Thai govt eyes more investment from European investors

[Thian]

Europeans for trade and investment? Thai ALWAYS try to cheat me, so i'm not interested in any business with them...there are far better places for that.

[saengd]

2 minutes ago, Assurancetourix said:

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.

I was being sarcastic, of course Great Wall is going to rehire workers, those 1,500 jobs are not lost forever, that sort of thing happens all the time.

[JustAnotherHun]

44 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? 

Right. The 0.5% says nothing at all as long as you don't know the basket of goods it's based on.

The basic living costs went up far more as you can see by comparing the price of rice, vegetables and fruit now and then.

 

And what about looking at 10 years instead of five? The Euro went down from 51 (late 2009) to now 33.3. 

 

Take a look at the regional competitors like Vietnam or Malaysia:

By far better rules for foreign investments, a better education system, better english language skills and a very different working culture.

 

Thailand for sure is not the best place to invest in SEA, especially for western companies. They're loosing the "cheap industries" to poorer countries like Cambodia and Bangladesh an are not really competetive yet in the hightech sectors.

 

But the genious general and his regime brain titans surely solve such small problems and will - as usual - have everything 100% und control.

Edited February 19, 2020 by JustAnotherHun

[saengd]

Just now, JustAnotherHun said:

Right. The 0.5% says nothing at all as long as you don't know the basket of goods it's based on.

The basic living costs went up far more as you can see by comparing the price of rice, vegetables and fruit now and then.

 

And what about looking at 10 years instead of five? The Euro went down from 51 (late 2019) to now 33.3. 

 

 

Who cares about the value of the Euro, that's not a factor in Thai inflation for gods sake!

 

If you read the thread you can see where there's a link to the inflation basket so you can know.

[JustAnotherHun]

1 minute ago, saengd said:

Who cares about the value of the Euro, that's not a factor in Thai inflation for gods sake!

Did I say that? No? So what?

And for foreign companies investing in Thailand the exchange rate is one of the main factors. Think!

[Assurancetourix]

4 minutes ago, JustAnotherHun said:

They're loosing the "cheap industries" to poorer countries like Cambodia and Bangladesh

What Thai clothing manufacturers have been doing for a very long time.
The only thing that is "made in Thailand" on their clothes is this little label sewn behind your neck.

A T-shirt sold 99 baht at the Sakon nowhere night market was bought from a Cambodian ( burma, vietnamese ) manufacturer for the modest sum of 15 or 20 baht ...
Beautiful somersault

[Assurancetourix]

2 minutes ago, JustAnotherHun said:

Did I say that? No? So what?

And for foreign companies investing in Thailand the exchange rate is one of the main factors. Think!

The day when you will see a Thai man doing a market study before investing has not yet arrived ...
It is like introducing into the debits the purchase price of the vehicle, the maintenance of it and its fuel consumption which they use to work ...
it goes through "profits and losses" but it never enters into account in the sale price of a product.
No more than time goes by to make this one ...

the prices of a lot of things here are artificially low because the labor is almost always free.

[saengd]

2 minutes ago, JustAnotherHun said:

Did I say that? No? So what?

And for foreign companies investing in Thailand the exchange rate is one of the main factors. Think!

Exchange rate for investment in Thailand is not a factor for companies and countries who already invest here and have foreign earnings, Japan and Singapore in particular who account for half of all inward FDI. In fact, repatriations of earnings by Japanese companies is a real conundrum since those earnings are substantial, invested in second tier investments in Thailand and then leveraged by the home company.

[JustAnotherHun]

11 minutes ago, saengd said:

Exchange rate for investment in Thailand is not a factor for companies and countries who already invest here and have foreign earnings,

Sure it is a factor. First for any future investment and second, even more important if not produced for the domestic market, in the export. The higher the THB, the less competitve Thai made products are abroad. That's simple logic.

 

Quote

Japan and Singapore in particular who account for half of all inward FDI.

Japan and Singapore use Thailand as a still cheap workshop. But as said other countries like vietnam close in rapidly with a better investment climate, better educated workers, better language skills and still lower wages.

And this topic is about european investments, right? And you seriosly want totell me, the excange rate is not an important factor to them?

Edited February 19, 2020 by JustAnotherHun

[saengd]

1 minute ago, JustAnotherHun said:

Sure it is a factor. First for any future investment and second, even more important if not produced for the domestic market, in the export. The higher the THB, the less competitve Thai made products are abroad. That's simple logic.

 

 

Japan and Singapore use Thailand as a still cheap workshop. But as said other countries like vietnam close in rapidly with a better investment climate, better educated workers, better language skills and still lower wages.

And this topic is about european investments, right? And you serioesly want tell me, the excange rate is not an important factor to them?

The economy of Europe is going down the pan, they will take whatever they can by way of an exchange rate.

 

Most Japanese companies for example use Thailand as an assembly base, that means they pay a tax on the export of finished goods but that does not dictate selling price in foreign markets. As a consequence their net manufacturing costs remains fairly low plus they are free to determine country by country pricing in the market they sell into. The domestic market for the products we're discussing her is only a very small part of the picture.

 

Also, much is written here about Vietnam being the country to steal Thailand's economic growth in tourism and manufacturing and exports. A few points:

 

Vietnam's GDP is half of Thailand's, they are very much in the early stages of economic development, the new boy on the block.

 

The Vietnamese have a dislike of the Chinese so Chinese business often finds it difficult to establish there whereas Thailand and China have a long association.

 

Vietnam has just enacted similar immigration controls to Thailand, it is no longer the easy access country it was and things are getting tighter.

 

Vietnam is a communist country, the rule of law does not prevail and this is often seen as a deterent to doing business.

 

[rkidlad]

8 minutes ago, JustAnotherHun said:

Sure it is a factor. First for any future investment and second, even more important if not produced for the domestic market, in the export. The higher the THB, the less competitve Thai made products are abroad. That's simple logic.

 

Japan and Singapore use Thailand as a still cheap workshop. But as said other countries like vietnam close in rapidly with a better investment climate, better educated workers, better language skills and still lower wages.

And this topic is about european investments, right? And you seriosly want totell me, the excange rate is not an important factor to them?

You're asking a poster who's stated many times before that Thailand can't (as in it's not possible) manipulate its currency. 

[saengd]

14 minutes ago, rkidlad said:

You're asking a poster who's stated many times before that Thailand can't (as in it's not possible) manipulate its currency. 

Not true, as usual!

 

What I have asked is that anyone who thinks Thailand has manipulated its currency should demonstrate how they have done that because as hard as I have looked into the matter I don't see how it is possible....thus far nobody has come forward with an answer, despite asking tens of times, over at least one year.

[rkidlad]

6 minutes ago, saengd said:

Not true, as usual!

 

What I have asked is that anyone who thinks Thailand has manipulated its currency should demonstrate how they have done that because as hard as I have looked into the matter I don't see how it is possible....thus far nobody has come forward with an answer, despite asking tens of times, over at least one year.

"Not true, as usual!"? 

 

You just stated, "I don't see how it is possible". 

[geriatrickid]

2 hours 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.

I think that you will find that the  relatively recent bribery and corruption regulations in the EU, and USA will not facilitate a return to the good old days. 

[JustAnotherHun]

36 minutes ago, saengd said:

Most Japanese companies for example use Thailand as an assembly base, that means they pay a tax on the export of finished goods but that does not dictate selling price in foreign markets. As a consequence their net manufacturing costs remains fairly low plus they are free to determine country by country pricing in the market they sell into.

 

You want to say that the exchange rate has not a significant inluence to the selling prices abroad? Really?

Sure. Japanese companies use Thailand as an assembly line, but the rising costs along with the strong THB close the profit gap doing so.

 

Quote

Also, much is written here about Vietnam being the country to steal Thailand's economic growth in tourism and manufacturing and exports. A few points:

 

 

Vietnam's GDP is half of Thailand's, they are very much in the early stages of economic development, the new boy on the block.

 

Yes, they are quite new in the competition. Does that make them less dangerous to Thaiuland? I don't think so.

 

Quote

The Vietnamese have a dislike of the Chinese so Chinese business often finds it difficult to establish there whereas Thailand and China have a long association.

That's right, but this is not the so for Japan and the western countries. China is a huge economic player but it's not the only one.

 

Quote

Vietnam has just enacted similar immigration controls to Thailand, it is no longer the easy access country it was and things are getting tighter.

If they tighten the rules for wannabe longstayers and retirees that is not  of any importance to investors and companies

 

Quote

Vietnam is a communist country, the rule of law does not prevail and this is often seen as a deterent to doing business.

And what exactly is different to Thailand and it's mega corrupt system - except they are no "communists" here?

Edited February 19, 2020 by JustAnotherHun

[newcomer71]

4 hours ago, webfact said:

He asked the EU-ASEAN Business Council (EU-ABC) to further convey information on Thailand’s potential and investment promotion plans to European investors.

Well... Stop being a huge a-hole towards westerners, you and your whole lot, would be a nice first step. But I guess that's out of discussion...

[RichardColeman]

3 hours ago, saengd said:

 

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! 

Seriously ? Heavy night last night ? The article is about Europe - not America or the US $. Against my £ its seems to be about 28% down from what I got in 2015. I was getting about 55 to the baht , now just over 40. Hence my comment, but don't let continents get in the way of Richard bashing hey ? 

[BritManToo]

9 minutes ago, RichardColeman said:

Seriously ? Heavy night last night ? The article is about Europe - not America or the US $. Against my £ its seems to be about 28% down from what I got in 2015. I was getting about 55 to the baht , now just over 40. Hence my comment, but don't let continents get in the way of Richard bashing hey ? 

Between 2009 and 2020 I rarely got over 50bht/pound. Why just quote the maximum exchange rate you ever got?

My average before Brexit was 50 (drifted between 48 and 52 most of the time), after my average is 40.

 

Back to the OP, invest in an unstable country ruled by the military ..... not in this life.

I don't even holiday in Thailand any more.

Edited February 19, 2020 by BritManToo

[BobbyL]

Seems he's banging on about investment in the EEC again and again. Things must be getting concerning for their big idea. 

[BestB]

25 minutes ago, BobbyL said:

Seems he's banging on about investment in the EEC again and again. Things must be getting concerning for their big idea. 

Well China is closed for business and it is unknown when it will reopen. So he is now back to chasing western world, it’s a bit like watching a puppy chasing its own tail. The entire cabinet is just as smart as a puppy chasing its own tail. 
 

the only difference is puppy grows up and develops a brain and knows not to bite hand that feeds it, Prayut and Co still have not learned that 

[saengd]

43 minutes ago, RichardColeman said:

Seriously ? Heavy night last night ? The article is about Europe - not America or the US $. Against my £ its seems to be about 28% down from what I got in 2015. I was getting about 55 to the baht , now just over 40. Hence my comment, but don't let continents get in the way of Richard bashing hey ? 

Your Pound/Baht exchange rate is derived from the value of USD/THB, if you want to talk about Pound/Baht you have no choice but to talk about USD, especially since Thailand's managed peg is directly linked to USD!

 

With that thought in mind, your Pound crashed, oh well, the Brexit impact on GBP has nowt to do with THB, Thailand or Thailand's economy but we're all sorry about your loss of spending power nevertheless, try not to take it out on Thailand however!!!

 

 

 

[30la]

6 hours ago, webfact said:

Gov’t eyes more investment from European investors

How do you plan to attract investors from the EU?
The rumor is spreading that nobody likes WHITE FARANGS here.
I think it is easier for you to find investors from China and India!

[saengd]

1 hour ago, JustAnotherHun said:

You want to say that the exchange rate has not a significant inluence to the selling prices abroad? Really?

Sure. Japanese companies use Thailand as an assembly line, but the rising costs along with the strong THB close the profit gap doing so.

 

Yes, they are quite new in the competition. Does that make them less dangerous to Thaiuland? I don't think so.

 

That's right, but this is not the so for Japan and the western countries. China is a huge economic player but it's not the only one.

 

If they tighten the rules for wannabe longstayers and retirees that is not  of any importance to investors and companies

 

And what exactly is different to Thailand and it's mega corrupt system - except they are no "communists" here?

So pleased to see you select which points you want to argue, just arguing every point solves that dilemma!

 

In the order you wrote them: 

 

I didn't say the exchange rate doesn't have an influence on selling prices, you did! I wrote that it doesn't dictate selling prices, be more careful when you quote me.

 

Yes, they don't have the same experience or standing.

 

You may recall that China has a small problem with the Japanese.

 

Whatever, I was merely pointing out that Vietnam is growing up also.

 

Well one is a monarchy and the other is a communist government....I can't believe you're actually asking me what the difference is!!

 

 

[mickey rat]

3 hours 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

They maybe having trouble finding management willing to work in such a toxic environment, the PM 2.5 pollution levels are thru the ceiling again today. 

 

Though most certainly exploitation of the local labor force willing to work below living wage, under deplorable working conditions with zero benefits and the freedom to destroy the environment is an attractive feature to some investors such as multi national sugar cane burning conglomerates. ,,????

[saengd]

1 hour ago, geriatrickid said:

I think that you will find that the  relatively recent bribery and corruption regulations in the EU, and USA will not facilitate a return to the good old days. 

In theory that should have impact, in practice....? I mean Japanese companies even have the official position of bribe taker on their corporate structure charts.

[Brigand]

3 hours 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.

 

Guess we could always contact Carlsberg or Pepsi for comments on that one.

[saengd]

1 hour ago, rkidlad said:

"Not true, as usual!"? 

 

You just stated, "I don't see how it is possible". 

You've reminded me why I put you on ignore, your propensity to troll gets really tiresome, I must stop peaking at your posts from time to time.

 

But not true yet again!! In case your understanding of English is lacking, not seeing how something is possible is not the same as "they can't".

 

So bye for now, I'll leave you to have your usual last word.

[saengd]

6 minutes ago, Brigand said:

Guess we could always contact Carlsberg or Pepsi for comments on that one.

You chose two excellent examples, thank you for proving my point.

 

https://www.nationthailand.com/business/30290922 - Carlesberg

 

https://www.pri.org/stories/2013-03-11/thailands-cola-conflict-leaves-pepsi-out-cold

The catastrophe happened because PepsiCo tried, and failed, to take over the distributor, Serm Suk. When the contract ended, Serm Suk launched Est in Pepsi's place.

[Canuck1966]

5 hours ago, saengd said:

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! 

Ah bless, nice to know some people believe the dross that comes out of the Junta's windbag

[Canuck1966]

3 hours 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!!!!

It's not about profits, it's about control.

Who on earth trusts the despot  who really runs this country?

Why do you keep conflating things to appease you Chicom masters?