Policy to
strengthen Thailand’s position as Southeast Asia’s next regional MRO hub.
BANGKOK,
THAILAND (PRWEB) APRIL 12, 2017
The Thailand
Board of Investment’s New York office, announced the implementation of a new
15-year aviation industry development plan intended to further develop
Thailand’s aerospace sector and strengthen its position as Southeast Asia’s
next regional aviation and MRO hub.
The plan,
approved in February 2017 by the Thai Ministry of Transportation, establishes a
framework and offers incentives, that will support the growth of aircraft
maintenance and spare parts production in Thailand. Aerospace companies
investing in Thailand, under the plan, will benefit from a host of fiscal and
non-fiscal incentives that range from corporate tax exemptions to assistance
with work permits and product sourcing.
Available
incentives include:
- An eight-year corporate income
tax exemption, regardless of zone, NOT subject to the corporate income tax
exemption cap;
- Exemption of import duties on
machinery, regardless of zone;
- An additional 50% corporate
income tax reduction for another 5 years for any project located in the
Eastern Economic Corridor (EEC).
As the plan
unfolds, the Thai ministry hopes to achieve an ambitious target of establishing
an “Aeropolis” to handle the maintenance of regional aircraft and upgrade the
country’s aviation industry to Tier 2 (Design and Build) as well as improve
human resource skills in the sector.
Currently,
Thailand is home to 28 factories making spare parts for aircrafts, and by 2020,
thanks to the plan, the Ministry expects this number to almost double to 40.
The plan’s
roll out will occur in conjunction with the Thai Government’s flagship
initiative, the “Eastern Economic Corridor Development Project” (EEC), which
transforms the eastern part of Thailand into a special economic zone.
The EEC,
which is a zone covering 13,000 Km² and spans the provinces of Chon Buri,
Rayong and Chachoengsao, has been designated as a high-tech industry cluster
with an eye towards becoming ASEAN's leading economic zone for industry,
infrastructure and urban development. The corridor is designed to accommodate
the government's 10 targeted industries of next-generation cars; smart
electronics; affluent, medical and wellness tourism; agriculture and
biotechnology; food; robotics for industry; logistics and aviation; biofuels
and biochemical; digital; and medical services.
As part of
the new aerospace development plan, U-Tapao Airport, which is located in the
EEC, will be upgraded to an international airport to accommodate more than
three million passengers per year. The airport presently serves as Thai
Airlines’ third MRO center in the country. A recently announced MoU was signed
between Airbus and Thai Airlines to invest USD $560 million to expand the
facility to handle 12 aircraft simultaneously; the site will incorporate
specialized repair shops for such items as composite structures, a maintenance
training center and data analyzing technology. The expanded MRO complex, which
is expected to be one of the most modern and extensive MRO facilities in the
Asia-Pacific region, lays the infrastructure ground work to meet the logistical
needs of companies investing in the EEC.
“We are
committed to ensuring we have a healthy economy, said Ms. Ajarin
Pattanapanchai, Deputy Secretary General of the Thailand Board of Investment.
“Creating a robust environment for foreign direct investment is an integral
part of our plan to ensure Thailand’s economy remains strong for years to
come.”
The Thai
government’s roll out of its Aerospace Development plan follows a series of
recent investment announcements by Bridgestone, Airbus and TurbineAero, global
aerospace companies which have started to recognize the unique growth
opportunities that exist in Thailand and chosen it as a place to do business
over other countries in the ASEAN region.
About BOI
The Thailand
Board of Investment (BOI) is the investment promotion agency for Thailand that
facilitates foreign direct investment. BOI’s services are free of charge and
customized to help business succeed in Thailand. For more information, please
visit http://www.boi.go.thand http://www.thinkasiainvestthailand.com.
Original
post: prweb.com
As the plan
unfolds, the Thai ministry hopes to achieve an ambitious target of establishing
an “Aeropolis” to handle the maintenance of regional aircraft and upgrade the
country’s aviation industry to Tier 2 (Design and Build) as well as improve
human resource skills in the sector.
Currently,
Thailand is home to 28 factories making spare parts for aircrafts, and by 2020,
thanks to the plan, the Ministry expects this number to almost double to 40.
The plan’s
roll out will occur in conjunction with the Thai Government’s flagship initiative,
the “Eastern Economic Corridor Development Project” (EEC), which transforms the
eastern part of Thailand into a special economic zone.
Thai Aviation
Industries (TAI): Here
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