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More Chinese investment welcomed in Thailand's high-tech sector: Minister

(Xinhua) Updated: 2016-01-22 17:43

BANGKOK - Thailand would like to see more Chinese investment in the kingdom's high-tech industries, including automotives, electronics, biofuels and petrochemicals, which are also the Thai government's target industries, Thailand's Minister of Industry says.

A lot of opportunities await Chinese enterprises here in Thailand, especially in the Special Economic Development Zones (SEZs) as Industrial Clusters, which focus on value-added activities and less labor-intensive industries, Atchaka Sibunruang said in an exclusive interview with Xinhua.

Incentives like corporate income tax exemption and income tax reduction for certain periods are granted to projects in these SEZs.

Recent years have seen numerous large Chinese companies investing in automotive, rubber tiers and renewable energy, which are considered to be high-tech industries in Thailand, the minister said, citing Shanghai Automotive Industry Corporation, Linglong Tires (Thailand) Co Ltd and Zhongli Talesun Solar (Thailand) Co Ltd as examples.

"We would like to see more Chinese investment in these areas," Atchaka said, adding that many Chinese companies currently have advanced technologies in some of Thailand's target industries.

Given the zero-percent tariff rate among ASEAN members, which results from the building of the ASEAN Economic Community, Chinese companies can use Thailand as a base to sell products to other ASEAN countries, she added.

Chinese investment in Thailand has increased obviously over the past few years, which is spread in many kinds of businesses, including agricultural products, mineral and ceramics, light industry and textiles, metal products and machinery, electronics and electrical appliances, and infrastructure construction, according to the minister.

In the first 10 months of 2015, investment capital from China exceeded 12 billion baht ($335 million), making China the fourth largest source of foreign direct investment for Thailand, after Japan, Singapore and Indonesia, official figures showed.

The next target businesses to stimulate investment from China to Thailand consist of machinery and equipment, medical equipment and parts, rail and mass transit, bio-technology, software and other related industries, Atchaka said.

Thailand has planned to upgrade its infrastructure and improve connectivity with other ASEAN countries, which creates opportunities for Chinese investment, the minister said.

Development of railways, ports and roads, she stressed, will better connect Thailand with neighboring countries and help facilitate investment and trade between China and ASEAN.

Last December, China and Thailand kicked off a railway project in central Thailand's Ayutthaya province, which will be Thailand's first standard-gauge double-track railway line.

The 845-km line, which will use 1.435-meter standard gauge with trains operating at top speeds of 160-180 kph, will pass through 10 Thai provinces and link with the China-Laos railway.

The railway project will help facilitate investment in the SEZs, improve transportation of goods between Thailand and China, and enhance connectivity among China, Thailand and other ASEAN members, the minister commented.

She also spoke approvingly of China's Belt and Road Initiative, saying it would "complement Thailand's industrial development policies," and bring direct and indirect benefits to Thailand, a country advantageously located at the center of ASEAN.

The China-spearheaded Asian Infrastructure Investment Bank, she added, could provide financial support for the upgrading and development of infrastructure both in Thailand and the region as a whole, which would contribute to the sustainability of economic development.

Given the great relationship between China and Thailand, and supportive economic policies of both governments, the trade and investment cooperation between the two countries "will certainly be strengthened in the future," Atchaka noted.

Moreover, she stressed the need to build platforms for small companies from China to align with Thailand's small and medium-sized enterprises.

"It's easier for Chinese investors to settle down here if they partner with Thai companies. Meanwhile, Chinese companies enjoy technological advantages, which could also benefit their Thai partners," she said.

She suggested newcomers from China study Thai laws and consult Thai government officials before making investment decisions, and learn from the successes of experienced Chinese investors in Thailand.

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