Ministry urges Thai businesses to invest in China as prospect still bright

[webfact]

Ministry urges Thai businesses to invest in China as prospect still bright



BANGKOK: -- The Ministry of Commerce has urged Thai private sector to make investments in China to take advantage of the dramatic rise in interest from foreign investors in the country.

The ministry’s movement came after increasing foreign businesses making significant in-roads into the Chinese market such as , the Starbucks coffee franchise which has plans to expand there with 500 more outlets to be setup.

Besides, the American company Uber Technologies Inc. has already invested 6.3 billion Yuan there stating China’s ‘New Normal’ policy to restructure local industries will greatly benefit the Chinese economy in the long-run.

Director-general of the Department of International Trade Promotion of the Ministry of Commerce Mrs Malee Chokelamlert stated that released statistics collected from its Kunming office showed a significant increase in foreign investment in China for 2015.

This amounts to more than US$12.6 billion which is a 6% expansion.

The sectors receiving the most interest are medical supplies and personal health sector, medicines, telecommunications as well as service sectors.

The information collected also showed a dramatic increase in Chinese consumer preferences for higher quality goods and services which represents a great opportunity for Thai investors.

Besides being given greater preference over investors from other nations, Thai businesses are recognized for their expertise in the restaurant, spas, hotels and e-commerce field, she added.

Source: http://englishnews.thaipbs.or.th/content/151926


-- Thai PBS 2016-02-23

[Ireland32]

Thailand always trying to help the Thais...

[leeneeds]

When the RMB floats, and to what rate the market accepts , like all things up and down with bulls and bears, the hidden thing here is the amount of cash in usa dollars, China holds and how to dump them before the float, or accept the risk, baht to the RMB is around 5 and a half , where around 6 rmb to the usa dollar , if you held 70 billion in usa dollars where would you dump them?

once the market knows this, investing in china may not look so rosy, and may get a better return on this region , Lao , Cambodia and Myanmar, ( My thoughts only ) a waiting game would be more benefit

[craigt3365]

When the RMB floats, and to what rate the market accepts , like all things up and down with bulls and bears, the hidden thing here is the amount of cash in usa dollars, China holds and how to dump them before the float, or accept the risk, baht to the RMB is around 5 and a half , where around 6 rmb to the usa dollar , if you held 70 billion in usa dollars where would you dump them?

once the market knows this, investing in china may not look so rosy, and may get a better return on this region , Lao , Cambodia and Myanmar, ( My thoughts only ) a waiting game would be more benefit

China is hurting. Their foreign reserves are getting very low. And who knows about the economic data. It's never been trusted. Could be dark times ahead for their country. Capital is flowing out, not in:

http://www.bloomberg.com/news/articles/2016-02-07/china-s-foreign-exchange-reserves-decline-to-3-23-trillion

Capital outflows increased to $158.7 billion in December, the most since September and were $1 trillion last year, according to estimates from Bloomberg Intelligence. That’s more than seven times the amount of cash that left in 2014.

[leeneeds]

When the RMB floats, and to what rate the market accepts , like all things up and down with bulls and bears, the hidden thing here is the amount of cash in usa dollars, China holds and how to dump them before the float, or accept the risk, baht to the RMB is around 5 and a half , where around 6 rmb to the usa dollar , if you held 70 billion in usa dollars where would you dump them?

once the market knows this, investing in china may not look so rosy, and may get a better return on this region , Lao , Cambodia and Myanmar, ( My thoughts only ) a waiting game would be more benefit

China is hurting. Their foreign reserves are getting very low. And who knows about the economic data. It's never been trusted. Could be dark times ahead for their country. Capital is flowing out, not in:

http://www.bloomberg.com/news/articles/2016-02-07/china-s-foreign-exchange-reserves-decline-to-3-23-trillion

Capital outflows increased to $158.7 billion in December, the most since September and were $1 trillion last year, according to estimates from Bloomberg Intelligence. That’s more than seven times the amount of cash that left in 2014.

thanks for that, i have lost touch watching money markets, but do think investing in this region would be a better risk.

[NongKhaiKid]

Remember now don't do anything underhand like using Chinese nationals as your nominees, well not if you can get away with it.

Never get things like that being allowed here !

[Britannia]

Expertise in the restaurant field! Have I missed something, French,Italian and Spaniards are not allowed to work in Thailand, are they?

[Thailand]

Money is cascading out of China as property and stocmarkets are very unstable.

Thailand is in a shitload of trouble surely recommending investing in Thailand would be more appropriate?

[ALLSEEINGEYE]

Yes Thais should invest in China but only be allowed to own 49% of the company they put up 100% of the money for just as they do to foreigners in Thailand.

They should be subject t this same prejudice in every country worldwide, see how well they like being treated that way.

I think the local laws would change pretty quickly if that were to happen.

[bobmac10]

Why not invest in Thailand?

I find it incredible that the government is advising Thais to invest in another country when the Thai economy needs capital right now.

Amazing.

[Srikcir]

The Ministry wants Thai private sector to make investments in China lsrgley because of the success of American companies in China.

Why not just invest directly in the American companies themselves? Buy their publically traded stocks online attendant with all the protections that the Securities Exchange Commission can provide. That may not be very adventurous but it would be a lot less risky than trying a business startup in China.

Or better yet, why not invest in THAILAND? The Prayut government has been heavily promoting domestic and foreign investment in Thailand because it desparately needs the capital for growth. Apparently the Minster of Commerce doesn't believe in such propoganda and neither does the investment community.

[impulse]

Yes Thais should invest in China but only be allowed to own 49% of the company they put up 100% of the money for just as they do to foreigners in Thailand.

Anyone who puts up 100% of the investment for 49% of the business is either a sap, or never gets off a barstool to speak to real Thai business people, or has such a crappy business plan that they can't convince a Thai to put up 51% in the form of cash, real estate, machinery, or other contributions.

Just like the rest of the world, there's a lot more Thai money looking for a place to invest it, than there are good ideas.

[klauskunkel]

Ministry urges Thai businesses to invest in China as prospect still bright

As a contrarian I now know exactly where not to invest. Thanks.

[Jimbo2014]

Just 20 years too late to the game.... as labor costs in China increase, shadow banking creates a massive potential credit crisis and the chinese government clamps down on foreign businesses. Perfect timing as always

[aRobotnamedWAR]

WHoever politician thinks this is a good idea should be shot. comparing thai business to UBER and starbucks? Yeah, im sure Gai Yang 5 star is Just like starbucks. Thats like comparing Yingluck to Aung San Suu Kyi.... WHICH THEY ARE!!!... I think yingluck should be compared to fungus on poop or maybe something parasitic.

[chainarong]

From a 100W globe down to a 25W and it ain't even an energy saving globe..........................................

[Whyamiandwhatamidoinghere]

All chinas asean partners and some western partners will regret the day they agreed to use the yuan as a trade currency and its bid to be the worlds reserve currency.

[arrowsdawdle]

TAT advertises to Thais and the commerce ministry encourages investing outside Thailand......what is wrong with this picture besides everything?

[arrowsdawdle]

All chinas asean partners and some western partners will regret the day they agreed to use the yuan as a trade currency and its bid to be the worlds reserve currency.

George Soros may be licking his chops though. Remember 1997?

[Whyamiandwhatamidoinghere]

Im going to pull the plug on my Google stock shares... Just have a bad feeling about china, usa and the future. Anyway 700 per share is way over priced...Had the same bad feeling in 2000.

[gandalf12]

If Thailand thought about it they wouldnt need to suggest investing in another country, it could all be invested in Thailand. But that would require the end to a lot of the protectionist measures that currently exist and be a little more liberal on foreign companies owning the company 100%. Not going to happen of course but if the currency of China drops significantly they can only blame themselves.

[Emster23]

Seems a minister of commerce in any "normal" country would be sacked for promoting investment in other country like China. That is the job of China's minister of commerce. His job, one would hope, is to increase jobs and investment of home country.

[FredNL]

One sentence makes me laugh.

"Thai businesses are recognized for their expertise in the restaurant, spas, hotels and e-commerce field"

I think it is best to rewrite this to: "Thai are recognized for their scams" They're the Nigerians in Asia or is this an insult? (for the Nigerians, I mean)

The expertise Thai have in the e-commerce field is not more than playing on their iPhones. (I know because my company is in the ISP / IPP)

Edited February 24, 2016 by FredNL

[ALLSEEINGEYE]

Yes Thais should invest in China but only be allowed to own 49% of the company they put up 100% of the money for just as they do to foreigners in Thailand.

Anyone who puts up 100% of the investment for 49% of the business is either a sap, or never gets off a barstool to speak to real Thai business people, or has such a crappy business plan that they can't convince a Thai to put up 51% in the form of cash, real estate, machinery, or other contributions.

Just like the rest of the world, there's a lot more Thai money looking for a place to invest it, than there are good ideas.

My point is that a country that will only allow a foreigner to own only 49% of a company regardless of how much they invest in, is a country that is not seriously looking for foreign investment and their citizens should be subject to the same limited investment in other countries, reciprocity!!!