Make Thailand trading HQ, hub for Asean: Pridiyathorn

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Make Thailand trading HQ, hub for Asean: Pridiyathorn
Erich Parpart
The Nation

BANGKOK: -- Thailand's way forward is to become a major trading nation within Asean, Deputy Prime Minister MR Pridiyathorn Devakula said yesterday.

Speaking at the "AEC+3 Summit and Expo", Pridiyathorn said that to capitalise on the Asean Economic Community, the country had to eliminate the tariff and non-tariff barriers that discouraged foreign companies from setting up trading headquarters here.

"We have a lot of tax barriers and we also have a lot of non-tax barriers in the form of visa requirements, work-permit regulations, and the 90-days issue, which we will definitely eliminate in order to attract foreign headquarters, including international trading companies, to Thailand," he said.

Pridiyathorn told reporters on the sidelines of the seminar that Thailand's economy could expand by 5 per cent in 2015 if all went well with the government's transport-infrastructure projects, which will begin by the first quarter of next year.

He said Thailand was already the champion of the region in terms of consumer products, so if a lot of trading headquarters were set up here, the country had the potential to become a trading hub for the Asean region. However, it still has to improve the pace of its regulation-amending process to realise this goal.

"Being a trading hub for the region is our aim, and we are competitive enough, but we need more trading companies and headquarters to come here in order to convert Thailand into a trading nation," he said.

"We have progressed from pure agriculture before 1960 to agriculture plus industrial plus services, and the next step is to become a trading nation. That is the only way Thailand will go."

Panellists at the AEC+3 Summit and Expo agreed that lowering tariff and non-tariff barriers would be key to successful Asean economic integration, which will be launched by the end of 2015.

Chris Clague, senior analyst at the Economist Intelligence Unit, said the Asean region was among the world's leading economies, in seventh place (higher than Brazil but lower than the United Kingdom) with a combined nominal gross domestic product of more than US$2.2 billion (Bt72 billion) in 2013. The EIU expects an average growth rate of 5.5 per cent for the region over the next four years, which will propel it to the fifth place with a nominal GDP of around $4 billion by 2018.

Hard work ahead

However, there is hard work left to be done in terms of the pursuit for a single market and production base, since progress still needs to be made on tariff barriers and labour issues with the Mutual Recognition Arrangement. Competition policy is still at its initial stages, the region is behind in transport infrastructure, and whether economic development will be equitable still remains to be seen, he said.

Kirida Bhaopichitr, senior economist at the World Bank, said the region was making good progress in terms of free trade of goods. Six member countries have already reduced their tariff barriers to zero, while Cambodia, Laos, Myanmar and Vietnam will do so by the end of 2015. Nevertheless, there is still work to be done in terms of free flow of services, investments, and labour, where only eight professions are allowed to flow freely in the region.

Jayant Menon, lead economist at the Asian Development Bank, said the real differences the AEC will make would depend on implementation post-2015. The most important factors are the lowering of barriers and regulations, which have to be a commitment of the member nations, and the private sectors within those countries need to push their governments to amend the rules that are hampering the integration process.

Source: http://www.nationmultimedia.com/business/Make-Thailand-trading-HQ-hub-for-Asean-Pridiyathor-30246885.html


-- The Nation 2014-11-04

[Pattaya28]

Thailand needs to learn much more before it can be the "Hub".

But then again, what competition does Thailand have ? Not a lot.

[whatawonderfulday]

Favorite pet word for the General is " Hub".

I wonder if his comprehension and understanding of even a three lettered word such us hub is commensurate with that of the position of Prime Minister ?

Clearly, along with his other gun toting lackeys, a total short sighted soul with no understanding of what or how to create any such hub in Thailand other than the hub of stupidity and ignorance an ministerial level. And the world laughs on at him.

[chainarong]

Everything Pridiyathorn needs upgrading, from immigration to visa's to land ownership , don't just do this for big business, all expats need more liberal rules to live in Thailand , best if you cross check (Google) with Granada in the Caribbean and see what they have, makes Thailand look third rate and out of date.

[RustBucket]

Thailand needs to learn much more before it can be the "Hub".

But then again, what competition does Thailand have ? Not a lot.

Indonesia, with its much bigger and cheaper workforce, and probably more efficient too, as for trading of manufactured goods goes.

Singapore as far as financial trading is concerned.

I would probably say Vietnam and Phil;s would be up there with the vastly superior agricultural advancements in Vietnam and the English speaking capabilities of Phils

Just more BS being trumpeted out of Bangkok as usual.

[Christie Paul]

Thailand could indeed be a hub for international trade - it is by far the most desirable place for expats to live.

But...

The gag inducing toxic stench from the department of immigration and its rules, regulations, complexity and ever changing enforcement, effectively drives away investment, capital and talent.

The bureaucracy associated with doing business in Thailand is crippling. Whilst companies in Hong Kong and Singapore are focusing on how to be competitive - companies in Thailand are preoccupied with negotiating a maze of arcane and absurd regulations.

Thais are generally not fluent in English, the language of international business, effectively making them unemployable. This is because english teachers are harassed, denigrated and their lives here made miserable.

[Valentine]

Favorite pet word for the General is " Hub".

I wonder if his comprehension and understanding of even a three lettered word such us hub is commensurate with that of the position of Prime Minister ?

Clearly, along with his other gun toting lackeys, a total short sighted soul with no understanding of what or how to create any such hub in Thailand other than the hub of stupidity and ignorance an ministerial level. And the world laughs on at him.

Politicians here have misused the word hub for a long time before the coup.

[BSJ]

Hub a dub dub, Thailand as a hub, seems like a lot of dub dub more than a hub.

[yellowboat]

Thailand needs to learn much more before it can be the "Hub".

But then again, what competition does Thailand have ? Not a lot.

You are correct, but you do see some silver linings in nieghboring countries. Vietnam produces software. Cambodia import duties and you see more varity of goods from the region and abroad. Should the nieghbors get their act together, they could compete with Thailand.

"We have a lot of tax barriers and we also have a lot of non-tax barriers in the form of visa requirements, work-permit regulations, and the 90-days issue, which we will definitely eliminate in order to attract foreign headquarters, including international trading companies, to Thailand," he said.

He has identified the problem. Let's see if he can implement a solution.

[Expat1]

A hub? Surely you jest.

I have had discussions with finance industry associates here and other ASEAN countries over the past 2 years regards to AEC and to a man they all concur Thailand is the least ready for this of any other included country.

Thailand has done virtually nothing in increasing English as a business language, no action on tariffs or labour laws, no laws or regulation studies to assist ASEAN firms to do business out of Thailand, in short... Mai penrai, Kup.

Now given that there was a coup and there are internal problems to address, which is a relatively recent event, Thailand has had years to try and ready themselves and take advantage of this and has done virtually nothing. The concenus is, by businessmen and finance types in the region of my acquaintance, that Thailand does not appear it plans to do anything much at all. That is a shame, the Thai people are capable and could certainly use the additional income this was instituted to bring about.

[ourmanflint]

It's all just talk, as many have said numerous times, Thailand will never be open enough to be an international player of any kind. The engrained xenophobia here against all non Thais means that companies will never be free to set up here and employ who they want, the way they want. There is not the smallest sliver of trust for non Thais, and when trying to set yourself up as an international hub of anything, there needs to be an element of open engagement and trust of foreigners that they will get back more than they will have to give away. Just look at Singapore to understand how this works.

Singapore and to a lesser extent Jakarta are wholly more suitable to this than Thailand will ever be.

Edited November 4, 2014 by ourmanflint

[ratcatcher]

Thailand could indeed be a hub for international trade - it is by far the most desirable place for expats to live.

But...

The gag inducing toxic stench from the department of immigration and its rules, regulations, complexity and ever changing enforcement, effectively drives away investment, capital and talent.

The bureaucracy associated with doing business in Thailand is crippling. Whilst companies in Hong Kong and Singapore are focusing on how to be competitive - companies in Thailand are preoccupied with negotiating a maze of arcane and absurd regulations.

Thais are generally not fluent in English, the language of international business, effectively making them unemployable. This is because english teachers are harassed, denigrated and their lives here made miserable.

"Thais are generally not fluent in English,......."

Thais are generally unable to speak English. Why should they, is the answer.

Go into any bank, department store, AIS, DTAC, TRUE, CTH office, Hospital (except the likes of Bumrungrad etc) and you will be lucky to find many English speaking Thais.

The last time I went to Central General Hospital I was passed to a very capable Philippino lady.

Fluency is commendable and desirable, simple communication for most would be a more valuable asset.

Many are terrified of speaking English, it is not an easy language for many of them to grasp, as is Thai for many farangs. Schools focus on grammatical correctness to a large degree (which when received some years later isn't much use to the recipient). Most students could use a course in simple conversational English.

[Christie Paul]

I remember when Singapore was an impoverished dump.

They made English the official language, decapitated the ruling oligarchy and made rules and regulations which attracted capital, business and talent.

Now they could buy Thailand.

[MediaWatcher]

ourmanflint, on 04 Nov 2014 - 10:56, said:

It's all just talk, as many have said numerous times, Thailand will never be open enough to be an international player of any kind. The engrained xenophobia here against all non Thais means that companies will never be free to set up here and employ who they want, the way they want. There is not the smallest sliver of trust for non Thais, and when trying to set yourself up as an international hub of anything, there needs to be an element of open engagement and trust of foreigners that they will get back more than they will have to give away. Just look at Singapore to understand how this works.

Singapore and to a lesser extent Jakarta are wholly more suitable to this than Thailand will ever be.

If any international company wants to "get in bed" with a Thai company, they should follow the history between Carlsberg and Thai brewing (Chang).

http://scandasia.com/403-carlsberg-breweries-ends-joint-venture-with-chang-beverages/

[casindonet]

It's only Tuesday....a little too early for a hub news. I'm predicting 2 hubs this week

[Christie Paul]

The ruling oligarchy are going to resist progress. They want the majority of Thais to be ignorant. That works for them.

Foreigners are to be asset stripped. This has been a long standing policy.

Only when it is overtaken by Cambodia (don't laugh), will they realise the need to change their policies.

[maidee]

setup your company here and lose 51% control of your company on day one

good investment, right ?

[alantheembalmer]

How many more hubs can Thailand take?

[JOC]

Trading HQ.............hub for ASEAN

And all that in a country, where people need to take their shoes off to count to 11

[rickirs]

Opportunity is there for the ASEAN Community and Thailand.

ASEAN is the second-fastest growing economy in Asia, after China. It has expanded 300% since 2001. However, ASEAN’s per capita GDP ($3,852) is next to the lowest to lie between China ($6,569) and India ($1,414) in 2013.

Compared to the seven major economies for 2013 in the Pacific-Asia Region, both ASEAN-5* and ASEAN-10* placed third (currency in billion USD).

China 8,900 B

Japan 5,000 B

ASEAN-5 2,037 B

ASEAN-10 2,400 B

India 1,800 B

Australia 1,500 B

South Korea 1,200 B

Taiwan 485 B

* ASEAN - 5: Indonesia, Thailand, Vietnam, Malaysia, Singapore

ASEAN-10: Indonesia, Thailand, Vietnam, Malaysia, Singapore, Philippines, Myanmar, Cambodia, Laos, Brunei Darussiam

(ref. ASEAN Matters for America - East/West Center)

[Dah fahrang]

"We have a lot of tax barriers and we also have a lot of non-tax barriers in the form of visa requirements, work-permit regulations, and the 90-days issue, which we will definitely eliminate in order to attract foreign headquarters, including international trading companies, to Thailand," he said.

Now what specific 90 day issue does he have in his sights? Could it just be, the utterly time and effort wasting 90 day reporting?

Wonder when it will be eliminated?

[MrY]

Not again!?

Just change it to 'Hubland' and be done with it...

[Gweiloman]

Hub a dub dub, Thailand as a hub, seems like a lot of dub dub more than a hub.

Unquestionably, Thailand is the hub for rub and tug.

[selftaopath]

Everything Pridiyathorn needs upgrading, from immigration to visa's to land ownership , don't just do this for big business, all expats need more liberal rules to live in Thailand , best if you cross check (Google) with Granada in the Caribbean and see what they have, makes Thailand look third rate and out of date.

I vaguely recall reading - a few years ago - that Google initiated discussion on it having/developing a data base here. The govt. did NOT respond to Google. After a period of time Google moved onto other locations. I wonder if this way of action still persists amongst the power brokers of Thailand?

Thailand is GREAT at talk, but a bit slow/inept in action. Maybe they one superstition they believe in is "the magic wand."

[Thai at Heart]

Everything Pridiyathorn needs upgrading, from immigration to visa's to land ownership , don't just do this for big business, all expats need more liberal rules to live in Thailand , best if you cross check (Google) with Granada in the Caribbean and see what they have, makes Thailand look third rate and out of date.

I vaguely recall reading - a few years ago - that Google initiated discussion on it having/developing a data base here. The govt. did NOT respond to Google. After a period of time Google moved onto other locations. I wonder if this way of action still persists amongst the power brokers of Thailand?

Thailand is GREAT at talk, but a bit slow/inept in action. Maybe they one superstition they believe in is "the magic wand."

Thais lack empathy.

Hence why they believe that farangs are so enamoured with Thailand that they will tolerate these inconveniences forever.

After 16 years there, the amount of friend who couldn't understand why I needed a yearly visa and to jump through hoops every 90 days.

The average Thai has no understanding of how stupidly xenophobic their laws are.

[tomyummer]

I'd be happy enough if the government just decides to get with the technological times and go paperless for any legal process. Seeing stacks of paper at government offices just makes me think Thailand is a hub of paper pulp factories.

Edited November 5, 2014 by tomyummer

[timewilltell]

Pridiyathorn has shown there is some sense and understanding of the issues affecting Thailand's business model based on fear. Unfortunately the almost manic jealousy of foreigners and feelings of inadequacy shrouded in a false ego of superiority, will prevent logical thought by the other 99% of his colleagues.

Thailand has long decided that it does not really want to embrace foreign business but rather set up their systems for their rape. Thais will take anything they can and set their laws up accordingly - it is a personal based mindset in the nations laws and regulations, rather than a national mindset. For all the standing up for the flag nonsense and 'Pratairt Thai' chanting, Thais really care little for the country as exhibited by their utter disregard to keeping the place even marginally clean.

Thailand has for a long while and intentionally repressed its citizens in education for the benefit of the elite and the elite themselves have a backward mindset on the whole compared to their Singapore equivalents coupled with a mind numbingly Unbusinesslike workforce who struggle with basic maths and appear to lack any common sense at all. How can you progress and compete in business with a workforce who lack the ability to contribute to a business much more than the manipulation of their hands most often employed picking their noses?

Thailand seeks to protect this backwardness by stopping all competition. Even ASEAN is seen as an opportunity to 'take' by all the restrictions to protect. Maybe this protection is a left over from their fear of colonization in which case they are living a long time in the past and need to radically reset their mindset to cope with the huge advances made by their competitors. Open competition with foreign run businesses would cut the profits of a few Thai businesses but would also lead to huge benefits for the population as a whole since foreign businesses typically invest in their workforce, improving understanding and re-educating them too.

Rather than stopping foreign businesses, and I mean all of them not just the multi-nationals, better to allow them free operation, abolish work permits and require a proportion of Thai to foreign workers depending on business type for all businesses along with educational contributions, either vocational or language, to improve the standard of the existing workforce. Implement together with a worker / employer agreement to allow employers to tie workers to employment for a limited period in recognition of training provided to prevent abuse.

This would rapidly increase the skillsets of Older Thais which if done in conjunction with a huge effort to improve the education of children, would dramatically bring Thailand up to speed and provide an opportunity for global competition in rapid fashion.

In the medium term Thai businesses would be net beneficiaries and be more prosperous - if only they could see it and embrace it.

Edited November 5, 2014 by timewilltell

[alanferdi]

Thailand needs to learn much more before it can be the "Hub".

But then again, what competition does Thailand have ? Not a lot.

Thailand a hub.....you wish

Hub for criminality and corruption yes

A hub provides

Security, Communication in a universal language and freedom to operate....on these 3 levels they fail.

Singapore,

Malaysia

Seem to me a better choice - Better transparent banking, communication and work ethic is superior. Education levels and next generation integration a rational choice. Secure, save and workable.

Thailand needs to change their attitudes to investors and racist approach to anything that is not Thai!

Let Thailand be Thai in the ASEAN that would only attract Tourists

To be the hub one must have a worldwide view not just Thai

[RubbaJohnny]

Good luck with that,however hyperbole and endless claimed by Spokes persons that the boss is the center of a big wheel may require an auto response to over use.

Time for HUB CAP ?

[Old Man River]

It's all just talk, as many have said numerous times, Thailand will never be open enough to be an international player of any kind. The engrained xenophobia here against all non Thais means that companies will never be free to set up here and employ who they want, the way they want. There is not the smallest sliver of trust for non Thais, and when trying to set yourself up as an international hub of anything, there needs to be an element of open engagement and trust of foreigners that they will get back more than they will have to give away. Just look at Singapore to understand how this works.

Singapore and to a lesser extent Jakarta are wholly more suitable to this than Thailand will ever be.

I think this is spot on.

They have been successful in the auto industry, but the current suggested amendments to the FBA, driven by the reasons you mention, will kill any regional hub chances for Thailand. Just the fact the amendments are already being discussed will probably be enough to back investors off.