Rolling Out The Red Carpet: Thailand Offers 50 Per Cent Tax Cut To Attract Manufacturers Leaving China Amidst Trade WarA manufacturing facility in Thailand (Pic by Josh Jackson via Wikipedia)

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.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement