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BOI to set up offices in Beijing and Shanghai
The Board of Investment of Thailand (BOI) will soon
open new offices in Beijing and Shanghai to promote Chinese investment in
Thailand, according to deputy prime minister and finance minister, Somkid
Jatusripitak. Somkid led a Thai delegation to visit the People’s
Republic of China on July 14.
Somkid said that BOI will create a network for Chinese
investors by opening new offices in China’s two primary cities. The new
BOI offices will provide useful information and suggestions for
businesspersons in China who want to invest in Thailand.
Somkid added that he intends to hold meetings with
governors of major tourist provinces, including Bangkok, Chiang Mai,
Chiang Rai, Chonburi and Phuket to discuss ways to promote Chinese
investment and tourism in these regions.
The government will also focus on provinces in the
western China region which can eventually be connected in an economic
growth area covering China, Myanmar, Laos and Thailand.
Somkid said, “The western China region has great
potential to promote and support regional growth and development.”
Before he left Somkid urged representatives of the
private sector to provide as much information as possible to their Chinese
counterparts during the five-day visit.
Chinese investors are keen to invest in the textile,
petrochemical, and plastic industries in Thailand and Vietnam, according
to Vikrom Kromdith, vice president of the Thai-Chinese Business Council.
Representatives of the Stock Exchange of Thailand (SET)
plan to invite Chinese investors into the Thai stock market, according to
deputy commerce minister, Suvarn Valaisathien, who accompanied Somkid on
the trip to China.
Officials of the Commerce Ministry called for Beijing
to open up its markets for 4 items of Thai farm products, including rice,
rubber products, sugar, and cassava. Suvarn said he asked Beijing to lower
its import tariffs on Thai rubber products, and urged Beijing to buy more
high quality rice from Thailand, namely 100% white rice and Hom Mali or
jasmine rice, as China’s southwest region was hit by floods this year. (TNA)
Thailand signs MOU on Trans-ASEAN Nations Gas Pipeline Project
Thailand has joined other member countries of the
Association of Southeast Asian Nations (ASEAN) in signing a memorandum of
understanding (MOU) on the Trans-ASEAN Gas Pipeline (TAGP) project,
according to minister to the prime minister’s office, Phongthep
Thepkanjana.
The TAGP project, which is expected to be funded by a
budget of US$7.0 billion, will link the 10-nation grouping’s key natural
gas distribution centers with the pipeline structure which connects with
natural gas sources in the Gulf of Thailand, Sumatra, and the South China
Sea.
Phongthep said the MOU on the TAGP project was signed
at the 20th ASEAN Energy Ministers’ Meeting, held in Nusa Dua of
Indonesia’ resort island of Bali on July 5.
Phongthep, who oversees the National Energy Policy
Office (NEPO), attended the meeting and signed the MOU on behalf of the
Thai government.
ASEAN now groups Brunei, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
Phongthep said that the MOU will be used as a broad
framework among ASEAN member countries for coordination and cooperation in
studying the use, marketing, sale, and distribution of national gas. It
will also be used to push for the implementation and achievement of the
project.
Indonesian Minister of Energy and Mineral Resources
Purnomo Yusgiantoro stressed in his welcoming address at the meeting in
Bali that the TAGP project will enhance energy supply security in the
region.
Seven potential interconnections have been identified
under the TAGP project involving a total length of 4,500 kilometers, four
of which involve the supply of gas from Indonesia to neighboring ASEAN
countries.
Indonesia has already developed sub-sea pipeline supply
gas from West Natuna to Singapore and Malaysia, and plans are being
studied to develop a pipeline network to supply gas from Indonesia to
Thailand.
ASEAN has also agreed to develop an ASEAN Power Grid
project, which will integrate the power infrastructure of ASEAN member
countries.
A master plan on the ASEAN Power Grid interconnection
was undertaken by a forum for the Heads of ASEAN Power Utilities (HAPUA),
and will be completed by early next year. (TNA)
PTTEP joins forces with Oman in exploration and production of oil
PTT Exploration and Production Plc has concluded a deal
with the Oman government to jointly explore and produce oil and petroleum
products. PTTEP’s president, Chitrapongse Kwangsukstith said the
agreement was part of a strategy to expand its presence beyond Southeast
Asia.
According to the deal, PTTEP Middle East Co., Ltd., a
subsidiary of PTTEP, will spend over US$9 million over the next three
years in exploring Block 44, which covers 1,162 square kilometers and is
located about 300 kilometers west of the Oman capital of Muscat.
“Seismic surveys are expected to begin by the end of
this year, followed by two-year technical studies and drilling of an
exploration wells,” Chitrapongse said.
Chitrapongse said that a regional study found that
Block 44 was the best available prospect for exploration. Oman is
Thailand’s second largest source of crude oil, accounting for 22% of the
country’s oil imports last year, according to the PTTEP president. (TNA)
BOT airs concern over economic uncertainties in US
Bank of Thailand’s assistant governor, Bandid
Nijathaworn recently voiced concern that economic uncertainties in the
United States would put a drag on the global economic recovery and in turn
negatively affect local exports.
Speaking after a meeting of the Monetary Policy
Committee, he said the body agreed to maintain the 14-day repurchase rate
at 2% per annum to ensure the financial policy would still contribute to
economic growth.
Bandid said four main issues had been brought up for
discussion at the meeting. First, the committee shared the view the
country’s economy will continue to expand given the current improvement
in industrial production, local spending and corporate performance. He
also pointed out the decline in unemployment.
Second, the committee feels the country’s external
position remains strong with high international reserves and lower foreign
loans. The baht has strengthened against the US dollar in the same
direction with other regional currencies.
The third issue under discussion focused on the fact
that local economic factors remain stable. Inflation increased by 0.9% in
the first quarter and by 0.4% in the second quarter. The BOT projects the
inflation rate in the next eight quarters will stay between 0-3.5 percent.
Bandid said the if country’s economic growth can
maintain a stable pace now it will contribute to further expansion in the
second half of this year.
Bandid added, “However, the committee did caution
that uncertainties toward the US economic recovery, fluctuations in stock
markets around the world, and volatile global oil prices could have a
negative effect on the world economy. That in turn could place pressure on
Thai exports.” (TNA)
Local investors join hands to boost good corporate governance
Local institutional investors have agreed to form an
alliance to boost corporate good governance. Visit Tantisunthorn,
secretary-general to the Government Pension Fund (GPF) stated that the
Institutional Investors’ Alliance was formed last month by local
institutional investors.
The institutional investors include local funds and
asset management firms, life insurance companies, GPF, the Social Welfare
Fund, provident funds, and the Securities and Exchange Commission (SEC).
“The alliance aims to promote and enhance good
corporate governance in Thailand, as well as set up guidelines for
corporate practices in order promote the integrity of the market,” said
Visit.
Visit said the alliance’s members have agreed to
abide by common principles in debt evaluation and equity investment and
that the members have pledged to help maximize benefits of shareholders. (TNA)
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