Germans 'keen to invest' in Thailand

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INVESTMENT
Germans 'keen to invest' in Thailand
Petchanet Pratruangkrai
The Nation

BANGKOK: -- German enterprises in Thailand said they are keen to invest and expand their businesses in this country, especially to take part in the Bt2-trillion infrastructure development project. However, they also maintained that corruption is unacceptable and should be seriously tackled under the law.

Karl-Heinze Heckhausen, president of the German-Thai Chamber of Commerce (GTCC), said as foreign investors in Thailand, German investors wanted to keep out of Thailand's politics. He said investors are still confident of doing business and investing here.

"A protest is a democratic way that shows people participation. I've no worries about the investment environment in Thailand, despite the recent protests. Of course, business people would prefer normal circumstances and any disagreement should be debated in the parliament," said Heckhausen

Asked about the corruption problem in Thailand, the GTCC president said that German investors do not accept it. They are very strict and comply with law and regulations. Corruption is a bad thing and German enterprises are very serious on the issue, he said.

Speaking during "Business Talk" organised at German Residence, Heckhausen also said that many German investors would like expand and make new investments in Thailand, especially under the Bt2-trillion project.

He said 10 German firms involved in technology, engineering and machinery and automobile industry would like to start new investment in the Kingdom. With Thailand's focus on infrastructure development, and being considered as a centre of Asean integration, Thailand could draw in more investment from Germany, he added.

However, Heckhausen expressed concern over the labour shortage in the country as it could not serve the demand for personnel of many foreign firms.

The shortage of qualified workers should be solved soon. German investors have also tried to train more young generation to become qualified workers.

Marc Saxer, resident director at Friedrich Ebert Stiftung, said that many foreign investors, including Germans, remained highly concerned about Thailand's political situation. The current problem is not new for them, but it still destroys the investment environment for Thailand.

Investors hope the problem will be resolved in a short period, he said.

German Ambassador to Thailand Rolf Schulze said many German investors would like to invest in Thailand.

He said the German government and German businesses are eager to stay engaged with Thailand. Some German companies may even decide on major new investment in Thailand soon. This would be an additional sign of trust in the future development of this country, he said.

At present, nearly, 600 German companies are based and active in Thailand.


-- The Nation 2013-11-06

[Bender]

for sure these german folk dont produce high tech tech product in Buriram,

so what kind of factory they do have here?

maybe a black sock factory???!!!

[noitom]

These German guys are being diplomatic, merely sidestepping commitment as the result of rampant corruption in Thailand.

[casindonet]

The president of GTCC better start reading Thaivisa forum for news......25,355 cases pending. Corruption is not only rampant in Thailand, it is actually out of control.

[Bangkokhatter]

Typical replies from people who probably have no idea of the amount of investment foreign companies have in Thailand. I work for a German company here and we are continuing to expand, as are many others.

The article was spot on, mentioning the lack of quality staff, which is more of a problem than corruption and political demonstrations.

[EyesWideOpen]

I would think after that German company got stiffed on that elevated road project to Don Muang airport,

they would avoid Thailand like the plague......The story here cannot be true, someone is just blowing

smoke into dark places....... German do not do corruption. Notice how the Chinese have no problem

coming in and doing business here..

[jaltsc]

"However, they also maintained that corruption is unacceptable and should be seriously tackled under the law."

Well, that should be enough motivation to end corruption in Thailand.

[EyesWideOpen]

Typical replies from people who probably have no idea of the amount of investment foreign companies have in Thailand. I work for a German company here and we are continuing to expand, as are many others.

The article was spot on, mentioning the lack of quality staff, which is more of a problem than corruption and political demonstrations.

Really ?? What product does your company make ? If I was a German company, facing corruption,

51% ownership of my Thai based division by a Thai entity, and lack of quality staff, why in the world

would I be here ??

[ramrod711]

Asked about the corruption problem in Thailand, the GTCC president said that German investors do not accept it. They are very strict and comply with law and regulations. Corruption is a bad thing and German enterprises are very serious on the issue, he said.

I confess that i have never bid on a government contract here, so i have no direct knowledge of the process. When Abhisit was PM he said that all government projects that were inflated by 30% because of corruption. If this is, or was, true, how does a german company expect to get a government contract without paying the graft?

[JoeThePoster]

The shortage of qualified workers should be solved soon.

Like when other investors move their projects out.

[Bangkokhatter]

Typical replies from people who probably have no idea of the amount of investment foreign companies have in Thailand. I work for a German company here and we are continuing to expand, as are many others.

The article was spot on, mentioning the lack of quality staff, which is more of a problem than corruption and political demonstrations.

Really ?? What product does your company make ? If I was a German company, facing corruption,

51% ownership of my Thai based division by a Thai entity, and lack of quality staff, why in the world

would I be here ??

[Baerboxer]

I would think after that German company got stiffed on that elevated road project to Don Muang airport,

they would avoid Thailand like the plague......The story here cannot be true, someone is just blowing

smoke into dark places....... German do not do corruption. Notice how the Chinese have no problem

coming in and doing business here..

German do not do corruption ? You are joking aren't you ?

If not try doing some research on corruption cases involving German companies - start with Siemens and the auto industry.

Some German companies are very good at fitting in with local customs it would seem.

[Baerboxer]

Asked about the corruption problem in Thailand, the GTCC president said that German investors do not accept it. They are very strict and comply with law and regulations. Corruption is a bad thing and German enterprises are very serious on the issue, he said.

I confess that i have never bid on a government contract here, so i have no direct knowledge of the process. When Abhisit was PM he said that all government projects that were inflated by 30% because of corruption. If this is, or was, true, how does a german company expect to get a government contract without paying the graft?

And of course, German companies are always strictly ethical and never ever indulge in corrupt practices !

I was involved with a certain regional development bank a couple of years ago. Their opinion was that all investment projects funded for Thailand had 25-30% skimmed off. But, in some central Asian countries the % was even higher.

[hanno]

I would think after that German company got stiffed on that elevated road project to Don Muang airport,

they would avoid Thailand like the plague......The story here cannot be true, someone is just blowing

smoke into dark places....... German do not do corruption. Notice how the Chinese have no problem

coming in and doing business here..

German do not do corruption ? You are joking aren't you ?

If not try doing some research on corruption cases involving German companies - start with Siemens and the auto industry.

Some German companies are very good at fitting in with local customs it would seem.

Ture, but these days the German authorities are actually cracking down on it, as Siemens found out.

[lungmi]

Siemens?

[Baerboxer]

I would think after that German company got stiffed on that elevated road project to Don Muang airport,

they would avoid Thailand like the plague......The story here cannot be true, someone is just blowing

smoke into dark places....... German do not do corruption. Notice how the Chinese have no problem

coming in and doing business here..

German do not do corruption ? You are joking aren't you ?

If not try doing some research on corruption cases involving German companies - start with Siemens and the auto industry.

Some German companies are very good at fitting in with local customs it would seem.

Ture, but these days the German authorities are actually cracking down on it, as Siemens found out.

The American and British governments introduced tougher anti corruption laws earlier this year too.

Says a lot about the true extent of international corruption. It ain't just the Asians. Not by a long way.

[Benmart]

These German guys are being diplomatic, merely sidestepping commitment as the result of rampant corruption in Thailand.

Diplomacy is sometimes a good alternative to being a bully and making demands. The Germans seem to be waving the carrot and if the Thai government wants that carrot, then perhaps they will temper the goat called corruption.

[bigbamboo]

I'd like to invest my billions in Thailand too but only if there is no corruption.

Oh well, guess I'll just have to leave them under the bed then.

[SiggiCM]

there is a new law in Germany and in EU, if a company does pay corruption, they got fined in the EU and in there home country, even the corruption is in africa or asia, so thats was also the reason that german railway went out of thailand, no german company can make any business in thailand until corruption is crack down, they would loose much more business in the EU. The manager can be accused in court in Germany for corruption, Thailand is not so important market to risk, and the fines are quite high so a manager dont need this, up to 10 Mil Euro and up to 10 years in jail

[fab4]

I would think after that German company got stiffed on that elevated road project to Don Muang airport,

they would avoid Thailand like the plague......The story here cannot be true, someone is just blowing

smoke into dark places....... German do not do corruption. Notice how the Chinese have no problem

coming in and doing business here..

And the Japanese.........and well quite a few really

The number of foreign businesses investing in Thailand during the first half of the year has risen strongly over the same period last year, showing high confidence among overseas investors in the country's growth, the Business Development Department reported yesterday.

A total of 178 foreign enterprises have established new services businesses in Thailand under the Foreign Business Act (FBA) so far this year, representing a year-on-year increase of 16 per cent.

http://www.nationmultimedia.com/business/Sharp-upturn-in-foreign-firms-investing-in-Thailan-30209334.html

Edited November 6, 2013 by fab4

[Ulic]

Very difficult to compete when most western countries legally cannot pay pay the massive bribes required to win contracts.

[Thai at Heart]

I would think after that German company got stiffed on that elevated road project to Don Muang airport,

they would avoid Thailand like the plague......The story here cannot be true, someone is just blowing

smoke into dark places....... German do not do corruption. Notice how the Chinese have no problem

coming in and doing business here..

German do not do corruption ? You are joking aren't you ?

If not try doing some research on corruption cases involving German companies - start with Siemens and the auto industry.

Some German companies are very good at fitting in with local customs it would seem.

Ture, but these days the German authorities are actually cracking down on it, as Siemens found out.

The American and British governments introduced tougher anti corruption laws earlier this year too.

Says a lot about the true extent of international corruption. It ain't just the Asians. Not by a long way.

I think this was specifically aimed at these companies conducting business overseas....

[Bangkokhatter]

Typical replies from people who probably have no idea of the amount of investment foreign companies have in Thailand. I work for a German company here and we are continuing to expand, as are many others.

The article was spot on, mentioning the lack of quality staff, which is more of a problem than corruption and political demonstrations.

Really ?? What product does your company make ? If I was a German company, facing corruption,

51% ownership of my Thai based division by a Thai entity, and lack of quality staff, why in the world

would I be here ??

What 51% ownership by a Thai entity are you talking about ? Just not true, just like some other comments on here. There are plenty of foreign companies doing business here without having to get too involved in corruption. Not all business involves dealing with the government.

I sometimes wonder if many of the posters who reply to these types of threads actually have any experience of working in Thailand, cos their reality is far different to to mine.

[Commander Tamson]

Typical replies from people who probably have no idea of the amount of investment foreign companies have in Thailand. I work for a German company here and we are continuing to expand, as are many others.

The article was spot on, mentioning the lack of quality staff, which is more of a problem than corruption and political demonstrations.

Making hats by any chance?

Sent from my iPad using Thaivisa Connect Thailand mobile app

[meom]

there is a new law in Germany and in EU, if a company does pay corruption, they got fined in the EU and in there home country, even the corruption is in africa or asia, so thats was also the reason that german railway went out of thailand, no german company can make any business in thailand until corruption is crack down, they would loose much more business in the EU. The manager can be accused in court in Germany for corruption, Thailand is not so important market to risk, and the fines are quite high so a manager dont need this, up to 10 Mil Euro and up to 10 years in jail

With a bit of creative bookkeeping it shouldn’t be that difficult to hire a local consultancy firm to grease the wheels.