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Pre-WTO and FTA talks seminar
The government will organize a seminar on the potential
impact of bilateral free trade areas (FTAs) agreements on Thailand’s
agricultural sector this month. The Department of Trade Negotiation will
host the seminar, called “Negotiations on Agricultural Produce under WTO
and FTA” on 8-9 July at Sida Resort in the central province of Nakhon
Nayok. More than 200 government officials, private businessmen, and farmers
will discuss the issues involved.
The seminar will also have an opportunity to suggest what Thailand’s
position should be in the new round of World Trade Organization (WTO) talks
on agricultural produce. Farmers and those concerned about the effect of the
FTAs on the agricultural sector will be given access to information, facts
and figures. They will make recommendations on how the agricultural sector
can best prepare itself for the imminent deregulation of agricultural
produce. (TNA)
China asks Thailand
to cut border trade taxes
China has asked Thailand to slash cross-border taxes.
Chinese businessmen have complained that the current rates are unfair.
Chinese entrepreneurs made their demand during a recent
visit to China’s southern Xishuang Banna region by Thai government
officials. The chairman of China’s Chamber of Commerce said Thai
entrepreneurs enjoyed substantial tax concessions, including tax exemption
for imported goods under 3,000 yuan (US$ 362 ), and a 50 percent tax
reduction on goods over 3,000 yuan. In contrast, Chinese businesses have to
pay customs duties to Thailand at the regular rate.
Thailand also maintained the full tariff rate on Chinese
goods that were showcased at the Economic Quadrangle Expo, held recently in
Thailand’s northern region, where goods from Laos, Myanmar, China and
Thailand were exhibited.
Meanwhile, the director of the Bureau of Supporting
Industries Development, Sanae Niyomthai, said that Thailand has offered
China trade concessions in return for giving Thai entrepreneurs special
privileges. The two countries have slashed taxes on agricultural goods to
zero, as part of the free trade area (FTA) agreement with China. However,
there are concerns that Chinese products might flood the Thai market as a
result of the tax cuts on other items, like electrical appliances.
The association of Thai exporters has proposed that China
finance road construction in Laos. This route would link Bangkok and the
southern Chinese city of Kunming.
Thai exporters have also suggested that the Thai
government negotiate with Myanmar a decrease in the border pass fees on the
Mae Sai-Chiang Thong-Chiang Rung road which connects Thailand with Myanmar,
China and Laos. This would help reduce the cost of transportation. Thailand
and China have also agreed to exchange information on trade to strengthen
bilateral trade ties and cooperation. (TNA)
Thai Hotels Association &
Bangkok Exhibition Services Ltd.
sign exhibition contract
(Front
row from left) Prakit Chinmourphong, vice president of Thai Hotels
Association, David Aitken, general manager of Bangkok Exhibition Service Ltd
(BES) & Bundarik Kusolvitya, chairwoman of Social and Special
Activities.
The Thai Hotel Association and Bangkok Exhibition Service
Ltd. (BES) signed a contract agreement to host the ASEAN Hotel &
Restaurant Congress alongside the International Food & Hospitality Show
2004 at the Queen Sirikit National Convention Center September 8-11 in
Bangkok
Ministry of Agriculture dedicates new team to international trade
The Ministry of Agriculture and Agricultural Cooperatives
has established a new team with a special remit to oversee international
trade negotiations. The Deputy Permanent Secretary for Agriculture and
Cooperatives Ampon Kittiampon said that the team was being set up in
response to increasing global competition. The team will work to closely
monitor international trade negotiations in order to ensure the full
protection of Thailand’s interests, and reduce the impact of any trade
conditions that might be posed on the nation’s agricultural export sector.
Particular attention will be focused on products deemed
to be sensitive, such as rice, chicken and prawns. The team will also liaise
closely with Thai agricultural advisors stationed in foreign embassies, and
will monitor changes in legislation and health and safety standards.
At the same time, the ministry is setting up mobile units consisting of
agricultural, livestock and fisheries experts, to be based in countries
which act as Thailand’s most important agricultural trade partners. The
units, the first of which will be stationed in Shanghai, will provide
in-depth information on technical details relating to agricultural trade.
Subsequent units will be established in the European Union (EU) and Japan. (TNA)
Small Thai businesses urged to move abroad
The Labor Ministry is urging Thais to set up small businesses
abroad, saying that the natural friendliness and service-mindedness of the Thai
people would give them a distinct business advantage.
Speaking at a training session for 380 Thai laborers destined
for work in Taiwan, Permanent Secretary for Labor Jaruphong Ruengsuwan said that
the government was keen to see a shift away from unskilled laborers moving
abroad for work, and a greater focus on the skilled workforce. Noting that the
returns for unskilled laborers were low, he said that the government
particularly wished to see Thais setting up small-scale businesses abroad,
whether Thai restaurants, spas, car maintenance garages, or Thai massage
parlors. Thai workers, he said, should capitalize on the natural friendliness
and love of service among the Thai people to make their businesses a success. (TNA)
Business owners urged to find strategic partners
A leading Thai business tycoon has urged the country’s
business owners to find strategic partners to make their companies more
profitable.
This would help their firms to become more commercially
viable, according to the Charoen Pokphand (CP) Group Chairman Dhanin
Chearavanont. He said this is a strategy that CP would be following from now
on. CP could not specialize in all business, or production areas it was
interested in, he said.
Instead, CP will seek to establish strategic partnerships
with companies that had an expertise in a field which complimented its
business expansion plan. For CP to diversify into new businesses like
banking, Dhanin said, the group needed to seek a strategic partner which
already specialized in the field. The synergy gained from seeking strategic
partners would enable the group to more comprehensively provide services.
The CP chairman also said it was time for everyone to
reduce their energy consumption. The country was fortunate in that His
Majesty the King had encouraged the use of palm oil, instead of diesel oil,
he said.
The CP chief also dismissed reports that the group planned to invest in
Thai Petrochemical Industry as groundless. (TNA)
Move to overhaul state enterprises speeds up
The government is pressing ahead with its plans to
overhaul the country’s state enterprises. A draft of a master plan for the
next five years has already been drawn up.
The 5-year Master Plan for 2005-2009 will contribute to
Thailand’s long-term financial stability and help the country’s economic
development, the Vice Minister for the Prime Minister’s Office Suwit
Mesinsee said.
By improving the efficiency of the state enterprises,
their revenue generating capacity will be increased and their reliance on
government funding reduced within the next five year.
Currently, the capital value of the 58 state enterprises
and its nine branches is about 4.48 trillion baht, or 85 percent of
Thailand’s gross domestic product (GDP). The salaries of 283,000 state
enterprises’ employees are about 1.6 trillion baht, or 28 percent of the
country’s GDP. However, the state enterprises have allocated only 84
billion baht, or 7 percent of the state’s total revenues. Loans to the
state enterprises amount to 840 billion baht and represent thirty percent of
the total public debt. State enterprises still need some 94 billion baht in
investment projects, which is 73 percent of the state’s maintenance
expenditures.
The efficiency of the state enterprise clearly needs
drastic attention, according to Suwit. Until that happens, he said, listing
them on the Stock Exchange of Thailand is not a viable option.
As part of the long-term restructuring plans, the
management of the state enterprises is to be radically overhauled. They are
to be brought more directly under the control of the Finance Ministry.
The number of state enterprises is to be reduced by
merging them in cluster groups based on their business activities like
utilities, finance and so on. This will help ensure the reform of all state
enterprises, and eliminate those state enterprises which prove to be a
financial burden on the country.
Each enterprise will have separate accounting records for
business operations and social operations so that the government can
determine which state bodies still need public funding.
The working committee assigned to draft the 5-year Master
Plan 2005-2009 to revamp the operations of state enterprises will submit the
draft to the Finance Minister Somkid Jatusripitak for review before the
proposal is submitted to the cabinet for final approval. (TNA)
Government vows to abolish pirated goods
The government has vowed to end the sale and production
of all pirated or unlicensed goods in Thailand within a year. The new
strategy will focus on major distribution channels and production sources in
Bangkok, said Commerce Minister Watana Muangsook.
The planned operations to rid the capital of pirated and
fake goods will cover two zones. The first is the red zone which covers
major production and distribution outlets, like Pantip Plaza on Petchaburi
Road and the Phayathai area. The second is the yellow zone which includes
shopping malls and general market places.
The operations against the pirated goods will commence
immediately, according to the commerce minister, and is expected to be
completed within a year.
Any government officials or police officers involved in these this
illegal activities will face disciplinary actions, and will be suspended
from duty, Watana promised. Police officers who allow the production and
sales of unlicensed goods in their jurisdiction will be transferred out of
their active posts. (TNA)
Local exports to benefit from Taiwan’s economic growth
The Thai government expects the country’s exporters to
benefit from Taiwan’s current economic growth. Taiwan’s economy grew
more than 6 percent in the first three months of this year. This included a
significant increase in exports and industrial production and a greater
demand for electronics, metal products and machinery.
Thai trade officials expect Taiwan’s continued economic
boom will increase the demand for Thai exports, particularly for electronics
and machinery. Imports from Taiwan are also expected to rise, with raw
materials and semi-finished products for re-export the key growth areas.
The majority of Taiwanese investors in Thailand are
involved in the production of goods for re-export. Among these are
electronics and electricity appliances, metal products, machinery, transport
equipment and farm produce. Both Taiwan’s exports and imports rose by some
20 percent in the first three months of 2004. (TNA)
GPF chief upbeat
about SET’s rally in 2nd half
The Stock Exchange of Thailand (SET)’s index is likely
to rally in the second half of this year since the market has already
bottomed out, according to a top official of the Government Pension Fund (GPF).
GPF Secretary-General Visit Tantisunthorn said the market
was projected to turn bullish in that period since it had already absorbed
many negative factors, including the avian flu outbreak and the spate of
violence Thailand’s southern provinces in the first half. He said the
negative factors, excluding concern over the oil price rise, had improved.
He added that high fuel prices would have an effect on performances of only
a handful of listed companies because oil did not serve as the cost of all
industries. He said he believes that the Bank of Thailand will not adjust
the interest policy for now since the liquidity in the financial system
remained high. (TNA)
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