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Impatient
Japanese investors want action
Japan’s Kansai Council of Investment Promotion (KCIP)
has agreed to push for the Japanese government to move more quickly to open
free trade with Thailand.
Federation of Thai Industries’ President Praphad
Phodhivorakhun said the two agencies agreed that the Japanese government is
moving too slowly on this issue.
KCIP is comprised of Japanese investors who have made
more than 80% investment in heavy industries in Thailand. Praphad added that
the FTI would also cooperate with KCIP in the human resources development.
APEC meetings spur trade with Russia
Bilateral trade between Thailand and Russia is expected
to double in the near future, thanks to an agreement on trade and investment
cooperation between the two countries, which was inked during the
Asia-Pacific Economic Cooperation (APEC) meetings held in October of this
year.
For Thailand, the agreement will help local manufacturers
and producers to import low-price raw materials and manufacturing
technologies from Russia, and expand their trade and investment in
agricultural products, and garment and textile products. Thailand will also
benefit from Russia’s advancement in research and development projects.
The two countries will set up centers for trade and
investment cooperation both in Bangkok and Moscow. (TNA)
Goods made by disabled people eyed for export
The Ministry of Commerce is promoting the market for
products made by disabled people, which the government hopes can be
developed for export as part of the One Tambon One Product (OTOP) scheme.
Commerce Minister Watana Muangsook said, “There is a
wide and important range of products made by disabled people, including
artificial flowers, herbal products, leather goods, clothing, shoes,
wickerwork, ceramics, glassware, coconut shell products, massage services
and astrology services.”
The ministry will work to promote such products in
conjunction with the Disabled Person’s Development Foundation and has
asked the Department of Export Promotion and the Department of Internal
Trade to find suitable foreign and domestic markets. (TNA)
TOT to expand basic phone services
The cabinet has endorsed a plan to expand home phone
services nationwide by over 500,000 lines. The plan, which requires an
investment of 8.04 million baht, was proposed by TOT Corporation (TOT).
TOT, the privatized firm of the Telephone Organization of
Thailand, will take all responsibilities solely for the investment project.
The investment plan will take about 15 months to be completed, with 490,830
lines out of the total of 565,500 lines to be provided for users in
provincial areas. (TNA)
FTI reports local auto production up
The Federation of Thai Industries (FTI) recently reported
the county’s automobile production rose nearly 29 percent in the first 10
months of this year.
According to the report, Thailand produced 606,113 cars
and trucks in the first 10 months of 2003, up 28.9 percent from a year ago.
Of this, 32 percent totaling 196,800 units were exported and represents a
37.2 percent increase from a year ago and well above the previously set
target.
The increase was also attributed to high domestic demand and boosted by
low interest rates and attractive promotional offers.
International fair to
showcase Thai fashion
The 19th Bangkok International Fashion Fair 2004 and the
17th Bangkok International Leather Fair 2004 (BIFF&BIL 2004) are
scheduled to be held together for the second time on January 15-19, 2004
(Trade Days: January 15-17, 2004, Public Days: 18-19, 2004) at the Bangkok
International Trade & Exhibition Centre (BITEC), in Bangkok, Thailand.
Organized by the Department of Export Promotion (DEP) of
the Ministry of Commerce with the support of the private sector, BIFF &
BIL 2004 aims to promote Thailand as the fashion hub of Southeast Asia.
Fashion shows, featuring the latest collection of
clothing and leather goods, will be displayed on the catwalk during the
trade days. The Young Designer Room will showcase new wave Thai designers’
collections.
The OTOP Exhibition will present collections of
established Thai textiles and clothing from the One Tambon One Product
project. This project, initiated by the Royal Thai Government in 2001, was
formed to support local Thais to use Thai knowledge and raw materials and so
create unique hand-made products.
BOI begins new investment policy in 2004
The Board of Investment (BOI) has overhauled its plan to
support projects investing in Skills, Technology, and Innovation (STI) in a
bid to increase the country’s Gross Domestic Product (GDP).
Minister of Industry Pinit Jarusombat said that the
Cabinet had agreed with BOI’s investment strategies to promote STI
development by directly supporting each project regardless of its location
in the country.
The five industries to be focused on are agriculture
industries; fashion; automobiles; information and communications technology;
and high-value added services.
In line with the government policy to boost GDP growth,
Pinit said BOI would focus on both domestic direct investment (DDI) and
foreign direct investment (FDI). Under the plan to enhance DDI’s
activities, BOI will help strengthen new small and medium enterprises
(SMEs).
The BOI will offer incentives to investors by considering
the details of each project, not by zoning. Presently, the BOI offers
incentives to companies in three zones. Companies in zones 1, 2 and 3 are
granted corporate tax exemption for five, seven and years respectively.
Companies in zones 1 and 2 receive 50 and 75 percent discounts off the tax
on imported machinery, while those in zone 3 receive 100 percent tax
exemption. Firms in zone 3 also receive eight years of tax exemption for
imported raw materials. (TNA)
Local Spa business expected to soar
According to a study put out by Kasikorn
Research center (KRC) the Spa businesses at superior hotels and resorts in
Bangkok and other tourist destination are likely to earn 10 billion baht
annually, and may rise to 12 billion baht next year. The leading think-tank
said that spas had become a must in superior-level hotels as the services
could generate handsome incomes. With an invested capital of about 10-30
million baht, the hotels could break even in 1-2 years.
The expansion of the spa businesses in Bangkok and
Thailand’s popular tourist resorts is boosted by the traditional Thai
massage and Thai herbs businesses, which can be well-adapted to western
spas. Impressive Thai hospitality is another factor leading to the rapid
growth of the spa facilities in the deluxe hotels.
Targeted groups of customers of the businesses include
overseas travelers who do not stay at expensive hotels or resorts,
expatriates who are working in Thailand, and Thais with the medium-income
bracket or higher who are now more health-conscious and care about their
appearance. (TNA)
Fancy fish and
zebra doves to raise
farm incomes
Agriculture and Cooperatives Minister Somsak Thepsutin
recently announced that the ministry will help farmers throughout the
country to improve management in raising decorative fish, indigenous
chickens and zebra doves, which have high export potential. The Department
of Livestock Development and the Department of Fisheries had been assigned
to implement the plan which aims to increase farmers’ incomes and the
country’s export.
The pilot project for indigenous chickens will be
launched in the northern provinces of Chiang Mai and Khon Kaen. The zebra
dove raising center will be established in the southern province of
Songkhla.
The raising of indigenous chickens is deemed to be a
promising business, as their selling price may be as high as 1,000 baht
each, and their meat costs 50 baht a kilogram.
Existing export markets for zebra doves are Indonesia,
Malaysia, Singapore, and Brunei. A baby bird is priced at 10,000-30,000
baht, and a fully-grown bird can cost as much as 50,000 - 100,000 baht.
(TNA)
BOI urged to revise
local investment growth target upward
Somkid Jatusripitak, Deputy Prime Minister called on the
Board of Investment of Thailand (BOI) to revise the local investment growth
target up to 15%, from 8%, and to adjust its investment promotion strategies
to serve the goal.
Speaking at a seminar on “Brainstorming for Investment
Promotion Strategy,” he said he believed the competition in trade and
investment would intensify next year in the wake of the trade
liberalization.
So, the BOI, as an agency in charge of overseeing
investment in the country, needed to adjust the goal and strategies for its
performance.
“It must focus on the two-pronged investment promotion
strategy,” emphasized the deputy prime minister.
While stressing on granting privileges to five targeted
industry groups, including automobile, fashion, farm product, information
technology (IT) and tourism, he said, the BOI needed to set a target to
attract investment from several countries.
For instance, it might target to see investment from the
European Union (EU) expand by 20% and Japan by 5%.
He said the government wanted the BOT to revise the local investment
expansion target up to 15%, from 8% set earlier. (TNA)
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