The surge in bioplastics and Electric Vehicle industries in line with bio-economy and zero-emission policies

     The global challenge of climate change is prompting significant transitions to control greenhouse gas emissions and mitigate the impacts of global warming.

     The issues caused by traditional plastic waste, including environmental pollution and toxicity, are motivating the world to reduce the usage of conventional plastics and turn towards bioplastics. These biodegradable and eco-friendly alternatives have caused a surge in the global demand for the bioplastics industry.

     Similarly, there is a growing interest in the electric vehicle (EV) industry. These vehicles do not emit greenhouse gases as they operate on battery systems without the need for fuel combustion, hence constituting another powerful trend for environmental preservation.

     In Thailand, the government has implemented measures to promote and stimulate the usage of biodegradable plastics and to support the EV industry to increase domestic production and usage of electric vehicles.

     Data from the Ministry of Industry reveals that tax measures aimed at promoting environmentally-friendly innovations and technologies have led to investments exceeding 19 billion baht in the bioplastics industry. These measures allow businesses to deduct 1.25 times the actual cost of purchasing biodegradable plastic products from their corporate income tax. During 2022-2024, the total investment in the country amounted to 112.66 billion baht, leading to the establishment and expansion of 1,211 factories and the creation of 30,603 new jobs.

     In the first half of fiscal year 2022 (Oct 2022 - Mar 2023), 1,016 new factories were established with an investment of 89.4 billion baht, an increase of over 29 billion baht from the same period last year.

     The industry with the highest new investment is the chemical products and chemical product group, with an investment value of 22.63 billion baht, accounting for 25.31% of total investments. The plastic products group followed with an investment value of 9.26 billion baht, representing 10.35% of total investments.

     Regarding factory expansions, there were 195 factories with an investment value of 23.23 billion baht. The electrical appliances and equipment group had the highest expansion investment value of 10.19 billion baht, accounting for 43.87% of investment, followed by the food industry with an investment value of 1.93 billion baht, accounting for 8.31% of investment.

     In the Eastern Economic Corridor (EEC) region, new factories and factory expansions accounted for 29.76 billion baht, or 26.42% of total national investment. The electrical appliances and equipment group had the highest investment value of 10.4 billion baht.

     Meanwhile, the 10 target industries (S-Curve) had new factories and factory expansions worth 37.62 billion baht, accounting for 33.39% of total national investment. The food processing industry had the highest investment value of 14.36 billion baht.

 

Source: The Department of Industrial Works, 75/6 Phra Ram 6 Road, Thung Phaya Thai, Ratchathewi, Bangkok 10400 
Tel. +66 2430 6300

 

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