BOI Accelerates Investment Promotion, Driving the “Northern Economic Corridor (NEC)” Policy

    The government places importance on regional development, both in terms of sectors and provincial clusters, including the development of special economic zones to distribute prosperity to the regions, elevate income, and improve the quality of life of the people, while enhancing the country's competitiveness.

     For the northern region, Chiang Rai, Chiang Mai, Lampoon, and Lampang have been designated as the Northern Economic Corridor (NEC), receiving benefits to promote investment and become the country's creative economic base. This area is a hub for the production of goods and services, extending from the Lanna cultural base, blending local wisdom with modern innovation and technology.

     The Board of Investment (BOI), in collaboration with both governmental and private sector partners in the area, drives the investment promotion strategy. This includes new investment promotion measures that will benefit investors in the northern region. Examples are the promotion measures in the target industries, measures to enhance competitiveness, measures to upgrade industries towards Smart & Sustainable Industry, measures to promote SMEs, measures to promote investment for community and social development, and the Long Term Residence (LTR) visa measures that will facilitate foreign experts in the targeted industries that Thailand wants to promote. The north is seen as an important area with potential to attract investment in various target industries. It has a perfect blend of High Tech, such as Chiang Mai, which is a hub for start-ups and Digital Nomads, medical innovation zones, and quality medical schools. Lampoon is one of the main clusters for electronic components and has a bio-complex, a model of bio-economy, located in Nakhon Sawan and linked with surrounding provinces.

     On the High Touch side, the north is prominent in cultural arts, handicrafts, creative industries, wellness tourism, as well as abundant agriculture and food. It also has investment potential in industries such as agriculture and processed food (Northern Food Valley), BCG business, creative industries, smart city development, innovation city creation (Chiangmai City of Innovation), Digital Nomad support, as well as promotion and enhancement of SMEs in the north through loans and tax benefits.

     The NEC area is one of the four special economic corridors in four regions that have benefit measures to promote investment in the special economic corridors. The focus is on promoting the target industries, with conditions for human resource development, or research and development of technology and innovation. This is coupled with driving growth in another 17 provinces in the northern region.

     For the first quarter of 2023 (January-March 2023), there were a total of 20 investment projects in the NEC, with an investment value of 8,116 million baht. Most of these are in the target industries, namely agriculture and food processing, electronic components, and digital.

Source: Office of the Prime Minister, Government House
Tel. +66 2280 9000
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