Australia encourages business expansion in Thailand

[webfact]

FOREIGN INVESTMENT
Australia encourages business expansion in Thailand
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- AUSTRALIA is encouraging its businesses, particularly small firms, to learn more about Thailand and regard it as a new base of investment and a launching pad for Asean markets, notably Myanmar.

Australia Ambassador James Wise said last week that still too few Australian companies have done business and invested in Thailand. However, with the growth of Asia and Thailand, investors should be encouraged to invest and do more business in the country.

Thailand is considered as a hospitable place for Australian businesses. Industries that Australians have eyed are food, agricultural processing, logistics, alternative energy and services, he said.

Since Australian investors had tremendous expertise in those businesses, they believe Thailand could serve as a new base to penetrate the Asian and ASEAN markets.

The hike in the minimum wage was not a problem for Australian investors as Australian companies focused on high technology. Costs for personnel were on the rise as Thailand has got wealthier.

This was natural for a country that has moved up the value chain. Aussie investors also had to pay a higher cost for skilled labour.

Protests against rising prices for goods and other peaceful rallies were considered as a normal de-|velopment for a democratic country. Such rallies had not concern-|ed Australian investors.

But the biggest challenge for Thailand is how to make Australian entrepreneurs understand better how big and sophisticated its economy is and how it can serve their investment.

To promote more investment and trade with Thailand, the Australian-Thai Chamber of Commerce or AustCham Thailand recently hosted the first Australian Business Forum (ABF) in Bangkok. The ABF is a new chamber initiative supported by the Australian government through the Asian Century Business Engagement Plan.

The ABF aims to promote Australian businesses - particularly small to medium-size firms - in Thailand and surrounding markets.

The ABF has received a warm response with more than 70 attendees from leading companies, both Thai and foreign.

AustCham Thailand counts 403 Australian and Thai companies as members.

Last year, Australia's merchandise trade with Thailand was worth A$15 billion (Bt444 billion), while services, both exports and imports, were worth $3.35 billion. The total was $18.4 billion.

Leigh Scott-Kemmis, president of AustCham Thailand, said the ABF was an excellent vehicle to engage the Thai business community and while the focus was be mainly on Australia and Thailand, priority would also be given to markets around Thailand, particularly Myanmar.

AustCham aims to create a close-knit, Australian-related "community of interest". It will be a catalyst for expansion. The ABF will bring together businessmen, whether Australian, Thai or other nationalities, who have an interest in Australian-Thai commerce.

For Myanmar, AustCham will develop business connections and opportunities and will focus on how Thailand can be used as a launching PAD into Myanmar. The objective will be to produce an Australia-Myanmar-Thailand "community of interest", he added.

Simon Shale, director of Visy Packaging (Thailand), who shared the company's success in doing business in Thailand to encourage those interested to investing in the country, said that after almost five years here, his company was seriously considering Thailand as the future of Asia.

"Our operation in Thailand has been extraordinarily successful. After investing in some of the most advanced technology in the world, we will be able to produce 120 million plastic food jars annually. The company should see 10-per-cent or double-digit growth each year."

Visy was founded in Melbourne and has grown to become one of the world's leading privately owned packaging, paper and recycling companies, with annual turnover of about $4 billion.


-- The Nation 2013-09-16

[theblether]

Australia Ambassador James Wise said last week that still too few Australian companies have done business and invested in Thailand.

He's taking the p*ss. This guy is paid to protect the interests of Australians in Thailand, he is obliged to point out the serious problems involved in investing in the country.

Malaysia is far more benign setting for business investment, and if you want to do business in Burma, cut out the middle man, just go to Burma direct.

He's poorly named, not Wise would be better

[jalansanitwong]

Australian companies have been here for years but the vast majority stay away because of the appalling corruption,red tape and discrimination that goes hand in hand in Thailand. Much better options elsewhere for aussie co's.

One Australian company just recently rented an old facory behind my shophouse for a few months and had hundreds of Burmese labourers running around packing card board sheets all night long.

Suddenly they packed up and left one night.........future of Thailand.

[Tatsujin]

Australian companies have been here for years but the vast majority stay away because of the appalling corruption,red tape and discrimination that goes hand in hand in Thailand. Much better options elsewhere for aussie co's.

One Australian company just recently rented an old facory behind my shophouse for a few months and had hundreds of Burmese labourers running around packing card board sheets all night long.

Suddenly they packed up and left one night.........future of Thailand.

There are upsides to doing business here in Thailand, however the downsides (corruption, visa's, etc) are getting/have got to the point where I think a large majority of businesses wouldn't even consider Thailand any longer.

I can think of 4 x Australian companies that operate in Asia, and all have moved to either Burma, Philippines or Cambodia. 3 of the 4 moved OUT of Thailand to go to these other countries. A small sample I know but I think it reflects the fact that despite the talk and the bullshit, Thailand is not the attractive or nice country it used to be.

[worgeordie]

Kangaroo farming, thats the future !,cut down all the rubber

trees and make pens for huge Kangaroo farms,do they eat

rice? if so that would solve another problem.

Just kidding, hope someone in the Government does not read

this and steal my idea,as they are very short of ideas at the moment!

regards Worgeordie

[laurentbkk]

improve business ? change the 49/51% shares ... as you can be kicked out just like this from your own company.

[jalansanitwong]

Dont underestimate the impact caused by the politically sanctioned brutal murder of the Australian ex IMF and auditor Michael Wansley in 1999.

The politicians and sugar mill goons in central Thailand decided the farang had to be killed because he might expose their corrupt dealings via an audit.

What farang corp would come here after that ? Dont worry farangs never mind mai pen rai.

[simple1]

improve business ? change the 49/51% shares ... as you can be kicked out just like this from your own company.

Already have via the Australia / Thai FTA, plus more flexible Work Permit arrangements etc

Majority Australian ownership of up to 100% for businesses in certain sectors including mining operations, construction services, restaurants and hotels, tertiary education institutions, maritime cargo services.

http://www.dfat.gov.au/fta/tafta/key-outcomes.html

Edited September 16, 2013 by simple1

[chooka]

Industries that Australians have eyed are food, agricultural processing, logistics, alternative energy and services, he said.

Doesn't the Foreign Business Act prohibit foreign companies from being involved in agriculture? Why would Australians want to pour money into Thai agriculture when Australia is considered the food bowl of Asia. Australia exports the majority of the food they produce and Asian countries are actually buying up large tracks of prime Australian agricultural land because of their growing population and dwindling agricultural areas. Japan and China already produce large quantities of their food needs on properties they own in Australia. Indonesia has just purchased a 1 million hectare agricultural property in Australia for meet their food needs and Singapore also own such properties.

Unless you are a large Multinational company investing and setting businesses in Thailand is extremely risking. There are a number of horror stories already in Australia where medium sized companies have invested in Thailand only to own a mere 49% of their 100% investment and have the company pulled from under them by their Thai partners. Australian companies are actually looking at Myanmar for investments.

Edited September 16, 2013 by chooka

[Tomtomtom69]

Australia Ambassador James Wise said last week that still too few Australian companies have done business and invested in Thailand.

He's taking the p*ss. This guy is paid to protect the interests of Australians in Thailand, he is obliged to point out the serious problems involved in investing in the country.

Malaysia is far more benign setting for business investment, and if you want to do business in Burma, cut out the middle man, just go to Burma direct.

He's poorly named, not Wise would be better

I personally knew the ex-Ambassador from 2008, but since he left this new "Wise guy" is a character I'd like to meet. If you're interested, so can you - he occasionally makes it to AustCham's Sundowners networking events and the one in early December, "Christmas Sundowners" is held at his residence next to the Aus Embassy - only thing is for that one, you need to be a member (individual or corporate) to attend.

[ronrat]

Good advice talking to Visy. After they systematically rorted the Australian public in an illegal cartel for years.

[Aussie Paul]

Good advice talking to Visy. After they systematically rorted the Australian public in an illegal cartel for years.

That's why they are so successful in Thailand...same old, same old

[barrybankruad]

A few years back I was flying back to Perth W.A. sitting next to a bloke we got chatting. Turns out he was in the IT business and that he had been approached by a Thai company to look at their set up and devise a system that would solve their problems. Apparently he had the expertise and resources to help.

When it came down actually trying to get things moving he immediately struck all sorts of obstacles. He reckons he was buggered about from pillar to post, held up by paper shuffling beaurocrats with no idea of what they were doing, added to that of course the ever present corruption to 'help' things along.

He stated he wasted his time for two weeks, time that was costing him money. In the end he told them to forget it, and stated that he would never, ever consider doing business in Thailand again.

[noitom]

Australia Ambassador James Wise said last week that still too few Australian companies have done business and invested in Thailand.

He's taking the p*ss. This guy is paid to protect the interests of Australians in Thailand, he is obliged to point out the serious problems involved in investing in the country.

Malaysia is far more benign setting for business investment, and if you want to do business in Burma, cut out the middle man, just go to Burma direct.

He's poorly named, not Wise would be better

For sure. Like the present and past US ambassadors included, they are all a bunch of smoke and hot air puffing, superficial, patronizing lackies who are all in political patronage posts.

[Time Traveller]

A few years back I was flying back to Perth W.A. sitting next to a bloke we got chatting. Turns out he was in the IT business and that he had been approached by a Thai company to look at their set up and devise a system that would solve their problems. Apparently he had the expertise and resources to help.

When it came down actually trying to get things moving he immediately struck all sorts of obstacles. He reckons he was buggered about from pillar to post, held up by paper shuffling beaurocrats with no idea of what they were doing, added to that of course the ever present corruption to 'help' things along.

He stated he wasted his time for two weeks, time that was costing him money. In the end he told them to forget it, and stated that he would never, ever consider doing business in Thailand again.

So you met one guy a few years ago who had a single bad experience? Well that's par for the course when dealing with the Aussie government as well. You run a business you'll always face obstacles no matter wherever and doing whatever.

In terms of monopolistic practices and unethical behaviour Australia is not so different from Thailand. Furthermore the ASIC itself is weak on corporate regulation and prosecution of corporate criminals. For what it's worth I myself have had several bad experiences from Australian businesses scamming people. The people that usually compain about Thailand are the ones that come here and with totally unrealistic expectations.

[bangon04]

When did yingluck go shopping in Canberra / Sydney? I must have missed to photo op story recently....

[Baloo22]

Perhaps this Mr. "Wise" should consult with a few Australian business persons experienced in the business environment of Thailand. A good start would be a discussion with Ms. Clare Florence and Mr. Neil Herdegen on their experiences in the Thai business world.

I came across this article "Criminal Defamation as a Business Tool" that lays it out pretty well.

[Halion]

Not at all sure as to the validity and or purpose of this article.

[MrJohnson]

I think Ambassador Wise is simply doing his job in promoting business development between the two countries. I do not believe he has earned the trashing he is getting on this forum. It is his second posting here to Thailand, he was formerly head of the Consular Section at the Embassy I understand. For anyone who has met him you will find him to be intelligent, erudite, hard-working and above all, polite. There are no doubt some negative stories amongst the Australian business community about doing business here in Thailand but there are also plenty of positive ones. Just go along to any of the AustCham events and you will meet plenty of people enjoying good business here.

[itchybum]

$18 billion dollars in business......wonder if Oz has the same visa arrangements as Montenegro with Thailand ?

[BlackJack]

read up on Marlboro, Pizza Hut, Carlsberg beer, Pepsi and a few others to see how even multi nationals can get the wrong end of the stick

[Thai at Heart]

ABF was an excellent vehicle to engage the Thai business community

Indeed, most clients like the ABF, or one for the klong. Lol

[MaiChai]

improve business ? change the 49/51% shares ... as you can be kicked out just like this from your own company.

Thats how Thais get rich with little effort. Its grossly unfair. I would not setup a business in Thailand where i had to give 51%/control to a Thai. Even Cambodia has fairer rules.

[Suffinator]

Yes, come to LOS, pay 100% get 49% then get f***** over equaling 0%. Sounds like a plan.

[handsomeATM]

stop loss,

stay home

stop coming to thailand and lossing all your wealth to these con artist.

[chooka]

When did yingluck go shopping in Canberra / Sydney? I must have missed to photo op story recently....

She was there 18 months or so ago, quick g'day with Julia then shopping.

.

[macksmith345]

Hi,
I think If Australia is entered in the food market then Thai food market also grow vastly and it's made both sided profit and many foreigners wants different-different types or culture and countries food.

...................................

catering services in Melbourne

[RubbaJohnny]

Could be sampling research for message parlour workers in Canburrow

ABC Canberra - Explore by Topic - Australian Broadcasting ...

www.abc.net.au/canberra/topics/law-crime-and.../courts-and-trials/?page...‎

A Canberra brothel madam who kept a Thai womanas a sex slave has had her jail ... A Canberra criminal is facing more time behind bars