In the past four years, BOI approved 15 bioplastics production projects, worth 16.1 billion baht in investment value. BIO pointed out that Thailand has high potential for development as a bioplastics hub because of its abundant raw materials, existing value chain, and supportive government policies.
BOI Secretary General Duangjai Asawachintachit said, "With our strong agricultural base and with Southeast Asia projected to become the world’s major bioplastics manufacturing region in the next 10 years, Thailand is well-positioned to grow as a bioplastics hub, regionally and globally.”
Thailand grows numerous crops, including around 30 million tons of cassava a year, a commodity for which it is the world’s top exporter. As for supporting industries, Thailand currently has thousands of companies covering various stages of the bioplastics value chain.
With the growing trend toward the circular economy, bioplastics are seen by many as a sustainable alternative to chemically produced plastics, as they help limit the use of fossil resources and reduce the emission of CO2 and greenhouse gases.
Ms. Duangjai said that the trend toward bioplastics boosts not only economic growth in the manufacturing sector but also agriculture production and the circular economy as a whole.
BOI offers a wide range of investment incentives for activities related to the sector to support the manufacture of eco-friendly chemicals and of eco-friendly products. Investment projects in bioplastics-related projects are granted eight-year corporate income tax exemption and import duty exemption for machinery, as well as other non-tax benefits.