New Laws Restricting Foreign Businesses

[keestha]

Just found the following article on the news feed page of a Thailand focused website called emedia-asia.org. I dont know how reliable this source is, but here it comes:

New laws may restrict foreign businesses.

Posted: 2007-11-06 23:26:58 UTC

Thailand, the country known as the Land of Smiles, is considering legislative amendments that may restrict the ability of foreigners to live and work in the country. Although the law and the attitude behind it, is unlikely to affect the average short-stay tourist to the country, they do reflect a deeper feeling to foreigners than is portrayed in the average sunny smile.

In the past seven months, the government has taken a tougher stand on tourist visas which are often abused by long-stay retirees and expatriate workers. In January, a bill was first proposed which, if approved, will restrict the operations of many foreign companies.

“There’s been a trend that suggests rising economic nationalism,” said Thitinan Pongsudhirak, a professor of political science at Chulalongkorn University.

Although the average person in Thailand certainly welcomes tourism in the country, those who have been exposed to foreigners who are not tourists in Thailand often have stronger feelings on the subject.

“We are getting a lot of weird retirees here,” Vongthip Chumpani, an adviser and former vice president of Bangkok Bank, said. “They can’t survive in your country so they come here.”

Vongthip also feels strongly about the former Prime Minister Thaksin Shinawatra’s policies regarding foreign investment. Prior to the coup which removed him from power in September, Thaksin was busy negotiating a number of free-trade agreements with countries such as China, Japan, Australia and the United States.

“We bent over backward all the time to accommodate foreign investors,” Vongthip said.

The new law may force some companies such as Federal Express, to relinquish control of their operations in Thailand, with more power and privileges being transferred to Thai-owned companies. Other companies, such as Carrefour, may be banned from expanding their operations in the future. And property purchases by thousands of non-Thai born people could be declared illegal.

The Foreign Business Act amendments have already been accepted by the Thai cabinet and are now undergoing a review process by the Council of State.

Thailand, a country with a population of 64 million, hosts approximately 15 million tourists every year, with numbers growing each season. Often gross disparities are evident between local residents and expatriate residents.

“In years past we’ve always targeted numbers: trying to achieve the highest numbers of arrivals possible,” said Chattan Kunjara Na Ayudhya, a spokesman for the Tourism Authority of Thailand. “It’s time to change. If we continue to focus mainly on numbers, some destinations will not be able to handle that many people.”

Edited November 19, 2007 by keestha

[monty]

There was a modified FBA put before cabinet not long ago, which for example included that not only shareholding structure, along with voting rights would always have to majority Thai, but that also the board of directors would have to be Thai majority, in effect making the foreign investors loose control altogether.

Which was subsequently thrown out by the minister of commerce, who rightfully feared a to big impact on direct investment...

It will now be up to the new government after the elctions to decide what to do with it...

[quiksilva]

Old news. Perhaps the title of this thread should be amended?

[andy1308]

“We are getting a lot of weird retirees here,” Vongthip Chumpani, an adviser and former vice president of Bangkok Bank, said. “They can’t survive in your country so they come here.”

I know this is Thailand but can you imagine the uproar elsewhere in the world that comment would create?

[uncletom]

I will probably take some flack for this, but so be it.

Although the law and the attitude behind it, is unlikely to affect the average short-stay tourist to the country, they do reflect a deeper feeling to foreigners than is portrayed in the average sunny smile.

I agree that there is resentment and an Anti-foreigners feeling hidden between the smiles growing. I have been here 16+ and have seen the changes. To a point me too, but then this is unfair for my thinking. I just did it 16years before the F.O.B's coming today.

"We are getting a lot of weird retirees here,” an adviser and former vice president of Bangkok Bank, said. “They can’t survive in your country so they come here.”

This I have to also agree on.

Besides the overwhelming EXTREMELY noticeable numbers flocking here because they suddenly discovered paradise, the quality range is no where near normal for the majority. I have seen people talking to themselves, dressed inappropriately going far beyond backpackers clothing, laying out in public, in broad daylight with a gigantic beer and cigarette in hand, while inappropriately dressed talking to themselves.

Inappropriately dressed and looking is having no shirt, raggedy looking, having your stuff hanging out, very untidy, dirty looking and there are some more that can be added..

It makes the good foreigners look bad. These people are definitely not dealing with a full deck and certainly can't make it in their own countries and Maybe their own countries citizens ostracized them leaving them to migrate to Thailand, with Thailand unfortunately collecting the worldly unwanted.

How does this fit into the Topic.

Well immigration and the average Thai people see all of the character foreigners from all walks. They have a hands on look and interaction and make their opinion from there.

If you don't agree with my view point just take an afternoon off and sit at an immigration office for the day. If you are a normal person you will be disgusted and agree with the immigration and Thai folks. It goes far beyond the ex-pats who frequent bars with ladies or the genuine tourists. This is not the concern...

I am at the point that there should be a qualifications quality test to be able to stay here.

Maybe this should be another topic.

All in all yes these issues in the article posted and mentioned do affect businesses and what you have for the foreigners Thailand life.

Can you blame the Thai's? Money, business ownership doesn't mean quality and deserving and yes something drastically needs to be done, but hopefully it will be in the correct manner instead of just prosecuting the good foreigners but ofcourse this is where all our concerns come into play. Will it be fair and just and politically correct?

Uncletom

[Galong]

“We bent over backward all the time to accommodate foreign investors,” Vongthip said.

“In years past we’ve always targeted numbers: trying to achieve the highest numbers of arrivals possible,” said Chattan Kunjara Na Ayudhya, a spokesman for the Tourism Authority of Thailand. “It’s time to change. If we continue to focus mainly on numbers, some destinations will not be able to handle that many people.”

"Bent over backwards"?? Give us a break. Boy, that's a laugh.

Compare what it takes for an American to open a company in Thailand vs a Thai opening a company in the US.

If they don't want foreign investment, why don't they just come out and say the truth: We don't want you, but we do want your money....

The TAT has been saying this (yawn) forever, but they seem to only be happy filling plane and hotels with big numbers. And what would happen if the big numbers stopped coming? Well, I'm sure it'll be someone else's fault, because Thais generally don't accept responsibility for anything.

Why don't they put a big sign up at the airports saying: Welcome to Thailand, empty your wallet and leave!

I'd have more respect for them if they were at least honest.

[stepping off of soap box]