BANGKOK – Thailand’s Deputy Prime Minister Somkid Jatusripitak has announced the government is planning a “relocation package.” To attract foreign companies looking to move their factories because of global trade tensions, officials said on Thursday.
The Thai economy, Southeast Asia’s second-largest, grew at its weakest pace in nearly five years in the second quarter, on declining exports and soft investment.
The relocation package will be discussed by economic ministers on Aug 30, and will target investors from China, Japan, South Korea, Taiwan and the United States. Deputy Prime Minister Somkid Jatusripitak told a news briefing.
“It will be a package involving all agencies in order to facilitate companies production relocation,” he said.
He did not give further details, but the government usually promotes investment with tax incentives.
Thailand is already attracting some foreign companies looking to relocate. Many companies are relocating from mainland China have risen to escape escalating US tariffs on Chinese goods.
The investment promotion agency is aiming to attract 100 companies. Mostly Chinese firms, to invest in Thailand, said Duangjai Asawachintachit, head of the Board of Investment.
The proposed package should help the BoI achieve its target of 750 billion baht in overall investment pledges.
In the first half of 2019, the total value of foreign investment applications more than doubled to 147 billion baht.
Source: Bangkok Post