Thailand eyeing tighter restrictions on foreign businesses

[BlackJack]

[wabothai]

Go ahead you fools, you are even more alienating yourself from the outside world, not to forget that you will sink deeper in your swamp.

INCREDIBLE !!!!!!

[khunJeroen]

Execellent. For those who complain, no one asked you to start a 'business' in Thailand. Somehow foreigners stil think that Thai need them, think twice. Most Thai having university degrees are very well educated whether it is IT, economics etc and can work at any Multi National. For the small 'businesses' I think it is completely logic government helps to protect Thai interest.

[dannyman]

CHINA

[monk213]

haha, how many feet does this country have to shoot themselves in?

[Thai at Heart]

Classic case of the left hand doesn't know whet the right hand is doing, one minuet they encourage

people from all over the world to come to invest in Thailand and the next they come out with new

draconian masseurs how to stuff it all up... too many bureaucrats are spoiling the broth here...

No, they are not, investors are welcome to bring their money, but leave the money to be managed by Thais and they will send you a report of how well they manage it. They want you to sit and relax while they screw you.

It is that kind of nationalism that is killing this country.

But for the big industries, they will be sure to make some kind of loophole because you think Mercedes Benz, Toyota and big business like that will give the control of their companies to satisfy the nationalism of the Thais.

Those companies are all under the BOI (Board of Investment) and 100% foreign ownership has always been available.

What they really will do is going after those front-end companies with their Thai wife and the farang owns 49% in the company.

Nana Plaza is another typical example. Its controlled by foreigners (US citizens) and also they only own 49% they have preferential shares.

Their are thousands of guesthouses and small hotels that are running under the same structure.

I believe those businesses are of risks but not the large scale companies.

With a BOI company you get twice tax incentives up to 100% for 7 years and an additional 3 years.

There are plenty of very sigificant investments in the country which are done on th 51:49 model with share classes. Tesco, Holcim, DTAC and many others are set up this way.

If they really go down this path, it will be absolutely catastrophic for the investment climate in the country. Quite what they think this will really achieve in the long run is beyond me, because many will just hop across a border and open elsewhere and take all the know how with them, even the Thai employees if they need to.

If they do this, they really will have made their own bed and get everything they deserve in terms of any inevitable fallout.

[Pinot]

My advice has always been not to try and own a business here. For me it comes down to having to deal with the Thais and all that that involves.

I also recommend never buying property in Thailand for the many reasons experienced expats know. I have many friends who use to own and couldn't wait to get out, usually at a loss.

Many opportunities out there, Thailand isn't one of them.

There is always exceptions to the rule but realistically it's an extremely difficult place to start or operate a successful business. Investment here is usually a mistake and it looks like it's just getting tougher.

[Jessi]

Thailand slowly but surely show it real face.

Thailand is one of the most fashism countries in the world.

I hope many companies realize that, and move to another place.

Let the international community teach this fashism a lesson.

Thailand slowly but surely show it real face.

Which one?

[apetley]

Execellent. For those who complain, no one asked you to start a 'business' in Thailand. Somehow foreigners stil think that Thai need them, think twice. Most Thai having university degrees are very well educated whether it is IT, economics etc and can work at any Multi National. For the small 'businesses' I think it is completely logic government helps to protect Thai interest.

The Govt are constantly asking Japan and China to invest in Thailand. Why is that if they do not need foreign investment and expertise?

[wabothai]

Having faith in future more lenient laws, i keep on hanging in there with an investment of which i am not the owner.

Thailand, wake up !!!!!!!!!!!

[DeeMak9]

Execellent. For those who complain, no one asked you to start a 'business' in Thailand. Somehow foreigners stil think that Thai need them, think twice. Most Thai having university degrees are very well educated whether it is IT, economics etc and can work at any Multi National. For the small 'businesses' I think it is completely logic government helps to protect Thai interest.

Haha. Youre funny.

[Jessi]

My advice has always been not to try and own a business here. For me it comes down to having to deal with the Thais and all that that involves.

I also recommend never buying property in Thailand for the many reasons experienced expats know. I have many friends who use to own and couldn't wait to get out, usually at a loss.

Many opportunities out there, Thailand isn't one of them.

There is always exceptions to the rule but realistically it's an extremely difficult place to start or operate a successful business. Investment here is usually a mistake and it looks like it's just getting tougher.

I totally agree with you 100%.... Why invest money here as a foreigner you have NO RIGHTS.

[EnglishJohn]

I'm increasingly convinced that the people in charge here want to keep the country backwards in terms of technology and business. They want their workers to be happy doing everything like they did 50 years ago and getting paid a low salary. That way they can maintain the huge gap between the rich and the poor into the future.

These pesky farang just want to change things to be like the civilised world with equal rights, higher standards of living and decent wages. The elite don't want any of that.

Why can't farang just come here, be relieved of all their money as quickly as possible, then go home again ? - and stop complaining about the government. Sooner or later the Thais are going to cotton on and join in too.

[Chris Lawrence]

That's what you get from a puppet whose master orchestrated a change. Now the master elite are taking full advantage to shore up their interests.

[NamKAheng]

Those companies are all under the BOI (Board of Investment) and 100% foreign ownership has always been available.

What they really will do is going after those front-end companies with their Thai wife and the farang owns 49% in the company.

Nana Plaza is another typical example. Its controlled by foreigners (US citizens) and also they only own 49% they have preferential shares.

Their are thousands of guesthouses and small hotels that are running under the same structure.

I believe those businesses are of risks but not the large scale companies.

With a BOI company you get twice tax incentives up to 100% for 7 years and an additional 3 years.

I did not know that, thanks for the precision.

So looking at what you wrote, it is definitively aimed at foreign owned small businesses. It is almost some kind of econo-racism against the farang owner.

[manarak]

At last this article makes one thing clear:

Using preferred shares for controlling a business is not illegal (yet).

As for the proposed changes, I think they are a very very very bad idea.

I like the formulation "The current law forbids foreign majority ownership in sectors where Thai businesses are deemed not ready to compete with foreign companies."

They are taking the piss - this makes it sound as if foreigners were allowed to own a majority share in farms, rubber plantations, furniture factories, car repair shops ...

Infuriating, in fact.

[jcisco]

What problem are they trying to fix exactly? An individual or group that inject a % of cash, deserve that % of control.... or did I misunderstand something about vote and shares on a very fundamental level?

[jeevanlobo]

This should of happened a long time ago. All these farangs taking money off hard working Thais!

Thailand has long been the country of innovation and self sustainability! Western nations should be grateful to be allowed to business at all in the Kingdom, they try to learn the Thai's business practices, customer service, law enforcement, in which all fields Thais lead the world.

555

May be hardly working.....????

[Jessi]

Sure, why not. Thailand is totally self-sustainable and has no real need for foreign capital. Thailand has found a cure for Ebola and Aids, it has successfully franchised the Tour de France to France, it has singlehandedly invented Facebook and the Internet (in that order), and it's space program is second to none. Furthermore, it can boast of more brain power in a single BiB booth, than all of Silicon Valley and Wall Street combined, in fact every BiB is a rocket scientist. Let's not even mention culture and the Arts, just one word: Thai TV Drama - unparalleled!

There is just nothing that can rival this country's visionary leadership.

So very true... Thailand the HUB of Bullshit.

[soalbundy]

Execellent. For those who complain, no one asked you to start a 'business' in Thailand. Somehow foreigners stil think that Thai need them, think twice. Most Thai having university degrees are very well educated whether it is IT, economics etc and can work at any Multi National. For the small 'businesses' I think it is completely logic government helps to protect Thai interest.

the degrees that you buy at universities where nobody fails. At the firm i worked for in Germany we had to train some Thai engineers for our plant in Thailand, our German engineers couldn't believe how poorly educated the Thais were, they weren't even up to technician level and yet called themselves mechanical engineers, they spent most of their time playing games on the computer.

[BuckBee]

Let um learn the hard way, i'm bored of the stupidity here.

Perhaps some real hardship will wake them up a bit ...

[globin]

Come on everybody, lets dance (humm your favourite tune and repeat after me)...one step forward and atwo steps back,... one step forward and two steps back...come on now people,,,, one step forwards and two steps back

[skippy]

If you cannot handle the local laws then farke off and stop moaning.

Thailand owes you jack.

[AloisAmrein]

Last week Prayuth said he encourages foreign investment in Thailand. Is this the way?

[shaurene]

This should of happened a long time ago. All these farangs taking money off hard working Thais!

Thailand has long been the country of innovation and self sustainability! Western nations should be grateful to be allowed to business at all in the Kingdom, they try to learn the Thai's business practices, customer service, law enforcement, in which all fields Thais lead the world.

555

Are you joking, business practices, customer service, law enforcement, lead the world.

1: a Thai property company swindled me out of 2m baht, and 2 law firms took over 300,000 from me and did a runner.

On 3 occasions I took products back within the warranty period and they smiled at me and said cannot help you. No warranty.

[stuck]

May I still assume that the Treaty of Amity is still in force between the USA and Thailand and I can still create an Amity Company and have 100 percent foreign ownership?

[gemini81]

the country that has soooo many contributions on the world stage: like jasmine rice...and?.....oh, and nothing else. If they want more protectionism despite the 49% share in effect, and admit they cant compete with foreign business... I'll laugh when the place is one day an occupied territory of China. Happy we're working in the west next year...architectural firms are on their s*itlist as well...

Edited November 20, 2014 by gemini81

[soalbundy]

If you cannot handle the local laws then farke off and stop moaning.

Thailand owes you jack.

who is Jack ? and how much does Thailand owe him

[peptidebomber]

This should of happened a long time ago. All these farangs taking money off hard working Thais!

Thailand has long been the country of innovation and self sustainability! Western nations should be grateful to be allowed to business at all in the Kingdom, they try to learn the Thai's business practices, customer service, law enforcement, in which all fields Thais lead the world.

555

Are you joking, business practices, customer service, law enforcement, lead the world.

1: a Thai property company swindled me out of 2m baht, and 2 law firms took over 300,000 from me and did a runner.

On 3 occasions I took products back within the warranty period and they smiled at me and said cannot help you. No warranty.

Yes shaurene, I was joking, thought it was rather obvious.

[gemini81]

If you cannot handle the local laws then farke off and stop moaning.

Thailand owes you jack.

Kiss up some more to 'em...how will it benefit you?