Thailand plans "relocation package" to draw foreign investment amid trade war

[snoop1130]

Thailand plans "relocation package" to draw foreign investment amid trade war

 

 

BANGKOK, Aug 22 (Reuters) - Thailand is planning a “relocation package” to attract foreign companies which are looking to move factories because of global trade tensions, officials said on Thursday, as the government tries to boost a slowing economy.

 

Southeast Asia’s second-largest economy grew at its weakest pace in nearly five years in the second quarter on declining exports, and soft investment.

 

The package - to be discussed by economic ministers on Aug. 30 - 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 which are looking to relocate production from mainland China to escape escalating U.S. 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 (BOI).

 

The package is expected to help the BOI achieve its target of 750 billion baht ($24.37 billion) 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. ($1 = 30.78 baht) (Reporting by Kitiphong Thaichareon Writing by Orathai Sriring Editing by Kim Coghill)

 

-- © Copyright Reuters 2019-08-22

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[sammieuk1]

Relocate your business please but leave any staff you want to bring at home ????

[Fex Bluse]

If Thailand thinks it can allow the Chinese to shift factories to avoid US sanctions, that is a HUGE risk. 

 

The Thais aren't so clever and if the US shifts focus to Thailand, the miniscule Thai economy will be instantly devastated. 

[donnacha]

I thought the TM30 was a "relocation package". It's certainly persuading me to relocate.

[Oziex1]

And the winner is, Vietnam.

Vietnam is the place to invest seems to be running hot.

[Cadbury]

Too little too late Thailand. The junta politicians have been asleep at the wheel since 2014. Totally absorbed with matters of high importance such as twerking, lotteries (which they still haven't fixed) and pavements and the like. 

They do this while they spend their energies on lining their own pockets and conduct their own brand of  political skulduggery.

For whom the bell tolls!

[Issannative]

Ahh it's just normal Thai rhetoric

[Cadbury]

3 hours ago, snoop1130 said:

Thailand plans "relocation package" to draw foreign investment amid trade war

In fact the reverse is happening. Thai smart money is going into Vietnam like never before. They are deserting the junta sinking ship.

https://english.vietnamnet.vn/fms/business/200935/thai--investment-wave--in-vietnam-getting-stronger.html

[johnc925]

The US just opened up its first investment study since 2014 on a Thai company called Blue Solar.

 

If they start playing games against the US tariffs, they will lose the game, even more so now that they have clearly stated they're not interested in supporting expats here.

[zydeco]

13 hours ago, Fex Bluse said:

If Thailand thinks it can allow the Chinese to shift factories to avoid US sanctions, that is a HUGE risk. 

 

The Thais aren't so clever and if the US shifts focus to Thailand, the miniscule Thai economy will be instantly devastated. 

Vietnam has already been caught at it. And they were trying to act under the radar. Here is Thailand taking out ads, flying huge banners, and running a marketing campaign "in your face" and thinks the US will not notice this is all about Chinese avoiding tariffs.

[Isaan sailor]

Somkid needs to glance at exchange rates once in a while.  His buddies at Bank of Thailand indulge in hot money inflows on a daily basis.  This ensures a high Baht and huge USD reserves.

[Fex Bluse]

32 minutes ago, zydeco said:

Vietnam has already been caught at it. And they were trying to act under the radar. Here is Thailand taking out ads, flying huge banners, and running a marketing campaign "in your face" and thinks the US will not notice this is all about Chinese avoiding tariffs.

Well, all farangs are dumb, after all, right? (sarcasm, of course) 

[spidermike007]

I have a radical idea. Fast lane the employees of companies who want to invest, and re-locate to Thailand, through the visa process. Do not even require them to show up at immigration, no ridiculous 90 day visa runs, no office visits. Just a visa in the mail. 

 

There are at least a dozen other things they could be doing, but it seems the last thing in the world they honestly want, is more foreigners living here. Sure, they want to capital inflows. Right now, they have alot of egg on their faces, as the investment inflows have been dropping, tourism is dropping, exports appear to be dropping, and the economy is headed towards a day of reckoning, which is well deserved.

 

Get rid of the xenophobia, hatred of outsiders, racism, and ignorance on the part of government officials. At least make an effort to find competent ministers. 

[DrTuner]

16 hours ago, sammieuk1 said:

Relocate your business please but leave any staff you want to bring at home ????

BOI is a bit easier and I suppose the smart visa is for the foreign experts. From what I've read it's an exercise in red tape though. Thailand needs to scrap the BOI schemes and just open it up.

[DrTuner]

1 hour ago, zydeco said:

Vietnam has already been caught at it. And they were trying to act under the radar. Here is Thailand taking out ads, flying huge banners, and running a marketing campaign "in your face" and thinks the US will not notice this is all about Chinese avoiding tariffs.

I do hope it backfires magnificiently on Thailand. They need to be squeezed to shape.

[neeray]

By the time foreign companies can get the rubber ready to hit the road (Thai roads), the Trump trade war will be over.

[Fex Bluse]

13 minutes ago, neeray said:

By the time foreign companies can get the rubber ready to hit the road (Thai roads), the Trump trade war will be over.

Not likely. 

 

The China threat is one of few issues where there is broad concensus across all major political parties in the US. 

 

You don't become a superpower by ignoring strategic threats. 

[ddotmark]

Thai government would be stupid to encourage or let Chinese businesses move here. The Chinese will not hire locally. They will ship in their own Chinese people. They are doing this all over the world. Don’t Thais follow the news?

 

Think Thailand!!! Think!!!

[mania]

Yes if I were a rich man with a successful factory/business I would really love to move it all to the secure country of Thailand

Which has had 19 coups tear the country from any legitimacy

 

A country where the Constitution is torn up & rewritten more times than a novelist with Alzheimer's disease

 

Yep that is what I would do 100% ????

[aqua4]

57 minutes ago, spidermike007 said:

I have a radical idea. Fast lane the employees of companies who want to invest, and re-locate to Thailand, through the visa process. Do not even require them to show up at immigration, no ridiculous 90 day visa runs, no office visits. Just a visa in the mail. 

 

Get rid of the xenophobia, hatred of outsiders, racism, and ignorance on the part of government officials. At least make an effort to find competent ministers. 

 

You can only own 49% of your business or did you forget? 

 

[MartiniMan]

A good step in the right direction - but why not really open the gates and allow for capitalism to develop in zoned areas that do not have detrimental impact on the environment - lets go a step further and even offer tax incentives for green companies that are carbon neutral and offer a tax cut for those that plant new forests or work in sustainable argiculture?

Thailand is abundant and I will repeat it until I die - the only thing that is unsustainable is poorly managed get quick rich schemes like cutting down beautiful heritage sites for cheap soy and corn plantations (which cannot be mechanically harvested may i add due to the hilly nature of the land) for export frozen chicken which is a silly plan

Thailand is a fruit country and must go hard on fruit production we can feed the world lets do it - lets make thailand great! MAGA for Thailand is MTG Make Thailand Great and we need it badly!!

[RichardColeman]

18 hours ago, snoop1130 said:

Thailand is planning a “relocation package”

After reading this hogwash, I must go do my own daily relocation package

[spidermike007]

26 minutes ago, MartiniMan said:

A good step in the right direction - but why not really open the gates and allow for capitalism to develop in zoned areas that do not have detrimental impact on the environment - lets go a step further and even offer tax incentives for green companies that are carbon neutral and offer a tax cut for those that plant new forests or work in sustainable argiculture?

Thailand is abundant and I will repeat it until I die - the only thing that is unsustainable is poorly managed get quick rich schemes like cutting down beautiful heritage sites for cheap soy and corn plantations (which cannot be mechanically harvested may i add due to the hilly nature of the land) for export frozen chicken which is a silly plan

Thailand is a fruit country and must go hard on fruit production we can feed the world lets do it - lets make thailand great! MAGA for Thailand is MTG Make Thailand Great and we need it badly!!

 

I agree, and many of the rice farmers would be wise to convert their paddies into fruit orchards. They could lift themselves out of a lifetime of poverty. But, do not expect help from this administration. Thailand is perhaps one of the least progressive nations on earth, and this government is perhaps one of the least progressive, creative, visionary, intelligent, competent, and caring, that Thailand has ever seen.

 

Engagement in the green movement is smart, and visionary. It would have to be done entirely by the private sector. There are some young minds and entrepreneurs here that are impressive. Let us hope they take the lead, and move this nation in the direction it needs to go. The army is only holding the people back. They are not providing any benefit to anyone other than themselves. 

[Yinn]

3 hours ago, Fex Bluse said:

Well, all farangs are dumb, after all, right? (sarcasm, of course) 

No, Donald Trump, leader of the farang world, is very clever. 

 

He already told everyone. Genius guy.

 

 

3 hours ago, DrTuner said:

I do hope it backfires magnificiently on Thailand. They need to be squeezed to shape.

The immigrant live here but the people fail? Against us. Nice guy?

 

A problem in Thailand is foreigner want to invest in Thailand now. But the government restrict the money can come in, because they try to control the baht, because too strong against the weak ones.

Banks only allow it USD$50,000 per day. 

 

My friend want to sell Phuket resort for US$110 million. Have two foreign buyer want to buy now. But difficult to bring the money here. Have other resort in Phuket have the same problem. 

Can do, but they want 37% tax plus 7% VAT.