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Is there enough confidence for Thailand investment property?

By on Jan 14, 2016 in Investment-Land, Property News

Investment in Thailand property should be growing. Thailand’s economic growth, move towards Asean integration, trade becoming easier particularly in special economic zones (SEZs), have given foreign companies confidence to continue expanding. Feedback however is there is a need for investment promotion policies to be more clear-cut. This particularly applies for service businesses which are protected under the Foreign Business Act (FBA).

In Thailand, 2016 is going to be the year of investment and as part of this the government has developed many investment incentives.

There is a focus on 10 “future” industries. These are next generation cars, smart electronics, niche tourism, agriculture and biotechnology, food, robotics, biochemicals, digital and medical services. The niche tourism markets are affluent, medical and wellness.

The targeted industrial clusters for research and development centres to attract multinational investors are agriculture, fishery and related industries, ceramic production, textiles, garments, leather goods, furniture, jewellery and ornaments, medical equipment, automobiles, machinery and parts, electrical appliances and electronics, plastics, pharmaceuticals, logistics, industrial estates and businesses to support tourism.

The board of investment (BOI) has extended corporate-income-tax exemptions for up to 2 years for investment projects that can begin operations before the end of 2016. Projects in SEZs will receive 2 more years of corporate income tax exemptions, but they cannot exceed 8 years.

In the firs 3 quarters of 2015 Japan was the largest provider of foreign direct investment (FDI) . It proposed 367 projects. Next was Singapore with 102 projects and then the United States with 37 projects.

The outgoing Indian Amabassador Harsh Vardhan Shringla said there was an increase of his country’s FDI to Thailand. In the last 18 months the Indian Embassy has organised 45 economic events involving Thai small and medium sized enterprises. Now 40 Indian companies are manufacturing in Thailand and over 100 have offices. Thailand’s automobile, petrochemical and IT industries appear to be of the most interest.

Darren Buckley, president of the American Chamber of Commerce in Thailand, said American investors were interested in the SEZs and were expanding here, but they needed to get more information about the incentives offered by the Thai government.

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Source: The Nation, 5th January 2015

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