Thai Cabinet Approves 20% Incentive for Foreign Digital Content Outsourcing in Thailand

Brickinfo News Agency – The Thai Cabinet has approved in principle a new measure aimed at promoting the outsourcing of digital content production to Thailand. Proposed by the Ministry of Culture, the scheme targets the animation, visual effects (VFX), and post-production sectors, offering financial incentives to foreign entities that contract Thai studios, with the goal of elevating local industry standards and enhancing international competitiveness.

Government Spokesperson Siripong Angkasakulkiat revealed on December 9, 2025, that the Cabinet agreed to the proposal to support the hiring of Thai manufacturers for foreign projects. The primary objective is to drive employment for Thai workers, facilitate knowledge transfer, and develop a comprehensive database to guide future industry policies. The measure specifically focuses on high-value sectors including animation, visual effects, and post-production.

According to the approved framework, the incentive is available to foreign companies entering into service contracts with Thai operators valued at 5 million baht or more per contract. The application for these benefits must be submitted by the Thai operator on behalf of the foreign client. To be eligible, the Thai contractor must be a legal entity with at least 50% Thai shareholding and directorship, have been in operation for no less than two years, maintain a physical office in Thailand, and allocate at least 80% of its expenditure to hiring Thai staff.

The core benefit of the scheme is financial support equivalent to 20% of the contract value. However, the Cabinet has instructed the Ministry of Culture to hold further discussions with relevant public and private sector agencies to finalize appropriate, transparent, and concise criteria. This includes a thorough analysis of the cost-effectiveness of the measure to ensure it yields tangible economic returns and does not result in unnecessary revenue loss for the state.

Furthermore, the Cabinet emphasized that budget allocation for this initiative will proceed only after the Ministry of Culture and related agencies can demonstrate a clear calculation method for the reimbursement rates and prove the project’s worthiness. Once the economic benefits to the public are established, the agencies will be required to submit a detailed operational and budget plan for approval in accordance with relevant laws and regulations.