Common Development for Asia: Thai businesses urged to switch from manufacturing to technology

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Businesses across Asia are increasingly investing in technology to ensure the region's economic success continues. In Thailand, the government is offering tax incentives for businesses to switch from manufacturing to high-tech industries. This is part of its key economic strategy called "Thailand 4.0" – a fourth stage of industrial development. CGTN's Martin Lowe explains.

This company in Bangkok started out as a local lathe shop, producing metal molds and car parts.

But it diversified into manufacturing aerospace and aviation components, and now supplies global companies including Boeing and Airbus. Its expansion has seen revenue grow by 400 percent. The company has been supported by the Thai government's Board of Investment, which provides incentives for businesses to invest in technology.

KETAN POLE, CHIEF EXECUTIVE OFFICER CCS ADVANCE TECH "I think the Board of Investment and the Thai government is always looking to make this country a technology and innovation country. Investment in technology was always a way of life for us at CCS, without technology we cannot come to this level."

The Thai government believes the country's industry needs to transform from general manufacturing to high-value products if it is to continue to grow. It's encouraging companies to invest in science and innovation by providing tax holidays, and duty exemptions on the import of specialized machinery and materials.

DUANGJAI ASAWACHINTACHIT, SECRETARY GENERAL THAI BOARD OF INVESTMENT "In some sectors we might have our own technologies, Thai companies have been investing and we have very well established industries such as agro-processing and so on, and at the same time we still need a lot of foreign technology. So this policy is targeted at both local and foreign companies."

MARTIN LOWE NONTHABURI, THAILAND "The Thai government says these incentives are a catalyst, encouraging businesses to invest in advanced technology. It hopes success stories like this one will inspire more companies to follow its example."

It's a policy being called "Thailand 4.0" – the adoption of the latest technological developments to bring a new era to Thai industry and drive forward economic growth and development.

Martin Lowe, CGTN, Nonthaburi, Thailand.