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Analyzing the Factors Contributing to the Establishment of Thailand as a Hub for Regional Operating Headquarters

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  • Myat Su Yin

Abstract

In June 2010, the Thai government proposed improved investment tax incentive schemes to attract more foreign companies to establish Regional Operating Headquarters (ROH) in Thailand. The major theme of incentive packages has historically been the waiving of income tax on ROHs locating in the Kingdom. In the wake of recent political crises, these tax benefits are considered as important measures in reinforcing the Kingdom’s position as an important manufacturing and service hub for the ASEAN region. While investor confidence was wavering because of the unstable political environment that has appertained since 2006, investors are weighing business continuity and safety concerns against the provided and proposed incentives. This paper briefly compares the original ROH tax incentives from 2002 with the new ones, examines the factors contributing to the establishment of Thailand as a hub for ROHs and analyzes the competitiveness of Thailand in comparison with Hong Kong, Singapore and Malaysia in the context of national competitiveness for establishing ROH. National competitiveness is measured by using the Double Diamond-based nine factor model (IPS Model) from the IPS national competitiveness research study.

Suggested Citation

  • Myat Su Yin, 2011. "Analyzing the Factors Contributing to the Establishment of Thailand as a Hub for Regional Operating Headquarters," Journal of Economics and Behavioral Studies, AMH International, vol. 2(6), pages 275-287.
    • Handle: RePEc:rnd:arjebs:v:2:y:2011:i:6:p:275-287
    DOI: 10.22610/jebs.v2i6.245
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    1. Guest Editors & Ana Teresa Tavares & Stephen Young, 2005. "FDI and multinationals: patterns, impacts and policies," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 3-16.
    2. Mats Forsgren & Ulf Holm & Jan Johanson, 1995. "Division Headquarters Go Abroad ‐ A Step In The Internationalization Of The Multinational Corporation," Journal of Management Studies, Wiley Blackwell, vol. 32(4), pages 475-491, July.
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