The Thailand Board of Investment (BOI), at a meeting today, agreed to streamline the approval of six priority licenses as part of the government’s “Quick Big Win” action plan to improve the investment climate, reduce procedural delays, and deliver faster solutions on critical issues including power availability, industrial land access, and the handling of visas and work permits for foreign experts.

With regard to policy measures, the board approved measures to expedite the investment process and address obstacles related to electricity supply, visa and work permit procedures, and land availability as well as additional requirements for investments in data centers.

FastPass System to Expedite Major Projects

The board agreed to expedite approval processes under seven key authorities through the first phase of the FastPass system. The BOI, in collaboration with six other key authorities namely Department of Industrial Works, Industrial Estate Authority of Thailand, Office of Natural Resources and Environmental Policy and Planning, Immigration Bureau, Department of Employment, and Eastern Economic Corridor Office of Thailand, expects to reduce approval times by 20-50 percent.

In addition, the board approved measures to expedite investment process and resolve related obstacles. These actions follow the approval of the “FastPass” process in the previous board meeting, which aims to help 70 previously approved projects, with a combined value of around 300 billion baht, move forward with their investments. This initiative forms part of the Government’s series of “Quick Big Win” measures designed to spur economic growth over the next four months.

The BOI has launched the scheme by appointing three subcommittees to monitor and resolve common issues related to electricity supply, visa and work permit procedures, and land availability. At this stage, the board has approved an increase in the daily service capacity for visa and work permit applications from 200 to 500 queues per day to improve services for high-potential foreign investors. Regarding the issue of land availability, the board has agreed to expedite the environmental impact assessment (EIA) approval process for industrial area development projects.

“This will strengthen investor confidence in Thailand’s investment framework and contribute to increased employment and broader economic development," Mr. Narit Therdsteerasukdi, Secretary General of the BOI, said after the meeting, chaired by Mr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance.

Updated Requirements for Data Center Projects

The Board approved certain adjustments to the promotion of data center investments. To encourage the transfer of technology and expertise to Thai personnel, projects with the need to employ executives and professionals are required to hire Thai nationals for at least 50 percent of such positions within three years. In order to promote regional development and ensure efficient resource management, the board approved a three- to five-year CIT exemption for investments in the EEC area and a five- to eight-year CIT exemption for investments outside the EEC area.

Project Approvals

The board approved investment privileges for projects worth a combined 100 billion baht (ca. US$3.1 billion) in value, including data center projects by several international investors.

— Telehouse (Thailand) Co., Ltd., a subsidiary of Japan’s KDDI Corporation, received approval for a 7.55 billion baht investment in a data center project. KDDI operates some 45 data centers under the Telehouse brand in more than 10 countries worldwide.

— Vistas Technology Co., Ltd., a subsidiary of China's ZDATA Technologies Co., Ltd. and its Singapore-based unit ZDATA Cloud Technology Pte. Ltd., received approval for a 9.09 billion baht investment in a data center project. ZDATA is a leading provider of integrated data center and cloud computing services currently operating more than 30 data centers in China, Hong Kong, and Malaysia.

— NextGen Data Center and Cloud Services Co., Ltd., a subsidiary of Dubai-based DAMAC Digital, which is a major data center service provider in the Middle East, received approval for a 26.7 billion baht investment in a data center project.

— Zenith Data Center and Cloud Services Co., Ltd., received approval for a 54.9 billion baht investment in a hyperscale data center project.