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Source: www.asiaecon.org |

THAILAND'S HIGH TECH INVESTMENT PLAN


Thailand has been best known for original equipment manufacturing, and they have done quite well in developing such traditional industries. However, Thailand has decided that industries, such as automobile and component parts, can no longer meet the demands of the country's growing ambitions.


Thailand has been best known for original equipment manufacturing, and they have done quite well in developing such traditional industries. However, Thailand has decided that industries, such as automobile and component parts, can no longer meet the demands of the country’s growing ambitions.

Instead, Thailand aims to raise its ambitions by manufacturing and exporting higher quality and higher value products. As of last year, they have launched a program called “Thailand Investment Year 2008-2009.”

The goal of the program is to offer incentives to attract foreign investment from more technologically advanced nations. Thailand’s Office of the Board of Investment (BOI) have said that attracting foreign investment from high technology industries has become one of Thailand’s principle priorities.

Among the countries Thailand is aiming to attract, Taiwan tops the short list of countries. The BOI have opened up an office in Taipei last November in order to help facilitate investment. South Korea and Japan are two other countries after Taiwan that are a high priority for the BOI, and an office is expected to be set up in South Korea in February.

Along with high-tech industries, Thailand is trying to attract alternative energy and eco-friendly material industries.

Incentives to try and attract desired business include, giving up to eight years of tax exemption status and reducing the import duty on machinery. Furthermore, Thailand announced a $8.7 billion infusion of capital into the country in order to stimulate the economy. The injection should benefit investors indirectly. Moreover, in order to provide the best investment conditions, Thailand has been improving their working conditions and facilities. Such improvements have been aimed at the electricity and water supply. In doing so, regulation worries should be lowered for investors.

According to Audsitti Sroithong of the BOI, “Thailand has been preparing for more than 10 years to develop technology.” The time and planning seems to be working as high-tech investment from Taiwan is growing. There are now over 2,000 Taiwanese companies in Thailand.

In a recent round table meeting organized between Taiwanese venture capital firms and the government of Thailand, the prime minister addressed the issue of ‘brain drain.’ Hopefully, in increasing high tech investments in Thailand, the more technologically educated Thai will be less inclined to leave the county. Thailand’s previous deputy prime minister, H.E. Suwit Khunkitti, proclaimed, “You young Thai people who come to the U.S. to learn high technology skills must realize that Thailand needs you. We have a place for you, and you will live well.”




Source: www.AsiaEcon.org
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Source: www.asiaecon.org |


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