I a bid to capitalise on the ongoing US-China trade war, Thailand has rolled out a series of incentives for companies to move their manufacturing from China to the South-East Asian nation, reports Nikkei Asian Review. One of the biggest measures is a 50 per cent tax cut offered to companies willing to relocate.
To meet the criteria to eligible for the incentives, interested firms must submit proposals to the Thai government laying out plans to invest a minimum of 1 billion baht, roughly equivalent to $32.7 million. The investment itself should be made by 2021.
Those investors whose proposals are approved will only have to pay half the corporate tax rate for the next five years. In recent years, South-East Asia has emerged as a popular destination for foreign investors looking reduce costs in manufacturing.
The Thai government is optimistic that its plan will attract major investments, with the country being projected as a viable alternative to its neighbours like Vietnam.
"Under the new package, Thailand can compete with other countries in Asia for foreign investment, especially to attract advanced technology firms that want to move production to Thailand," an official in the prime minister's office, Kobsak Pootrakool stated.