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Byline: Woranuj Maneerungsee
Jul. 25--Taiwanese direct investment in Thailand is likely to increase because of soured relations between Taiwan and China.
Most Taiwanese investors have become uncertain about the prospects in China, according to Daniel Sheng, the director of the economic division of the Taipei Economic and Cultural Office.
They were looking for better conditions in which to invest, he said, and Thailand had been an outstanding destination for their funds because its economy was recovering gradually and it was more stable politically than some other Asean members. As well, the investment privileges were attractive. Taiwanese are willing to invest in industries ranging from food processing to high-technology operations such as biotechnology and electronics production. However, they are deterred by delays in obtaining refunds of value-added tax, red tape in obtaining work permits and a lack of skilful employees.
"They (the Taiwanese businessmen) have lodged serious complaints about slow VAT refunds," he told the 12th joint economic co-operation meeting between Taiwan's national association of industry and commerce and the Federation of Thai Industries yesterday. "In the worst cases, we have to wait for a couple of years. Can the government ...