APPROVALS FOR NEW FOREIGN FIRMS SURGE

The Nation - 24 January 2012
PETCHANET PRATRUANGKRAI

Approvals for foreign companies setting up business in Thailand jumped this month over December's figures, indicating high investor confidence in the aftermath of the flood crisis, the Commerce Ministry's Business Development Department reported yesterday.

The department said 29 foreign firms had been approved by its Foreign Business Act board to set up businesses in Thailand in January. This was an increase of 61 per cent over December and will bring at least Bt192 million initial investment capital to the country and create 279 jobs for Thais.

Ittipol Changlum, deputy director-general of the department, said more foreign firms would like to do business in Thailand after the floods, amid stable politics and economic growth, expected to be 4.5-5.5 per cent this year. A further incentive is the government's policy to cut corporate tax.

Most businesses that were approved this month are services. Twenty businesses are involved in financial, rental, leasing, and information-technology services. The top foreign investors are from Japan, Singapore, Hong Kong, Australia, Belgium and France.

Other businesses that foreigners have invested in are agency offices, retail and wholesale, and contractors with state-owned enterprises.

Last year, 260 companies were given approval to operate businesses in Thailand, with overall investment of Bt10.59 billion.