Huge Japanese business delegation visits Thailand, focuses on EEC

[webfact]

Huge Japanese business delegation focuses on EEC

By THE NATION

 

Prime Minister Prayut Chan-o-cha walks hand in hand with Japanese Minister of Economics, Trade and Industry Hiroshige Seko, who led a delegation at Government House yesterday.

 

About 50% of FDI for first half of the year comes from single economic partner

 

AS A MASSIVE delegation from Japan visits the Kingdom, Thailand expected them to boost investment in infrastructure, particularly for dual-rail, high-speed trains, by next year to steer development in the Eastern Economic Corridor (EEC), Prime Minister Prayut Chan-o-cha said yesterday.

 

Other infrastructure projects encouraged by Prayut included ports, aviation and digital systems in line with the 10 new industrial groups targeted to become Thailand’s economic growth engines. “The first five years will focus on these developments. I look to Japan as a good example of train development,” Prayut said.

 

“In the future, there will also be developments in the West, North and the South. We have to integrate all these plans to connect investments and services, not only among regional provinces but also with CLMV countries,” he said, referring to the grouping of Cambodia, Laos, Myanmar and Vietnam.

 

The Thai government also expected to facilitate development in the EEC by creating fast tracks such as encouraging more “public-private-people” cooperation, he said.

 

 

Thailand plans to invest about Bt700 billion to construct and develop infrastructure in the EEC as part of a five-year plan.

 

The Kingdom also looked forward to new cooperation and exchanges in industry, innovation and technology as well as support for SMEs, the premier said.

 

With Japanese SMEs contributing greatly to that country’s economy, accounting for more than 90 per cent of businesses in Japan, Prayut said he expected that they and around 3 million Thai SMEs could help to support each other in creating jobs. 

 

Prayut welcomed at Government House yesterday Hiroshige Seko, Japan’s Minister of Economy, Trade and Investment, along with 570 high-level Japanese business people, representatives from economic organisations and SME entrepreneurs who are visiting Thailand from yesterday until tomorrow.

 

Seko referred to Thailand’s crucial role as Asean’s industrial hub, which Japanese companies have utilised for a long time. “The numbers of Japanese research and development facilities in Thailand is one example,” the minister said. “Our economic-centric cooperation is going to step up as high-level industry development.” 

 

 

Meanwhile, the Japanese business sector had applied for investment privileges worth Bt65 billion, or about half of all foreign direct investment (FDI) in Thailand during first half of this year, said Hirunya Suchinai, secretary-general of Japan’s Board of Investment.

 

FDI in the first six months of the year was estimated at about Bt120 billion, from Bt291 billion in overall investment, Hirunya said.

 

The majority of Japanese businesses focused on petrochemical products, electronics and automotive parts, which are in line with the 10 industrial groups Thailand has prioritised, she said

 

The visit, and Somkid’s previous visit to Japan this year, marked the 130-year relationship between the two countries. Thailand is reforming the economy in line with Japanese Prime Minister Shinzo Abe’s “Japan 5.0” initiative, in which all aspects of society and industrial production were connected by digital technology, Somkid said. 

 

“When I invited them to visit Thailand, I did not expect the mission would be so large as 500 investors, including executives from Keidanren and Jetro [economic organisations],” Somkid said in an exclusive interview with Thepchai Yong, editor-in-chief of Nation Multimedia Group. 

 

As the Thai economy picks up speed, reaching 3.7-per-cent growth in the second quarter of this year, Japanese investors had more confidence in the economy, he said. 

 

 

He said the two sides today would sign a memorandum of understanding to cement cooperation in the new “s-curve industries”, EEC investment and human resource development. 

 

Tomorrow, the delegation will visit investment sites in the EEC to mark progress in the economic zone.

 

“There has never been a Japanese minister visiting investment sites in Thailand, and there is also a deputy governor from Fukuoka joining the trip, suggesting future contact will be not only between central governments but also between local governments on both sides,” said Somkid.

 

Somkid added that he was confident that the new wave of investment from Japan would ensure that the EEC was not built from scratch, since over the past 40 years Japanese investors had already invested in large projects in the Eastern Seaboard. 

 

However, he conceded that Japanese investors were worried about the shortage of skilled labour. 

 

“It not easy to lead all people into Thailand 4.0 since a large number of labourers are in the agricultural and services sectors,” Somkid said.

 

The challenge was to balance economic development by promoting tourism and exports, while moving towards a high-value economy driven by higher technology and innovation, according to Somkid. 

 

Asked whether the Japanese mission could adversely affect Thailand’s relationship with China, Somkid said the government would welcome investment missions from China and every other country. 

 

As the global economy shifts to Asia and China, Japan and India are expected to be major production centres, while Thailand is at the centre of the CLMV bloc. 

 

 

Source: http://www.nationmultimedia.com/detail/politics/30326436

 

-- © Copyright The Nation 2017-09-12

[webfact]

Thai junta tells Japan investors $45-billion development plan to go ahead

 

Thailand's Prime Minister Prayuth Chan-ocha attends the Dialogue of Emerging Market and Developing Countries in Xiamen in southeastern ChinaÕs Fujian Province Sept. 5, 2017. REUTERS/Mark Schiefelbein/Pool

 

BANGKOK (Reuters) - A $45-billion plan to redevelop Thailand's industrial east will go ahead regardless of whoever takes power after elections, the military government told hundreds of Japanese investors on Monday.

 

The ruling junta, faced with weak exports and sluggish domestic demand, has focused on promoting investment to help revive growth in Southeast Asia's second-largest economy, which lags regional peers.

 

The military government hopes the Eastern Economic Corridor (EEC) development project, worth 1.5 trillion baht ($45 billion), will lift growth to about 5 percent a year by 2020, from the latest government estimate of 3.5 for 2017.

 

"Regardless of which government is in office, or when the election will be held, the EEC plan will continue, with certainty," Prime Minister Prayuth Chan-ocha told a gathering of 570 investors flown in from Japan.

 

"It is law, an act embedded within the 20-year national strategy, and supported by the national development plans."

 

The junta has branded its 20-year strategy a guide for policymaking long after elections expected next year, at the earliest. The strategy has fueled concern among critics that the army plans to cement its grip on power, whoever wins an election.

 

Japan was Thailand's biggest investor in 2016 with more than 57 billion baht ($1.7 billion), most of it going into the automobile industry.

 

Thailand, known as the "Detroit of Asia," is a regional base for some of the world's top carmakers, such as Toyota Motor Co. The government now wants to establish its own equivalent of Silicon Valley in the EEC.

 

"The digital innovation created there can go into supporting the automotive industry," Pichet Durongkaveroj, the Minister of Digital Economy, told Reuters. "We aim to be a manufacturing hub for electric vehicles."

 

($1=33.1200 baht)

 

(Reporting by Patpicha Tanakasempipat and Pracha Hariraksapitak; Editing by Matthew Tostevin and Clarence Fernandez)

 

-- © Copyright Reuters 2017-09-12

[Thechook]

Regardless of who takes power after elections.

 

What elections?

[Cadbury]

I wonder did he brief them that he holds a certain authority called Article 44 which he can use at any time to take away their investment once it starts to turn a profit and regardless of any trade agreement. Just as he did with the Australian gold mine Kingsgate. 

Did he also tell them "he has absolute power and can do anything he wants"?

[alfalfa19]

at the standard 30% graft and payoffs, that's about 450 million dollars to spread around. 

[Thian]

3 hours ago, webfact said:

However, he conceded that Japanese investors were worried about the shortage of skilled labour. 

 

Yup that's the main problem of Thailand.

[bangkokheat]

a so i see

[steven100]

3 hours ago, webfact said:

Thai junta tells Japan investors $45-billion development plan to go ahead

 

Thailand's Prime Minister Prayuth Chan-ocha attends the Dialogue of Emerging Market and Developing Countries in Xiamen in southeastern ChinaÕs Fujian Province Sept. 5, 2017. REUTERS/Mark Schiefelbein/Pool

 

BANGKOK (Reuters) - A $45-billion plan to redevelop Thailand's industrial east will go ahead regardless of whoever takes power after elections, the military government told hundreds of Japanese investors on Monday.

 

The ruling junta, faced with weak exports and sluggish domestic demand, has focused on promoting investment to help revive growth in Southeast Asia's second-largest economy, which lags regional peers.

 

The military government hopes the Eastern Economic Corridor (EEC) development project, worth 1.5 trillion baht ($45 billion), will lift growth to about 5 percent a year by 2020, from the latest government estimate of 3.5 for 2017.

 

"Regardless of which government is in office, or when the election will be held, the EEC plan will continue, with certainty," Prime Minister Prayuth Chan-ocha told a gathering of 570 investors flown in from Japan.

 

"It is law, an act embedded within the 20-year national strategy, and supported by the national development plans."

 

The junta has branded its 20-year strategy a guide for policymaking long after elections expected next year, at the earliest. The strategy has fueled concern among critics that the army plans to cement its grip on power, whoever wins an election.

 

Japan was Thailand's biggest investor in 2016 with more than 57 billion baht ($1.7 billion), most of it going into the automobile industry.

 

Thailand, known as the "Detroit of Asia," is a regional base for some of the world's top carmakers, such as Toyota Motor Co. The government now wants to establish its own equivalent of Silicon Valley in the EEC.

 

"The digital innovation created there can go into supporting the automotive industry," Pichet Durongkaveroj, the Minister of Digital Economy, told Reuters. "We aim to be a manufacturing hub for electric vehicles."

 

($1=33.1200 baht)

 

(Reporting by Patpicha Tanakasempipat and Pracha Hariraksapitak; Editing by Matthew Tostevin and Clarence Fernandez)

 

-- © Copyright Reuters 2017-09-12

This government is working to bring sustainable economic development to Thailand. It has many projects in planning and with the high speed rail project, all will be a big plus for Thailand and it's economy.

Well done Khun Prayuth Chan O Cha ...

[mikebell]

The man's a superhero; he's got Japan AND China eating out of his hand. 

[Retiredandhappyhere]

38 minutes ago, mikebell said:

The man's a superhero; he's got Japan AND China eating out of his hand. 

Eating his hand, more like!

[Retiredandhappyhere]

2 hours ago, steven100 said:

This government is working to bring sustainable economic development to Thailand. It has many projects in planning and with the high speed rail project, all will be a big plus for Thailand and it's economy.

Well done Khun Prayuth Chan O Cha ...

Wow, Stevie Wonder is back!  Found some (apparently) good news to crow about at last!  If only there were skilled Thai workers here to do the work.  High-speed rail?  How about fixing the low-speed rail first?

[ratcatcher]

[Eric Loh]

That is an impressive photo of him holding a pen and nothing on the piece of paper and a brand new writing pad on his side. He is trying hard to look knowledgeable and interested. Probably thinking where to stuff the windfall that will be forthcoming with the projects.  

[Cadbury]

1 minute ago, ratcatcher said:

Prayuth san appears unable to answer the question. He seems in a daze and sleepwalking. Maybe too much sake the night before.

[Cadbury]

10 minutes ago, Eric Loh said:

That is an impressive photo of him holding a pen and nothing on the piece of paper and a brand new writing pad on his side. He is trying hard to look knowledgeable and interested. Probably thinking where to stuff the windfall that will be forthcoming with the projects.  

But for the benefit of those watching he is wearing his best menacing scowl and deepest frown accentuated by a pair of heavy bags.

Edited September 12, 2017 by Cadbury

[champers]

As we from the Western world scoff, Japan, South Korea and China come and invest here. Why would that be? They certainly aren't mugs. I would like to know how things look from their perspectives.

[Baerboxer]

5 hours ago, Cadbury said:

I wonder did he brief them that he holds a certain authority called Article 44 which he can use at any time to take away their investment once it starts to turn a profit and regardless of any trade agreement. Just as he did with the Australian gold mine Kingsgate. 

Did he also tell them "he has absolute power and can do anything he wants"?

 

Well, the Japanese embassy, commercial and intelligence, chamber of commerce and all the business men are likely to be better informed than most TVF posters. So I guess they and the other business delegations that have and will come don't see it as a blocker.

 

And all those TVF posters who insist no one will invest here - WRONG!

[Baerboxer]

45 minutes ago, champers said:

As we from the Western world scoff, Japan, South Korea and China come and invest here. Why would that be? They certainly aren't mugs. I would like to know how things look from their perspectives.

 

Britain, Germany, France, and Italy have all sent business delegations. Also academic ones. 

 

Business ain't interested in TVF!

[Srikcir]

8 hours ago, webfact said:

I look to Japan as a good example of train development,” Prayut said.

Which is why he made a deal with China for the dual rail project?

An incongruous decision that Japan investors must consider in deals with Prayut.

 

[Srikcir]

8 hours ago, webfact said:

Thailand, known as the "Detroit of Asia,"

Actually, I think it's Detroit of Southeast Asia.

Chennai, India is nicknamed the "Detroit of Asia."  

https://en.wikipedia.org/wiki/Automotive_industry_in_Chennai

 

[steven100]

19 hours ago, Cadbury said:

Prayuth san appears unable to answer the question. He seems in a daze and sleepwalking. Maybe too much sake the night before.

more mudslinging by Cadbury. Why do you bother with Thailand at all   ????

try Laos or somewhere else.

[gunderhill]

Shame they dont  look to them for a work ethic as  well.