Foreign Chambers anxious: Thailand

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CHAMBERS
Chambers anxious
Erich Parpart
The Nation


Rolf-Dieter Daniel, president of European Asean Business Centre.

BANGKOK: -- Foreign chambers and business associations are afraid that a failure to form a fully-functioning government by the end of the year will lead to missed opportunities and a drought of new investment, but most still believe in the country's potential.

Stanley Kang, chairman of the Joint Foreign Chambers of Commerce in Thailand, said last week that existing foreign businesses and investors will continue to be active without any significant hiccup, but plans for new investment and expansion would be put on the shelf until a permanent government is installed.

"The absence of a functioning government will create uncertainty for new investment, as investors cannot see the government's vision and plans for the future," he said.

Rolf-Dieter Daniel, president of the European Asean Business Centre, said the latest development on the political scene is nothing new and there would be no changes in the short term, as there is no escalation of violence.

However, business sentiment could have been more buoyant if there were stimulus from a functioning government.

"The development is as expected and there is nothing new. In the short term, there are no changes but in the middle to long term, Thailand is likely to fall behind its main competitors if the situation continues to be prolonged, especially in terms of signing the new free trade agreement (FTA) with the European Union," he said.

Vietnam and Indonesia are pushing hard for an FTA and Thailand is at risk of missing out on the action. The new government should push for the FTA deal as soon as it can if the country does not want to lag behind its competitors in this aspect, he said.

Darren Buckley, president of the American Chamber of Commerce, said the prolonged absence of a permanent government is a negative for business sentiment and investment, as it creates uncertainty.

If the situation continues to the end of the year, the country will face the risk of being marginalised by its competitors.

"It will be a significant loss of opportunity for the country if the political uncertainty continues to marginalise Thailand's competitiveness because both local and foreign investors need to have confidence when doing business," he said.

Thailand's chances of being overlooked by investors can harm the long-term prospects of the country because foreign investors will begin to look elsewhere in the region where there is more stability if there is no end in sight to the current political impasse.

Kang also said the lack of a permanent government is bad for Thai businesses as manifested by the decline in applications for Board of Investment privileges, which was relatively high before the start of the political turmoil.

However, the economy is still resilient and its basic financial structure is sound. Foreign investors will not go anywhere any time soon, as Thailand's long-term potential is apparent.

The best way to bring investment opportunities back is for a new election to take place as soon as possible so that a new government can be inducted in the near future.

All sides should search for a peaceful solution to the conflict. It is the job of politicians to negotiate and find a solution that will serve the best interests of the country.

"Foreign investors understand what is going on in Thailand and they know that each side has its own rationale, but negotiation is the best way to end the current political impasse, not confrontation," he said.

Uli Kaiser, president of Thai-European Business Association, said that despite the political situation and the absence of a permanent government in the past six months, European business sentiment, investment and production in the Kingdom have continued and are even increasing in some industries, such as Volkswagen's commitment to participate in phase II of the eco-car programme.

The latest development did not necessarily heighten any tension on the political front and overall investment trends have not come to a stop, as important non-political functions such as the BOI are prepared to continue supporting foreign direct investment through the approval of new projects.

"I am confident in the positive business sentiment of Europeans, as many investors who come are looking to invest in the private sector, not in the government's mega-projects that are currently 'on hold'," he said.

A renewed and working government will provide additional support for the investment environment through public spending. However, in the meantime, Thailand's private sector is still offering significant opportunity for the midterm. The fundamentals haven't changed.

There is no doubt that the country will continue to be fully functioning in terms of private investment and manufacturing. Foreign investors will continue to have a keen interest in Thailand's business potential, especially in the automobile, oil and gas, information and communications technology, and construction industries, which continue to be unfazed by the political situation, he added.


-- The Nation 2014-05-12

[leggo]

Bizzness is bizzness my friend. They wouldn't want to upset the oxcart would they. Talking such BS they are almost beginning to sound like Thai politicians !

Sent from my i-mobile IQ 2 using Thaivisa Connect Thailand mobile app

[noitom]

The last paragraph seems to be characterized as a quote in its content, but fails to include the proper quote punctuation. This gives rise to speculation that the Thai press is editorializing a foreigner's comments or that the Thai press editors are inept. Has to be one or the other.

[wandasloan]

Bizzness is bizzness my friend. They wouldn't want to upset the oxcart would they. Talking such BS they are almost beginning to sound like Thai politicians !

Ha! Thank you. Lifted the words right off my fingertips. And everything he said was "if". Very helpful.

.

[Robby nz]

There is no doubt that the country will continue to be fully functioning in terms of private investment and manufacturing. Foreign investors will continue to have a keen interest in Thailand's business potential, especially in the automobile, oil and gas, information and communications technology, and construction industries, which continue to be unfazed by the political situation, he added.

In other words everything will function nicely without the handbrake of the sticky fingers of Government.

[Thaiisnotrequired]

There is an element of truth in that Thailand may well get left behind though, if the doors are not well secured to the hinges soon.

Vietnam and Indonesia do look very attractive for current investment, and they have a much cheaper workforce than Thailand. It would make sense to new investors to park there, rather than here. IMO.

[KIWIBATCH]

.....what a load of hogwash from RD Daniel....full of if's and maybe's.......and wishy washy rhetoric

What he should of said was........"Hey Thailand...get your shit together or we are out of here...."

[trainman34014]

Amazes me these people are paid huge amounts of money to state the bleeding obvious that any of us could have spouted for free !

[Costas2008]

Doesn't he look like, Bruce Forsyth?

"Nice to see you, to see you?"

[bigbamboo]

Thailand does have tremendous potential. With the right people running the country things could be hunky dory.

But of course you can say that about countless third world countries riddled with corruption.

[Rosco911]

There is an element of truth in that Thailand may well get left behind though, if the doors are not well secured to the hinges soon.

Vietnam and Indonesia do look very attractive for current investment, and they have a much cheaper workforce than Thailand. It would make sense to new investors to park there, rather than here. IMO.

After 8 years of manufacturing in Thailand we are closing our factory and moving to Vietnam. The free trade agreement already in place with Australia only works one way meaning if you import from Australia you will pay irrespective of having the correct documentation in place. The certificate of origin means nothing in Thailand and must be accompanied with a further document that clearly states the words Free Trade Agreement. This document as far as I am aware does not exist.

In our case we have even had to pay import duty on returned parts covered by warranty that we can clearly prove were exported by us from Thailand.

[useronthenet]

Thailand is certainly losing out to potential business, and indeed the BOI have vented their concerns over the matter in recent months.

Given there are so many other Asian countries around which are currently stable, then one assumes that if Thailand continue along this path of self destruction, then it implies that the country will be overlooked in the future.

Of course any business must diversify, and be prudent enough in not putting all it's eggs in one basket, as that would be far too risky on an investors point of view. I hope that the country does start to realize that such consistent instability will give rise to investors looking elsewhere, which is evidently happening. Very sad for Thailand of course, since they will become the victims by virtue of their own incompetence.

[Thaiisnotrequired]

Thailand is certainly losing out to potential business, and indeed the BOI have vented their concerns over the matter in recent months.

Given there are so many other Asian countries around which are currently stable, then one assumes that if Thailand continue along this path of self destruction, then it implies that the country will be overlooked in the future.

Of course any business must diversify, and be prudent enough in not putting all it's eggs in one basket, as that would be far too risky on an investors point of view. I hope that the country does start to realize that such consistent instability will give rise to investors looking elsewhere, which is evidently happening. Very sad for Thailand of course, since they will become the victims by virtue of their own incompetence.

The sadness is in the latter part of your post, unfortunately, for those of us who have invested and tried here. It isn't the country which needs to realise, it is those at the top. Inspite of some efforts to run the country by a minor honest few, the major dogma for those at the top has been to rape what they sew (i.e. take a large cut of what is/was potentially sound investment, along with foreign investment which has clearly become fragmented), as opposed to reaping long term rewards {rice scam being an example}. Alas, external approaches are very very sensitive now, with regard to Thailand, but not elsewhere in ASEAN (AEC state members)..

The crux is over the next few months, and if any hint of civil war is on the cards... Thailand will lose the lot... and will, indeed, have lost all future chances of being a major player in the AEC! Shame, such a shame.. but... such is... I'm not pouring my assets down the drain, and neither will anybody else!

[Thaiisnotrequired]

There is an element of truth in that Thailand may well get left behind though, if the doors are not well secured to the hinges soon.

Vietnam and Indonesia do look very attractive for current investment, and they have a much cheaper workforce than Thailand. It would make sense to new investors to park there, rather than here. IMO.

After 8 years of manufacturing in Thailand we are closing our factory and moving to Vietnam. The free trade agreement already in place with Australia only works one way meaning if you import from Australia you will pay irrespective of having the correct documentation in place. The certificate of origin means nothing in Thailand and must be accompanied with a further document that clearly states the words Free Trade Agreement. This document as far as I am aware does not exist.

In our case we have even had to pay import duty on returned parts covered by warranty that we can clearly prove were exported by us from Thailand.

I believe your company is making the best choice, and at the right time. I hope that your suppliers are in-line already, or that you depend upon self-production for all parts of the business.

I wish you well, genuinely! I'm sure your tax cuts will be exemptional, whether importing or exporting, compared to Th. Sincerely, best of luck!

[spermwhale]

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There is an element of truth in that Thailand may well get left behind though, if the doors are not well secured to the hinges soon.

Vietnam and Indonesia do look very attractive for current investment, and they have a much cheaper workforce than Thailand. It would make sense to new investors to park there, rather than here. IMO.

After 8 years of manufacturing in Thailand we are closing our factory and moving to Vietnam. The free trade agreement already in place with Australia only works one way meaning if you import from Australia you will pay irrespective of having the correct documentation in place. The certificate of origin means nothing in Thailand and must be accompanied with a further document that clearly states the words Free Trade Agreement. This document as far as I am aware does not exist.

In our case we have even had to pay import duty on returned parts covered by warranty that we can clearly prove were exported by us from Thailand.

If what you are saying is true, this is the type of stuff that the English-language dailies should be reporting on. This is real news that the agreement is one-sided and a detriment to anyone who wants to import from Australia. What's funny is that the Thais were complaining of the Chinese doing the same thing to their products. What a sad state of affairs.

[carstenp]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

There is an element of truth in that Thailand may well get left behind though, if the doors are not well secured to the hinges soon.

Vietnam and Indonesia do look very attractive for current investment, and they have a much cheaper workforce than Thailand. It would make sense to new investors to park there, rather than here. IMO.

After 8 years of manufacturing in Thailand we are closing our factory and moving to Vietnam. The free trade agreement already in place with Australia only works one way meaning if you import from Australia you will pay irrespective of having the correct documentation in place. The certificate of origin means nothing in Thailand and must be accompanied with a further document that clearly states the words Free Trade Agreement. This document as far as I am aware does not exist.

In our case we have even had to pay import duty on returned parts covered by warranty that we can clearly prove were exported by us from Thailand.

If what you are saying is true, this is the type of stuff that the English-language dailies should be reporting on. This is real news that the agreement is one-sided and a detriment to anyone who wants to import from Australia. What's funny is that the Thais were complaining of the Chinese doing the same thing to their products. What a sad state of affairs.

Hmm. So if Thailand do this to Australia , what will happen to the free trade to UN. This BS wil not be tolerated in UN.

Why can't thailand see they are shooting them self in the food. They live in a world there is global, not only thailand.

Good luck to you new factory in Vietnam.

[Malthus101]

&lt;deleted&gt; is the "European Asean Business Centre"?

Yet more underhand global governance; laws passed into being in the dead of night without the populace of any of the countries involved knowing about it...