Good news for Eastern Seaboard: Industrial Property Remains on Course

Managing director Patima Jeerapaet said the possible extension of property tax incentives beyond the original March 2009 expiry date would benefit industrial as well as residential developers.  The Board of Investment (BOI) is also considering extending the corporate tax exemption from eight to 13 years with zero import duty on raw materials used in manufacturing of exported products for Zone 3, an area covering 36 provinces.   ´´Even with the global economic problems, the Indian conglomerate Tata Group has kept its investment in automotive manufacturing in Thailand, ´´ said Patima. The Indian company is planning further investment in the southern seaboard for steel manufacturing.   In addition, Golden Wealth, the subsidiary of TCC Land, is planning to develop part of a 20,000 Rai plot in Cha Am into an industrial estate, in the place of a previously planned theme park, revealed Patima. Industrial estate developer Padang Indus-try also plans to develop a total of 60,000 Rai in Tack for Mitr Phol Sugar Group to invest in ethanol. Currently, it has 13,000 Rai and will add 30,000 Rai next year.   The BOI has hinted it will offer more tax and non-tax privileges in an attempt to achieve its investment target of Bt600 billion this year. Under a new promotion campaign, the Government expects to attract up to Bt3 trillion in foreign investments between 2008 and 2011.   Ms Patima admitted Thailand was facing growing competition from Vietnam in the industrial property sector, but said Thailand offers better infrastructure and labors standards.