Thai economy: FDI decline will hit wealth

[webfact]

ECONOMY
FDI decline will hit wealth: expert
Sucheera Pinijparakarn
The Nation

BANGKOK: -- Thailand is facing a challenge in building wealth in the country in the medium term because of the decline in competitiveness following lower foreign direct investment, as the country is unable to supply skilled labour.

Speaking at the SCB Economic Intelligence Centre (EIC) annual economic conference on "Focusing on strategic game plans amid national reforms", Vichit Suraphongchai, chairman of Siam Commercial Bank's executive committee, warned that lower FDI would lead to lower technology transfer to the country, while research and development is not enough to support competitiveness. As a consequence of the country being unable to secure the FDI, wealth in the country is expected to decline in the next five years.

From 2008-13, FDI in Thailand dropped to 20 per cent from 39 per cent during 2001-07, with foreign investors flocking to neighbouring countries.

"We must pay attention to developing skilled labour, as this could help sustain the country's wealth," he said.

Boonchai Chokwatana, chairman of Saha Pathanapibul, said that education is the biggest problem for the country as educational institutions are supplying labour that does not match the demand of the market. Many retailers have to build their own educational institutions to supply human resources for their businesses. Sahapat is building its own retail institution to ensure it will have enough human resources supply to the company, he cited as an example.

He said that Thai operators still enjoy domestic demand, as a result several companies are not preparing themselves to deal with the Asean Economic Community (AEC). He suggested the creation of a national committee to set the strategy and motivate Thai operators to think outside the box.

Isara Vongkusolkit, chairman of the Thai Chamber of Commerce, said the country is in the stage of national reforms, and the private sector should this time change its mindset in doing business.

Source: http://www.nationmultimedia.com/business/FDI-decline-will-hit-wealth-expert-30244656.html


-- The Nation 2014-10-03

[NeverSure]

Of course. Thais aren't educated enough to work on an assembly line.

It has nothing to do with raising the minimum wage to multiples of what it is in Myanmar, Cambodia or 'Nam.

It has nothing to do with punitive import duties.

It has nothing to do with just how hard it is to set up a business in Thailand.

It has nothing to do with work ethic.

Just get Thais more educated. By next week.

[trogers]

Of course. Thais aren't educated enough to work on an assembly line.

It has nothing to do with raising the minimum wage to multiples of what it is in Myanmar, Cambodia or 'Nam.

It has nothing to do with punitive import duties.

It has nothing to do with just how hard it is to set up a business in Thailand.

It has nothing to do with work ethic.

Just get Thais more educated. By next week.

And free education and 'never fail a student' policies are producing quality workers of the future.

That which is free carries no value and no pain. One who does not need to study and pass the grade for a school certificate, would not study.

Edited October 3, 2014 by trogers

[cloudhopper]

"Boonchai Chokwatana, chairman of Saha Pathanapibul, said that education is the biggest problem for the country as educational institutions are supplying labour that does not match the demand of the market."

That demand of course being for an educated or at least trainable work force.

[BSJ]

There's a range of issues that will cost Thailand big money in the future. The poor state of learning and the low standard of graduates is but one of them.

As a small business owner (my business is in Australia) I don't even bother to enquire with Thai companies as their un-competitive compared to the Chinese and Taiwanese.

Also they are less than adequate at communication. Either by phone or email.

The governments attitude to SME with foreign ownership is retarded! The cost of postage to Western countries is way higher than it should be.

I'd go broke if I set up a warehouse and distribution centre here!

[noitom]

Work ethic - non existent in Thailand.

[Fab5BKK]

Do you, really, believe that "they" have interest to make people more educated, therefore more aware, therefore more critical? Maintaining status quo is key here!

[rickirs]

Thailand is facing a challenge in building wealth ?

How can that be? Some Thai students just invented a new kind of sticky rice cooker, the Siriraj Hospital just patented a cure and vaccine for ebola, and a patent applied for a new robot bomb detector. Thailand is Asia's center for R&D! Next thing you'll know is that Thailand will put an elephant into earth orbit, using balloons. Ever onward Thailand!

[Chris Lawrence]

Of course. Thais aren't educated enough to work on an assembly line.

It has nothing to do with raising the minimum wage to multiples of what it is in Myanmar, Cambodia or 'Nam.

It has nothing to do with punitive import duties.

It has nothing to do with just how hard it is to set up a business in Thailand.

It has nothing to do with work ethic.

Just get Thais more educated. By next week.

And free education and 'never fail a student' policies are producing quality workers of the future.

That which is free carries no value and no pain. One who does not need to study and pass the grade for a school certificate, would not study.

Mine was free education, or relatively cheap, I passed and got good grades?

Education is also politically motivated. If you educate the masses, they begin to question the decision making process. Hence not good for the right wing conservatives and capitalists, as they like to control the working class brigade.

Thailand is governed by a conservative bunch, hence the crowing about the need to educate but are scared to give up power.