Chinese firms invited to invest in Thailand 4.0
- By Zhang Liying
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E-mail China.org.cn, May 15, 2019
The Thailand Board of Investment (BOI) is inviting more Chinese companies, especially those in high-tech industries, to set up branches in Thailand, as the Southeast Asian country is promoting what they call Thailand 4.0, an endeavor to boost economic growth through innovation, research and development.
Duangjai Asawachintachit, secretary general of the Thailand BOI, said that Thailand hopes to see more Chinese companies driving the growth of this initiative, and that the BOI is prepared to provide services and support to make it happen.
Speaking in an exclusive interview with China.org.cn, Duangjai said that recent years have seen a growth of Chinese investment in Thailand, with the amount of investment applications increasing by 32% last year.
She added that Thailand has positioned itself as a cost-effective investment destination with a skilled and adaptable workforce, rather than concentrating on labor-intensive activities, in an effort to attract more Chinese investment in high-tech industries.
An investment review issued by the BOI said that the Thailand 4.0 development plan focuses on 10 targeted sectors, including next-generation automotive, smart electronics, food innovation, aerospace and others.
Digitalization, one of the Thai government's priorities, presents great opportunities for Chinese companies, Duangjai said, because there is great demand but still very few Chinese software developers there to lend their technological expertise.
She also said that apart from developing digital business, Chinese companies can take part in the Digital Park Thailand program, which is being implemented on a public-private partnership (PPP) basis.
The official website of Digital Park Thailand states that the park is a new economic cluster located within the Eastern Economic Corridor (EEC), a flagship project of Thailand 4.0. It was designed as a destination for global digital players and business innovators, and also serves as the data hub for the Association of Southeast Asian Nations (ASEAN) Economic Community.
In line with the national initiative to build an innovation-driven and value-based economy, the BOI has introduced a new investment incentive scheme, comprised of tax-related measures.
According to the BOI, Thailand now has a three-tier system of corporate income tax exemption — tax holidays of up to 8 years for targeted industries of the Seven-Year Investment Promotion Strategy (2015-2021), of up to 13 years for core technological or R&D projects, and of up to 15 years for new technologies and highly effective investments.
Other incentives include the right to own land, 100% foreign investment ownership, and work permit and visa assistance, Duangjai added.
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