Foreign Direct Investment Surges In January And February

[george]

Foreign direct investment surges in January and February

BANGKOK: -- Foreign direct investment (FDI) in the January-February period totaled Bt53.52 billion, up 62.4 per cent from the same period the year before, with Japanese players becoming Thailand's top investors, according to the Board of Investment (BoI).

BoI Secretary-General Sathit Charnchaovakul revealed the number of FDI projects seeking promotional privileges during January and February totaled 167 with an investment value of Bt53.52 billion compared with Bt32.96 billion in the corresponding period during the previous year.

Such international investments account for 72 per cent of the total 232 projects with an investment value of Bt103.4 billion in the first two months of this year.

FDI in new businesses totaled about 100 projects with an investment value of Bt22.04 billion.

The remaining 67 projects involve business expansion with an investment value of Bt31.47 billion.

Businesses that drew the greatest attention include services and public utilities, followed by metal and transport equipment, electronic parts, chemical products, paper and plastics.

"The increased FDI reflects investor confidence in investment in Thailand," Mr. Sathit said. "We believe the government's clear policy to promote investment, particularly its designation of this year as Thailand Investment Year will help boost investment growth," he said.

He added that Japanese remained top investors in 63 projects with investment value of Bt10.95 billion.

Most are in services, metal parts production, and vehicle industries. FDI from Europe totaled Bt9.07 billion, up three times from the same period the year before Investment projects with the highest value are in the chemical product and motorcycle production industries.

--TNA 2008-03-13

[Prakanong]

Yers and business sentiment has been right up as well for the last few months according to a business report in the Straits Times about Thailand

Pretty simple - military govt's are not good at attracting FDI?

Political instability = bad for business and economy

Those amounts might have been pent up demand but there will also be opportunities missed as money went elsewhere

[Martin]

"...........the highest value are in the chemical product and motorcycle production industries."

Are the motorcycles going to be exported?

There can't be much 'home' market left, as everybody in Thailand seems to have one now!

[Captain Chaos]

"...........the highest value are in the chemical product and motorcycle production industries."

Are the motorcycles going to be exported?

There can't be much 'home' market left, as everybody in Thailand seems to have one now!

Presumably a fair chunk of that is Triumph's factory in Laem Chabang? In which case I guess it's virtually all going to be exported?

[steveromagnino]

Yers and business sentiment has been right up as well for the last few months according to a business report in the Straits Times about Thailand

Pretty simple - military govt's are not good at attracting FDI?

Political instability = bad for business and economy

Those amounts might have been pent up demand but there will also be opportunities missed as money went elsewhere

well the govt since 2005 has been unstable, so it has been winding down; mostly probably pent up demand, planning starting once they knew there would be a democractic government, takes a fair while to go through the BOI process.

For motorcycles, Thailand is already a major producer, with the Fino type models sounds like the Japanese are going to be based here more and more, might be something to do with AFTA plus mostly the Japan FTA signed in Nov 2007. Basically once that kicked in, the Japanese were likely to start doing more here AFAIK.

What a surprise singapore times would say business sentiment is up! Reality....it has been in the dumps since late 2005 and the economy ran on auto that last TRT year; you'd be hard pressed to find a business person that doesn't think Samak is a moron, but better to have a stable govt with a moron than the caretaker govt and then the coup installed one. Politically.

Mind you some of the decisions they are making have a fair few people scratching their heads. Optimism for a little longer at least before as crash once said, the harsh light of reality sets in (although he was referring to 2am closing in the bars when the lights come on!). Who knows, inept people but at least doing something and elected as you say, it is so crazy it just might work!

Edited March 13, 2008 by steveromagnino

[Gravelrash]

Have to agree with Prakanong about the above.

The pro-coup mob had some sort of a vengeance trip to nowhere with the glory of achieving nothing bar retrogression. Real estate inquiries are also up since the election, although can't imagine why, my very young kids at least loved seeing the tanks in the streets.

[Tony Clifton]

"up 62.4 per cent from the same period the year before"

The TRT government loved to inflate numbers to ridiculous levels to try and impress the public, they always had to balance counterbalance down the road as it often made no sense whatsoever. Expect the same under PPP, especially for trying to makes themselves look as financial prodigies next to the military/interim government of last year.

Edited March 13, 2008 by Tony Clifton

[Gravelrash]

Not offerring a political commentary on the quality of the govt. Tony, just the perception of elected vs dictatorship.

[LaoPo]

"up 62.4 per cent from the same period the year before"

The TRT government loved to inflate numbers to ridiculous levels to try and impress the public, they always had to balance counterbalance down the road as it often made no sense whatsoever. Expect the same under PPP, especially for trying to makes themselves look as financial prodigies next to the military/interim government of last year.

The military/interim government didn't, Tony ? Were they honest with their numbers ?

You tell me Tony, since I don't know.

Your anti-sentiment against TRT and Thaksin seem to blur your honest judgements now and then....

That's not a flame or bashing-upon towards you Tony, but maybe it's time to look to the future because the future counts, not the past -anymore-.

Enjoy your newborn and maybe spend some more time with him (it's a boy, isn't it ?)....

Believe me Tony, when you're older and look in the mirror-of-your-life, there comes a point that you ask yourself "why on earth did I spend so much time writing about that bluddy TRT and Thaksin".....

It's not worth it Tony, and especially not for the future of yourself and family; it's -spent- negative energy whilst there are still so many beautiful things in the world to enjoy !

LaoPo

[Plus]

Actually it's interesting they are comparing year on year. Is it becayse January figures don't look too good when comparing to December?

Elsewhere I read that FDI grew up by 50% in last year comparing to 2006.

I'm not saying that the coup had no impact on it at all but it seems they are massaging numbers to create positive sentiment rather than present the true picture.

[Gravelrash]

For the long term Thailand needs to decide if it (not the vested interests protecting their cosey uncompetitive monopolies) wants FDI, and if not come up with a credible alternative. History is full of regimes that protected their own interests and not the interest of the country as a whole, most had unhappy endings eventually.

[Plus]

All Thai political parties are pro-business, I doubt even the Democrats can show a finger to big boys.

When it comes to FBA and FDI, however, the reaction is unpredictable - businessmen realise that it's a two-edged sword and competition might hurt them.

[Prakanong]

Yers and business sentiment has been right up as well for the last few months according to a business report in the Straits Times about Thailand

Pretty simple - military govt's are not good at attracting FDI?

Political instability = bad for business and economy

Those amounts might have been pent up demand but there will also be opportunities missed as money went elsewhere

well the govt since 2005 has been unstable, so it has been winding down; mostly probably pent up demand, planning starting once they knew there would be a democractic government, takes a fair while to go through the BOI process.

For motorcycles, Thailand is already a major producer, with the Fino type models sounds like the Japanese are going to be based here more and more, might be something to do with AFTA plus mostly the Japan FTA signed in Nov 2007. Basically once that kicked in, the Japanese were likely to start doing more here AFAIK.

What a surprise singapore times would say business sentiment is up! Reality....it has been in the dumps since late 2005 and the economy ran on auto that last TRT year; you'd be hard pressed to find a business person that doesn't think Samak is a moron, but better to have a stable govt with a moron than the caretaker govt and then the coup installed one. Politically.

Mind you some of the decisions they are making have a fair few people scratching their heads. Optimism for a little longer at least before as crash once said, the harsh light of reality sets in (although he was referring to 2am closing in the bars when the lights come on!). Who knows, inept people but at least doing something and elected as you say, it is so crazy it just might work!

Alongside the story was another about Toyota's expansion in Thailand with a beaming Japanese fellow pronouncing new models for production there as well - some hybrid model but I know nowt about car's except how to tell a driver where to go

PS: Just bought Pankaj Ghemawat's book "Redefining Global Strategy" looks good and even readable

[Tony Clifton]

"up 62.4 per cent from the same period the year before"

The TRT government loved to inflate numbers to ridiculous levels to try and impress the public, they always had to balance counterbalance down the road as it often made no sense whatsoever. Expect the same under PPP, especially for trying to makes themselves look as financial prodigies next to the military/interim government of last year.

The military/interim government didn't, Tony ? Were they honest with their numbers ?

You tell me Tony, since I don't know.

Your anti-sentiment against TRT and Thaksin seem to blur your honest judgements now and then....

That's not a flame or bashing-upon towards you Tony, but maybe it's time to look to the future because the future counts, not the past -anymore-.

Enjoy your newborn and maybe spend some more time with him (it's a boy, isn't it ?)....

Believe me Tony, when you're older and look in the mirror-of-your-life, there comes a point that you ask yourself "why on earth did I spend so much time writing about that bluddy TRT and Thaksin".....

It's not worth it Tony, and especially not for the future of yourself and family; it's -spent- negative energy whilst there are still so many beautiful things in the world to enjoy !

LaoPo

My anti-Thaksin sentiment is the result of me opening my eyes upon a record levels of an in-your-face corrupt society like I had never imagined or noticed before from the comfort of my Canadian hometown...until I moved here. What am I to do with that frustration after a few years in a country where I can`t freely work and spend my days as a second class citizen? Keep it inside?

Looking to the future here is easy as it seems to be a constant repetition of the past.

No worries about our newborn, he gets all the attention and positive environment he needs. The little man laughs and smiles like you`ve never seen a newborn do. He`s the reason we`re leaving this country, we love him too much to have him grow up in this place constantly plagued with instability, glittery presentations and ceremonies with no content. I`m a nice guy, wanna go fishing?

Here`s a list of reminders I once found on this forum, I added a few items but never edited it`s original content.

I`ll keep it in a safe place and have a look at it on his 18th birthday, maybe even repost it on here by doing a simple copy/paste as I`m afraid things will never change for the better.

Economics = unstable

Politics = unstable

Constitution = unstable

Election = unstable

Justice = unstable

Human Rights = unstable

Foreign Investment = unstable

Tourism = unstable

Air Quality = unstable

The South = unstable

Airport = unstable

Immigration Laws = unstable

Road safety = unstable

Exports = unstable

Currency = unstable

Government Spending = unstable

Domestic Consumption = unstable

Shin Corp = unstable

TITV = unstable

King Power = unstable

GDP Growth = unstable

Corruption = stable

Edited March 13, 2008 by Tony Clifton

[Prakanong]

"No worries about our newborn, he gets all the attention and positive environment he needs. The little man laughs and smiles like you`ve never seen a newborn do. He`s the reason we`re leaving this country, we love him too much to have him grow up in this place constantly plagued with instability, glittery presentations and ceremonies with no content. I`m a nice guy, wanna go fishing?"

I have a Thai colleague who is also a friend who is married to a Thai and she has a 6 month old daughter.

She wants to move out of Thailand for the sake of her daughters education but I also suspect there are other reasons other than education ie corruption etc like you have named.

She has Thai and a passport from your country also as she grew up and went to school and Uni there and family business's are still there so no problem to return but she is also looking at Singapore and UK (with her skillset and experience and her husbands she could probably get to where she wants to go)

[Old Man River]

Foreign direct investment surges in January and February

BANGKOK: -- Foreign direct investment (FDI) in the January-February period totaled Bt53.52 billion, up 62.4 per cent from the same period the year before, with Japanese players becoming Thailand's top investors, according to the Board of Investment (BoI).

BoI Secretary-General Sathit Charnchaovakul revealed the number of FDI projects seeking promotional privileges during January and February totaled 167 with an investment value of Bt53.52 billion compared with Bt32.96 billion in the corresponding period during the previous year.

--TNA 2008-03-13

Folks, these are just applications seeking approval. Since it is not funds invested yet, it is not FDI yet. While encouraging, there is still many factors involved before these projects see the light of day.

[quiksilva]

Triumph might be a slight wedge but where it refer to motor cycles is clearly rSuzuki who have elected to build a factory in the Eastern Seaboard comprising 500 Rai, which is substantially bigger than Triumph. (For the naysayers: this sale has already been completed)

Edited March 14, 2008 by quiksilva

[Old Man River]

Double post.

Edited March 14, 2008 by Old Man River

[Old Man River]

Triumph might be a slight wedge but where it refer to motor cycles is clearly rSuzuki who have elected to build a factory in the Eastern Seaboard comprising 500 Rai, which is substantially bigger than Triumph. (For the naysayers: this sale has already been completed)

Not a naysayer, just a realist. Projects seeking promotional privileges should not be counted as FDI. That doesn't mean that some won't go forward, just that all are not guaranteed to go forward until money is spent not privileges asked for.

Personally, I hope they all go through and more follow. A good economy benefits everyone.

Incidentally, the Japanese are not becoming Thailand's biggest long term investor (as the article suggests), they are and have been for many years.

[wasabi]

I think those moving out of the country for the sake of their children may be making a mistake. It's true Thailand is a volatile region but it is brimming with life and intrigue. You may miss some of that instability when you are back in the orderly western world. However to each their own.

[LaoPo]

"up 62.4 per cent from the same period the year before"

The TRT government loved to inflate numbers to ridiculous levels to try and impress the public, they always had to balance counterbalance down the road as it often made no sense whatsoever. Expect the same under PPP, especially for trying to makes themselves look as financial prodigies next to the military/interim government of last year.

The military/interim government didn't, Tony ? Were they honest with their numbers ?

You tell me Tony, since I don't know.

Your anti-sentiment against TRT and Thaksin seem to blur your honest judgements now and then....

That's not a flame or bashing-upon towards you Tony, but maybe it's time to look to the future because the future counts, not the past -anymore-.

Enjoy your newborn and maybe spend some more time with him (it's a boy, isn't it ?)....

Believe me Tony, when you're older and look in the mirror-of-your-life, there comes a point that you ask yourself "why on earth did I spend so much time writing about that bluddy TRT and Thaksin".....

It's not worth it Tony, and especially not for the future of yourself and family; it's -spent- negative energy whilst there are still so many beautiful things in the world to enjoy !

LaoPo

My anti-Thaksin sentiment is the result of me opening my eyes upon a record levels of an in-your-face corrupt society like I had never imagined or noticed before from the comfort of my Canadian hometown...until I moved here. What am I to do with that frustration after a few years in a country where I can`t freely work and spend my days as a second class citizen? Keep it inside?

Looking to the future here is easy as it seems to be a constant repetition of the past.

No worries about our newborn, he gets all the attention and positive environment he needs. The little man laughs and smiles like you`ve never seen a newborn do. He`s the reason we`re leaving this country, we love him too much to have him grow up in this place constantly plagued with instability, glittery presentations and ceremonies with no content. I`m a nice guy, wanna go fishing?

Here`s a list of reminders I once found on this forum, I added a few items but never edited it`s original content.

I`ll keep it in a safe place and have a look at it on his 18th birthday, maybe even repost it on here by doing a simple copy/paste as I`m afraid things will never change for the better.

Economics = unstable

Politics = unstable

Constitution = unstable

Election = unstable

Justice = unstable

Human Rights = unstable

Foreign Investment = unstable

Tourism = unstable

Air Quality = unstable

The South = unstable

Airport = unstable

Immigration Laws = unstable

Road safety = unstable

Exports = unstable

Currency = unstable

Government Spending = unstable

Domestic Consumption = unstable

Shin Corp = unstable

TITV = unstable

King Power = unstable

GDP Growth = unstable

Corruption = stable

Sorry for my late answer; just saw your reply now.

Good decision to leave LOS. The future is in your home country, Alberta for instance with their huge oil reserves. I've been in Canada, many many times and built a business in Edmonton myself in the late eighties...

Good luck and don't let LOS spoil your future thoughts, especially for your son.

LaoPo

[Tony Clifton]

I think those moving out of the country for the sake of their children may be making a mistake. It's true Thailand is a volatile region but it is brimming with life and intrigue. You may miss some of that instability when you are back in the orderly western world. However to each their own.

I can talk to him later on about Thailand's life and intrigue and if the intrigue is too much by then, he can come and see for himself what it's all about.

There is a reason why Thailand's most prominent figures and richer people's children are or have studied abroad.

My wife is nowhere near being a hi-so Thai but , like me, she thinks that a big part of the present generation raising children are totally lost, consumerism and debts etc. A simple daily observation of what she sees and hears from children playing in the park across the street confirms much of this, kids speaking rudely, parents standing by idly saying or doing nothing. I'm nowhere near being a Nobel prize winner but there's no way I'll let my son grow up in this kind of environment. We were halfway out of here, but his birth, actually the positive pregnancy test one morning immediately convinced us it was time to move out.

Back to the topic, we also had a small factory that we shut down because of reliability problems with most of the people we dealt with, including employees even though we offered much better working conditions than the nearby factories. Big or small, there goes another foreign investor.