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)
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