New industrial agency in China to funnel FDI
The Industry Ministry plans to establish a new Office of Industrial Affairs in China to provide Thailand with investment information and facilitate Chinese investment, especially in the Eastern Economic Corridor (EEC) scheme.
Suriya Jungrungreangkit, the industry minister, said the agency wants to set up a new office in China after some Chinese companies expressed interest in investing in Thailand to avoid the negative impacts of the US-China trade war.
China is a target country for future investment and Thailand has many cooperation projects with China, he said.
“The ministry plans to set up the new office in either Beijing or Shanghai, but this plan has to be approved by Deputy Prime Minister Somkid Jatusripitak,” said Mr Suriya.
Mr Somkid is scheduled to visit the Industry Ministry next Wednesday.
“The Office of Industrial Affairs will be a wing under the Royal Thai Embassy in China, similar to the two offices in Austria and Japan,” said Mr Suriya.
“The new office will support foreign direct investment flows to Thailand.”
He said the ministry plans to invite 300 Chinese companies to visit the EEC locations and seek new investment opportunities in September.
Mr Suriya plans to discuss revising investment incentives and privileges in the EEC with the Board of Investment and the EEC Office in a bid to stimulate more investment applications.
“The ministry wants to increase the country’s competitiveness as an investment destination in Southeast Asia,” he said.
On Tuesday, Mr Suriya plans to discuss the baht’s strength with the central bank and impacts on the business and export sectors.
“The baht is incredibly volatile and has become the strongest currency in Southeast Asia,” he said.
“The industrial sector is suffering from this volatility because many sectors operate local facilities for export.”
Mr Suriya said the industrial sector is a key economic engine, making up 28% of GDP.