Thailand Ripe For Investment, Says PM In Seoul

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Thailand ripe for investment, says PM in Seoul

Wichit Chaitrong,

Sucheera Pinijparakarn

The Nation

SEOUL: -- Prime Minister Yingluck Shinawatra has assured South Korean businessmen of Thailand's bright economic prospects, citing the government's business-friendly policies, flood-management measures and the cut in corporate tax.

In a speech in Seoul yesterday during a luncheon meeting hosted by South Korea's four leading business organisations, including the Federation of Korean Industries, she said the Thai economy would expand by 5.5-6 per cent this year, supported by strong economic fundamentals despite last year's flood disaster.

Meanwhile, the Fiscal Policy Office yesterday revised its economic growth projection for the year to 5.5 per cent from the 5 per cent it had forecast in December.

Siam Commercial Bank’s Economic Intelligence Centre also adjusted its target for growth in gross domestic product to 5.6-5.8 per cent from the 4.7 per cent estimated in January.

These developments follow the Bank of Thailand's announcement last week of an increase in its 2012 GDP growth target to 5.7 per cent.

Yingluck told more than 450 attendees that with its solid fiscal status, Thailand is able to launch policies to promote investment.

The corporate tax rate will be cut to 23 per cent this year, and to 20 per cent next year, while tax incentives are also available to encourage the establishment of regional headquarters in the Kingdom, she said.

Meanwhile, the government has set aside US$72 billion (Bt2.16 trillion) for mega-projects, including a high-speed rail route from Bangkok to Chiang Mai and a deep-sea port in Dawei, Burma, which will improve Thailand's linkage with Asean and South Asia. The prime minister said she was convinced the projects would strengthen Thailand's position as a hub for Asean investment.

Value-added industries

She invited Korean investors to pour investment into value-added industries such as electronics and electrical appliances, automobiles, machinery, alternative energy and agricultural processing. They were also urged to invest in research and development activities and software and entertainment businesses.

Attending the luncheon were executives of large companies such as Samsung, LG Electronics, Hyundai, Korea Water Resources Corp, SM Entertainment and Korea Railroad Corp. After the event, Yingluck engaged in one-on-one discussions with a number of companies, including LG, Samsung and Union Steel.

Meanwhile, although Thailand this year could run both budget and current-account deficits, the Finance Ministry has given an assurance that this is not yet cause for concern, according to the Fiscal Policy Office.

"Running a current-account deficit is not a bad thing, as we need more investment," said director-general Somchai Sujjapongse. Investment in post-flood reconstruction would drive growth this year.

Private investment is expected to rise 11.9 per cent, against last year's increase of 7.3 per cent, while public investment will expand 12.1 per cent after a contraction of 8.7 per cent experienced last year, due partly to post-flood reconstruction efforts.

High investment, however, will lead to a current-account deficit of 0.9 per cent of GDP, or about $3.5billion. The deficit will also partly be caused by an expected slowdown of exports, he said.

Having a current-account deficit would also lead to more foreign debt, Somchai conceded. The government plans to run a budget deficit of Bt400 billion for the current fiscal year ending in September, and a deficit of Bt300 billion for next year.

Headline inflation is expected to come in at 3.6 per cent this year, compared with 3.7 per cent last year. "So far, inflation is not as high as people had worried it might be," he said.

-- The Nation 2012-03-27

[belg]

555

wait for 1st of april where little labourers get much much more expensive, let's see how the GPD forcast will be + rising oil prices

[fletchsmile]

As the nations PR lady - sorry I meant lady PM - I wouldn't expect her to say anything else Similar to the governments of Korea, Japan, China etc who say they are committed to Thailand, while obviously exploring other opportunities to diversify, particularly after events of recent years and then the floods. Whether Thailand is actually fit for investment or whether other countries actually are committed is another matter

Looking back thru history a little, we had Singapore, Hong Kong, South Korea and Taiwan that were the Asian Tigers. All 4 now successfully established. Thailand used to get a mention as an emerging tiger. Then came the BRICs with Brazil, Russia, India and China taking the limelight. Now we hear talk of CIVETS: Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa - Columbia and Egypt wouldn't be high on my list, but more importantly the "T" wasn't for Thailand, and two neighbouring countries of Indonesia and Vietnam are added to the list of desireables in the region ahead of Thailand

Realistically: Singapore, Malaysia, Indonesia, Vietnam rank ahead of Thailand if your investing in businesses for the future.

That said: Thailand has potential and always will have. I just wish one day Thailand would stop "having potential" and actually "realize its potential" in the same way all the countries passing it by are doing or have done

Edited March 27, 2012 by fletchsmile

[TeddyFlyfisherDavis]

Can't wait for the next flood...(sorry)...

[TeddyFlyfisherDavis]

As the nations PR lady - sorry I meant lady PM - I wouldn't expect her to say anything else Similar to the governments of Korea, Japan, China etc who say they are committed to Thailand, while obviously exploring other opportunities to diversify, particularly after events of recent years and then the floods. Whether Thailand is actually fit for investment or whether other countries actually are committed is another matter

Looking back thru history a little, we had Singapore, Hong Kong, South Korea and Taiwan that were the Asian Tigers. All 4 now successfully established. Thailand used to get a mention as an emerging tiger. Then came the BRICs with Brazil, Russia, India and China taking the limelight. Now we hear talk of CIVETS: Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa - Columbia and Egypt wouldn't be high on my list, but more importantly the "T" wasn't for Thailand, and two neighbouring countries of Indonesia and Vietnam are added to the list of desireables in the region ahead of Thailand

Realistically: Singapore, Malaysia, Indonesia, Vietnam rank ahead of Thailand if your investing in businesses for the future.

That said: Thailand has potential and always will have. I just wish one day Thailand would stop "having potential" and actually "realize its potential" in the same way all the countries passing it by are doing or have done

Fletch..Cambodia isn't looking too bad either...Spent some time there...Looks good to me.

[notime]

All lies. Thailand may be "ripe" to suck in more money but they should not call it "investment" but scam and theft. What "investment" is it if foreigners are not allowed to own land here? Yes, I know, they can invest in .. hmm .. hmm .. tickets to see Simon cabaret? And after "investing" the foreigners may be expelled at any time due to the visa rules, never granting them any permanent status. They are aliens anyway, so who cares.

[jalansanitwong]

When do we start investing in Thailand ?

Before or after the next coup ?

Before or after the next airport shutdown by people wearing same coloured shirts brandishing pvc clapppers.

Before or after the next climatic disaster ie floods,tsunamis droughts etc.

Before or after the next change in company and foreign ownership laws in Thai directors favour. (thai invests nothing).

Before or after the next high profile Thai politican says he has no respect for foreigners.

Before or after we are told that foreigners are causing a crime wave in Thailand which is demorilising Thai people.

Before or after we are all told to leave the Kingdom but cannot take our assets with us.

Before or after an independant body says Thailand is no longer one of the most corrupt countries in the world?

Who is she kidding ?

[givenall]

When will ever she stop to lie, no flood prevention plan in place, she just raise min wage. Where is the friendliness of her policy toward businesses?

[bendix]

When do we start investing in Thailand ?

Before or after the next coup ?

Before or after the next airport shutdown by people wearing same coloured shirts brandishing pvc clapppers.

Before or after the next climatic disaster ie floods,tsunamis droughts etc.

Before or after the next change in company and foreign ownership laws in Thai directors favour. (thai invests nothing).

Before or after the next high profile Thai politican says he has no respect for foreigners.

Before or after we are told that foreigners are causing a crime wave in Thailand which is demorilising Thai people.

Before or after we are all told to leave the Kingdom but cannot take our assets with us.

Before or after an independant body says Thailand is no longer one of the most corrupt countries in the world?

Who is she kidding ?

Meanwhile, back in the real business world - the world in which large multinational companies take decisions based on real information and not Thaivisa malcontents miserable with their lot - I can report that the law firm I work for is currently working on half a dozen huge foreign direct investment deals (factory developments, acquisitions and joint ventures) initiated by two Korean energy companies, a Japanese trading house, a Japanese tech company and two huge Chinese SOEs, all of them seeking to invest into Thailand.

The total value of these deals will be in the tens of billions of dollars area, and will create significant local employment.

Get your <deleted> off your barstools with your maudling resentments and look around at the world of big business.

Edited March 28, 2012 by bendix

[fletchsmile]

...

Meanwhile, back in the real business world - the world in which large multinational companies take decisions based on real information and not Thaivisa malcontents miserable with their lot - I can report that the law firm I work for is currently working on half a dozen huge foreign direct investment deals (factory developments, acquisitions and joint ventures) initiated by two Korean energy companies, a Japanese trading house, a Japanese tech company and two huge Chinese SOEs, all of them seeking to invest into Thailand.

The total value of these deals will be in the tens of billions of dollars area, and will create significant local employment.

....

I agree Thailand will continue to get FDI, and compared to the West it will do OK. FDI depends on a variety of factors, and there are even some industries that Thailand leads the world in and will continue to do so. I'd add though, that relatively in terms of overall potential and attractiveness Thailand continues to lose ground to its regional peers, notwithstanding the fact it leads in certain industries such as automobiles, hard disc drives etc - even these though now multinationals are realising the concentration risk and looking to other countries to diversify so they have other locations in addition to Thailand.

An interesting example is the banks. Of the global banks, I don't know any where Thailand features as a Top 10 market. For many banks Indonesia is a top 10 markets as one of the CIVETS and some people even say BRICs should be extended to BRIICs to include Indonesia. Vietnam sometimes too as top 10. The banks follow where the trade and business is, and allocate their investments and capital accordingly, often with additional strategy input from people like McKinseys. So they are a good measure of not only their own industry's potential but also other businesses and overall economies too.

There's money to be made in Thailand though, and for those looking to stay here it makes sense to invest here yourself too, although listening to the countries PR lady needs taking with a pillar of salt.

Edited March 28, 2012 by fletchsmile

[janetrizzo]

She is a handsome lady.

Pending which side the fence one is standing, Thailand has opportunities and pitfalls. Perhaps the same

could be said for any country in this region to more or lesser degree.

Due diligence and solid analysis are good indicators if Thailand is good for investment. Plenty other regional

locations to choose as well.

[bendix]

...

Meanwhile, back in the real business world - the world in which large multinational companies take decisions based on real information and not Thaivisa malcontents miserable with their lot - I can report that the law firm I work for is currently working on half a dozen huge foreign direct investment deals (factory developments, acquisitions and joint ventures) initiated by two Korean energy companies, a Japanese trading house, a Japanese tech company and two huge Chinese SOEs, all of them seeking to invest into Thailand.

The total value of these deals will be in the tens of billions of dollars area, and will create significant local employment.

....

I agree Thailand will continue to get FDI, and compared to the West it will do OK. FDI depends on a variety of factors, and there are even some industries that Thailand leads the world in and will continue to do so. I'd add though, that relatively in terms of overall potential and attractiveness Thailand continues to lose ground to its regional peers, notwithstanding the fact it leads in certain industries such as automobiles, hard disc drives etc - even these though now multinationals are realising the concentration risk and looking to other countries to diversify so they have other locations in addition to Thailand.

An interesting example is the banks. Of the global banks, I don't know any where Thailand features as a Top 10 market. For many banks Indonesia is a top 10 markets as one of the CIVETS and some people even say BRICs should be extended to BRIICs to include Indonesia. Vietnam sometimes too as top 10. The banks follow where the trade and business is, and allocate their investments and capital accordingly, often with additional strategy input from people like McKinseys. So they are a good measure of not only their own industry's potential but also other businesses and overall economies too.

There's money to be made in Thailand though, and for those looking to stay here it makes sense to invest here yourself too, although listening to the countries PR lady needs taking with a pillar of salt.

As countries develop - like Thailand is - they all lose certain aspects of their competitive edge. That is to be expected. Part of the reason poorer countries want and need FDI is to help them develop, thus in the process becoming richer and less competitive for FDI. What is happening in Thailand is also happening in China; it is increasingly expensive as labour costs have soared. Ditto Indonesia where minimum salaries have increased substantially recently and doesnt boast the infrastructure that Thailand has. The competitive environment is constantly shifting. That is a good thing.

As for Investment banks not focusing on Thailand; I don't see that as a major negative. Indonesia and Vietnam are there because of the massive natural resources likely to attract FDI in the former, and development needs in the latter. Thailand is not a financial hub, nor does it need to be.

It is a half decent, developing country with specialisms in certain industries. It will continue to attract FDI and it will continue to develop its economy at a decent pace. It is neither a panacea for business, but netiher is it the basketcase TV's barstool malcontents would like it to be painted.

[Asiantravel]

Get your <deleted> off your barstools with your maudling resentments and look around at the world of big business.

get real! There is $25 trillion of excess debt in the world and all the so-called investment you have cited

couldn't be possible if governments everywhere were not printing funny money like it's going out of fashion.

there will be a spectacular bursting of the bubble sooner than later

[fletchsmile]

As countries develop - like Thailand is - they all lose certain aspects of their competitive edge. That is to be expected. Part of the reason poorer countries want and need FDI is to help them develop, thus in the process becoming richer and less competitive for FDI. What is happening in Thailand is also happening in China; it is increasingly expensive as labour costs have soared. Ditto Indonesia where minimum salaries have increased substantially recently and doesnt boast the infrastructure that Thailand has. The competitive environment is constantly shifting. That is a good thing.

As for Investment banks not focusing on Thailand; I don't see that as a major negative. Indonesia and Vietnam are there because of the massive natural resources likely to attract FDI in the former, and development needs in the latter. Thailand is not a financial hub, nor does it need to be.

It is a half decent, developing country with specialisms in certain industries. It will continue to attract FDI and it will continue to develop its economy at a decent pace. It is neither a panacea for business, but netiher is it the basketcase TV's barstool malcontents would like it to be painted.

Yes to be expected to an extent. The worry for Thailand is the Asian Tigers moved to the next level. The BRICs and likes of China appeared passed Thailand and are moving to the next level. Unfortunately for Thailand while it has increased its labour costs it hasn't put in the structures for the next level. There was an article in the BKK Post on this (yesterday?) were one of their politicians was saying they no longer wanted to be seen as lower cost. It went on to say though that unlike Singapore (Korea etc) when it shifted there was a clear plan in place, and even a timeframe - good article and summed up my own views.. Thailand hasn't really thought it out, and that's a key diff with China.

Now, the CIVETS are increasingly developing too. At the moment Indonesia and Vietnam are more favourable than Thailand on labour costs, whereas the Singapore and Malaysia squeezes it on "added value". Thailand seems to lack a transition plan, and is caught in the middle. Even Myanmar is getting its act together, not to mention Cambodia (someone added above) and Laos. Thailand needs to think what it will do when the immigrant workforce it relies on and exploits disappears back to opportunities in their own countries. Then it has no cheap imported labour, relatively expensive local national labour compared to its regional peers, and little in the way of "added value". Interesting times.

Yes as for the barstool punters I don't mind that too much when done in good humour, and there's plenty to laugh at as Thailand being a basket case on some things (in fairness good at others too). It's when the barstools become miscontent and nasty and the humour disappears it's time to walk away. Living here, a laugh is invaluable

Edited March 29, 2012 by fletchsmile