Boost for exporters

The Export Promo-tion Department plans to offer tax incentives and establish a fund to support overseas investment, director-general Rachane Pojanasuntorn said yesterday.

He said the Finance Ministry had established a working committee, chaired by Export-Import Bank (Exim Bank) chairman Narongchai Akrasanee, to consider the tax incentives.

The committee is also finalising its decision on whether earnings from overseas investments should be tax-free.

"These decisions will be submitted to the new government for approval," he said.

Meanwhile, in order to facilitate overseas investment, an export promotion fund of at least Bt5 billion will also be set up, to be managed by Exim Bank.

Rachane said promoting overseas investment was vital due to the changing economic environment. With rapid changes in oil prices, foreign-exchange rates, raw-material costs and trade liberalisation, exporters are still shipping products at Bangkok prices, which are five times lower than retail prices overseas.

"Without changes, exporters would be at a disadvantage and would become less competitive over the long term. Therefore, we are encouraging them to invest overseas in the belief that they would be able to generate higher profits," Rachane said.

"In addition to offering advisory services, we are also working with the Office of Small and Medium Enterprise Promotion, which should help support overseas investors."

So far, about 268 companies have registered with the department expressing their interest in expanding overseas. They operate in a variety of industries, including food, leather goods, clothing and spas.

Two firms have already opened in Europe, one operating a spa and the other a restaurant.

The Nation