Congrats Foreign Investors! 51% Thai Ownership Rule in Aviation Industry is No More
Good news! The cabinet has recently passed a new bill on the civil aviation, authorizing the Civil Aviation Board to fix the foreign ownership proportion in aviation business in Thailand. Similarly, it aims at bettering Thailand’s aviation industry to enable it to become the hub in the entire Southeast Asia while enhancing the country’s capacity to develop as a major aircraft maintenance center.
It is expected that a well-developed Thai aviation industry will bring an end to the challenges continuously faced by the airline industry in Thailand that is mostly imposed by the international civil aviation regulators and safety inspections in the past two years.
No Restrictions on the Foreign Investment in Thailand
The new law is imposed to put an end to the limitations on foreign investment. A lot of aspiring foreign investors will be extremely excited for sure. The new bill revokes the amendment of the revolutionary article no 58 (1972).
51% Thai Ownership Limitation
The already existing law needs Thai owners to have only 51% control of the aviation companies. Moreover, the shareholders should be individuals who must prohibit investment made by the investment funds. However, the old law is a barrier to the development of the aviation industry in Thailand.
The Thai government is all set to promote their aviation industry in the Eastern Economic Corridor whereas many foreign companies like Airbus are looking to invest in the new investment location. Provinces including Chon Buri, Chachoengsao and Rayong have been designated for developing high-tech industry cluster with an aim to become leading ASEAN economic zone for infrastructure, urban and industrial development.
Additionally, the Eastern Economic Corridor is ready to become a water transport hub by linking the Dawei port in Myanmar with Vung Tau in Vietnam and Sihanoukville in Cambodia. In fact, the EEC investors will be given privileges that include land leases for fifty years, visa-free grants, and some special tax perks. Running such a program is likely to generate investment value up to 1.5 trillion baht in 5 years from the government as well as the private sector.
