The Thailand Board of Investment (BOI) convened a meeting to address mounting challenges posed by U.S. tariff policies and broader external trade risks, unveiling a suite of targeted initiatives aimed at fortifying the resilience and competitiveness of Thai businesses.
To curb overcapacity and mitigate exposure to trade restrictions, the BOI will suspend investment promotion privileges for industries vulnerable to oversupply or global trade tensions. Notably, this includes solar cell and panel manufacturing, non-critical automotive components such as lead-acid batteries and decorative accessories, metal cutting operations, waste sorting activities lacking recycling integration, and downstream steel products like long materials, flat steel (including hot-rolled coils and thick plates), and various steel pipes. The move seeks to redirect investment flows toward sectors with higher strategic value and sustainability.
For industries deemed susceptible to U.S. trade measures—such as automotive parts, electrical appliances, electronics, metal fabrication, and light manufacturing—the BOI will impose stricter scrutiny of production processes. Companies operating in these sectors must demonstrate critical production capabilities that substantially transform raw materials into finished goods, thereby enhancing the export competitiveness of Thai products and safeguarding national economic interests.
In parallel, the BOI has revised hiring guidelines for foreign workers employed by manufacturing firms seeking investment incentives. Under the new rules, companies with 100 or more employees must ensure that at least 70% of their workforce comprises Thai nationals. Additionally, foreign executives and technical specialists applying for BOI visas and work permits must meet minimum salary thresholds: executives must earn a minimum monthly wage of 150,000 THB (~4,300), while technical experts must earn 50,000 THB (1,430). These measures aim to strike a balance between attracting critical foreign expertise and protecting domestic employment opportunities.
Recognizing the vulnerability of small and medium-sized enterprises (SMEs) to tariff shocks, the BOI has introduced enhanced support mechanisms. SMEs affected by U.S. tariffs will now be eligible for extended corporate income tax exemptions, increased from three to five years and capped at 100% of their investment costs. Additionally, the BOI is incentivizing SMEs to modernize operations through machinery upgrades, automation, digitalization, energy efficiency improvements, and alignment with international sustainability standards. Diversification into emerging industries is also encouraged to reduce dependency on tariff-sensitive sectors.
Collectively, these measures reflect Thailand’s proactive approach to navigating an increasingly complex global trade landscape. By realigning investment priorities, tightening quality controls, and empowering SMEs to innovate and adapt, the BOI aims to strengthen Thailand’s industrial base, enhance export resilience, and foster sustainable economic growth amid external headwinds. The initiatives underscore the government’s commitment to balancing short-term stabilization efforts with long-term structural reforms to secure Thailand’s position in regional and global supply chains.
