Minister assuages Japanese investors
I ndustry
Minister Uttama Savanayana has assured Japanese investors that the government’s flagship Eastern Economic Corridor (EEC) scheme will continued regardless of whether a new government is installed next year.
The incumbent government expects the forthcoming election to leave Prime Minister Prayut Chan-o-cha’s roadmap intact.
Mr Uttama said Japanese investors are interested in investing and expanding investment in EEC locations.
Japan has dominated foreign investment in Thailand for more than four decades.
“The EEC scheme benefits Thailand and Asean economically, and the government is confident that this flagship project will persevere after a new government is installed,” Mr Uttama said.
He said the government is ready to further develop a free-trade agreement with Japanese counterparts under the Japan-Thailand Economic Partnership Agreement (JTEPA).
Furthermore, the ministry yesterday joined the Japan External Trade Organization (Jetro) and Japanese Chamber of Commerce in a seminar to brainstorm about the EEC scheme for Japanese investors.
Mr Uttama said Thailand’s investment outlook is in an upward trend as the government propels various infrastructure projects to increase the country’s economic competitiveness and boost investor confidence.
Recently, Japanese officials reported that a survey found that Japanese investors were confident of investment in Thailand, indicating a positive outlook.
According to the Board of Investment (BoI), a foreign direct investment from Japan to Thailand in 2017 stood at a value of US$3.7 billion (123 billion baht).
“The government’s megaprojects and the 20-year National Strategy Plan [2017-36] can give the country’s economy sustainable growth,” Mr Uttama said. “To meet this goal, Thailand must strengthen its economy by enhancing the Thailand 4.0 development plan, improving the service sector, focusing on new urban areas to contribute new growth and speeding up implementing the EEC scheme.”
BoI secretary-general Duangjai Asawachintachit said the foreign investors’ confidence survey for 2018 conducted by the board showed positive investment sentiment in the country, marking the highest ranking in the past five years.
The survey polled 600 foreign companies this year. Of the companies, 98.5% were BoI applicants.
Of the surveyed, 33% plan to expand their existing investment in Thailand, while 65.5% will continue operations in the country.
Only 1.5% of companies said they would not make new investments locally.
Mrs Duangjai said the survey found that the main factor that beefs up investor confidence is BoI promotional privileges on offer.
Another determinant of investment confidence is demand and supply of local raw materials and tax exemptions for machinery.
“This survey’s results will be used to formulate policies and gauge the BoI’s impact as well as provide better investment circumstances for foreign investors,” she said.