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ResourcesCorporate and Tax AdvisoryContract LawForeign Direct Investment in ASEAN Increases Amidst Trade War

Foreign Direct Investment in ASEAN Increases Amidst Trade War

Transcript of the above video:

As the title of this video suggests we are discussing the ”Trade War”, which has been going on between the US and China and some of the fallout which has resulted in this so-called Trade War has been something of a boon to the nations which comprise the association of Southeast Asian Nations.

In a recent article from Bloomberg, www.bloomberg.com, the article is titled Southeast Asia has an Investment Boom Thanks to the Trade War. Quoting directly, "Southeast Asia is seeing a boom in Foreign Direct Investment as the intensifying trade war between the US and China prompts companies to shift production to the region.” Quoting further, "In January through July, Thailand's net FDI rose 53% from a year earlier to 7.6 billion with manufacturing inflows surging almost five times according to Central Bank data.” Quoting further, "The US - China Trade War may be attracting more firms to set up in ASEAN to circumvent the tariffs. Sectors such as consumer products, industrial, technology and telecom hardware, automotive and chemicals have indicated interest in Southeast Asia."

The reason I bring this up, I usually just do fairly, for lack of a better term legally technical videos on this channel, but this was of interest because we have really seen a tidal shift with respect to a lot more foreign interest especially here in Thailand and it should be noted that Thailand does provide a substantial number of benefits to foreign investors in the Kingdom most notably things like the Board of Investment promotion scheme can provide things like tax holidays, various forms of property title benefit, Visa, work permit concessions; things of that nature.  Foreign Business Licensure notwithstanding the provisions of the Foreign Business Act here in the Kingdom and for those Americans and American companies who are looking at Thailand, there is also the US-Thai Treaty of Amity which provides a number of benefits with respect to American citizens and companies who basically receive what is called National treatment; basically from a legal standpoint be treated just like a Thai company and therefore receive the benefit of being able to own ones company 100% out right.

These types of benefits are substantial and I think that this is notable in light of the fact that there is all this sort of shake-up with respect to business and business moving into the ASEAN region

So those who are watching this video, it is a note, and like many other ASEAN jurisdictions, especially with respect to the US Thai Treaty of Amity, Americans in particular may be able to enjoy some substantial benefits when compared to other jurisdictions in this region.