Thailand Targets THB500 Billion New Investment Requests This Year
- BANGKOK -(Dow Jones)- Thailand expects to receive new investment requests from companies worth THB500 billion ($15.1 billion) this year, nearly 31% less than the amount it received last year, due to the absence of special tax incentives, the Board of Investment said Tuesday. The board also said that one unnamed foreign company is delaying its planned capacity expansion, concerned by frequent labor strikes seeking wage hikes. "Many foreign companies complained about the issue, but it has not escalated to the point that they delay investment plans or shift to invest in neighboring countries," board Secretary-General Atchaka Brimble said. The issue was discussed at a recent meeting of the board that was chaired by Prime Minister Abhisit Vejjajiva, who assigned Deputy Prime Minister Sanan Kachornprasart to take charge of the issue, she told Dow Jones Newswires. While the board received investment requests worth THB723.4 billion last year, a 40-year record high, the number has to be seen in the context of special tax incentives offered to six industries that expired at the end of 2009, Atchaka said. "We target THB500 billion only as we will focus on sustainable and environmental-friendly investment rather than investment value," she said. The target for this year hinges on the recovery of the global economy and a resolution of the impasse surrounding dozens of industrial projects at Map Ta Phut. A court has ordered the supension of some 65 projects in the east of the country, citing concerns about the environment. Thailand is still attractive to foreign investors, Atchaka said, citing the value of new foreign direct investment applications, which rose 18% to THB350.75 billion last year. The board grants incentives to companies on corporate income tax and import duty based on industry and plant location. -By Oranan Paweewun, Dow Jones Newswires; 66-2690-4200; oranan.paweewun@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=wL5WRCt57H%2BwtGuAMq%2B1Tw%3D%3D. You can use this link on the day this article is published and the following day.
