Business activity between China and Thailand expected to further increase with signing of RCEP, says KPMG
Business activity between China and Thailand expected to increase
BANGKOK 4 December 2020 – Thailand remains an attractive investment and trading destination for China, and the RCEP further opens up the corridor for trade and investment between China and Thailand.
On 15 November 2020, 15 countries – 10 ASEAN states with five other partner countries (Australia, China, Japan, New Zealand and South Korea) – signed one of the largest free trade agreements – the Regional Comprehensive Economic Partnership (“RCEP”). The agreement will provide a framework for facilitating free and more streamlined trade arrangements among the signatories belonging to a market of 2.2 billion people and almost 30% of the world’s GDP.
The framework of RCEP provides a platform through which foreign service providers are expected to be granted greater levels of market access and trade and investment can accelerate.
“RCEP has the potential to further enable Chinese businesses to expand their footprint in Thailand. To respond to the potential increase in Chinese business activity in Thailand and neighboring countries, KPMG’s Global China Practice has strong network support from all over the world. Our experienced specialists are ready to help clients navigate risks and achieve their long-term market aspirations,” said Charoen Phosamritlert, Chief Executive Officer, KPMG in Thailand, Myanmar and Laos.
In recent years, Thailand has been one of the most attractive FDI destinations in the Southeast Asian region for Chinese companies. In response to the growing opportunities and needs, KPMG leverages its capabilities to serve incoming Chinese businesses to Thailand and to work alongside these Chinese companies as they navigate the local business environment.
Yiran Yang, Head of China Practice, KPMG in Thailand said, “Our team works as a bridge between China and Thailand in serving Chinese companies as they enter, operate and expand in Thailand. We have a group of dedicated Chinese speaking professionals who understand Chinese culture and provide a one-stop service to protect and create value for Chinese businesses and assist them as they trade with and invest into Thailand.”
The RCEP will come into force when at least six ASEAN member states and three non-ASEAN signatories ratify it into domestic law, which could range from six months to two years. Read KPMG’s analysis on the regional impacts here1.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 147 countries and territories and have more than 219,000 people working in member firms around the world. In Asia Pacific, KPMG operates in 20 countries and territories with more than 46,000 people in members firms in the region.
KPMG in Thailand, with more than 1,900 professionals offering Audit and Assurance, Legal, Tax, and Advisory services, is a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
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