Thailand takes the lead in wooing firms amidst trade war
Companies are turning to Thailand & Vietnam over India as a chosen destination to escape from the harsh dynamics of the ongoing US-China trade war. This is because of a string of measures undertaken by these countries to facilitate foreign investments, particularly from China, Japan, Taiwan, and South Korea. For instance, Thailand rolled out a relocation package called ‘Thailand Plus’ to entice countries to quickly switch their new businesses from China to Thailand. The package also encompasses investment acceleration incentives, tax incentives, special economic zones, fiscal measures, manpower development, and deregulation.
While the Indian government too has initiated favourable legislation like greater flexibility and ease of operation for single-brand retail and contract manufacturing; it has ignored the fact that FDI in India comes primarily in services and telecommunication, not in manufacturing.