Advantageous conditions and other related variables have made Thailand a preferred location for Chinese investors. By blueprinting a deliberate policy of simplifying the regulations for international investors, Thailand has improved its ranking in the Ease of Doing Business. Thailand’s geographical location, political and cultural connections to China also positions these two countries as trading partners.
What is more crucial probably the timing that has let the economies of Thailand and China to come almost a perfect alignment.
The Thailand 4.0 project has earned the share of attention among the international businesses, especially those who are involved in the technology-based manufacturing. Even though speedy economic growth is happening in most parts of the greater Southeast Asian region, which includes Cambodia, Bangladesh, Myanmar, and Vietnam, none of them are yet able to offer that level of conditions as compared to Eastern Economic Corridor in Thailand. To cite an example, Cambodia, do offer a generous period of tax exemption, but then that may become payable if the foreigner remits the money out of the country.
And when it comes to foreign exchange reserves, Thailand is the 13th highest among all other countries worldwide, meaning that the country could loosen regulations on businesses, operating there, without having to add new rules or conditions to try keeping the money within the borders.
As you may know that for a brief time, the potential for business success between Thailand and China has been known for the industrial park that was catering to the high-end Chinese manufacturers in Chonburi. That being a joint project between Holley Group (China) and Amata Corporation (Thailand), the industrial park’s success is symbolic of a shift among Chinese businesses in Thailand. But previously, investment in China used to typically rely on the contractor’s role.
In the New Year, 2019, Thailand expects to have more than 11 million Chinese tourists and the numbers may grow over the years.
