Food leading the way for development of clusters

The development plan of Food Innopolis, billed as an innovation and development centre aimed at increasing the value of the country’s abundant crops, is set to be tabled for cabinet approval.

Deputy Prime Minister Somkid Jatusripitak said the Science and Technology Ministry was about to complete the food cluster development plan, likely submitting it for cabinet approval in the near future.

He said food would be the first cluster implemented given Thailand’s rich vein of farm and food products.

The cabinet endorsed a plan in November to attract investment in 10 industry clusters after a Finance Ministry study found private investment had receded for a decade. The industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

In the same month, the cabinet approved in principle a Finance Ministry proposal to set up a 10-billion-baht fund to support investment in the clusters.

Investments in the clusters are entitled to a full corporate income tax exemption for eight years and a 50% reduction for five years thereafter, with tariff waivers for imported machinery. However, given the slow pace of development and lukewarm interest from the private sector, the government is planning to regroup the industry clusters.

The ministry was ordered to come up with more attractive packages to entice investors such as tax incentives for researchers, easier work permits for foreign workers and financial and technical support. One steering committee also proposed restructuring the sugar cane and tapioca industry to promote biochemicals, ethanol, biogas and electricity, while another proposed Ayutthaya as a world tourism destination.

Mr Somkid said the food cluster will be established at Thailand Science Park in Khlong Luang district, Pathum Thani.

He said the government was scheduled to kick off the Food Innopolis cluster on May 27 when the Science and Technology Ministry will also sign a memorandum of understanding (MoU) with other government agencies, educational institutes and the private sector.

Educational institutions include Kasetsart University and Mahidol University, which will be responsible for conducting research and development to support food technology.

Those universities will team up with foreign research institutes such as Wageningen University in the Netherlands as well as Purdue University, UC Davis and Cornell University in the US.

Leading private companies including Charoen Pokphand Group, Betagro, Thai Union Group, Thai Beverage, and Mitr Phol Group could also join the food cluster.