Thailand urged to open up to foreign skilled labour, cut red tape on foreign investment

By Wichit Chaitrong
The Nation

 

From left, Ambassadors to Thailand Brian John Davidson (UK), Allan McKinnon (Australia), Michael George DeSombre (US), Georg Schmidt (Germany), and Kazuya Nashida (Japan).

 

US Ambassador Michael George DeSombre and his counterparts from Australia, Britain, Germany and Japan have urged the Thai government to ease business restrictions in Thailand in order to attract more foreign direct investment in the post-Covid era.

 

 

The five foreign missions proposed 10 steps for Thailand to crack the top 10 in the World Bank’s global ease of doing business index.

The proposals are the outcome of consultation with Chambers of Commerce of four countries – Australia, Germany, Britain and the US – under the Foreign Chambers Alliance (FCA), DeSombre told press at his Bangkok residence on Friday.

 

Among the 10 proposals is a call for Thailand to open up to foreign skilled labour.

 

While the Board of Investment (BOI) and Eastern Economic Corridor (EEC) policy committee have offered incentives for foreign investors to bring in skilled workers, foreign businesses want a wider easing.

 

“We strongly encourage Thailand to open up to foreign skilled labour in general, not just through various exceptions or otherwise for the benefit of Thai people,” said DeSombre.

 

Thailand should make it easier for advanced manufacturing firms to establish plants here, he said. The country should not be afraid of opening up the labour market since foreign skilled workers would help train the next generation of Thai workers, he added. Thirty years ago, Dow Chemical and Siam Cement Group launched one of Thailand’s first petrochemical joint ventures with over 30 per cent of foreign workers, who helped to train Thai workers, said DeSombre. Today the same joint venture employs just one foreigner in a workforce of 1,000 people, he said, adding that a similar pattern could be seen at Ford Motor’s project in the EEC.

 

Meanwhile Japanese Ambassador Kazuya Nashida urged the Thai government to lift the 14-day quarantine requirement for short visits by investors from Japan. Foreign business travellers just wanted to visit Thai factories, not go shopping or to public places, and did not have more than two weeks to spare, he said.

 

Japan currently offers a fast-track lane for businesspeople from South Korea, Singapore and Vietnam.

 

He also called on Thailand to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

 

Vietnam has an advantage over Thailand as it has already joined the CPTPP, and has other free trade agreements with the European Union and US, he said.

 

Germany’s Ambassador Georg Schmidt said German investors in Thailand were complaining about too much paperwork for customs clearances, tax refunds, invoices and renewal of licences and visas. Each investor has to sign about 100 such documents per week, said Schmidt.

 

He also praised Thailand for its digitisation efforts but called for faster development of electronic payment systems to ease business transactions. Several such initiatives are being trialled by Thai authorities. 

 

A pivot to digital commerce is among the FCA’s 10 steps for Thailand to reach the top 10 in the ease of doing business index. 

 

Others include simplifying and digitising cross-border clearances, simplifying BOI applications and applicability, establishing account-based customs processing, simplifying access for skilled labour, and improving bankruptcy processes.

 

Thailand has made impressive gains in the World Bank’s Ease of Doing Business index, moving from 46th to 26th to 21st in recent years. 

“By implementing the 10 measures the FCA proposes, we predict Thailand could quickly move into the top 10 of the World Bank index,” said the statement issued by the ambassadors.

 

Thailand is currently facing a shortage of skilled labour. Pre-Covid, the country also faced a shortage of unskilled labour, leading to the importation of migrant labour from neighbouring countries.

 

Source: https://www.nationthailand.com/business/30397920

 

-- © Copyright The Nation Thailand 2020-11-16

 

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2 hours ago, webfact said:

Meanwhile Japanese Ambassador Kazuya Nashida urged the Thai government to lift the 14-day quarantine requirement for short visits by investors from Japan. Foreign business travellers just wanted to visit Thai factories, not go shopping or to public places, and did not have more than two weeks to spare, he said.

 

Funny that they always carry their golf clubs with them.  Koreans, too.

 

2 hours ago, webfact said:

Germany’s Ambassador Georg Schmidt said German investors in Thailand were complaining about too much paperwork for customs clearances, tax refunds, invoices and renewal of licences and visas. Each investor has to sign about 100 such documents per week, said Schmidt.

Yeah, ain't worth it.   Then you get to watch a coup leader prance around like he the savior of the country. 

 

2 hours ago, webfact said:

Vietnam has an advantage over Thailand as it has already joined the CPTPP, and has other free trade agreements with the European Union and US, he said.

Way ahead with cheaper beer.

19 minutes ago, impulse said:

 

Funny that they always carry their golf clubs with them.  Koreans, too.

 

That's where they conduct most business, on the Golf Course.  Of course the majority of negotiations is then done over drinks later on and the final meeting held the next day in the corporate executive board room. The golf comes after the tour of the business, or while their advisors are reviewing the operations and inorming them by phone calls with updates as they play.  Done this a few times myself regarding security contracts and investigation proposals.  Typical Japanese and S. Korean operations.

2 hours ago, webfact said:

“We strongly encourage Thailand to open up to foreign skilled labour in general, not just through various exceptions or otherwise for the benefit of Thai people,” said DeSombre.

 

He does not know that Xenophobia towards foreigners is a fixed part of thai culture by now ?

The average Thai is afraid of foreigners investing too much in Thailand , as this could mean that foreigners could gain some ' influence ' ...

Influential persons have to be thai only in Thailand .

Foreigners are welcome only if they spend a LOT of money here , and,  after this , leave .

Foreigners need to be surveyed all the time , they think , as they could do something Thais may not like .

For example being in a position , ( become the boss of an enterprise or company ) , where they could give orders to Thais .

For many ( freedom loving , 55 ) , Thais that is unthinkable .

Foreigners are " Aliens ' in this country and it will stay this way , even the government changes .

They do not have the same rights as Thais , and many Thais appreciate this .

 

People here think different from how people think in a more developed and civilized country .

That is part of their culture and will probably never change .

I would like that thai people who are living in or visiting a foreign country get exactly the same treatment as foreigners in Thailand .

16 minutes ago, ThailandRyan said:

That's where they conduct most business, on the Golf Course.  Of course the majority of negotiations is then done over drinks later on and the final meeting held the next day in the corporate executive board room. The golf comes after the tour of the business, or while their advisors are reviewing the operations and inorming them by phone calls with updates as they play.  Done this a few times myself regarding security contracts and investigation proposals.  Typical Japanese and S. Korean operations.

 

That's a great story, and I think they'd like to stick with it...  But I lived for years in a Korean/Japanese dominated expat apartment in China and I doubt they made it into the factory more than one day a week.  Every morning, they'd pile into several vans picking them up-with their sticks...

 

Besides, the behavior you describe is exactly why they have 15 day quarantines...  It's one thing to do a factory visit.  It's another to head off to the course, expose their drivers, and socialize with caddies and others at the 19th hole.

 

The amount of paperwork just for a simple visa extension is horrible here and very high risk for all sorts of identity theft.

Its very far away from a visitor friendly approach ????????

Good luck with that...you are going to need it!

Better late than never 5 5 5.

Meanwhile, god knows how many foreign English language teachers in Thailand are now without work permits and correct visas because the Thai authorities couldn’t organize themselves to accommodate this.

1 hour ago, TLeaf said:

What can the UK provide in terms of labor that Thai people can not already do?  Thailand already has jam.

Why just the UK what  about the other countries that were present ?.

 

Labour that That thai people cannot do already is any menial task that they have to bring in millions of cheap labour from surrounding countries and extend there visa's for the next 2 years for fear of business failure.

 

Another would be foreign teachers as Thailand are screaming for these ?

 

Be interested to see your links to Thailands jam .... instead of just a crappy 1 liner pointing towards the UK.

2 hours ago, nobodysfriend said:

 

He does not know that Xenophobia towards foreigners is a fixed part of thai culture by now ?

The average Thai is afraid of foreigners investing too much in Thailand , as this could mean that foreigners could gain some ' influence ' ...

Influential persons have to be thai only in Thailand .

Foreigners are welcome only if they spend a LOT of money here , and,  after this , leave .

Foreigners need to be surveyed all the time , they think , as they could do something Thais may not like .

For example being in a position , ( become the boss of an enterprise or company ) , where they could give orders to Thais .

For many ( freedom loving , 55 ) , Thais that is unthinkable .

Foreigners are " Aliens ' in this country and it will stay this way , even the government changes .

They do not have the same rights as Thais , and many Thais appreciate this .

 

People here think different from how people think in a more developed and civilized country .

That is part of their culture and will probably never change .

I would like that thai people who are living in or visiting a foreign country get exactly the same treatment as foreigners in Thailand .

 

Yes, I agree, why do you think that foreigners are allowed to own property but not the land it stands on?

 

The only way that Thailand will change its attitude towards cooperation with business partners is to make them think that they thought of it first - anything else is unacceptable as that would mean loss of face by accepting someone else's recommendations

11. Change the whole limited company requirements even for Thais. That "minimum of 3 partners requirement" is non-sensical.
12. Allow 100% foreign ownership under certain conditions
13. Simplify the permanent residency process to match the one in other countries.

I had to open a company in Hong Kong in order to work legally in Thailand. I would have been perfectly happy to open the company in Thailand, but it just did not make sense for me to comply with the requirements.

“Simplify”, “Transparency”, “Improve”...

 

LOL!!! Good luck with that!

4 hours ago, webfact said:

Thailand urged to open up to foreign skilled labour, cut red tape on foreign investment

The problem being Thailand tries to get the investment but not the skilled labour... this is why it's so tricky.

2 hours ago, nobodysfriend said:

Foreigners need to be surveyed all the time , they think , as they could do something Thais may not like .

For example being in a position , ( become the boss of an enterprise or company ) , where they could give orders to Thais .

For many ( freedom loving , 55 ) , Thais that is unthinkable .

you just described my maid exactly. 

2 hours ago, nobodysfriend said:

I would like that thai people who are living in or visiting a foreign country get exactly the same treatment as foreigners in Thailand

 

I am sure they would like it as well.

 

Free 30 day visa on entry, no traveling hundreds of kilometers  to Bangkok to the whatever embassy to buy a visa application that might be rejected on a whim and give them all your personal details, bank statements etc etc. Just buy a ticket and off you go. 

Loopholes to buy house and land.

 

Retirement visas for anyone with a few dollars in a local bank
deposit.

 

Easy to start your own business, including hotels, restaurants and brothels. 

No need to learn the language on a long term visa. 

Access to cheap public hospitals. 

Welcomed, waid and smiled at everywhere they go. 
 

I agree with you, it would be the right and fair thing to do.
 

my first impression upon seeing OP's photo ... I thought they were THE EAGLES .. 50 years later... 

42 minutes ago, Natai Beach said:

 

I am sure they would like it as well.

 

Free 30 day visa on entry, no traveling hundreds of kilometers  to Bangkok to the whatever embassy to buy a visa application that might be rejected on a whim and give them all your personal details, bank statements etc etc. Just buy a ticket and off you go. 

Loopholes to buy house and land.

 

Retirement visas for anyone with a few dollars in a local bank
deposit.

 

Easy to start your own business, including hotels, restaurants and brothels. 

No need to learn the language on a long term visa. 

Access to cheap public hospitals. 

Welcomed, waid and smiled at everywhere they go. 
 

I agree with you, it would be the right and fair thing to do.
 

Plus buy a Rai of land in your own name

46 minutes ago, Natai Beach said:

 

I am sure they would like it as well.

 

Free 30 day visa on entry, no traveling hundreds of kilometers  to Bangkok to the whatever embassy to buy a visa application that might be rejected on a whim and give them all your personal details, bank statements etc etc. Just buy a ticket and off you go. 

Loopholes to buy house and land.

 

Retirement visas for anyone with a few dollars in a local bank
deposit.

 

Easy to start your own business, including hotels, restaurants and brothels. 

No need to learn the language on a long term visa. 

Access to cheap public hospitals. 

Welcomed, waid and smiled at everywhere they go. 
 

I agree with you, it would be the right and fair thing to do.
 

 

Your post doesn't make sense, it is Justweird

"foreign skilled labour"

Some plumbers and electricians would be nice.  I keep getting complete morons who don't know which end of a screwdriver to hold.

Am I the only one that thinks Thailand is absolutely spot on with its immigration and foreign business ownership rules? 

 

Protect local Thais first, anything else is a secondary concern. As it should be.

 

I only have to cast my eyes back to where I come from in the UK to see the mess that mass immigration of people that have no interest in assimilating into the local culture has caused. 

 

No thanks.

1 minute ago, DefaultName said:

"foreign skilled labour"

Some plumbers and electricians would be nice.  I keep getting complete morons who don't know which end of a screwdriver to hold.

Easily fixed with proper vocational colleges and licenses for Thais in these occupations. 

Just now, Mr Meeseeks said:

Am I the only one that thinks Thailand is absolutely spot on with its immigration and foreign business ownership rules? 

 

Protect local Thais first, anything else is a secondary concern. As it should be.

 

I only have to cast my eyes back to where I come from in the UK to see the mess that mass immigration of people that have no interest in assimilating into the local culture has caused. 

 

No thanks.

 

I agree with protecting ‘local’ interest, however, this comes at the cost of development. 

 

I personally know two businesses who moved out of Thailand because operating in Thailand was prohibitive. 

These companies now have offices in London, New York, California and Vietnam - Both CEO’s have discussed how moving out of Thailand made their business easier to run (they are not large multinationals and employed about 20-30 staff in Thailand). 

 

 

 

Obviously we’re not talking about opening up Thailand to allow taxi drivers from anywhere to enter the fray (imagine the fights) Thailand would be full of back-packers, Africans & Indians driving Grab Taxi’s !

 

It would be good to see the opportunities for skilled labor (with proven qualifications) for the building and electrics trade. 

Specialised tradesmen who can oversee the quality of workmanship on various projects. 

 

It would be good to see opportunities for Foreign Doctors to work in Thailand’s hospitals. I’d like to see the level of accountability for malpractice up to international standards. 

 

It would be good too opportunities for ‘foreign startups’ to set Thailand as their base and allow new and innovative local development. 

 

And first it would be good to see the eradication of the 51% Thai ownership rule which is overwhelmingly damaging to local investment and primarily serves to allow ‘connected and wealthy’ Thai’s to capitalise on large multinational foreign companies wishing to operate within Thailand, but also prevents others from doing so. 

 

Just look at the availability of products in Thailand vs other countries such as the UAE.

 

 

 

3 hours ago, TLeaf said:

What can the UK provide in terms of labor that Thai people can not already do?  Thailand already has jam.

That statement just shows what you know about Thailand.....  If it wasn't for Britain Thailand would of been colonized a long time ago....As for labour and expertise...... well...... where do i start...... Ah yes... The Chief of Police, the Admiral of the Thai Navy, most of the Navys Captains........Right up to management and labour on my last project on Suvarnabhumi......    etc.etc,etc......    

1 minute ago, richard_smith237 said:

It would be good to see the opportunities for skilled labor (with proven qualifications) for the building and electrics trade. 

There are plenty of opportunities. Any large project in Thailand has a number of qualified foreign personnel in key roles. A client we are dealing with at the moment has hundreds of foreign employees and is recruiting more. If you are needed then you will be recruited providing you meet the criteria. 

 

Personally I have a team of foreign managers and supervisors in various roles that work alongside the majority Thai staff.

 

2 minutes ago, richard_smith237 said:

And first it would be good to see the eradication of the 51% Thai ownership rule which is overwhelmingly damaging to local investment and primarily serves to allow ‘connected and wealthy’ Thai’s to capitalise on large multinational foreign companies wishing to operate within Thailand, but also prevents others from doing so. 

It's not that big of a deal. 100% ownership is allowed under BOI and if you are working on a project in Thailand then getting around the ownership laws to operate is fairly common and easy.

 

For smaller companies it may be a hassle but it is not insurmountable. 

11 minutes ago, richard_smith237 said:

 

I agree with protecting ‘local’ interest, however, this comes at the cost of development. 

 

I personally know two businesses who moved out of Thailand because operating in Thailand was prohibitive. 

These companies now have offices in London, New York, California and Vietnam - Both CEO’s have discussed how moving out of Thailand made their business easier to run (they are not large multinationals and employed about 20-30 staff in Thailand). 

 

 

 

Obviously we’re not talking about opening up Thailand to allow taxi drivers from anywhere to enter the fray (imagine the fights) Thailand would be full of back-packers, Africans & Indians driving Grab Taxi’s !

 

It would be good to see the opportunities for skilled labor (with proven qualifications) for the building and electrics trade. 

Specialised tradesmen who can oversee the quality of workmanship on various projects. 

 

It would be good to see opportunities for Foreign Doctors to work in Thailand’s hospitals. I’d like to see the level of accountability for malpractice up to international standards. 

 

It would be good too opportunities for ‘foreign startups’ to set Thailand as their base and allow new and innovative local development. 

 

And first it would be good to see the eradication of the 51% Thai ownership rule which is overwhelmingly damaging to local investment and primarily serves to allow ‘connected and wealthy’ Thai’s to capitalise on large multinational foreign companies wishing to operate within Thailand, but also prevents others from doing so. 

 

Just look at the availability of products in Thailand vs other countries such as the UAE.

 

 

 

Any foreigners working in Thai Airways?

11 minutes ago, ChipButty said:

Any foreigners working in Thai Airways?

I know of one that used to work for them. He is unemployed at the moment. 

It is very simple but the great minds at the Embassies do not get it or perhaps they do but do not want to mention it. Allow foreigners to own 100% of their companies but appoint a Thai Director. The same structure as Singapore. No-one will invest freely if they cannot control their investment.

9 minutes ago, ChipButty said:

Any foreigners working in Thai Airways?

 

Nope, yet other successful Airlines source the best from a global pool of potential employees. 

 

PTT have never employed foreigners, Chevron used to employ a healthy mix of Foreigners and Thai’s, sourcing quality from a global pool of potential employees. International experience, mentoring, shared development was key in ensuring the continued technical evolution - Chevron has now gone ‘almost’ exclusively Thai whereas their Western counterparts are almost exclusively multinational because thats where the best people are sourced (from everywhere).

 

The best hotels do source from an international pool - Thailand also has excellent hotel management schools. 

This is an area where the rest of industry could look to see the success of international integration. 

The hotels are still at least 51% Thai owned. In this case it doesn’t seem to impact the high end chains, however the lodges smaller hotels will obviously suffer.