Thai private companies have been urged to invest more in foreign countries, in preparation for the ASEAN Economic Community, which is less than three years away.
Thai outbound investment was the topic of discussion at the Fiscal Policy Office’s Symposium 2012, held at the Amari Watergate Hotel in Bangkok on 13 September 2012.
Thai private companies have been urged to invest more in foreign countries, in preparation for the ASEAN Economic Community, which is less than three years away.
Thai outbound investment was the topic of discussion at the Fiscal Policy Office’s Symposium 2012, held at the Amari Watergate Hotel in Bangkok on 13 September 2012.
Speaking at the symposium, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong stressed that the Government attaches great importance to the promotion of Thai investment overseas. Taking into account the present economic situation and the arrival of the ASEAN Economic Community in 2015, Thailand is now ready for more outbound investment.
Mr. Kittiratt called on the private sector to be prepared for more investment opportunities in the ASEAN region. The opportunities would bring in more income, reduce their production costs, and enable them to have greater access to resources in ASEAN. In this regard, the Government has worked out fiscal and financial measures to promote Thai investment overseas and facilitate the operations of Thai investors abroad.
In the symposium, a research study was presented on opportunities and strategies for outbound investment. The study indicates that the Government’s promotion policy is crucial, as seen from results of an opinion survey conducted among various companies. The policy should cover information concerning rules and regulations, tax incentives, facilitation, and funding sources.
An analysis from the study shows that potential businesses that should receive a major boost from Thai investment overseas involve agro-industry, food and beverage, rubber, electrical appliances, and automobiles.
The study also shows that countries that Thai investors should invest in include India, Vietnam, the Philippines, Indonesia, Turkey, Malaysia, China, Mexico, Poland, and Hungary. It suggested that state enterprises should play a greater role in Thai outbound investment, as well.
Participants in the symposium were of the opinion that investing in foreign countries would increase the country’s competitiveness and that the Government should encourage Thai companies to invest more in various countries.
The Board of Investment recently approved the Thai Overseas Investment Plan with Indonesia, Myanmar, and Vietnam as target countries in the ASEAN region. India and China were also included as target markets with high potential for Thai outbound investment.
Currently ASEAN is the largest overseas destination for Thai investment. Out of Thailand’s total outbound investment of 92 billion baht in the first quarter of 2012, 31 billion baht went to ASEAN. Thailand’s largest investment bases in ASEAN include Singapore, Myanmar, and Indonesia.
