Govt plans 'relocation package' to draw foreign investment

Govt plans 'relocation package' to draw foreign investment

Deputy Prime Minister Somkid Jatusripitak says economic ministers will on Aug 30 discuss a relocation package to attract investors from countries affected by the US-Sino trade war. (File photo)
Deputy Prime Minister Somkid Jatusripitak says economic ministers will on Aug 30 discuss a relocation package to attract investors from countries affected by the US-Sino trade war. (File photo)

Economic ministers are 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 investors' 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 firms looking to relocate production from mainland China 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 this year, she said.

In the first half of 2019, the total value of foreign investment applications more than doubled to 147 billion baht from a year earlier, led by Japan and China.


Do you like the content of this article?
COMMENT (12)

One dead in rocket attack on Iraq base hosting US troops

BAGHDAD: A rocket attack on an Iraqi base hosting US-led coalition troops Wednesday claimed a contractor's life, security sources said, just two days before Pope Francis is due to visit the country.

3 Mar 2021

Hong Kong's public universities record highest number of dropouts since 2004

HONG KONG: Hong Kong's eight publicly-funded universities last year recorded the highest number of dropouts since at least 2004, with more than 2,100 students quitting school amid the double whammy of social unrest and the Covid-19 pandemic.

3 Mar 2021

6.3-magnitude earthquake hits central Greece

ATHENS: A strong 6.3-magnitude earthquake hit central Greece on Wednesday, damaging several buildings, including schools, and prompting residents near the epicentre to rush into the streets.

3 Mar 2021