Thailand To Be More Aggressive In Attracting FDI

BANGKOK, March 18 (Bernama) -- Thailand will move away from its decades-long export dependent economic model and shift towards attracting Foreign Direct Investments (FDI) as it plans to shield the country from the fragile global economic recovery. Finance Minister Apisak Tantivorawong said the government would take the role of a global salesman and be more aggressive in efforts to pitch for more FDI into the country. "The government must take more aggressive steps in soliciting foreign investors to park their money in Thailand after the launch of a series of tax and non-tax incentives," he was quoted as saying by local media Friday. The government he said, wanted to attract 10 industrial clusters, with the aim of boosting domestic investments and achieve the objective of a five percent economic growth. Among the targeted clusters are next generation automobiles, smart electronics, food processing, robotics, aviation and logistics, biofuels and biochemicals and biotechnology. Domestic investments will receive much-needed support as the government, said Apisak, was pushing several big ticket infrastructure projects, mostly towards the upgrade of the rail system. The Thai economy he added, had expanded below its growth potential since 2013 as advantages from labour-intensive industries has faded, while the move towards high-tech production has yet to begin. Last year, Thailand's domestic investments rose four per cent, while FDI surged 29 per cent to US$4.79 billion, with Japan remaining Thailand's largest foreign investor followed by Singapore, the United States and Hong Kong. Apisak said the confidence of foreign investors in the country had improved on the back of its solid fiscal status, economic growth and stable politics. -- BERNAMA