The Thailand Board of Investment has introduced tax-break incentives aimed at supporting machinery relocation from Cambodia into Thailand, addressing supply-chain disruptions caused by recent border closures.

Narit Therdsteerasukdi, Secretary-General of the BOI, explained that these measures respond to significantly higher transport costs and delays stemming from disrupted supply routes between Thailand and Cambodia.

Companies that previously sent raw materials to Cambodia for assembly and then returned products to Thailand are among those most affected.

These interruptions have prompted businesses to reroute shipments through Vietnam and Laos or shift to sea and air freight, resulting in greater expenses, extended lead times, and more complex inventory management.

Following discussions with affected investors, particularly from industries such as automotive, electronics, and electrical appliances, the BOI has proposed facilitating quicker relocation for production bases and machinery back to Thailand.

These support measures include reductions in import duties on machinery brought into Thailand, alongside potential exemptions or tax incentives consistent with existing BOI promotion policies for investors moving operations into the country.