Thailand scrambles for tech investment

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Thailand scrambles for tech investment

YUKAKO ONO, Nikkei staff writer

 

Junta eyes outside help in escaping 'middle-income trap'

 

BANGKOK: -- Aiming to become a developed economy by 2036, Thailand is scrambling to lure more tech-related investment into the country.

 

One of the most ambitious projects is a large-scale special economic zone set to be developed on the eastern seaboard. Spanning three provinces, the economic zone has a budget of 1.5 trillion baht ($42.8 billion), to come from public and private infrastructure funds.

 

The prime minister himself is taking an active part in efforts to attract foreign business. "Thailand can't just rely on the conventional trading and the old ways of doing business. It's restricting our economic growth," Prayuth Chan-ocha told some 3,000 primarily foreign investors at a seminar in Bangkok on Feb. 15. 

 

Full story: http://asia.nikkei.com/magazine/20170223/Politics-Economy/Thailand-scrambles-for-tech-investment

 

-- NIKKEI ASIAN REVIEW 2017-02-23

[NCC1701A]

" "Thailand can't just rely on the conventional trading and the old ways of doing business. It's restricting our economic growth,"

 

I wonder what he means by that?

[NCC1701A]

I did see this in the full article:

 

"A committee headed by Prayuth is currently drawing up new legislation related to investment benefits, such as foreign land ownership. Those measures are to take effect by the second quarter of this year."

 

I wonder if this means private homes or just big business?

 

[trogers]

Please, please...Send your money here and we hold 51% ownership on it and let you keep that 49%...

[Kaoboi Bebobp]

Good idea but wishful thinking. The big problem is the quality of workers. Interpret that as you wish. For several years now, Vietnam has been inundated by new factories and expansions of other work, some of it having come from Thailand. Billions of dollars (not dong) are being spent there. One reason is the lower cost of labour, true. The winning reasons are the quality of work and workers. VN has a much higher educational standard, and better and motivated workers. 

 

The junta's first order of business should be to fix the educational system.

[fruitman]

31 minutes ago, Kaoboi Bebobp said:

The junta's first order of business should be to fix the educational system.

Yup, and get rid of the maipenlai culture, technics doesn't like maipenlai.

 

Also teach them english so internet can help learning/solving problems. Thai technicians can't speak a word english.

 

Do like Huawei and hire only the best technicians from all over the world, pay them what they ask or they go to china.

[Brer Fox]

Thailand can scramble as much as it likes for foreign investment but the fact remains foreign investors do not like investing in countries that are controlled by military governments. There are too many negative issues with sovereign risk and having a successful business stolen from them (Australian gold mine) and having to accept minority ownership (Thai 51%) being the most serious. 

The PM can use all the gushing persuasion he can muster but it is doubtful he will get many serious potential investor knocking on his door.

[johng]

I did see this in the full article:
 
"A committee headed by Prayuth is currently drawing up new legislation related to investment benefits, such as foreign land ownership. Those measures are to take effect by the second quarter of this year."
 
I wonder if this means private homes or just big business?
 

Ah the old "own land" switch and bait scam, lure the investors in with promises,in reality you can have a 30 year lease on land and "own" 49% of your business with such an enticing deal there must be some other reason for the 70% drop in foreign investment over the last couple of years.

[Enoon]

 

"Thailand can't just rely on the conventional trading and the old ways of doing business. It's restricting our economic growth,"

 

Getting other people to set up their business in your country, taking a "skim" for yourself, while doing little or nothing to develop indigenous capability (leaving the majority of the population where they were) sounds very much like the "old ways".

 

 

[SoilSpoil]

Trying to copy the South Korean model, isn't he? Difference is that with the likes of LG and Samsung innovation is the key word. Innovation strongly correlates with education, so it obvious that the ambitions of our dear general are a bit too high.

[selftaopath]

3 hours ago, Kaoboi Bebobp said:

Good idea but wishful thinking. The big problem is the quality of workers. Interpret that as you wish. For several years now, Vietnam has been inundated by new factories and expansions of other work, some of it having come from Thailand. Billions of dollars (not dong) are being spent there. One reason is the lower cost of labour, true. The winning reasons are the quality of work and workers. VN has a much higher educational standard, and better and motivated workers. 

 

The junta's first order of business should be to fix the educational system.

And perhaps the 2nd thing would be to destroy nepotism. 

[Redline]

5 hours ago, Kaoboi Bebobp said:

Good idea but wishful thinking. The big problem is the quality of workers. Interpret that as you wish. For several years now, Vietnam has been inundated by new factories and expansions of other work, some of it having come from Thailand. Billions of dollars (not dong) are being spent there. One reason is the lower cost of labour, true. The winning reasons are the quality of work and workers. VN has a much higher educational standard, and better and motivated workers. 

 

The junta's first order of business should be to fix the educational system.

Yes, the core of Thailand's problems stem from poor education!  And, it's getting worse!

[trogers]

2 minutes ago, Redline said:

Yes, the core of Thailand's problems stem from poor education!  And, it's getting worse!

No. The core problem is minimum education and expecting high pay...

 

That's why they have been priced out of those industries that suited their education levels...

[CantSpell]

5 hours ago, NCC1701A said:

" "Thailand can't just rely on the conventional trading and the old ways of doing business. It's restricting our economic growth,"

 

I wonder what he means by that?

I think he means that he needs another "Silicon Valley" than Soi Cowboy 555

 

That conventional trading and way of doing business only contribute to Issan economic growth..

Therefore, they should bring girls from other regions and they shall buy new mobile phone: tech investment 

[Redline]

12 minutes ago, trogers said:

No. The core problem is minimum education and expecting high pay...

 

That's why they have been priced out of those industries that suited their education levels...

Yes, high pay for not being able to perform at a basic level

[mikebell]

Note also the loss of small foreign businesses: there was an excellent restaurant in Bang Sare run by a French guy.  Good food; service & prices.  Thailand decreed he had to employ three Thais despite there being only enough work for himself & wife.  He did not generate enough profit to pay such a workforce and has shut down.  A loss to the village and Thailand.  Multiply that by every village and Vietnam will soon be full.

[chainarong]

7 hours ago, NCC1701A said:

" "Thailand can't just rely on the conventional trading and the old ways of doing business. It's restricting our economic growth,"

 

I wonder what he means by that?

Conventional are giving Thailand a big miss,  now going to Vietnam, Cambodia even Burma.

[Langsuan Man]

Can't imagine a "tech" company that would not need stable, secure and most importantly,  private Internet

 

Unfortunatley Thailand, under the current regime, misses everyone of those buttons so why would you locate a tech company here