The Ministry of Industry Thailand has approved 158 out of 241 applications submitted last month for factory operation licenses (officially known as Ror. Ngor. 4). According to the Permanent Secretary of Industry, Witun Simachokdee, since July 1, 2014, the Department of Industrial Works under the Ministry of Industry has reduced the processing time for issuing factory operation licenses from 90 days to 30 days. This change followed complaints from companies about significant delays.
Mr. Simachokdee also stated that the remaining 83 applications are currently under review, with decisions expected within a month.
The acceleration of the licensing process is expected to support economic growth after a recent slowdown.
The 241 applicants plan to invest approximately 43.5 billion baht and create around 15,900 new jobs. The energy sector attracted the largest number of potential investors (32), followed by concrete production projects (12).
It is worth noting that, until recently, obtaining such a license could take up to two years. The most severe criticism was directed at the licensing process for renewable energy projects, which was considered the slowest, with over 100 companies not receiving timely responses.
A representative of the Ministry of Industry emphasized that the agency will continue to strictly enforce regulations and closely monitor companies that attempt to cut costs by ignoring negative impacts on the environment and local communities.
Mr. Witun Simachokdee also noted that the Ministry will work closely with the Federation of Thai Industries to further improve the investment climate and reduce corruption.
In the first seven months of 2014, a total of 2,212 applications were approved—5.4% fewer than in the same period of 2013. However, the total investment value reached 211 billion baht compared to 194 billion baht the previous year, representing an increase of 8.76%. These projects are expected to create 60,700 jobs, compared to 54,700 jobs created a year earlier.
Source: Bangkok Post