Thai govt eyes more investment from European investors

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Gov’t eyes more investment from European investors

 

FILE PHOTO

   

BANGKOK(NNT) - The Prime Minister is promoting the Thailand 4.0 and Thailand +1 policies on economic development to EU-ASEAN Business Council delegates, as well as development of the Eastern Economic Corridor (EEC), and enhancements to trade and investment regulations, to facilitate investment by both Thai and foreign business interests.

 

Speaking in a meeting, the Prime Minister Gen Prayut Chan-o-cha stressed Thailand’s willingness to provide quality facilitation to foreign investors as allowed under the law and by other regulations. He asked the EU-ASEAN Business Council (EU-ABC) to further convey information on Thailand’s potential and investment promotion plans to European investors.

 

EU-ABC Chairman Donald Kanak congratulated Thailand on its success as the ASEAN Chair in 2019, demonstrating Thailand’s great potential for trade and investment, as well as its suitability as a business hub in the region. He stressed the determination and preparedness of European companies to invest more in Thailand, especially in the EEC.

 

The group of EU-ABC officials meeting with the Prime Minister on this occasion, was composed of delegates from 20 international European companies with headquarters in Belgium, France, Germany, the Netherlands, Switzerland, and the United Kingdom. The companies sell and provide consumable items, drugs and pharmaceuticals, finance and banking services, vehicle development, insurance, logistics, electronics, software services, online streaming, and business consultation.

 

-- © Copyright NNT 2020-02-19

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[ToThailand]

If he want foreign investors there wouldnt it be a good idea to treat foreigners better then when they come to visit their country?

[saengd]

11 minutes ago, ToThailand said:

If he want foreign investors there wouldnt it be a good idea to treat foreigners better then when they come to visit their country?

You can imagine it can you not, the prospective investors check list:

 

Easy to do business with - check

Tax breaks - check

Good infrastructure - check

Available inexpensive labour force - check

No social security over heads - check

Cheap financing - check

Treats our citizens very well - needs improvement

 

Well, that's a show stopper then!

 

Edited February 18, 2020 by saengd

[RichardColeman]

Why invest in Thailand now when everything is 25-30% more expensive (not including inflation) than it was a few years ago due to the ridiculous baht ? 

[saengd]

1 minute ago, RichardColeman said:

Why invest in Thailand now when everything is 25-30% more expensive (not including inflation) than it was a few years ago due to the ridiculous baht ? 

Inflation in Thailand has averaged 0.5% per year for the past five years, it's one of their major economic problems.

https://tradingeconomics.com/thailand/inflation-cpi

 

At the end of 2015, THB was worth USD 35.3, today it's worth 31.0, about 12% over five years.

 

But hey, don't let a few small facts get in the way of your thrice daily Thai bash Richard! 

[rkidlad]

57 minutes ago, saengd said:

You can imagine it can you not, the prospective investors check list:

 

Easy to do business with - check

Tax breaks - check

Good infrastructure - check

Available inexpensive labour force - check

No social security over heads - check

Cheap financing - check

Treats our citizens very well - needs improvement

 

Well, that's a show stopper then!

 

And yet they’ll still find it hard to get investors. It’s as if fantasy and reality are two different things. 

[saengd]

9 minutes ago, rkidlad said:

And yet they’ll still find it hard to get investors. It’s as if fantasy and reality are two different things. 

Indeed your fantasy and the reality are two very different things!

 

"Foreign direct investment is an important element of Thailand's economic development, and the country is one of the major FDI destinations in its region. FDI flows continued their recovery and rose to USD 10.49 billion, and cccording to public agency Thailand Board of Investment, FDI flows in the first nine months of 2019 increased 69% from the year earlier period to USD 6.7 billion. This recovery is due to increased investment from Japan, Hong Kong and Mauritius".

 

"Japan and Singapore are by far the largest investors in the country and account for slightly more than half of FDI inflows. Hong Kong, the Netherlands, Germany, Mauritius and the United Kingdom are also among the major investors. Manufacturing and financial and insurance activities attract nearly 70% of all FDI inflows".

 

https://www.nordeatrade.com/en/explore-new-market/thailand/investment

https://santandertrade.com/en/portal/establish-overseas/thailand/foreign-investment

https://www.ceicdata.com/en/indicator/thailand/foreign-direct-investment

Edited February 18, 2020 by saengd

[rkidlad]

1 minute ago, saengd said:

Indeed your fantasy and the reality are two very different things!

 

"Foreign direct investment is an important element of Thailand's economic development, and the country is one of the major FDI destinations in its region. FDI flows continued their recovery and rose to USD 10.49 billion, and cccording to public agency Thailand Board of Investment, FDI flows in the first nine months of 2019 increased 69% from the year earlier period to USD 6.7 billion. This recovery is due to increased investment from Japan, Hong Kong and Mauritius".

 

"Japan and Singapore are by far the largest investors in the country and account for slightly more than half of FDI inflows. Hong Kong, the Netherlands, Germany, Mauritius and the United Kingdom are also among the major investors. Manufacturing and financial and insurance activities attract nearly 70% of all FDI inflows".

 

https://www.nordeatrade.com/en/explore-new-market/thailand/investment

https://santandertrade.com/en/portal/establish-overseas/thailand/foreign-investment

https://www.ceicdata.com/en/indicator/thailand/foreign-direct-investment

That’s nice. I look forward to investing and handing over half my business to a local under the rule of a military junta who make up the rules as they go along. 
 

 

[saengd]

4 minutes ago, rkidlad said:

That’s nice. I look forward to investing and handing over half my business to a local under the rule of a military junta who make up the rules as they go along. 
 

 

The reason large successful companies tend to invest in Thailand is because they know it will be profitable. They also know that any change of heart or direction on the investing front by government is highly unlikely because it would immediately kill stone dead the chance that other companies would invest here. As a result government is keen to make sure those companies are treated well, it's basic business 101.

 

And whilst most foreign companies (American companies are not) who invest in Thailand are required to have  a majority of Thai Directors,  that majority does not extend to a corresponding share of profit, obviously. I realize this small fact however erases your major reason for not investing here but alas, that's the reality of the matter, as with all JV's the local partner is rewarded for their participation although not to the point where it makes doing business in the first place, unprofitable.

[rkidlad]

7 minutes ago, saengd said:

The reason large successful companies tend to invest in Thailand is because they know it will be profitable. They also know that any change of heart or direction on the investing front by government is highly unlikely because it would immediately kill stone dead the chance that other companies would invest here. As a result government is keen to make sure those companies are treated well, it's basic business 101.

 

And whilst most foreign companies (American companies are not) who invest in Thailand are required to have  a majority of Thai Directors,  that majority does not extend to a corresponding share of profit, obviously. I realize this small fact however erases your major reason for not investing here but alas, that's the reality of the matter, as with all JV's the local partner is rewarded for their participation although not to the point where it makes doing business in the first place, unprofitable.

What do you I suggest I invest in? I hear mining is very profitable..........for some. 

[lkv]

How to make 1 million in Thailand?

 

Start with 10 million.

[BestB]

Considering that he has managed to destroy or screw up everything else, it is highly unlikely this new idea will succeed.

[saengd]

8 minutes ago, rkidlad said:

What do you I suggest I invest in? I hear mining is very profitable..........for some. 

Beginners books on economics and finance.

[Assurancetourix]

1 hour ago, saengd said:

Inflation in Thailand has averaged 0.5% per year for the past five years,

 

I would be curious to know how to calculate it;
What I do know is that the prices of many necessities have taken a big leap forward and are now much more expensive in 2020 than in 2015;
when suppliers increase by 1 baht a product which was worth only 12 baht, or by 3 to 4 baht another product which was worth 50 baht, the percentage of inflation is not equal to 0.5% but to much more .

Once again confusion in the use of the calculator? 

[Assurancetourix]

18 minutes ago, saengd said:

The reason large successful companies tend to invest in Thailand is because they know it will be profitable.

It seems to me that Toyota which is in the process of disintegrating from Thailand in favor of Burma or that GM, a tiny American company whose world turnover is around 150 billion US dollars are not agree with what you write to us

[Destiny1990]

Invest 100% and u will own 49% !!

 

[saengd]

3 minutes ago, Assurancetourix said:

 

I would be curious to know how to calculate it;
What I do know is that the prices of many necessities have taken a big leap forward and are now much more expensive in 2020 than in 2015;
when suppliers increase by 1 baht a product which was worth only 12 baht, or by 3 to 4 baht another product which was worth 50 baht, the percentage of inflation is not equal to 0.5% but to much more .

Once again confusion in the use of the calculator? 

Not really, it's more likely to be a lack of understanding of how averages work and also what is included in the basket that measures inflation. Without looking it up there's something like 250 or so items that are measured and tracked, the cost of some will increase whilst other will decrease, the average overall gives the answer. Here's a report from 2017 which will give you an idea of how things work and are reported, sorry but I can't be bothered to find anything more recent.

 

http://www.price.moc.go.th/price/fileuploader/file_cpi/Cpig062560_TG_e.pdf

[fforest1]

Things must be REALLY REALLY BAD if our fearless leader lowers himself to even acknowledge the existence of those unpleasant nasty filthy western farang......

 

This has to be the first article I have read in at least 10 years that paints the western farang in a somewhat positive light....

Edited February 19, 2020 by fforest1

[rkidlad]

9 minutes ago, saengd said:

Beginners books on economics and finance.

Guess that’s why the government stole it. 

[saengd]

4 minutes ago, Assurancetourix said:

It seems to me that Toyota which is in the process of disintegrating from Thailand in favor of Burma or that GM, a tiny American company whose world turnover is around 150 billion US dollars are not agree with what you write to us

Since you didn't post a link to your claim I have to guess at what you're talking about so try this:

 

Toyota is opening a new Hilux assembly plant in Myanmar which they regard as expansion, I'm not aware they are decreasing their investment in Thailand. 

 

GM is quitting Thailand, New Zealand, Australia and is also scaling back its operations in Europe, I'm not aware there move is specific to just Thailand, perhaps that 150 bill. global company is not making the profit it wants. But no big loss, Great Wall is buying the GM plants so there's no loss to the country.

 

https://cardealermagazine.co.uk/publish/general-motors-pulls-australia-new-zealand-thailand/186166

 

 

 

 

[Assurancetourix]

8 minutes ago, saengd said:

the cost of some will increase whilst other will decrease,

It is obvious that if one enters the basket that certain products used by a small percentage of the population at the expense of others that everyone buys ...

For example, is it useful and above all necessary to include the price of the Chao Praya Express ticket in this basket?
Me who lives in Isaan, it makes me a nice leg to know if it increases or not ...
On the other hand I do not see the pork, nor that of buffalo which made a spectacular jump upwards,

[Assurancetourix]

4 minutes ago, saengd said:

Great Wall is buying the GM plants so there's no loss to the country.

Besides the job loss of around 1,500 workers at GM; but it's peanuts, of course ...

[saengd]

Just now, Assurancetourix said:

It is obvious that if one enters the basket that certain products used by a small percentage of the population at the expense of others that everyone buys ...

For example, is it useful and above all necessary to include the price of the Chao Praya Express ticket in this basket?
Me who lives in Isaan, it makes me a nice leg to know if it increases or not ...
On the other hand I do not see the pork, nor that of buffalo which made a spectacular jump upwards,

It's a commuting and transportation cost for Bangkok people, not unreasonable to include.  

 

I haven't looked at the list for a long time but I do understand the sorts of things it contains and the way the system works. The system here works exactly the same way it works in every other country where the CPI/RPI is measured, no more, no less.

[saengd]

1 minute ago, Assurancetourix said:

Besides the job loss of around 1,500 workers at GM; but it's peanuts, of course ...

So you're suggesting that Great Wall will only use robots and not hire some of those 1,500 people or that they are not included in the sale (which is typical).

[saengd]

A good and informative news article in the newspaper that cannot be named, describing inflation, the basket and the trade offs. Google the conundrum of low inflation news Thailand.

 

Apparently there are 450 items in the basket which are measured every month, large decreases in energy and transportation offset.

Edited February 19, 2020 by saengd

[wendyfromoz]

why when you automatically loose 51% of your investment to a Thai who will contribute zero.

[saengd]

Just now, wendyfromoz said:

why when you automatically loose 51% of your investment to a Thai who will contribute zero.

Do you really think that all the overseas conglomerates who invest in Thailand give away 49% of their profits just to have a presence here!!!!

[Assurancetourix]

13 minutes ago, saengd said:

So you're suggesting that Great Wall will only use robots and not hire some of those 1,500 people or that they are not included in the sale (which is typical).

I don't suggest anything at all; I share facts;
1,500 workers will soon be unemployed when the Chinese company owns ex-GM Thailand;
Whether or not this company replaces them with robots is not what I know.

[soalbundy]

2 hours ago, ToThailand said:

If he want foreign investors there wouldnt it be a good idea to treat foreigners better then when they come to visit their country?

Investors aren't tourists, they get the red carpet, money is a language all of its own.

[Assurancetourix]

3 minutes ago, saengd said:

Do you really think that all the overseas conglomerates who invest in Thailand give away 49% of their profits just to have a presence here!!!!

When the Japanese or the Koreans come to invest here several billion US dollars, they impose draconian conditions that the Thai authorities are obliged to accept otherwise there will be no investment ...
The 51/49% rule no longer applies at all;
it is 100% for the investor and 0% for Thailand;