World Bank urged to fix 'inaccurate' ranking of Thailand business startup procedure

[webfact]

World Bank urged to fix 'inaccurate' ranking of business startup procedure
The Nation

BANGKOK: -- The Commerce Ministry's Business Development Department has joined the Labour Protection and Welfare Department and the Office of the Public Sector Development Commission in urging the World Bank to revise its rating of the ease of starting a new business here.

The Bank recently downgraded the country to 75th among 189 countries, from 68th last year.

Pongpun Gearaviriyapun, directorgeneral of the department, said the Bank "was inaccurate in some points", which negatively affected the ranking.

"After the discussions with the three organisations, officials of the World Bank in Thailand said they would pass the conclusions on to the World Bank [headquarters] and were confident that Thailand's ranking would be upgraded next year," she said.

Source: http://www.nationmultimedia.com/breakingnews/World-Bank-urged-to-fix-inaccurate-ranking-of-busi-30266586.html


-- The Nation 2015-08-14

[useronthenet]

As a foreigner, business start up's in Thailand is complicated and costly. The xenophobic laws are just outragious, and there is no incentive to do business in such a hostile country.

[Usernames]

"inaccurate in some points?" Anybody want to explain which ones?

[masquerade]

The hub of downgrades. It is a humanly impossibility to get through to thick headed, arrogant alternative life forms that wholesale change is needed and that the problem is them and not the rest of the world. On the other hand maybe it's better to just let them go, withdraw all aid, businesses and expertise, black ball tourism and ban all import and export. When the country implodes, China can pick up the pieces and start again. That is what their attitude deserves.

[HiSoLowSoNoSo]

World Bank to Thailand: up2u

[Sakeopete]

The World Bank forgot to add Thainess to the ranking, shame shame Farang no good.

[Bluespunk]

"After the discussions with the three organisations, officials of the World Bank in Thailand said they would pass the conclusions on to the World Bank [headquarters] and were confident that Thailand's ranking would be upgraded next year," she said."

Hmm, now where have I heard such confident pronouncements on Thailand being upgraded or rewarded for their progress before?

[HiSoLowSoNoSo]

Did the world bank read the list of "Career aliens do not."

http://webcache.googleusercontent.com/search?q=cache%3Ahttp%3A%2F%2Fwww.mol.go.th%2Fen%2Fcontent%2Fpage%2F6347

before they came to this conclusion?

[DLock]

I remember starting my first business in Thailand and the process was time consuming, challenging and at times made no sense.

- Setting up the company with 100% of my money and I could only own 49% of the company

- I had to literally find and trust Thai nominees with 51% of my company (with preferred shares and blank resignation and share transfers in place)

- I needed 4 Thais to get a work permit....even if I didn't need 4 Thai's when I started up

- Company bank accounts were doable...eventually

- Yearly work permits, 90 day reporting and yearly audits that took forever

- Getting the money that I brought in to Thailand out again was easy...but getting profits out was not

- Dodgy accountants seemingly at every turn...failed to register my VAT when I passed 1.8million in revenue - thanks for the blacklist and travel ban and audit deposit which took 12 months to complete.

The subsequent ones were easier because I had staff to handle them, but that first one was painful.

So I doubt the World Bank has things wrong...I'd say it's just catching up to Thailand how archaic and investor-unfreindly this place has become....especially compared to some of its neighbors.

[Thai at Heart]

"After the discussions with the three organisations, officials of the World Bank in Thailand said they would pass the conclusions on to the World Bank [headquarters] and were confident that Thailand's ranking would be upgraded next year," she said."

Hmm, now where have I heard such confident pronouncements on Thailand being upgraded or rewarded for their progress before?

So after 30 years of reforming very little to do with business formation law, they reckon that all the time the World Bank was wrong, and as so will be re-educated about how simple and easy it is to start a business in Thailand.

[Laughing Gravy]

It seems that this country is obsessed with rankings. If things are so good here to start up businesses then people or companies will. No need to worry then I would say to the current government departments not worry about the world bank. Make setting up businesses here profitable, easy to do and free from beureaucratic practices then everyone will be happy.

[Jimlove]

So there should be 114 countries that are more xenophobic and hostile to foreign Investment than Thailand ... Hard to believe but I guess we talk about countries like Iraq, Afghanistan, North Korea and so on ...

I wonder why anybody would want to go through the problems and harassment it is to start business in this mess of a country ... especielly when you never know when the next coup is around the corner or even a civil war ----

[tomacht8]

I remember starting my first business in Thailand and the process was time consuming, challenging and at times made no sense.

- Setting up the company with 100% of my money and I could only own 49% of the company

- I had to literally find and trust Thai nominees with 51% of my company (with preferred shares and blank resignation and share transfers in place)

- I needed 4 Thais to get a work permit....even if I didn't need 4 Thai's when I started up

- Company bank accounts were doable...eventually

- Yearly work permits, 90 day reporting and yearly audits that took forever

- Getting the money that I brought in to Thailand out again was easy...but getting profits out was not

- Dodgy accountants seemingly at every turn...failed to register my VAT when I passed 1.8million in revenue - thanks for the blacklist and travel ban and audit deposit which took 12 months to complete.

The subsequent ones were easier because I had staff to handle them, but that first one was painful.

So I doubt the World Bank has things wrong...I'd say it's just catching up to Thailand how archaic and investor-unfreindly this place has become....especially compared to some of its neighbors.

So true.

For small start ups is a nightmare here.

[Rancid]

World Bank like the IMF is just an an arm of the US, just another shot across the bow.

[attento]

Maybe there is some misunderstanding about Rankings. Rankings are relative positioning. Which countries are they better than, why and how? They must name the names. It is not about how good Thailand is, but how much better other countries are. Anyway, Thailand is above halfway. Not bad considering the country's troubled political history, education system and social stability.

Edited August 15, 2015 by attento

[Lupatria]

Mae!!! These stupid farrangs misunderstand us again!

[oneday]

Just another misunderstanding of Thainess.

[willyumiii]

I am sure if the Thai government ran the World Bank they would have a fantastic and optimistic rating...always!

[BuckBee]

The reason I currently based in singapore is because thailand is so unreliable in legal practices related to business & employment for foreigners. Some of it is because of poor rules & some because rules not followed & then the goal posts keep changing :-S ranking sounds about right to me ...

[Benmart]

"After the discussions with the three organisations, officials of the World Bank in Thailand said they would pass the conclusions on to the World Bank [headquarters] and were confident that Thailand's ranking would be upgraded next year," she said.

Words often used by functionaries and unsupported by verifiable data:

Confident

Misunderstood

Unclear

Forecast

Realign

Hopeful

Misquote(d)

Assured

Reassured

Adjusted

Conclusion

Misinterpreted

Adjustment

Readjustment

etc.

[jaywalker]

I remember starting my first business in Thailand and the process was time consuming, challenging and at times made no sense.

- Setting up the company with 100% of my money and I could only own 49% of the company

- I had to literally find and trust Thai nominees with 51% of my company (with preferred shares and blank resignation and share transfers in place)

- I needed 4 Thais to get a work permit....even if I didn't need 4 Thai's when I started up

- Company bank accounts were doable...eventually

- Yearly work permits, 90 day reporting and yearly audits that took forever

- Getting the money that I brought in to Thailand out again was easy...but getting profits out was not

- Dodgy accountants seemingly at every turn...failed to register my VAT when I passed 1.8million in revenue - thanks for the blacklist and travel ban and audit deposit which took 12 months to complete.

The subsequent ones were easier because I had staff to handle them, but that first one was painful.

So I doubt the World Bank has things wrong...I'd say it's just catching up to Thailand how archaic and investor-unfreindly this place has become....especially compared to some of its neighbors.

Can't believe this has not come up yet....Tea Money.

If a farang has a business, "must to pay police" for sure. I'm certain most locals do as well.

I looked into opening a charter sailboat business out of the Ocean Marina (what a unique name eh?) back in 2005.

The S. African farang w/ a boat yard nearby had to pay 5,000 a month, otherwise the cops would ignore him if he called them for anything.

I was warned, in perfect English by the Marina staff that the cops would be watching every move I made, just waiting for me to lift a finger without a work permit.

I gave up on the idea of ever doing business in Thailand after that.

At least I didn't buy a go-go bar!

[Time Traveller]

Maybe there is some misunderstanding about Rankings. Rankings are relative positioning. Which countries are they better than, why and how? They must name the names. It is not about how good Thailand is, but how much better other countries are. Anyway, Thailand is above halfway. Not bad considering the country's troubled political history, education system and social stability.

the ranking system is pointless because it implies that the ease to start up a business is the same for everyone. It's not. Clearly Thailand will be ranked close to number 1 for thai business people, but ranked much much lower for foreign business people. And many other countries would be in the same situation due to similar restrictions. So the ranking is just meaningless for anyone to use.

[DLock]

I remember starting my first business in Thailand and the process was time consuming, challenging and at times made no sense.

- Setting up the company with 100% of my money and I could only own 49% of the company

- I had to literally find and trust Thai nominees with 51% of my company (with preferred shares and blank resignation and share transfers in place)

- I needed 4 Thais to get a work permit....even if I didn't need 4 Thai's when I started up

- Company bank accounts were doable...eventually

- Yearly work permits, 90 day reporting and yearly audits that took forever

- Getting the money that I brought in to Thailand out again was easy...but getting profits out was not

- Dodgy accountants seemingly at every turn...failed to register my VAT when I passed 1.8million in revenue - thanks for the blacklist and travel ban and audit deposit which took 12 months to complete.

The subsequent ones were easier because I had staff to handle them, but that first one was painful.

So I doubt the World Bank has things wrong...I'd say it's just catching up to Thailand how archaic and investor-unfreindly this place has become....especially compared to some of its neighbors.

Can't believe this has not come up yet....Tea Money.

If a farang has a business, "must to pay police" for sure. I'm certain most locals do as well.

I looked into opening a charter sailboat business out of the Ocean Marina (what a unique name eh?) back in 2005.

The S. African farang w/ a boat yard nearby had to pay 5,000 a month, otherwise the cops would ignore him if he called them for anything.

I was warned, in perfect English by the Marina staff that the cops would be watching every move I made, just waiting for me to lift a finger without a work permit.

I gave up on the idea of ever doing business in Thailand after that.

At least I didn't buy a go-go bar!

I didn't have to pay the police "tea money".

But initially I wanted to run the start-up from my house for the first 12-months...thats what start ups do to keep costs low.

Not allowed.

I had to rent an office for 3 years, get a sign on the door and submit photos of the office where I had to buy furniture, and they came and checked that I actually had an office, and had employees.

...and I still had to pay them "lunch money" when I did everything correct. They came back every year, ironically around Xmas time to "check up", and recommended my staff we give them a Christmas gift.

I'm not sure Thai officials understand the concept "start-up".

[spidermike007]

Pongpun Gearaviriyapun, directorgeneral of the department, said the Bank "was inaccurate in some points", which negatively affected the ranking.

What Popgun really meant to say was "I am a man child and like a percentage of Thai people, I cannot take responsibility for my shortcomings, or my faults. Same with my government, we cannot admit when a problem exists, therefore the problem cannot be corrected. It is up to the outside world to revise their interpretation, not up to us to change and improve".

There is no doubt there is alot of room for improvement here. Look, the real question is, do you want foreign assistance, and expertise, or don't you? Why such conflict? Why such childish fear? Man up. Come to the realization that this is an international arena, and doing business worldwide is the way of the future. Deal with your fear, become a mature nation, integrate, and improve.

Edited August 16, 2015 by spidermike007

[tigermoth]

I started a Thai business some years ago. (which I no longer have). It was a nightmare. I had to get 4 thai partners. My real Thai partner was a good friend in the agricultural industry. He got 3 further anonymous and non educatedfarm workers who had no idea what it was all about to sign the relevant documents. Armed with all the required documentation I went off to register my company. Was told to come back in 2 weeks. Duly returned and told it was not ready and to return in another 2 weeks. Returned and was told there was not enough documentation. Went off and got whatever irrelevant documents they had asked for and was told to return in 2 more weeks. This saga went on for about 6 months. My friend said that if I had offered about 10,000 baht I would have had no trouble. I refused to do this hence the 6 to 8 months. I finally got my company registered and never saw any government official again.