policy aims to attract high-value foreign professionals while ensuring knowledge transfer to Thai workers.
To reinforce Thailand’s competitiveness in global supply chains, BOI has commissioned a study in partnership with the Federation of Thai Industries (FTI) and the Thailand Development Research Institute (TDRI). The study will explore strategies to boost domestic value creation and promote collaboration between international firms and Thai businesses, creating new opportunities in industries critical to global market integration.
Sources:
[1] BOI ends solar panel, steel incentives to tackle oversupply https://www.nationthailand.com/business/economy/40050173