Foreign business approvals up
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Approvals for foreign companies setting up businesses in Thailand last month jumped 63 per cent year on year to 31, bringing in initial investment capital of Bt1.65 billion as well as creation of 400 jobs.
The figures indicated high investor confidence in the country’s strong economic growth, according to a report released yesterday by the Business Development Department.
Newly set-up foreign firms in April dropped 3 per cent from March in terms of volume, but rose by Bt1.09 billion in terms of initial capital investment, thanks to the fact that many of the new businesses are involved in financial services.
Ittipol Changlum, deputy director-general of the department, said foreign firms want to do business in Thailand amid political stability and economic growth, expected at 5-6 per cent this year. A further incentive is the government’s policy to cut corporate tax and the coming Asean Economic Community.
Most businesses that were approved last month were services. Nineteen were involved in financial services, leasing, accounting and rental. The top foreign investors are from Japan, Singapore, Switzerland, Finland, Hong Kong and Germany.
Other businesses that foreigners have invested in are agency offices, retail and wholesale, and contractors with state-owned enterprises.
