Japanese Find Thailand Least Attractive In Terms Of Investment

[Jai Dee]

The Japan Chamber of Commerce finds Thailand least attractive in terms of investment this year

A recent survey of investment feasibility of ASEAN member nations by Japanese investors has found Thailand to be the least likely investment country.

The Japanese Chamber of Commerce recently conducted a survey to determine which nation in the ASEAN community is most suited to investment by Japanese businessmen. Thailand's investment index has fallen dramatically from 2006, with latest figures from January 2007 indicating that Thailand has the lowest investment index among ASEAN nations. A leading Thai financial analyst, Assc Prof Dr. Montri Sokthiyanurak (มนตรี โสคติยานุรักษ์ ) from the National Institute of Development Administration(NIDA) reports that Thailand's investment index has dropped continuously in the last 9 months. Dr. Montri said that Japanese investment in industrial operations and heavy machinery also dropped 26.5% from the year before.

Assc Prof Montri said that the change reflected the shift in economic conditions in the nation and Thailand would need to re-evaluate its performance on the global market and to determine whether its economic policies in the last 2 months were still conducive to international investment. Assc Prof Montri added that the government's economic measures would also need to take into account the private sector, the foreign sector, and members of the public.

He reiterated that the government would need to reinstill confidence and create concrete measures to tackle the nation's economic burdens.

Source: Thai National News Bureau Public Relations Department - 05 February 2007

[Shrednyneas]

The Japan Chamber of Commerce finds Thailand least attractive in terms of investment this year

A recent survey of investment feasibility of ASEAN member nations by Japanese investors has found Thailand to be the least likely investment country.

The Japanese Chamber of Commerce recently conducted a survey to determine which nation in the ASEAN community is most suited to investment by Japanese businessmen. Thailand's investment index has fallen dramatically from 2006, with latest figures from January 2007 indicating that Thailand has the lowest investment index among ASEAN nations. A leading Thai financial analyst, Assc Prof Dr. Montri Sokthiyanurak (มนตรี โสคติยานุรักษ์ ) from the National Institute of Development Administration(NIDA) reports that Thailand's investment index has dropped continuously in the last 9 months. Dr. Montri said that Japanese investment in industrial operations and heavy machinery also dropped 26.5% from the year before.

Assc Prof Montri said that the change reflected the shift in economic conditions in the nation and Thailand would need to re-evaluate its performance on the global market and to determine whether its economic policies in the last 2 months were still conducive to international investment. Assc Prof Montri added that the government's economic measures would also need to take into account the private sector, the foreign sector, and members of the public.

He reiterated that the government would need to reinstill confidence and create concrete measures to tackle the nation's economic burdens.

Source: Thai National News Bureau Public Relations Department - 05 February 2007

[Galong]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

[dogleg]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

Couldnt agree more Galong!

And this came from TNNB??? I wonder if there is much comment in the Thai newspapers/newssites, anybody?

[blaze]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

Couldnt agree more Galong!

And this came from TNNB??? I wonder if there is much comment in the Thai newspapers/newssites, anybody?

If there is, it will be presented in such a way as to implicate Taksin and his PR machine.

[southwest19]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

Couldnt agree more Galong!

And this came from TNNB??? I wonder if there is much comment in the Thai newspapers/newssites, anybody?

If there is, it will be presented in such a way as to implicate Taksin and his PR machine.

The present Thai government is totally out of their depth they seem to have little understanding of foreign investment or even a grasp of basic economics. Thailands image as a place to invest has taken a battering over the last couple of months and I fear it could be years before this damge is repaired.

Ultimately it will be the Thai people that get hurt as foreign investors will just switch their investments elsewhere.

[slimdog]

JCR maintains outlook for Thailand’s sovereign ratings at “Stable”

BANGKOK, Feb 7 (TNA) – Japan Credit Rating Agency (JCR) has maintained its outlook for sovereign credit ratings for Thailand at “Stable,” citing the country’s monetary and fiscal position remains strong although there are political uncertainties and some state measures that worry investors.

Pongpanu Savettarun, Director-General of the Public Debt Management Office, said JCR affirmed long -term local and foreign currency ratings at “A+“ and “A-” since it viewed the country’s financial position is strong, the banking sector has recovered continuously, and the government’s fiscal position has improved.

However, there remain political uncertainties and doubts when a new constitution would be officially promulgated and whether the general election would be held as scheduled late this year without any delay and violence.

The New Year’s Eve bombings in Bangkok and Nonthaburi which killed three people and injured 42 others, including nine foreigners, are another incident that fuelled investors’ concerns.

At the same time, some investors began to question investment climate in Thailand since the Bank of Thailand imposed capital controls in December last year and the cabinet approved an amendment to the Foreign Business Act last month.

He said many investors had begun to evaluate political and social risks of Thailand with greater caution since the country’s political and social stability had weakened.

Still, Thailand’s external position remains strong, which enables the country to cushion itself from external risk factors.

This could be witnessed by the country’s current account surplus for the 7th consecutive year and a quick repayment of foreign debts.

More importantly, the government’s fiscal position had improved in the past few years.

He said JRC’s affirmation of its outlook for Thailand’s sovereign ratings at “Stable” reflected the political situation would gradually return to normal although some uncertainties still persist. (TNA) – E005

source: http://etna.mcot.net/query.php?nid=27777

[midas]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

HERE HERE ! and this is significant isn't it because Japan has been one of the

main investors here in the past? The Thai's will realize may be too late

that there are now plenty of competing economies in this region

that can provide a very comfortable home for investment dollars

[younghusband]

JCR maintains outlook for Thailand’s sovereign ratings at “Stable”

BANGKOK, Feb 7 (TNA) – Japan Credit Rating Agency (JCR) has maintained its outlook for sovereign credit ratings for Thailand at “Stable,” citing the country’s monetary and fiscal position remains strong although there are political uncertainties and some state measures that worry investors.

Pongpanu Savettarun, Director-General of the Public Debt Management Office, said JCR affirmed long -term local and foreign currency ratings at “A+“ and “A-” since it viewed the country’s financial position is strong, the banking sector has recovered continuously, and the government’s fiscal position has improved.

However, there remain political uncertainties and doubts when a new constitution would be officially promulgated and whether the general election would be held as scheduled late this year without any delay and violence.

The New Year’s Eve bombings in Bangkok and Nonthaburi which killed three people and injured 42 others, including nine foreigners, are another incident that fuelled investors’ concerns.

At the same time, some investors began to question investment climate in Thailand since the Bank of Thailand imposed capital controls in December last year and the cabinet approved an amendment to the Foreign Business Act last month.

He said many investors had begun to evaluate political and social risks of Thailand with greater caution since the country’s political and social stability had weakened.

Still, Thailand’s external position remains strong, which enables the country to cushion itself from external risk factors.

This could be witnessed by the country’s current account surplus for the 7th consecutive year and a quick repayment of foreign debts.

More importantly, the government’s fiscal position had improved in the past few years.

He said JRC’s affirmation of its outlook for Thailand’s sovereign ratings at “Stable” reflected the political situation would gradually return to normal although some uncertainties still persist. (TNA) – E005

source: http://etna.mcot.net/query.php?nid=27777

The interesting aspect of this report is that it confirms what most competent economic commentators already knew, ie that the external or macroeconomic position of Thailand was rather strong as a result of policies followed under Thaksin.The report notes the healthy current account surplus,repayment of debt and overall sound fiscal position.In terms of public debt as a proportion of GDP, this is not mentioned but is on a par with that of Malaysia.The suggestion by the junta that the economy was going to rack and ruin is a stupid falsehood, stupid because it can so easily be disproved.The sufficiency economy, to the extent it makes any sense, does seem to guard against uncertainties and external shocks.Perhaps this junta is stress testing the sufficiency economy by providing a whole series of shocks to the system.

[younghusband]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

HERE HERE ! and this is significant isn't it because Japan has been one of the

main investors here in the past? The Thai's will realize may be too late

that there are now plenty of competing economies in this region

that can provide a very comfortable home for investment dollars

I'm not sure about this.Japanese capital in Thailand has for decades been bound to comprador Thai corporations, and the old elite.The huge scale of Japanese investment must also be emphasised and perhaps as a lesser point the cultural attractiveness of Thailand (golf and girls, the cynics may say but there is much more to it than that).The biggest danger to Japanese investment in Thailand is probably the rival attraction of China, but there's so much sunk capital here that I don't anticipate a major outflow any time soon.

[jumnien]

Remember, these are newspaper articles. Written for the amusement of newspaper readers by ""journalists"" who have little time or energy or ability to investigate or think for themselves. Do you really think Japan is going to be moving all its factories to the "more favorable" nations of ASEAN like Myanmar, Laos, and Cambodia? This article warrants a giggle at best before quickly turning the page.

[Old Man River]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

HERE HERE ! and this is significant isn't it because Japan has been one of the

main investors here in the past? The Thai's will realize may be too late

that there are now plenty of competing economies in this region

that can provide a very comfortable home for investment dollars

I'm not sure about this.Japanese capital in Thailand has for decades been bound to comprador Thai corporations, and the old elite.The huge scale of Japanese investment must also be emphasised and perhaps as a lesser point the cultural attractiveness of Thailand (golf and girls, the cynics may say but there is much more to it than that).The biggest danger to Japanese investment in Thailand is probably the rival attraction of China, but there's so much sunk capital here that I don't anticipate a major outflow any time soon.

The Japanese have a great number of manufacturing operations in Thailand, surrounded by a complete array of home country support industries. I fully agree that there is no way the Japanese would be pulling out of Thailand because these are not the type of investments that can be moved without huge costs involved. The issue going forward is whether they channel newer investments away from Thailand. We won't know this until 2 to 3 years hence and by that time, I expect Thai authorities will have woken up to the benefits of these types of investors.

[midas]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

HERE HERE ! and this is significant isn't it because Japan has been one of the

main investors here in the past? The Thai's will realize may be too late

that there are now plenty of competing economies in this region

that can provide a very comfortable home for investment dollars

I'm not sure about this.Japanese capital in Thailand has for decades been bound to comprador Thai corporations, and the old elite.The huge scale of Japanese investment must also be emphasised and perhaps as a lesser point the cultural attractiveness of Thailand (golf and girls, the cynics may say but there is much more to it than that).The biggest danger to Japanese investment in Thailand is probably the rival attraction of China, but there's so much sunk capital here that I don't anticipate a major outflow any time soon.

The Japanese have a great number of manufacturing operations in Thailand, surrounded by a complete array of home country support industries. I fully agree that there is no way the Japanese would be pulling out of Thailand because these are not the type of investments that can be moved without huge costs involved. The issue going forward is whether they channel newer investments away from Thailand. We won't know this until 2 to 3 years hence and by that time, I expect Thai authorities will have woken up to the benefits of these types of investors.

no one in the right mind would expect them to just pull out overnight

but they can equally stop or slow down spending money on their

existing investments- recent events here may encourage them

to look at alternative sites for the future

[southwest19]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

HERE HERE ! and this is significant isn't it because Japan has been one of the

main investors here in the past? The Thai's will realize may be too late

that there are now plenty of competing economies in this region

that can provide a very comfortable home for investment dollars

I'm not sure about this.Japanese capital in Thailand has for decades been bound to comprador Thai corporations, and the old elite.The huge scale of Japanese investment must also be emphasised and perhaps as a lesser point the cultural attractiveness of Thailand (golf and girls, the cynics may say but there is much more to it than that).The biggest danger to Japanese investment in Thailand is probably the rival attraction of China, but there's so much sunk capital here that I don't anticipate a major outflow any time soon.

The Japanese have a great number of manufacturing operations in Thailand, surrounded by a complete array of home country support industries. I fully agree that there is no way the Japanese would be pulling out of Thailand because these are not the type of investments that can be moved without huge costs involved. The issue going forward is whether they channel newer investments away from Thailand. We won't know this until 2 to 3 years hence and by that time, I expect Thai authorities will have woken up to the benefits of these types of investors.

I think it maybe a little sensationalist to say the Japanese are going to pull out of Thailand of course there not but when they make decisions about future investment they may well decide to go elsewhere.

In a global economy you have to be competitive and if investors decide that Thailand because of all its new restrictions no longer offers a competitive edge then there is a good chance we will see a reduction in their investments.

It is extremely difficult to plan and grow a business if the rules are changing on an almost daily basis without little or any consultation.

[wintermute]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

HERE HERE ! and this is significant isn't it because Japan has been one of the

main investors here in the past? The Thai's will realize may be too late

that there are now plenty of competing economies in this region

that can provide a very comfortable home for investment dollars

I'm not sure about this.Japanese capital in Thailand has for decades been bound to comprador Thai corporations, and the old elite.The huge scale of Japanese investment must also be emphasised and perhaps as a lesser point the cultural attractiveness of Thailand (golf and girls, the cynics may say but there is much more to it than that).The biggest danger to Japanese investment in Thailand is probably the rival attraction of China, but there's so much sunk capital here that I don't anticipate a major outflow any time soon.

The Japanese have a great number of manufacturing operations in Thailand, surrounded by a complete array of home country support industries. I fully agree that there is no way the Japanese would be pulling out of Thailand because these are not the type of investments that can be moved without huge costs involved. The issue going forward is whether they channel newer investments away from Thailand. We won't know this until 2 to 3 years hence and by that time, I expect Thai authorities will have woken up to the benefits of these types of investors.

I think it maybe a little sensationalist to say the Japanese are going to pull out of Thailand of course there not but when they make decisions about future investment they may well decide to go elsewhere.

In a global economy you have to be competitive and if investors decide that Thailand because of all its new restrictions no longer offers a competitive edge then there is a good chance we will see a reduction in their investments.

It is extremely difficult to plan and grow a business if the rules are changing on an almost daily basis without little or any consultation.

The Japanese are most assuredly practicing risk management at the moment. I'm sure they have very sound business agreements in Thailand but I would bet anyone that they are already starting to limit their longterm investments. Thailand has actually been a bit of a disappointment compared with the other investment locations in the region. If you look at their ratings over the past year Thailand was underperforming compared with Singapore, Vietnam etc.. The one area where it has been a success is the automotive industries. I think Toyota's Thai division single handedly has a majority of the consumer market share.

Make no mistake though even if Japan limits its longterm investments in Thailand it will be a significant setback for Thailand. They rely on Japan for everything from technology to infrastructure development.

[Old Man River]

no one in the right mind would expect them to just pull out overnight

but they can equally stop or slow down spending money on their

existing investments- recent events here may encourage them

to look at alternative sites for the future

I hate generalizations, but what appeared in the newspapers about 10 days ago was that Japanese long term investors would continue to invest what was already in their long term plans. Future long term planning would be something else. Here, I would expect them to look elsewhere.

[John K]

I have said this in another thread but I guess it works here too.

The senior (as in age) members of government making decisions are working in the (old school) past thinking their pond is small and Thailand is a big fish. The 30% (interest free loan) the Thai government wants from company coffers reflects that. Reality check is Thaksin has taken Thailand to places that old school thinking simply does not work. Thailand is a competing country in a much bigger market, so Thailand must put away the stick and get out the carrot or risk losing much more as the movement gathers steam.

[HenryB]

Great! I hope a few more countries voice their opinions about doing business here.

The Thai government needs a slap in the face... their xenophobia should cost them dearly. I'm looking at other countries too. I see no reason to think that the government is going to get easier for foreigners to do business here.

We should understand that the Japanese are Buddhist and understand face better than any white farang sex tourist who think they understand Thai culture while they are just be take fora ride.

Most of the people on the people can learn from the Japanese

[alexth]

It will proably take them another 10 years to realize it...

[KireB]

We should understand that the Japanese are Buddhist and understand face better than any white farang sex tourist who think they understand Thai culture while they are just be take fora ride.

Most of the people on the people can learn from the Japanese

Nice generalization Henry B! Are you frustrated about somehing?

Seems like it.

I think most Japanes sex tourists could learn something from you!

[astral]

Oops..........

There goes the growth plans for LOS.