Foreign Firms Plan To Keep Investing In Thailand

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BOI SURVEY

Foreign firms plan to keep investing here

By Nalin Viboonchart

The Nation

Foreign investors are still confident of either staying in Thailand or investing more here, largely in the automotive sector, electronics and agricultural industry, according a survey by the Board of Investment (BoI).

However, the survey was conducted before the new government took office and the policy to raise the minimum wage was confirmed. The survey also found that about 3.5 per cent of the 404 respondents planned to scale down their investments.

The BoI sent questionnaires to about 6,000 foreign companies, of which 404 responded to the survey, which targeted entrepreneurs who own at least a 20-per-cent stake in their company. Recipients and non-recipients of BoI incentives were included in the poll.

Secretary-general Atchaka Sibunruang said yesterday that the BoI conducted the survey from February to June. Nearly 50 per cent of the respondents said they would maintain their investments in Thailand, while about 47 per cent plan to increase them.

About 3.5 per cent, mostly in the textile, ornaments and leather industries, plan to scale down their investments in the Kingdom.

For about 18 per cent of those planning to expand their investments here, the increases would be substantial. These are in the chemical, electronics, service and metals industries.

The respondents stated that they were happy with the appropriate wage levels, the easy access to funds, and land-ownership rights offered in Thailand.

"The rise of the minimum wage to Bt300 was not a factor in the survey, since we conducted it in the first half of the year. If we conducted the survey now, the result might have changed a little bit, as some companies will be affected by the higher wage, while some will not," she said.

Weaknesses

Atchaka said the weaknesses for investing in Thailand in the foreigners' view were the underdeveloped telecommunication system and logistics network and uncertain government policies. Vietnam seems to be superior to Thailand in the latter factor.

Arunee Teotrakool, deputy managing director of InfoSearch, a marketing-survey company that handled this job, said the number of respondents this year was lower than last year's 500-600 as the fieldwork took place around the time of the tsunami disaster in Japan. The response rate from Japanese firms in Thailand was only 50 per cent, compared with the normal rate of 80 per cent.

However, the survey result is claimed to be reliable, as the 404 respondents represented the major industrial sectors and answered all the questions required for the survey.

-- The Nation 2011-09-03

[katasyd]

I thought it was illegal for foreign firms to be in the agriculture business in Thailand.

With the red tape in place here, it's a wonder why anyone does business here.

[janverbeem]

Nice percentages figures once again,but why they fail again to say that it is less than 7% of the company's targeted that even bothered to answer their questions.

So actually those 50% should read something like 3 % in reality.

[whybother]

Quite a bit has changed since the survey was taken.

[3zie]

We are in the garment sector and we just found out that the old government had passed a law, in all silence, to increase the wages for all operators in our sector based on their skills. Only thing holding this back (for now) is the garment association is fighting this in court.

It all sounds fair until you know how high the increase is.

At current our workers have a min income of 175THB/day + Eff bonus @ average 60THB/day = 235THB/day which makes us the highest paying company in our area.

The new system:

single skilled operators (10% of our operators) min wage @ 250THB excl. Bonus

Multi-skilled operators (90%) @ min Wage of 340THB excl Bonus

supervisors @ 430THB

If this were to come in place we will be forced to close within 1 onth after it going into effect!

The 300THB/day that the new government has promised can include all bonuses and therefore could make us, as a healthy company just survive.

But lots of other companies, like some of our neighbors have already told us that if the 300THB were to come into effect that they won't be able to hold heads above water...

So.... Foreign Firms plan to keep investing??

[zydeco]

"Atchaka said the weaknesses for investing in Thailand in the foreigners' view were . . .uncertain government policies. Vietnam seems to be superior to Thailand in the latter factor."

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Definition of a major problem: when your longtime allies and their citizenry find it more favorable to deal with erstwhile enemies because of the former enemies' reliability and more equitable treatment.

[whybother]

We are in the garment sector and we just found out that the old government had passed a law, in all silence, to increase the wages for all operators in our sector based on their skills. Only thing holding this back (for now) is the garment association is fighting this in court.

It all sounds fair until you know how high the increase is.

At current our workers have a min income of 175THB/day + Eff bonus @ average 60THB/day = 235THB/day which makes us the highest paying company in our area.

The new system:

single skilled operators (10% of our operators) min wage @ 250THB excl. Bonus

Multi-skilled operators (90%) @ min Wage of 340THB excl Bonus

supervisors @ 430THB

If this were to come in place we will be forced to close within 1 onth after it going into effect!

The 300THB/day that the new government has promised can include all bonuses and therefore could make us, as a healthy company just survive.

But lots of other companies, like some of our neighbors have already told us that if the 300THB were to come into effect that they won't be able to hold heads above water...

So.... Foreign Firms plan to keep investing??

I wonder why they would keep it secret?

[notime]

Idiots .. when will The World finally realize that foreigners are not welcome here? Only their money is.

[kraplung]

The best policy with any investment in Thailand just now is probably wait and see. Anything could happen in the next few months.

[Bkkorupcountry]

Idiots .. when will The World finally realize that foreigners are not welcome here? Only their money is.

Sorry, who are the idiots? Thais or foreigners?

[notime]

Idiots .. when will The World finally realize that foreigners are not welcome here? Only their money is.

Sorry, who are the idiots? Thais or foreigners?

Foreigners who invest in Thailand with no clear guarantee of ownership and control over their assets.