EXIM Thailand, BOI join forces to attract foreign investment, support sustainability

TUESDAY, JULY 09, 2024

Rak Vorrakitpokatorn, President of EXIM Thailand, and Narit Therdsteerasukdi, Secretary General of BOI, signed a Memorandum of Understanding at EXIM Thailand's Head Office on July 9, 2024.

The agreement aims to promote and attract foreign direct investment (FDI) through financial support for Thai entrepreneurs seeking BOI investment promotion. It encourages enhancing production efficiency, reducing greenhouse gas emissions, and business remodelling to transition Thailand to a low-carbon society.

EXIM Thailand's President revealed that this cooperation will allow entrepreneurs interested in investing in Thailand or aspiring to invest overseas to access tailored financial facilities and leverage the networks of both organizations, including public and private agencies, industrial associations, and other related services for business expansion.

EXIM Thailand is well-positioned to collaborate with its alliances to exchange inbound and outbound investment information and provide advice to entrepreneurs in the member or customer networks of each organization.

Activities like business matching, training, and seminars on domestic and international trade, and investment know-how, knowledge exchange for entrepreneurial development, and support for international trade and investment risk management tools will be arranged for Thai entrepreneurs.

Under this cooperation, EXIM Thailand offers financial products to BOI-promoted entrepreneurs with eco-friendly business operations at special interest rates, including a 0.5% discount in the first year under the EXIM Green Goal and EXIM Solar D-Carbon Financing schemes.

These schemes support entrepreneurs investing in solar power generation systems, such as solar rooftops, solar farms, and solar floating systems, along with entitlement to carbon credit registration and certification.

The EXIM Extra Transformation scheme is also available for exporters in S-curve industries to upgrade Thai manufacturing sectors by investing in machinery and equipment, factory buildings, or robotic/automatic systems, aiming to lower production costs and enhance business efficiency and capabilities.

Narit stated that the MOU signing between BOI and EXIM Thailand marks a significant collaboration, leveraging both organizations' strengths to support Thai entrepreneurs in expanding their investments domestically and internationally. This partnership aims to attract foreign investors to Thailand.

EXIM Thailand, with its expertise in international trade and investment promotion, offers various financial products, including credit, risk insurance, and import-export support services.

BOI, as an investment promotion agency with an extensive network of Thai and foreign investors, including 17 overseas offices and 7 regional offices, is ready to assist investors and provide investment promotion tools such as exemptions from import duties on machinery and raw materials, corporate income tax exemptions, land ownership permissions, visa and work permit facilitation, and subsidies through the National Competitiveness Enhancement for Targeted Industries Fund.

Additionally, BOI organizes activities to develop Thai entrepreneurs, such as the "Creating Thai Investors Abroad" training course, which has been held annually for over 21 batches, with more than 740 graduates, and over 300 have invested abroad. BOI also organizes the Thai Subcontractor Exhibition (Thai Subcon) and Sourcing Day in collaboration with leading global companies, particularly in the automotive, electronics, and machinery sectors, to promote Thai entrepreneurs' entry into the global supply chain.

"BOI and EXIM Thailand share a mission to enhance the capabilities of Thai entrepreneurs to grow robustly, both in expanding their domestic operations and seeking business opportunities abroad. This collaboration will also support foreign investment into Thailand. The joint efforts of BOI and EXIM Thailand will combine the strengths of both organizations to drive tangible and beneficial investment projects for the country," said Narit.

Rak added that EXIM Thailand is moving towards the role of a Green Development Bank, aiming to fill knowledge, opportunity, and capital gaps for Thai entrepreneurs sustainably and to enhance sustainable development in Thailand and globally. The Bank promotes trade and investment, both foreign direct investment (FDI) and Thai direct investment (TDI), to drive economic advancement, develop innovations and technologies in industrial sectors, stimulate employment and development in economic, social, and environmental dimensions, and strengthen entrepreneurs at all levels throughout the supply chains, particularly the green export supply chain.