Forging a strategic bilateral cooperation

Thailand and South Korea are working closely to increase bilateral trade and investment. As Thailand is moving along the path to achieve its Thailand 4.0 model, tremendous opportunities are available, which match well with South Korea's intention to expand investment in Southeast Asia.

 

Thai Deputy Prime Minister, Dr. Somkid Jatusripitak, has recently joined a seminar on “Korea-Thailand 60th Anniversary of Diplomatic Relations: Maekyung Thailand Forum”, at Siam Kempinski Hotel Bangkok. The event, attended by over 180 Korean business figures and high- ranking government officials, aimed to provide information on business, trade and investment opportunities in Thailand. At the forum, over 180 representatives from leading South Korea corporations and over a hundred representatives from Thai public and private sectors, led by Thailand Board of Investment (BOI), Ministry of Industry and Ministry of Digital Economy, exchanged information and discussed investment opportunities between the two countries.

 

"Plenty of opportunities are lying ahead for both countries," said Deputy Prime Minister Dr. Somkid Jatusripitak. He further said that it is the right time for Thailand and South Korea to tighten their relationship and become trade partners considering improved economic development trend in Thailand, and many infrastructure project developments in Thailand. Thailand is transforming into an advanced economy driven by digital technology and since South Korea has had great experience in turning its country into an advanced economy, Thailand hopes to acquire Korea's expertise in technology, innovations, research and development, which are crucial to support this transformation.  

 

Mr. Paik Un-gyu, Minister of Trade, Industry and Energy of Korea, echoed this idea. He said at the seminar that the South Korea and Thailand have great opportunity to become trade partners. South Korea's strength in many industries identified as targeted industries by the Thai government, including automation, smart automotive, energy, digital technology, etc. can help Thailand to achieve its 4.0 goal. Mr. Kwon Pyung-oh, President and CEO of Korea Trade-Investment Promotion Agency (KOTRA), added that Korea has been making full-scale efforts to cooperate with ASEAN through its "New Southern Policy" while reducing its trade dependence on the US and China. In this respect, South Korea has shifted its focus to ASEAN. With Thailand being an economic and logistic hubs of ASEAN, South Korea views Thailand as an interesting investment destination.

 

 

Ease of doing business

In an attempt to attract more investment, the Thai government has made a number of improvement both in terms of infrastructure and ease of doing business.  In terms of infrastructure and investment magnets, the government has invested heavily in the construction of dual track and high speed train system, development of sea ports and airport on the eastern coasts, the development of the Eastern Economic Corridor (EEC) which will become a new investment and manufacturing hub of the region, and the promotion of human resource development to ensure sufficient skilled labour to meet the challenge of increasing demand. Another important move is the simplification of application process for permission and licenses, and significant improvement in the logistics system. The Thai government has successfully shortened time spent on new company registration process from 27 working days earlier to only four working days at the moment. The number of doing business manuals have been reduced from 700,000 issues to 60,000 manuals. The government has introduced "SMART VISA, which combines visa and work permit together, and significantly reduced the number of required document for SMART VISA application. Many outdated laws were amended to support new way of doing business. At the same time, digital infrastructure and related laws have been improved to ensure more convenient and efficient digital transaction and business process.

 

In addition, Thailand Board of Investment has continuously improved its promotion incentives. The most recent improvement includes the extension of maximum tax holiday period from eight years to 13 years on investment projects in targeted industries, 50% corporate income tax reduction for up to five years (only in special investment promotion zones), exemption of import duties on materials for research and development purposes, etc.