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China Daily Website

Thailand seeks investment from China

Updated: 2009-04-13 07:46
By Yu Hongyan (China Daily)

 Thailand seeks investment from China

Half-assembled cars are seen on a production line of Dongfeng Peugeot Citroen Automobile Co, Ltd, which is headquartered in Hubei province. Asianewsphoto

Businesses in Central China's Hubei province, especially those in the auto sector, are being encouraged to invest in Thailand, according to a senior official from Thailand's Board of Investment (BOI).

"Any firms from Hubei to invest in Thailand will enjoy an exemption on corporate tax for up to eight years", Pariyes Piriyamaskul, director of BOI Shanghai Branch said in March at the Hubei-Thailand investment promotion fair.

The Southeast Asian country, now the world's 15th largest automaker, wants to be one of the world's top 10 auto manufacturing countries, and is offering favorable terms to foreign automakers.

It sets no limits on foreign proportion in joint ventures, and makes no requirements on the ratio of homemade parts in vehicles manufactured in Thailand, according to Parriyes.

The Hubei-based Dongfeng Motor, China's second largest domestic auto company has set up four 4S outlets there.

Bus and truck makers are particularly encouraged to invest in Thailand, as the country is relatively weak in these sectors, Atchaka Sibunruang Brimble, BOI secretary general said on April 2, at the BOI Beijing branch's opening. BOI already has a branch in Shanghai and a third will follow in Guangzhou later this year.

Besides the auto industry, Thailand is trying to attract Chinese investment in industries such as machinery and equipment, metal-working, pharmaceuticals and alternative energy, said Atchaka.

Thailand's Prime Minister Abhisit Vejjajiva is scheduled to lead his economic team to visit China by mid-year to enhance the two countries' bilateral relationship and economic integration.

Thailand offers a safe investment environment despite recent political turmoil, Phinij Jarusombat, Thailand's former deputy prime minister told reporters on April 2.

The BOI offers tax or duty exemption or other incentives, including permission to bring in foreign workers, own land and take or remit foreign currency abroad, to certain foreign or joint-venture projects.

Two-way trade between Thailand and China amounted to $30-35 billion in 2008. From 2001 to 2008, the BOI approved over 357 Chinese projects, according to statistics from BOI.

The total value of project applications from China during the first two months of 2009 surged 25.37 percent year-on-year to 84 million baht, said the BOI.

The World Eminence Chinese Business Association will bring over 200 Chinese businessmen and women to Thailand late this May, to seek business opportunities in the country, the association's head, Lu Junqing, said on April 2.

(China Daily 04/13/2009 page5)

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