VW has announced that it plans to open a factory in Thailand reports The Bangkok Post. It is hoped that the opening of the factory will help to narrow the gap with Toyota Motor Corp in Southeast Asia.

The Bangkok Post further revealed from sources who wished to remain unidentified that the Germany-based manufacturer is seeking to participate in a government programme offering tax exemptions for automakers investing at least 6.5 billion baht (US$200 million) in local manufacturing.

VW are one of the very few car firms who don’t have a factory here already.

The Board of Investment (commonly referred to as “BOI”) is a division of the Thai government intended to promote business start-ups and business projects in areas of industry and enterprise that are deemed desirable for the economic outlook of Thailand.

Industries receiving priority for Thailand BOI privileges are companies in high tech areas, manufacturing and exporting businesses and businesses showing good prospects for future growth.

Many smaller companies registering in Thailand  often assume that BOI privileges are only available to larger companies, such as Volkswagon. In reality smaller companies may also apply and receive BOI promotion provided they meet the BOI requirements.

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