Thailand - a major business opportunity to reproduce investment and development
“Since the implementation of the Thailand 4.0 strategy for three years, China has been the top three investment countries in Thailand. It can be said that the two countries have the potential for sustainable growth in trade and investment.” At the 2019 Beijing Bi-directional Investment Forum and China-Thailand Trade and Investment Opportunities Seminar Meng Gong, the embassy of the Thai Embassy in China, said that the “Belt and Road Initiative” initiative has a high degree of relevance and relevance to the development of Thailand.
According to statistics, from January to November 2018, the bilateral trade volume between China and Thailand was US$80.97 billion, an increase of 11.1% year-on-year. In the first half of 2018, Chinese companies invested a total of 5.4 billion U.S. dollars in Thai direct investment and 27 billion U.S. dollars in infrastructure contracts. Taizhong Luoyong Industrial Park has attracted more than 100 Chinese enterprises to settle down, becoming the largest industrial cluster center and manufacturing export base of traditional Chinese advantageous industries in Southeast Asia.
“Thailand is the second largest economy in the ASEAN Community. GDP growth is stable between 3% and 5%. Thailand’s corporate income tax is 20%, which is the second lowest corporate income tax in ASEAN countries after Singapore. Meanwhile, Thailand Allowing foreign investment to have 100% ownership, without any localization requirements, export restrictions and foreign exchange restrictions, is a country with high foreign exchange earning capacity. In addition, unique strategic location advantages, convenient water supply and power supply and transportation infrastructure, low cost Operating a business and a mature workforce is also an advantage for Thailand to attract investment.
At present, the Thai government is focusing on building the eastern economic corridor, the EEC region, and is committed to making it a trade and economic center connecting countries and economies within the region, attracting companies from all over the world to invest in targeted industries in the region. Simultaneously develop infrastructure projects such as the high-speed rail connecting the three major airports Don Mueang Airport, Suvarnabhumi Airport and U-Tapao Airport, the Utapao Airport Expansion Project, the Lianbang Port and the Madapu Port Expansion Project, and Develop new city and aircraft maintenance center projects.
In addition, Thailand attaches great importance to the construction of smart cities, namely, smart areas, smart systems and smart parks, and imposes a five- to eight-year tax exemption on the income from the provision of smart service companies. Thailand is actively learning about China's unique knowledge base and experience in building an efficient public transport network to create a more convenient business environment and rational use of energy and environmental governance.
Since the 6th China-Thailand Joint Conference in 2018, China and Thailand have carried out good docking cooperation in agricultural product trade, intellectual property rights and digital docking. In order to jointly achieve the goal of total trade of 140 billion U.S. dollars in 2021, Thailand’s relevant parties will promote the trade of agricultural products between the two countries by encouraging Thai companies to participate in the China International Import Expo every year, and regularly hold meetings of the Thai-Chinese Economic Association and trade accessibility. Measures such as working group meetings to consolidate and expand the achievements of the sixth China-Thai joint meeting.
Referring to the future trade development opportunities, Wu Yueting, Minister Counselor of the Commercial Office of the Royal Thai Embassy in China, said that Thai and Chinese companies can make full use of the convenience conditions of the ASEAN-China Free Trade Area Agreement. In order to further expand the economic and trade cooperation between China and ASEAN member states, the leaders of ASEAN and China have set goals and hope that the total trade volume between the two economies will reach 1 trillion US dollars by 2020. In addition, ASEAN and China will implement opening up in terms of trade liberalization of goods, liberalization of trade in services and liberalization of investment, which will be a huge opportunity for the development of Thai-Chinese trade and investment.
In addition, initiated by the 10 ASEAN countries, China, Japan, South Korea, Australia, New Zealand and India are invited to participate in the (10+6) Regional Comprehensive Economic Partnership (RCEP) negotiation agreement or this year. The organization aims to establish a unified market for 16 countries by cutting tariffs and non-tariff barriers. Once the RCEP is formally established, this area will become an open, large-scale free trade association that helps members more effectively respond to the risks and challenges that arise in the global trading economy.