Bangkok: Foreign investors are showing increased interest in long-term investments in Thailand following the announcement of a 19% tax rate. Deputy Prime Minister and Finance Minister Pichai Chunhavajira discussed the implications of this development on Thailand's economic landscape.
According to Thai News Agency, Pichai revealed that the US's imposition of a 19% import tax will provide relief to foreign investors and encourage their long-term commitment to Thailand. He emphasized the importance of this decision in maintaining Thailand's competitiveness on the global stage and building investor confidence. The announcement is expected to open avenues for economic expansion, income generation, and new opportunities for the country.
Pichai elaborated on the strategic plans Thailand has in place, including purchasing 8-10 additional passenger aircraft and investing in agricultural processing in the US. He highlighted that Thailand is prepared for Free Trade Agreements (FTAs) and is focused on major issues such as what they will buy from the US and mutual investments. Thailand plans to invest in processed agriculture and energy sectors in the US while continuing to import approximately US$20 billion per year from the country.
The minister also mentioned that energy imports would not see significant increases, though crude oil imports are expected to rise by 10% starting in 2026. He addressed the import of pork from the US, noting that factories will be inspected before import, and only a minimum amount will be brought in. Details on these imports will be elaborated on by the government to ensure competitiveness is increased.
Pichai stated that the new 19% tax rate has alleviated concerns for many foreign companies planning long-term investments in Thailand. However, he confirmed that the issue of natural gas concessions in Thailand was not part of the recent negotiations. The government remains committed to supporting entrepreneurs and farmers through comprehensive measures to mitigate any adverse effects.