Thailand’s Siam Commercial Bank expects China’s direct investment in Thailand to increase two fold in the next five years, due to the mainland’s economic reforms and the Kingdom’s attractive tax incentives, The Nation reported.

Siam Commercial Bank expects China’s direct investment in Thailand to double in the next five years, due to the mainland’s economic reforms and the Kingdom’s attractive tax incentives.

Manop Sangiambut, SCB’s China business head and executive vice president, said China’s focus on domestic consumption would provide opportunities for Thailand’s agricultural, food and services sectors in terms of increasing trade volumes with the country.

Meanwhile, Beijing’s “Go Out” policy is driving Chinese companies to expand their production bases to Asean, in order to reduce the high costs they face in China, he said.

Thailand is an attractive destination for such businesses, thanks to the Board of Investment’s eight-year corporate-tax exemption for foreign companies wishing to establish a manufacturing presence here.

China has already cancelled its own tax-incentive policy, as the government wants its private sector to invest outside the country to avoid anti-dumping cases.

Chinese investment currently represents less than 10 per cent of foreign direct investment in Thailand, but SCB believes this will double over the next five years, Manop said.

In geographic terms, Thailand is an attractive investment destination within Asean, while China and Thailand have recently strengthened cooperation through a number of schemes, including China’s involvement in the Kingdom’s high-speed rail plans and a clearing bank for Chinese yuan, he said.

via SCB tips big jump in Chinese investment – The Nation.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Which emerging markets are looking to bolster electric vehicle production?

Thailand is not alone in the region when it comes to building up its EV capacity, with Indonesia also unveiling a series of measures in recent years.

China Launches New Freight Train Services to Vietnam

The freight routes reduce the transportation time from an average of 20 days to between five and seven days

UOB Thailand outlook changed to negative after acquisition of Citi

United Overseas Bank (Thai) Public Co Ltd, headquartered in Bangkok, reported total assets of THB725 billion as of 31 December 2021. The outlook was changed to negative from stable because the acquisition will result in a significant decrease in UOBT’s core capital ratio.