"China Plus One" Project: Investment Opportunities in Thailand

The "China Plus One" project is gaining traction among foreign companies based in China, seeking alternatives to integrate their operations into the Asian market. This strategy aims to diversify risks, lower costs, and access new markets by complementing operations in China with investments in other Asian countries. Among these destinations, Thailand emerges as an attractive choice for investors, thanks to its growing economy and strategic position in Southeast Asia.

Thailand boasts a robust economy that has shown resilience despite global challenges. With a GDP of $505 billion in 2018 and stable annual growth of 3-4%, the country offers a favorable environment for investments. Traditional sectors such as tourism, telecommunications, and banking remain strong, while emerging industries like insurance, electricity, and automotive are growing rapidly.

The country has implemented reforms to streamline business startup procedures, making Thailand the third easiest country in the region to do business according to the World Bank's "Ease of Doing Business" index. Additionally, Thailand participates in several multilateral and bilateral trade agreements, offering investors privileged access to global markets.

The Thai government has launched the "Thailand 4.0" strategy, aimed at promoting investments in high-value-added and technologically advanced sectors. This strategy focuses on industries such as automotive, digital technology, and medical tourism, offering a wide range of investment opportunities for international businesses.

Furthermore, Thailand offers a range of tax incentives and facilitations for investors, including those available in special economic zones and the Eastern Economic Corridor. The government introduced the "Thailand Plus" stimulus package in 2019, designed to attract foreign investments through measures such as new tax incentives and regulatory simplifications.

Finally, the country has a skilled workforce and well-developed infrastructure, further enhancing its attractiveness to foreign investments. In summary, Thailand represents an enticing opportunity for companies looking to diversify their presence in the Asian market, offering economic stability, ease of doing business, and a wide range of growing sectors.

Source: China Briefing