Low cost, Thai textile industry is keen to invest in Myanmar
According to Thailand’s “World Journal”, Penney, an executive of Thailand’s Board of Investment Promotion (BOI), revealed the status of recent business talks with Myanmar. He said that in the past, a total of four Thai companies entered Myanmar’s Poipet Special Economic Zone to invest. Some are in the textile and garment industry, such as Hong Seng Group, Nice Group, etc. The main reason for choosing to invest in Myanmar is that local labor costs are low, which can reduce production costs.
Du Ze of the Thai Chamber of Commerce pointed out that in order to reduce the production costs of investment in Myanmar, the Thai government has been committed to promoting Thailand-Myanmar relations and promoting Thai commercial banks to settle in Myanmar to provide convenience for Thai investment enterprises. Currently, Thai Bank (KTB) and Siam Commercial Bank (SCB) have entered Myanmar, but applying for credit still requires the use of fixed assets in Myanmar as guarantee, so most Thai companies investing in Myanmar need to obtain loans in Thailand.
Wen Luo, an executive of a Thai company, believes that Thai companies can invest in rice mills, food processing industries, garment industries, power plants and hotels in Myanmar. If approved for investment promotion, corporate income tax will be reduced or reduced for 3-9 years, and import taxes on machinery and raw materials will be reduced or exempted. As of now, China is Myanmar’s largest investor, with a total investment value of US$7.72 billion, followed by South Korea with US$3.9 billion, Malaysia with US$2.38 billion, and Thailand with US$746 million, of which the investment in Thailand’s textile industry reached US$250 million. One hundred million U.S. dollars.
Poipet is an important economic zone in Myanmar and one of the key developed border trade cities. It is only 7-10 kilometers away from the Thailand-Myanmar border.
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