Easier doing business, but a hard road ahead

[webfact]

Easier doing business, but a hard road ahead

By The Nation

 

Thailand shot up the World Bank rankings this year, but we can’t be deterred from fixing the problems that remain

Despite its impressive leap up the rankings in the World Bank’s latest “ease of doing business” assessment of nations, Thailand cannot rest on its laurels. The competition from other countries is getting fiercer all the time.

 

Based on the World Bank’s 2018 Doing Business Report, which compared more than 190 countries and territories, Thailand is now the 26th-easiest place on earth for foreign firms to conduct business, jumping an unprecedented 20 ranking places from 46 the previous year.

 

Among the 10 Southeast Asian countries, Thailand is now No 3, after Singapore (second on the world list) and Malaysia (24th), with a score of 77.4 out of 100.

 

The rankings cover 10 aspects to doing business: starting a new business, applying for electricity use, protection of minority shareholders, tax payment, enforcement of contracts, applying for building permits, registration of intellectual and other property, applying for credit, international trading, and bankruptcy procedures.

 

In terms of starting a new business, it now takes just 4.5 days on average to do so in Thailand, compared to nearly a month in the previous year’s survey. Meanwhile the Revenue Department earns applause for its

 efficient arrangements for filing taxes and related documents.

 

In terms of getting permission to use electricity usage, Thailand is ranked 13th in the world. It is 16th best in the world at ensuring minority shareholders are protected against harm.

 

Regarding bankruptcy procedures, the country is the world’s 26th best.

 

While multiple government agencies can share credit for such a significant improvement in Thailand’s assessment, there remain several areas where more reform is needed. As identified in the same report, these include enforcement of contracts (Thailand scored 67.9 out of 100), registration of intellectual and other property (68.7), and applying for credit (70).

 

As Thailand made enviable gains in the evaluation, though, Vietnam moved up the ladder by 14 ranks, from the previous year’s 82nd place to 68th, while Indonesia jumped 19 places, from 91st to 72nd.

 

The Thai government, flushed with pride, is nevertheless preparing to push for further improvement, 

especially in international trade and building permits. For import and export businesses, Thailand is ranked 57th in the world, despite having a relatively high score of 84.1 out of 100.

 

One area of improvement to lure more-competitive international trading businesses lies in the transparency and efficiency of Customs Department services, which need to match the benchmark set by the Revenue Department. Regarding the process of applying for a building permit, there is also room for improvement. The country ranks 43rd in the world, despite a score of 74.5 out of 100. Again, transparency and efficiency are key issues in better serving businesses that need building permits to enter the Thai market.

 

Given the huge improvement in the World Bank report, Thailand aims to achieve a better ranking in the next World Economic Forum (WEF) Global Competitiveness Report. In the latest WEF ranking, Thailand is 34th, up slightly from the previous year’s 32nd.

 

Both the World Bank and WEF rankings are internationally recognised indicators of a nation’s performance in the eyes of foreign businessmen and investors. As Thailand promotes the Eastern Economic Corridor’s development as a new magnet for foreign investors, it is imperative that we keep striving to make it easier to do business here, a key factor in international competitiveness.

 

Source: http://www.nationmultimedia.com/detail/opinion/30330694

 

-- © Copyright The Nation 2017-11-03

[leeneeds]

Would help business very much if you could also get a credit card for the business ,without the prolonged, difficult and  frustrating hoop jumping that currently goes on, we have changed banks 3 times , even between branches the information given out is completely misleading, false and plain nonsense . 

 

[Samui Bodoh]

10 minutes ago, webfact said:

While multiple government agencies can share credit for such a significant improvement in Thailand’s assessment, there remain several areas where more reform is needed. As identified in the same report, these include enforcement of contracts (Thailand scored 67.9 out of 100), registration of intellectual and other property (68.7), and applying for credit (70).

"...enforcement of contracts (Thailand scored 67.9 out of 100)..."

 

Thailand deserves credit for an improving situation. However, the survey doesn't cover much the resolution of disputes or the human factor of dealing with an official who has decided that he needs a new Mercedes.

 

Administrative processes and functions are important, but 'other' matters are equally or more important.

 

And these need LOTS of work.

 

[ezzra]

I made a million dollar doing business in Thailand, i have started

with 2 millions....

[Cadbury]

So how does the World Bank assess the ratings of ease of doing business for foreigners in Thailand? I suspect the World Bank goes to the military Generals and asks them the relevant questions and the Generals answer by telling them how easy it is. The World Bank then ticks the boxes and announces the results. What else would explain the huge "improvement" in ranking.