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.

Source: Thailand Board of Investment

Illustration Photo: Airbus engine (Public Domain from Pixabay.com)

Loading...

Comments

No comments to display.

Related posts

Call for Applications: Communication projects which mitigate anthropogenic climate change

The Minor Foundation for Major Challenges (MFMC) is inviting applications from all over the world to fund communication projects which mitigate anthropogenic climate change.
Application Deadline in a month

EU's Call for Proposals: Digital technologies for improved performance in cognitive production plants

Proposals need to develop new technologies to realise cognitive production plants, with improved efficiency and sustainability, by use of smart and networked sensor technologies, intelligent handling and online evaluation of various forms of data streams as well as new methods for self-organizing processes and process chains.
Application Deadline in 4 months

Study reveals best use of wildflowers to benefit crops on farms

For the first time, a Cornell University study of strawberry crops on New York farms tested this theory and found that wildflower strips on farms added pollinators when the farm lay within a "Goldilocks zone," where 25 to 55 percent of the surrounding area contained natural lands.

EU's Call for Proposals: Reinforcing the EU agricultural knowledge base

Activities shall analyse and compare the approaches taken on their performance and impact for farmers/foresters as well as effectivity of the communication and information channels used for dissemination in countries and regions.
Application Deadline in 3 months

The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities

In response to the Bali Fintech Agenda, the World Bank will focus on using fintech to deepen financial markets, enhance responsible access to financial services, and improve cross-border payments and remittance transfer systems.

EU's Call for Proposals: Sustainable solutions for bio-based plastics on land and sea

Activities shall focus on sustainability strategies and solutions for bio-based productsand support the Plastics Strategy. They shall include innovative product design and business models facilitating efficient reuse and recycling strategies and solutions, including ensuring the safety of recycled materials when used for toys or packaging food stuffs.
Application Deadline in 3 months

EU's Call for Proposals: Startup Europe for Growth and Innovation Radar

Actions should help startups and scaleups achieve market success and mature the innovation excellence of high potential innovators.
Application Deadline in 5 months

Gartner Identifies the Top 10 Strategic Technology Trends for 2019

“The Intelligent Digital Mesh has been a consistent theme for the past two years and continues as a major driver through 2019. Trends under each of these three themes are a key ingredient in driving a continuous innovation process as part of a ContinuousNEXT strategy,” said David Cearley, vice president and Gartner Fellow.

Volvo and NVIDIA will jointly develop AI-capable core computer for the next generation of Volvo cars

The new computing platform will use NVIDIA’s advances in AI as well as its unrivalled computing power, allowing Volvo Cars to take considerable steps forward in implementing advanced driver support systems, energy management technology and in-car personalisation options.

A Quick Look At The Latest Happenings In The Diode Laser Market

The Laser diode Market earned a revenue of $5.11 billion in 2017 and is estimated to grow at a CAGR of 5.44% during the forecast period of 2018-2023. By far, Asia-pacific is the largest and fastest growing market with a CAGR of 9.9%. Emergence of new market opportunities, innovative and power efficient product launches from companies are the key growth drivers for the diode laser market. The green laser diode is the fastest growing product type when compared with other diodes.