More foreign firms allowed to do business in Thailand

[webfact]

More foreign firms allowed to do business in Thailand
By Digital Content



BANGKOK, July 18 -- Thailand has granted 39 more international companies to launch their businesses in the country, bringing the total number of foreign firms allowed to operate their businesses here to 225 in the first seven months of this year.

Department of Business Development (DBD) Director-General Pongpan Jiarawiriyipan said the latest meeting concerning foreign businesses agreed that 39 more foreign firms should be allowed to operate here, increase of some 50 per cent from the prior figure, hiking investments by four times to Bt5.676 billion, and increasing employment for Thais by 527 positions.

Out of the 39 recently allowed foreign businesses, 21 firms were subsidiaries or partnerships from Japan, Singapore, China, Malaysia, Australia, and the Netherlands, with a combined investment value of Bt4.605 billion.

Nine other firms were part of government enterprises and partnerships from France, Japan, China, the Netherlands, and Germany, with a combined investment value of Bt1.011 billion.

For the first seven months of this year, the DBD granted 225 international firms to conduct businesses in Thailand, creating an investment value of Bt13.49 billion, an increase of around 10 per cent in foreign firms allowed and a hike of 13 per cent in investment, respectively, compared to the year before. (MCOT online news)


-- TNA 2014-07-18

[terryp]

subsidiaries or partnerships, government enterprises and partnership

wow ...SO NONE make anything?

[ldnguy]

subsidiaries or partnerships, government enterprises and partnership

wow ...SO NONE make anything?

How did you come to the conclusion that they don't make anything? Why do you think the subsidiaries or partnerships can't make anything?

[rak sa_ngop]

Just out of interest, do these international firms have to form partnerships with Thai companies/investors or can they operate on their own?

[realfunster]

Just out of interest, do these international firms have to form partnerships with Thai companies/investors or can they operate on their own?

That will depend on many things such as where they fall in terms of the Foreign Business Act and what, if any, Board of Investment privileges they have applied for.

It is possible to get 100% foreign ownership but most companies can't.

They can usually protect their investment and decision making ability through other means though...

Also , Americans can get 100% ownership under the Treaty of Amity but again with restrictions on what type of business.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[jaltsc]

"...increasing employment for Thais by 527 positions."

527 positions for 39 firms? That's fewer than 15 per firm. Doesn't seem they will have much of an economic impact.

[buddy]

It is about time the Thai government made it easier for foriegn Small and Medium Enterprises (SME'S) to set up in business in Thailand, waiver the 90 day reporting for Directors, no minimum employee numbers etc etc, now that would generate real growth and employment for the people of Thailand.

Jeeees wake up Thailand imagine if only 500 foreign SME's set up employing 5 Thai persons each...get my implication. ?

[Thai at Heart]

How gracious of them to allow this.

[marcusd]

Just out of interest, do these international firms have to form partnerships with Thai companies/investors or can they operate on their own?

. If they are approved through the BOI then they can operate without ANY. Thai shareholders or partner

[marcusd]

Just out of interest, do these international firms have to form partnerships with Thai companies/investors or can they operate on their own?

That will depend on many things such as where they fall in terms of the Foreign Business Act and what, if any, Board of Investment privileges they have applied for.

It is possible to get 100% foreign ownership but most companies can't.

They can usually protect their investment and decision making ability through other means though...

Also , Americans can get 100% ownership under the Treaty of Amity but again with restrictions on what type of business.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

the Treaty of Amity is expiring, I think next year

[richard10365]

The Treaty of Amity is mentioned in the Asean trade agreements. I don't think it will expire.

[surangw]

allowed or begged ?

[ksamuiguy]

The treaty must be cancelled by both parties in writing and with notice, never happen, it is self renewing and is going no where.

Remember it a treaty between "His Magisty the King of Thailand and the President of the United States".

No Thai Government enity was involved in this treaty.

Read the treaty, it is clearly stated in the Pre-amble of the Treaty.

This treaty is made between His magisty The King Of Thailand and Lindom B Johnson President of the United States.

The benefit to Thai's in the United States are substantial and the do take advantage of them, a lot.

It appears the not many people have READ the Treaty, comment are irelevant unless you have read it, Copies are in both English and Thai and both are leagel copies.

[soalbundy]

How gracious of them to allow this.

They must be getting desperate to allow these untrustworthy foreigners in to do business

[jcisco]

Will there please be some movement on modernizing the Kingdoms business regulatory framework and the associated bureaucracy.

A review of the relevant corporate governance acts and associated issues as noted by operational, enforcement and reporting etc with the eye to fixing any noted issues along with making modification to align with other nations experiences in these topics.

Revamping of foreign ownership laws as it applies accross the board with land and finance etc

I could go on, but these are obvious and so many more.

Essentially the whole regultory environment fails to mobilize and monetize the nations workforce, infrastructure to generate revenues and security for the people. By inhibiting foreign ownership in all tranches of policy for companies it restricts immensely the liquidity of economic activity for the sake to potential attractiveness of retaining ownership within Thailand.

There is already more than enough experience accross the world in practise and academia to make this easy, obvious, and hardly a difficult path to take... except for potentially extensive changes to the law, modernization of public services to ensure complaince and service.. and finally a judicial system that is fast and effective for all.