Over the next five years, the BOI anticipates an investment volume of more than USD 5.5 billion for electric vehicles (EV) and EV-related investments in Thailand. Import duties and excise taxes will also be significantly reduced. The automotive industry in Thailand will thus further expand its leading role in the Asia-Pacific region. There are great opportunities for vehicle manufacturers, but especially for suppliers, in a flourishing production market.
India and Thailand, the center of the ASEAN Economic Union, are considered to be the world’s fastest-growing economic regions until 2035. With the motto “China Plus One”, international investors are increasingly moving away from the risk of concentrating on China.
These risks are characterized by new tariffs and boycotts on Chinese products in the Western world, particularly the US and the EU, and the well-known threats to intellectual property as well as state interference in foreign investors.
Watch out investors in the automotive industry: The Thailand Board of Investment (BOI) is promoting Joint Ventures manufacturing automotive parts until 31.12.2025. Anyone investing in Thailand’s automotive industry has the option of extending the general exemption from corporation tax by 2 and up to 8 years. The regulation applies to both newly established Joint Ventures in Thailand as well as to existing companies that take on Thai partners.
In addition, access to the Japanese automotive industry beckons with the addition of a Thai partner.
On November 1st, 2024, at 6 PM, the next after-work networking event for managers from the Eastern Economic Corridor will take place. The evening is organized in cooperation with the ESB Stammtisch and will be held for the first time at the rooftop bar of the Somerset Hotel Pattaya.
The electronic signature (“e-signature”) of contracts in Thailand is regulated by the Electronic Transactions Act B.E. 2544 (“ETA”). The law represents a significant facilitation of business transactions in Thailand. Even foreigners can use the e-signature to process their contractual agreements with Thai companies. However, this does not apply to every contract, so you should always exercise caution when using electronic signatures.
Have you ever thought about signing a contract without holding the documents in your hand? Sanet Legal & Accountancy the Thai, English and German speaking lawyers in Thailand, will clarify whether and how this is permissible and when such contracts are legally binding.
