Foreigners To Retain Thailand Investments Despite Recent Riots

[webfact]

Foreigners to retain investments despite recent riots

BANGKOK (NNT) -- Foreign commercial envoys and chambers of commerce will still retain their investments in Thailand despite the impact the recent political mayhem has cast on the domestic business sector.

Speaking after clarifying the Thai political situation to foreign ambassadors and commercial representatives, Deputy Minister of Commerce Alongkorn Ponlaboot stated that the frequent recurrence of political problems in Thailand had worried many countries. Foreigners have been monitoring the situation as they are considering relocating their production base and investment to other countries. However, the existing investors have assured that they will not withdraw the capital from Thailand.

During the meeting, Mr Alongkorn pledged the support for foreign firms in an equivalent amount to that given to the Thai entrepreneurs affected by the recent mass rally. He also explained the strategy to boost the domestic consumption and foreigners’ confidence, as well as the government’s policy to promote implementation of free trade.

Commercial ambassadors from 48 countries and 17 representatives from international chambers of commerce attended the conference organized by the Thai government on Monday to hear the briefing on the post-riot rehabilitation plan.

-- NNT 2010-06-09

[MikeyIdea]

Of course, I would think that foreign investment would not be affected at the end of the day. It wouldn't surprise me if it increases even. The very vast majority of people agree that the government handled the political unstability well and the government has today firmer support in parliament than it ever has. Elections will come in March, April or May next year I would think and Thaksin is probably not going to be back. All good factors for Thailand

[mommysboy]

Been so much spin lately! Add this to the pile.

[clausewitz]

Of course, I would think that foreign investment would not be affected at the end of the day. It wouldn't surprise me if it increases even. The very vast majority of people agree that the government handled the political unstability well and the government has today firmer support in parliament than it ever has. Elections will come in March, April or May next year I would think and Thaksin is probably not going to be back. All good factors for Thailand

If by the vast majority- you mean people on this Nation forum - well perhaps that is true.

But if you study japanese forumns for instance- you will see a very different picture.

or read International reports

Here is what NEWSWEEK writes:

http://www.newsweek.com/2010/06/04/the-end-of-brand-thailand.html#<br style=" ">The End of Brand Thailand<br style=">How mismanagement and mistakes turned a high-growth democratic paradise into a violent mess.<

">For years Thailand was synonymous with images of paradise: it was a thriving democracy with a 1997 Constitution that enshrined protections for human rights. It was an economic powerhouse that posted some of the world's highest growth rates in the 1980s and early 1990s, withstood the late '90s Asian financial crisis, and grew by 5.3 percent in 2002 and more than 7 percent the following year, as the rebound from the crisis took shape. Investors and tourists bought into the image of a tranquil kingdom of lush beaches and mountains, welcoming people, and stable politics—a "land of smiles" so alluring, it drew more than 13 million tourists per year. Thanks in part to the "Amazing Thailand" ad campaign—featuring glittering temples and stunning women—

And now? Brand Thailand is shattered. Over the past two months, clashes in Bangkok between the security forces and protesters clad in red have killed at least 80 people, gutted some of Bangkok's most important economic institutions, including the stock exchange and the largest shopping center, and destroyed the image of peace and tranquillity. The critical tourism industry, which accounts for as much as 8 percent of GDP, is gasping, at a time when regional competitors like Cambodia and Singapore are trying to steal Thailand's visitors. Of the nations once touted as the Asian tigers, or tiger cubs, including South Korea, Taiwan, Singapore, and Malaysia, only Thailand is disintegrating. Its once vibrant democracy is now widely viewed as an ungovernable and failing state. Prime Minister Abhisit Vejjajiva seems eager to postpone elections, and the last two elected governments were tossed out by undemocratic methods anyway. In its 2010 report, Freedom House scored Thailand as only "partly free" and ranked it among thuggish regimes like Burma for political rights. The U.S. State Department, which praised Thailand in 2000 for free elections and peaceful transfers of power, now chronicles its extrajudicial killings and its limits on freedom of speech and assembly.<

[animatic]

Of course this 'failed state' is just the spin that Thaksin's team wants to happen.

Then he can pretend to come back and save the day. Pure BS, but what else is new.

Regardless of press making headlines, serious investors see through it.

Will they delay a few things likely yes, write off Thailand and it's profit margines, doubtful.

Edited June 9, 2010 by animatic

[MikeyIdea]

The majority of the people in this nation, i.e., the country Thailand are OK with how the government handled the instability. As will the world be. There is no perfect solution of course and there will always be a range of people screaming everything from - the government should have disolved parliament and held new elections while the country was still being intimidated by the peaceful movement to - they should have sent in the tanks on day one.

The solution that the current government chose is one that grows over time, the hardliners will forget the time they had to wait for action and the occupiers will be reminded of the smoky climax and think - it could have been worse.

The world will over time more and more agree that the solution actually was a good middle way, IMO

Edited June 9, 2010 by MikeyIdea

[yoshiwara]

Thaksin's message has always been 'give it to me or I will destroy you'.

He failed in 2010 as he did the rehearsal in Songkran 2009.

Throughout, the markets in Thailand have remained relatively stable including the currency.

The red disruption appearing to have a ~ 5% discount value.

Overseas investment sentiment will have the opportunity to recover now that the Thaksin forces are no longer marauding around the shopping malls of Bangkok.

[Thai at Heart]

Companies won't close and relocate factories which are largely outside Bangkok anyway. They will find a way to keep production moving as much as they can.

As for people setting up regional or service offices in Bangkok, despite Korn's efforts, I can't see how anyone would justifiably put a new office in Bangkok when Singapore, Malaysia or HK are just round the corner. A lot of companies with service offices in downtown Bangkok will move. This hardly counts as FDI as it is an office rental, but it may have an effect on jobs downtown, apartment rentals and probably some of the other services for expats such as the international schools.

As for future investment, how could a company overseas when considering the strength of the baht and the political mess consider opening an office in Bangkok, let alone want to invest in a factory in Thailand right now. A decent sized business with options about where to go for it's investment, is not likely to choose Thailand for quite a while yet.

[bangon04]

"During the meeting, Mr Alongkorn pledged the support for foreign firms in an equivalent amount to that given to the Thai entrepreneurs affected by the recent mass rally"

What does this mean? Interest free loans? Since when has Thailand supported foreign firms, or even allowed them to exist?(technically speaking)

[ExpatJ]

Alot of foreign money already coming back into thailand for investments in the Thai stock exchange- this will give plenty of capital for some busineses to keep going and expand. I made a 9% profit in the last 2 months on the thai stock exchange even with the red shirt fiasco and the thai baht stayed strong. Dont ask me how either of these things happened, i was bracing for a big loss on my stock investments so am pretty happy now.

[tigerbalm]

Of course, I would think that foreign investment would not be affected at the end of the day. It wouldn't surprise me if it increases even. The very vast majority of people agree that the government handled the political unstability well and the government has today firmer support in parliament than it ever has. Elections will come in March, April or May next year I would think and Thaksin is probably not going to be back. All good factors for Thailand

If by the vast majority- you mean people on this Nation forum - well perhaps that is true.

But if you study japanese forumns for instance- you will see a very different picture.

or read International reports

Here is what NEWSWEEK writes:

http://www.newsweek.com/2010/06/04/the-end-of-brand-thailand.html#<br style=" ">The End of Brand Thailand<br style=">How mismanagement and mistakes turned a high-growth democratic paradise into a violent mess.<

">For years Thailand was synonymous with images of paradise: it was a thriving democracy with a 1997 Constitution that enshrined protections for human rights. It was an economic powerhouse that posted some of the world's highest growth rates in the 1980s and early 1990s, withstood the late '90s Asian financial crisis, and grew by 5.3 percent in 2002 and more than 7 percent the following year, as the rebound from the crisis took shape. Investors and tourists bought into the image of a tranquil kingdom of lush beaches and mountains, welcoming people, and stable politics—a "land of smiles" so alluring, it drew more than 13 million tourists per year. Thanks in part to the "Amazing Thailand" ad campaign—featuring glittering temples and stunning women—

And now? Brand Thailand is shattered. Over the past two months, clashes in Bangkok between the security forces and protesters clad in red have killed at least 80 people, gutted some of Bangkok's most important economic institutions, including the stock exchange and the largest shopping center, and destroyed the image of peace and tranquillity. The critical tourism industry, which accounts for as much as 8 percent of GDP, is gasping, at a time when regional competitors like Cambodia and Singapore are trying to steal Thailand's visitors. Of the nations once touted as the Asian tigers, or tiger cubs, including South Korea, Taiwan, Singapore, and Malaysia, only Thailand is disintegrating. Its once vibrant democracy is now widely viewed as an ungovernable and failing state. Prime Minister Abhisit Vejjajiva seems eager to postpone elections, and the last two elected governments were tossed out by undemocratic methods anyway. In its 2010 report, Freedom House scored Thailand as only "partly free" and ranked it among thuggish regimes like Burma for political rights. The U.S. State Department, which praised Thailand in 2000 for free elections and peaceful transfers of power, now chronicles its extrajudicial killings and its limits on freedom of speech and assembly.<

Thanks for that interesting link, it was also particularly interesting to read the piece about how certain big global companies are side stepping Thailand in favor of putting Billions of $ in to Vietnam

It also appears investment is not only not coming in but production is going out as in the case of Toyota moving its production of the Fortuna from BKK to Indonisia .

Source Toyota moves Fortuner production line to Indonesia