Thailand has become an increasingly popular investment destination for Chinese companies in recent years. With a large domestic market, proximity to China, and investment incentives, Thailand offers significant opportunities. However, companies need to make thorough preparations when investing in Thailand. Key considerations include confirming goods details, understanding trade agreements, choosing the right location, working with reliable local partners, and navigating legal and tax requirements. With the right strategy and partnerships, Thailand can be an ideal base for production and export.
Complying with Export Regulations and Securing Incentives
When relocating production to Thailand, companies should confirm details on all goods, including names, materials, country of origin, and age. It is critical to verify HS codes and obtain documentation from the Ministry of Commerce and NDRC. Communication with Customs is also vital to ensure proper declaration procedures and optimize incentives under trade agreements like RCEP. Local agents should be consulted to take advantage of promotional privileges like import duty exemptions from the Thailand Board of Investment.
Selecting the Right Location and Local Partners
The Eastern Economic Corridor (EEC) has become the most popular investment destination in Thailand with additional tax incentives. When selecting a location, proximity to major ports like Laem Chabang should be assessed. Reliable local partners like freight forwarders are crucial in navigating import/export procedures, documentation, and addressing problems efficiently. Background checks help avoid potential issues.
Understanding Legal and Tax Obligations
While incentives like BOI promote investment in Thailand, companies still need to fulfill local ownership, hiring, and incorporation requirements. Appointing legal and tax advisors ensures compliance with corporate, employment, and other laws. Filing appropriate registrations and reporting obligations is essential for smooth operations.
Thailand offers great potential, but conducting due diligence, planning thoroughly, and working with dependable local advisors is key to successfully investing in the country.