Thailand is planning a “relocation package” of incentives to attract foreign companies looking to move production from China, officials said, seeking to compete with Vietnam to woo manufacturers looking to steer clear of the Sino-U.S. trade war.
Possible tax breaks, eased regulations and expedited licenses and permits will be discussed by economic ministers on Friday.
The Thai government seeks to boost Southeast Asia’s second-largest economy, which grew at its weakest annual pace in nearly five years in the second quarter.
Facilitating speedier approvals for foreign investors will be important, said Nattapol Rangsitpol, a director general in an Industry Ministry office that works closely with the Board of Investment (BOI).
In seeking to attract investors affected by the trade war, “we have to understand that they are escaping death, so speed is important,” he said.
“We have to enable them to set up factories quickly, produce quickly and sell quickly,” Nattapol added.
Thai Deputy Prime Minister Somkid Jatusripitak said there would also be a special package on personnel development for companies to train Thai workers, or learning on the job, such as Google’s plan to set up an academy in Thailand. – REUTERS