BUSINESS 
HEADLINES [click on headline to view story]: 

Industry Minister: Korean business views Thailand as investment magnet

SET: Foreign investors remain concerned by political uncertainty

New economic stimulus package to boost economy in 2010-2012

Thai businesses explore investment opportunities in Myanmar

Thailand vows to take tough stand on counterfeit goods

Government invests Bt900 million to upgrade Koh Samui infrastructure


Industry Minister: Korean business views Thailand as investment magnet

Leading South Korean businesspersons view Thailand as an attractive investment spot, and some plan to shift their production bases into the country, according to Industry Minister Chanchai Chairungruang.
Speaking during a road show in the South Korean capital, Chanchai said the Board of Investment opened its 11th overseas office in Seoul to show its intention to persuade South Korean companies with growth potential to invest in Thailand.
Chanchai said he met and discussed with South Korean Knowledge Economy Minister Lee-Youn Ho and top executives of leading Korean companies regarding investment opportunities in South Korea and Thailand.
Most South Korean businesses still see Thailand as an active option for investment, particularly in the electrical appliance and electronics industries.
Some Korean electronic parts producers plan to move their production bases to Thailand soon and are due to apply for BoI investment promotions.
Minister Chanchai said the South Korean minister suggested Thailand accelerate keeping Korean investors informed of the health of its economy and policy on investment promotions.
The Korean minister proposed establishing an industrial estate in Thailand dedicated to South Korean investor needs. Such an undertaking could become an investment magnet among Korean investors.
The minister also affirmed Korean contractors’ readiness to take up construction of mega-projects in Thailand.
In the past two years, Chanchai said, Koreans had invested significantly in Thailand, particularly in the electrical appliances and electronics industry.
Last year, Korean investment groups sought BoI investment promotions for 49 projects with total investment of more than Bt4.3 billion in the electrical appliances and electronics, ceramics, mining, and service industries. (TNA)


SET: Foreign investors remain concerned by political uncertainty

Most foreign investors remain worried about political uncertainties in Thailand because they could disrupt an implementation of various investment projects, according to Stock Exchange of Thailand (SET) president, Patareeya Benjapolchai.
Revealing the result of road shows in Boston, New York and London at a “Thailand: Strength in Global Adversary” function June 24-29, she said the investment promotion had attracted 86 investors from 74 companies with combined investments worldwide of more than Bt6.8 trillion.
Mrs. Patareeya said most investors enquired about the political situation in Thailand as they are concerned whether investment projects would be implemented as scheduled if political uncertainties still persist.
To ease their concern, Deputy Finance Minister Pradit Phataraprasit, who participated in the promotional events, explained that the government’s economic stimulus measures and other schemes had already passed their formal readings in the House of Representatives.
Pradit assured South Korean investors that the economic policy adopted by the Thai government would contribute to the economic growth.
With the application of the government’s economic stimulus package, it is projected that Thailand’s gross domestic product (GDP) will grow 4.1 percent next year, 5.2 percent in 2011, and 5.5 percent in 2012, Patareeya quoted Minister Pradit as saying. (TNA)


New economic stimulus package to boost economy in 2010-2012

The government’s second phase economic stimulus measures under “Thai Khem Khang” or “Stronger Thai 2012” project will help boost the country’s annual economic growth of 1-2.5 percent during 2010-2012, according to a leading securities analyst.
However, implementation of the measures will raise the public debt to 60 percent of the gross domestic product in 2012, according to Sukit Udomsiri, first executive vice president of Siam City Research Institute, at a special panel discussion on the economic and financial situation.
He predicted the planned issuance of the government bonds to absorb market liquidity would not adversely affect the overall liquidity in the system.
But liquidity is quite likely to tighten next year as the demand for investment funds by the private sector is set to increase as a result of recovery in the global economy.
Under the circumstances, he said, the interest rates might increase next year.
Sukit believes the Thai economy next year would not be worse than this year, as he believes the global economy will enjoy a V-shape turnaround in 2011.
Still, he warned of a renewed rise in inflation in the coming August-October period, since global oil prices are expected to increase further. (TNA)
 


Thai businesses explore investment opportunities in Myanmar

Thailand’s Board of Investment (BoI) will lead some 25 Thai businessmen to explore investment opportunities in four major cities in Myanmar next week, a senior BoI official said Sunday.
Mrs. Vasana Mututanont, director of BoI’s International Affairs Bureau, said under the agency’s program called ‘Business Mission’, the prospective investors will leave Bangkok and visit four Myanmar cities including Yangon, Toungoo, Bagan and Mandalay between July 13-17.
The BoI official said that the Thais will have opportunities to discuss with Myanmar entrepreneurs regarding several important industries, including furniture manufacturing, cement and automobile assembly.
Currently, the major Thai goods exported to Myanmar are motorcycles, vegetable oil and diesel oil. Most goods are exported through the Thai border district of Mae Sot.
So far, Thai businesses have invested in 58 projects in Myanmar with a combined value of about US$7.4 million.
Under the ‘Business Mission’ activity, Thai investors are encouraged to invest in neighboring countries including Laos, Cambodia, Vietnam and Myanmar as Thailand shares borders with them, said Mrs. Vasana.
Investment in these countries could be expanded to southern China and India in the near future after transportation facilities are built. (TNA)


Thailand vows to take tough stand on counterfeit goods

Thailand on Friday vowed proactive enforcement to suppress intellectual property violations, targeting a goal of outstanding results in hand to eliminate such economic crimes in the kingdom within two to eight months.
Alongkorn Ponlaboot, deputy minister of commerce, said that the committee on prevention and suppression of intellectual property violations, chaired by Prime Minister Abhisit Vejjajiva, agreed to step up measures to crack down on piracy.
The United States earlier downgraded Thailand to its “Priority Watch List” (PWL) due to charges of the Thai authorities taking little action to protect US intellectual property rights.
In May, a special team from the Commerce Ministry raided vendors offering pirated goods in Bangkok’s Patpong night market area, leaving 11 people injured when some vendors put up stiff resistance.
The minister said that the committee hoped that Thailand’s proactive policy will result in decreasing piracy in the kingdom as early as September or by early next year at latest.
The measures included strict law enforcement, improvement of legal procedures and suppression of online piracy.
Alongkorn also said that since the beginning of the year through the month of May, police confiscated 1,723,838 pieces of counterfeit goods. (TNA)


Government invests Bt900 million to upgrade Koh Samui infrastructure

Thailand’s Ministry of Finance has allocated a budget of Bt 900 million to redevelop and upgrade infrastructure on the resort island of Samui in the southern province of Surat Thani.
Finance Minister Korn Chatikavanij and Deputy Finance Minister Pruttichai Damrongrat visited Koh Samui to observe repairs and reconstruction work in progress of a 70 kilometer ring road around the island.
Rapid development related to tourism has caused flooding and heavier vehicle use has brought about damage to roads, so that existing infrastructure to serve tourism is insufficient. The newly-earmarked funds will be allocated to finance the project until 2012, Korn said.
The Finance Ministry has also conducted a feasibility study on building an international conference centre on a designated plot of land.
Koh Samui Tourism Association chairman Senee Puwasetthavorn said there were only a few hotels sufficient to accommodate 100-200 people to attend a seminar.
If the government develops the area as a conference centre with capacity to serve thousands of attendees, the island will attract more tourists with higher purchasing power. Currently the island serves a clientele comprised largely of modestly funded backpackers and budget travelers.
It will also be able to hold larger events such as a crafts and products exhibition to help the island earn more income, said Senee. (TNA)