BOI starts urging Thai private sector to invest 3 billion US dollars oversea investment


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June 8, 2011



The Secretary General of Thailand’s Board of Investment (BOI), Atchaka Sibunruang, stated that the Thai private sector's international investment portfolio has grown for a decade (2000-2010) The figure is increased almost reach US$3 billion so far this year and could increase even more at the end of this year.

According to statistical news from the Bank of Thailand (BOT), , she revealed that Thailand's overseas investment value risen from less than US$100 million to US$2.7 billion owing to the sturdiness of the baht currency.



Ms. Atchaka Sibunruang emphasized that the investment abroad should targets cost reductions, seeking materials and new markets; such as, African and Arab countries. She added that the main essential to promote the Thai investment abroad is the financial measures; such as, low-interest funds and tax measures.

The Office of the Board of Investment (BOI) is currently reviewing and amending its laws to encourage Thai investors to invest overseas. For instance, laws on tax exemption for profits brought back to the country as well as low-interest funds which shall be proposed to the new administration's Cabinet in July or August, 2011. 

The law will cover the provisions with low interest or rate soft loan for the Thai investors who plan to invest in overseas, stipulation the tax exemptions for profits posted by overseas investment and the deduction of corporate tax for double expenses which Thai investors carry out overseas investment.

After the completion of the revision and amendment by BOI, the law would be forwarded to the related government agency for the consideration and approval. On the seminar on Thai investment abroad at Bangkok, Ms. Atchaka stated that the government supports the private sector investing in neighbor countries and other countries potentially worth the investment, meanwhile BOI  continually supports the foreign investment channels in Thailand and overseas investment for Thai entrepreneurs.

In order to exchange of data, information, and solutions regarding the BOI investment promotions with the prospective countries, the BOI has already signed a memorandum of understanding (MOU) with investment promotion agencies in some countries. Likewise, BOI has continually organized the investment promotion trips for Thai investment abroad in numerous cities of Myanmar, Vietnam and Cambodia, as well as opened new markets in Namibia, Uganda, Kenya, Mozambique and Mauritius since the beginning of this year,.

She added that Thailand's Board of Investment plans to bring more Thai entrepreneurs to explore investment channels in new markets Jordan and Ethiopia, as well as in new cities of Laos, Myanmar and Cambodia in this June-September.

Moreover, Ms.Atchaka said that BOI is trying to discover what problems to be solved in  outbound investments; for instance, one occurrence that some big companies have already moved abroad by themselves and have encountered difficulties with the conditions of the tax incentive schemes and remittances offered by the Revenue Department that a comparison of Thailand and other countries is seen as a difficult location for Thailand companies to bring their profits back into Thailand and if they invested in holding companies, they are not entitled to the tax breaks on the profits from those companies.

BOI is arranging a number of introductions from relevant government departments and potential counterparts to companies. BOI is focusing on the structures that Thailand has a competitive advantage, namely, agro-industries, food, automobiles, automobile parts, consumer products and the service sector industries. Moreover, BOI is not only focusing on big companies, but also focusing on SMEs (Small and Medium Enterprises).

As information stated above, BOI is being urged to become more proactive in encouraging Thai businesses to invest overseas by offering a corporate tax deduction for double expenses, income tax incentives, low interest rate soft loan and other benefits.
The figure shows Thailand’s overseas investment over the past 10 years had increased from less than US$100 million to $2.7 billion, BOI expected overseas investment to rise to more than $3 billion this year.



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