BANGKOK – Thailand’s Board of Investment (BOI) has announced the approved four investment projects worth almost $1 billion. The foreign investment projects are from Japan, Taiwan and Singapore.
The approvals come as Thailand strives to court foreign investors, trying to avoid the fallout from the US-China trade war.
The projects total $927 million, the Board of Investment (BOI) government agency said on Friday. The largest being a $606 joint venture between Thai, Japanese and Taiwanese companies. The venture will produce thermoplastic for cars and electronics.
Earlier this month, the Thai government announced a tax relocation package to attract foreign companies.It was designed to lure foreign companies to move production due to the intensifying U.S.-China tensions.
The scheme offers a 50% corporate income tax reduction for another five years for those who apply by 2020. However it requires that at $32 million of real investment is deployed by 2021.
Thailand, Southeast Asia’s second-largest economy, aims to approve investments projects worth $24 billion for 2019. It approved $23 billion worth of foreign investments last year.
“Many companies that were impacted by the trade war are looking for new locations,” BOI Secretary-General, Duangjai Asawachintachit, told Reuters. Adding they were getting more interest from China, Taiwan and South Korea. This presents an opportunity for Thailand, she said.
The BOI has also introduced other incentives in a an attempt to boost workforce skills labor. Companies that run training programs or setting up corporate academies receive tax exemptions, Duangjai added.
These incentives target 10 industries including, aviation, medical services and robotics.