Thai investors are urged to cross the border provided they have done their homework and have interesting products to offer
Saturday June 02, 2007
UMESH PANDEY
Bangkok Post
Saturday June 02, 2007
UMESH PANDEY
Bangkok Post
Thailand's central location and strong economic fundamentals should give its investors the competitive advantage they need to expand their operations into more regional economies, senior government officials and bankers say.
"We are centrally located. We are in the area where all the action is taking place, from increased manufacturing to being the link between the emerging global economic giants such as China and India," Deputy Industry Minister Piyabutr Cholvijarn said in a recent seminar organised by the Export Import Bank of Thailand (Exim Bank).
Thailand, he said, was witnessing a declining manufacturing production index mainly due to the increased costs, an indication that Thai companies now needed to move to other regional markets, especially Cambodia, Laos and Vietnam, to take advantage of the gradual opening of these markets.
"These are interesting markets we should try to look into, and I request all of us gathered here to look at opportunities that are beyond the frontiers of the Thai border," he said at the seminar held to help Thai investors familiarise themselves with prospects and regulations in neighbouring countries.
He said the timing could not be better. The US dollar value of Thai export products had been declining for three years, and the gradual decline in export growth from 20.6% in 2004 to 16.94% in 2006 was an indicator of slipping competitiveness in export markets. The global share of Thailand's trade has declined to 1.23% in 2006 from 1.32% in 2004.
"All this is an indication that we are gradually losing our competitive edge. What we need to do is move up the value chain or look for alternative markets for investments," Mr Piyabutr said.
Citing the case of Italy, which has gradually moved its textile industry into a more value-added, innovative and design-oriented industry, he said Thailand should follow suit.
Other panelists agreed that Thai investors needed to take a bold step forward across the region, as only a handful of companies had so far taken the lead and those that did had been successful.
"The Commerce Ministry ... is also looking at ways of promoting Thais to invest in the region and the rest of the world," said Pisanu Rienmahasarn, the ministry's deputy permanent secretary.
He added that although the ministry had been pushing for Thais to invest in the neighbouring countries and other emerging Asian markets, very few investors had so far taken up the challenge. Most investors from small and medium-sized businesses, in particular, were fearful of going abroad.
Mr Pisanu, who handles China for the ministry, says fears that China will destroy Thai SMEs and that investing in China would only burn them were something of the past, and investors who do their homework could succeed.
"Investing in China and losing your shirt is something of the past, as China is becoming a more international market," Mr Pisanu said.
The Board of Investment (BoI) also has been studying industries in Thailand that have gained the know-how and strength to operate outside the country.
"Our job is not only to help foreign investors come into Thailand but also to look at Thai industries to move abroad," said BoI secretary-general Satit Chanjavanakul.
He added that as long as investors did their homework, had good technological processes, and products good enough to sell in the target markets at competitive prices, they should be ready to venture outside Thailand.
Citing the example of the global computer giant Dell, Mr Satit said the company, whose sales were done online, had not been successful in China due to its pricing strategy and the low level of internet penetration there.
"Investors who are willing to take the risk of investing in such markets are rewarded with very high returns as well," Mr Piyabutr said.
Narongchai Akrasanee, the chairman of the Exim Bank, said most Thais were not investing in neighbouring countries because they had not travelled abroad or studied how to do business there.
Although Cambodia was among the hottest destinations for Thai investors, especially in the hospitality sector, there was still a lot of room for expansion. "What we would like to see is for the greater Mekong subregion to be the next epicentre for investments," he said.
"We are centrally located. We are in the area where all the action is taking place, from increased manufacturing to being the link between the emerging global economic giants such as China and India," Deputy Industry Minister Piyabutr Cholvijarn said in a recent seminar organised by the Export Import Bank of Thailand (Exim Bank).
Thailand, he said, was witnessing a declining manufacturing production index mainly due to the increased costs, an indication that Thai companies now needed to move to other regional markets, especially Cambodia, Laos and Vietnam, to take advantage of the gradual opening of these markets.
"These are interesting markets we should try to look into, and I request all of us gathered here to look at opportunities that are beyond the frontiers of the Thai border," he said at the seminar held to help Thai investors familiarise themselves with prospects and regulations in neighbouring countries.
He said the timing could not be better. The US dollar value of Thai export products had been declining for three years, and the gradual decline in export growth from 20.6% in 2004 to 16.94% in 2006 was an indicator of slipping competitiveness in export markets. The global share of Thailand's trade has declined to 1.23% in 2006 from 1.32% in 2004.
"All this is an indication that we are gradually losing our competitive edge. What we need to do is move up the value chain or look for alternative markets for investments," Mr Piyabutr said.
Citing the case of Italy, which has gradually moved its textile industry into a more value-added, innovative and design-oriented industry, he said Thailand should follow suit.
Other panelists agreed that Thai investors needed to take a bold step forward across the region, as only a handful of companies had so far taken the lead and those that did had been successful.
"The Commerce Ministry ... is also looking at ways of promoting Thais to invest in the region and the rest of the world," said Pisanu Rienmahasarn, the ministry's deputy permanent secretary.
He added that although the ministry had been pushing for Thais to invest in the neighbouring countries and other emerging Asian markets, very few investors had so far taken up the challenge. Most investors from small and medium-sized businesses, in particular, were fearful of going abroad.
Mr Pisanu, who handles China for the ministry, says fears that China will destroy Thai SMEs and that investing in China would only burn them were something of the past, and investors who do their homework could succeed.
"Investing in China and losing your shirt is something of the past, as China is becoming a more international market," Mr Pisanu said.
The Board of Investment (BoI) also has been studying industries in Thailand that have gained the know-how and strength to operate outside the country.
"Our job is not only to help foreign investors come into Thailand but also to look at Thai industries to move abroad," said BoI secretary-general Satit Chanjavanakul.
He added that as long as investors did their homework, had good technological processes, and products good enough to sell in the target markets at competitive prices, they should be ready to venture outside Thailand.
Citing the example of the global computer giant Dell, Mr Satit said the company, whose sales were done online, had not been successful in China due to its pricing strategy and the low level of internet penetration there.
"Investors who are willing to take the risk of investing in such markets are rewarded with very high returns as well," Mr Piyabutr said.
Narongchai Akrasanee, the chairman of the Exim Bank, said most Thais were not investing in neighbouring countries because they had not travelled abroad or studied how to do business there.
Although Cambodia was among the hottest destinations for Thai investors, especially in the hospitality sector, there was still a lot of room for expansion. "What we would like to see is for the greater Mekong subregion to be the next epicentre for investments," he said.
5 comments:
The fucken Thaicong think that they are the central of everything or even the center of the Universe! ahahhah
These Thaicong need to go invest somewhere else! Please don't come to Cambodia!
fucken thais !! go away from srok khmer !! we don't want you because you alway kill khmer peoples !!
soldiers alway brutal khmer p)eoples !!
the time will come for us to bit your ass !!
Noope, we only kill Ah Khmer-Gringo
like you.
To 1:17AM! Vietcong bastard!
You think the fucken Thaicong and the fucken Vietcong can stop Cambodian nationalism! That is right! For now, the fucken Thaicong and the fucken Vietcong enjoy the killing of Cambodian people after all AH HUN SEN is their fucken slave! Hell will wait for all you Thaicong and Vietcong for all your killing of Cambodian people!
Maybe, but Ah Khmer-Gringoes have
caused more Khmer people to die in
modern history than both the
Thaicong and the Vietcong combined.
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