Thai editorial: Can our neighbours help revive the economy?

[webfact]

EDITORIAL

Can our neighbours help revive the economy?
By The Nation

 

Thailand’s joint-development deal with Laos suffers as a result of our long, politically imposed absence from the spotlight

 

BANGKOK: -- Deputy Prime Minister Somkid Jatusripitak and his team made the right move last week in striking an agreement with Laos on a five-year joint-development master plan as strategic partners, but the arrangement’s tardiness will make it more difficult to implement. 

 

The plan agreed upon in Vientiane promises to boost investment between the countries to US$10 billion (Bt344 billion) by 2021. It’s part of economic tsar Somkid’s grand ambition to jointly develop the fast-growing Mekong sub-region, what he calls the “CLMVT [Cambodia Laos Myanmar Vietnam Thailand] sub-regional strategy”. Somkid was in Myanmar in February promoting the “CLMVT partnership” and was due to take the idea to Cambodia last month, but domestic issues there intervened.

 

The CLMV label was first used by the Association of Southeast Asian Nations as a term for member-countries that joined the group in last part of the 20th century. Those four nations were economically trailing behind older members of the bloc and became the beneficiaries of development assistance so they could close the gap on Thailand, Malaysia and Singapore.

 

The economic picture has changed dramatically since then. The CLMV countries are performing well amid booming foreign direct investment, better than Thailand, in fact. They average 6-7 per cent growth in terms of gross domestic product compared to 3 per cent in Thailand, whose economy has been choked by political turmoil. Somkid, the military junta’s point man on the economy, wants to tap into our neighbours’ rapid growth, and that’s why there’s now a “T” tacked on to CLMV.

 

In financial terms, there is little that’s new to Somkid’s plan. Thailand has enjoyed solid links with the Mekong countries since the end of the Cold War in the late 1980s. Multiple joint-development schemes have been initiated in an effort to turn a war zone into a modern marketplace. They’ve included the Greater Mekong sub-region sponsored by the Asian Development Bank and the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy, a brainchild of Somkid’s former boss in government, Thaksin Shinawatra.

 

For years Thailand played a crucial role in moving these schemes forward, but it’s ceded leadership to other players as a result of domestic political upheavals that cripple its efforts to cope with the global economic slowdown. And as Thailand lost out, China moved aggressively, pouring investment into the Mekong region and forging trade deals. It is Chinese companies that are building the roads, railways, bridges, dams and other infrastructure in Cambodia, Laos, Myanmar and Vietnam, and Chinese clout leaves Thailand scant room to manoeuvre there.

 

In announcing that Thailand would give long-term support to Laos’ economic development under Prime Minister Prayut Chan-o-cha’s “Growth Together” plan, Somkid was ignoring Thailand’s long absence from the scene. Vientiane already has Chinese and Vietnamese investors competing to be its prime backer and the situation in Cambodia and Myanmar is no different. Vietnam has only a few Thais remaining in business there.

 

Cross-border efforts to ensure mutual growth are well and good, but Thailand badly needs a better strategy to engage these countries. Somkid must recognise that Thailand has also changed a lot since he was last in government. That was before the 2006 coup and the Thai economy was robust. Thanks to military meddling, it’s now the regional weakling.

 

Source: http://www.nationmultimedia.com/news/opinion/today_editorial/30316675

 

-- © Copyright The Nation 2017-05-30

[yellowboat]

The Thai are absent.  Most never leave Thailand.   Thailand is too self obsessed with itself to work with its neighbors.  That and the Chinese and Vietnamese are just better business people.   

[maewang99]

the economy isn't any longer just about building, making and selling stuff.  you're on the wrong page.   

you need to think a lot more about.... people.  in 2017. 

that means education. 

and *****not***** the Thai version...... with endless 'reforms'.



 

 

Edited May 30, 2017 by maewang99

[elwood]

14 minutes ago, yellowboat said:

The Thai are absent.  Most never leave Thailand.   Thailand is too self obsessed with itself to work with its neighbors.  That and the Chinese and Vietnamese are just better business people.   

Many of Thailand's leading businesses, including banking and hotels, are heavily involved in Laos.

[YetAnother]

solid article, sound logic

[Cadbury]

25 minutes ago, yellowboat said:

The Thai are absent.  Most never leave Thailand.   Thailand is too self obsessed with itself to work with its neighbors.  That and the Chinese and Vietnamese are just better business people.   

Agreed, but then by the same token a lot of the Thai domestic smart money is going into investment in Myanmar and Vietnam where growth is happening (GDP'S about double that of Thailand). So I guess that there is a few smart non-government business people in Thailand. Private Investment in one's own country where there is such little growth is not much of an option theses days.

Military "business people" are a different breed altogether and their judgement on business matters should be treated with caution.

[yellowboat]

38 minutes ago, elwood said:

Many of Thailand's leading businesses, including banking and hotels, are heavily involved in Laos.

They are in Cambodia too. 

 

Have a high regard for CP as they wheel out fried chicken carts in front of their ground floor offices in Snooky and Siem Reap every night.  It is just the Thai presences is not felt or loved by their neighbors.   Thailand has failed to make an impact on these countries.  Smaller Thai companies and more Thais need to become involved in order to be successful.

[Sydebolle]

When I came a generation ago, Thailand was ahead of all of them. The Khmer Rouge just disappeared, Vietnam was still on the American axis of evil; throughout Laos the phone numbers were 4-digits without area code and the saffron revolution in Burma had not taken place yet. 

Today I see everything changed. Thailand has to put its gear stick upto top gear otherwise will be like the Philippines today (which, 35 years ago, was a thriving and bustling economy). The writing is on the wall. While you can tell the Thais, explain it to the Thais and repeat it to the Thais - but you cannot understand it for the Thais! 

This reference is for the outside Bangkokians; latter having (mostly) arrived in the 21st century but kept and held back by 75% of the population - which sums up why things are the way they are. 

[Eric Loh]

5 hours ago, webfact said:

That was before the 2006 coup and the Thai economy was robust. Thanks to military meddling, it’s now the regional weakling.

Said it all. Doesn't it? Thailand was touted as the next Tiger economy after Singapore, Taiwan, South Korea and Taiwan. 2 coups and mismanagement by military governments has turn Thailand to become the sick man of Asia taking the moniker from Philippines under General Marcos. 

[Srikcir]

12 hours ago, webfact said:

The CLMV countries are performing well amid booming foreign direct investment, better than Thailand, in fact.

This is a symptom of Thailand's slow growth - lack of foreign investment. Even those Thai companies that can compete globally are making foreign investments rather than commit to Thailand. It's just business - where one gets the best return on investment at the lowest risk.

 

What is left for investment sources in Thailand are domestic medium to low-capitalized SME's. The result is that the Thai military government must increase government investment, perhaps co opting with large high-capitalized loyalist business owners who ultimately will expect a payback (ie., through a monopoly, regulation relief).

[anotheruser]

Looking for economic help from Laos and Cambodia is funny. Do they mean can we do more to exploit our neighbors? Laos has some mines, hydro dams, a couple of cement factories and Beer Lao. That's about it. 

 

https://en.wikipedia.org/wiki/Lao_Securities_Exchange

[Stargeezr]

Your articale say that most Thais never leave Thailand? What abut the story of the bunch who have overstayed their visas in some other country.

In Canada I see Thai people all over the country and in America, so yes there are lots of Thais who live abroad.  Thailand only has to improve its

visa requirement and it can get a lot more tourists and not just the neighbours. Do like Mexico and some other advanced countries and have

90 days visa free, as well as other useful visas for people who want to stay in Thailand longer.  Thailand neighbours can get into the country

easy enough all ready.

[anotheruser]

Just now, Stargrazer9889 said:

Your articale say that most Thais never leave Thailand? What abut the story of the bunch who have overstayed their visas in some other country.

In Canada I see Thai people all over the country and in America, so yes there are lots of Thais who live abroad.  Thailand only has to improve its

visa requirement and it can get a lot more tourists and not just the neighbours. Do like Mexico and some other advanced countries and have

90 days visa free, as well as other useful visas for people who want to stay in Thailand longer.  Thailand neighbours can get into the country

easy enough all ready.

Fair enough. How does that help the Thais squeeze their direct neighbors?