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.