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Foreign firms invited to join Thailand’s water management projects
The Royal Irrigation Department (RID) has invited foreign
consulting firms to take part in bidding for contracts for Thailand’s water
management projects in 25 river basins across the kingdom.
“Foreign consulting firms are welcome to study and present their proposed
approaches on effective water management for the country’s 25 river basins
and adjacent areas,” RID Director-General Samart Chokkanapitak told
journalists.
“When fully developed and integrated, the country’s water management system
will ensure that the country has sufficient water resources for domestic
consumption as well as protection from flooding,” he added.
E-auctions to choose successful bidders to contract for the projects will be
launched later this year.
Foreign firms interested in the projects can contact the Thai Ministry of
Agriculture and Cooperatives or the Royal Irrigation Department for more
information.
The water management project is part of the government-supported mega
projects, worth approximately Bt1.7 trillion (US$42.5 billion). (TNA)
Thailand can save up to Bt3.1 trillion from effective energy use in 15 years
Thailand can save up to Bt3.1 trillion over the next 15
years through effective energy consumption, according to the Ministry of
Energy.
Deputy Permanent Secretary for Energy Pornchai Rujiprapa told a seminar last
Wednesday that effective energy consumption, if achieved, would reduce the
proportion of energy use/gross domestic product (GDP) to 1:1 in 2010 and
0.8:1 by 2016, from 1.2:1 currently.
“Thailand needs to achieve effective energy consumption through continuing
energy conservation measures, as well as alternative energy projects and
sources to avoid facing acute shortage of oil by 2030,” he told the seminar,
entitled “Oil Crisis: Increased Business Opportunities for Alternative
Energy”, which was organized by Naresuan University.
Pornchai warned that world oil prices could surge to US$70-80 a barrel by
2010, and that unless Thailand achieves effective energy consumption, the
country’s oil imports could jump to 97 percent of GDP, from 75 percent
currently.
The country’s alternative energy includes natural gas for vehicles (NGV),
gasohol and bio-diesel, while alternative energy sources include coal and
hydrolic-based power plants. (TNA)
New savings bond with attractive return offered to public
The Ministry of Finance has issued a new savings bond to
the public with an attractive return of nearly 6 percent annually.
Director-General of the ministry’s Public Debt Management Office Pannee
Sathavarodom told journalists that the new set of savings bonds, the fifth
of its kind, worth Bt2 billion, would have a maturity period of seven years.
Holders of the bond would earn a fixed annual return of 5.70 percent per
unit, she noted. The 7-year bond is now being offered at all branches of
Kasikorn Bank until February 24. (TNA)
Local credit card market becoming saturated, says Visa executive
The credit card market in Thailand will soon become
saturated, although the number of new credit cards continues to rise,
according to an industry executive.
Somboon Krobtheeranont, manager of Visa International (Thailand), said that
as of the end of 2005, the number of visa credit cards increased by 1.1
million, or 23 percent from 4.6 million in the previous year.
Spending through the cards rose by 22 percent to 315 billion baht. Average
spending per card per year totaled 55,100 baht.
He said the amount spent through cards continues to increase due to the
country’s overall economic growth, stabilization of inflation rates, and
customer’s preference to charge to credit cards rather than pay in cash.
Somboon said that since the local credit card market was going to peak, the
company plans to stimulate spending this year through various forms of cards
such as debit visa card and free-paid visa card.
He said most Thai people still use debit cards (ATM cards) to withdraw cash.
The company will instead encourage people to use their charge cards more
often to pay for goods or services.
“Spending through visa credit cards this year is likely increase by 20-21
percent since the country’s economy still enjoys growth as projected by the
government.
“The number of visa debit cards in 2005 rose by 27% to 11.4 million from 9
million in 2004. Spending through the cards increased by 16% to 16 billion
baht,” he said.
Currently, visa International holds a market share of approximately 70% of
the 458 billion baht spent through credit cards in Thailand. (TNA)
Thailand to double hydropower purchases from Laos
Thailand will sign a Memorandum of Understanding (MoU)
with Laos to purchase almost double the current level of electricity from
Laos to meet the kingdom’s increasing domestic demand for energy, according
to Energy Ministry Deputy Permanent Secretary Pornchai Rujiprapa.
The Thai authorities and their Lao counterparts met to discuss terms of the
new agreement on Feb 15-16, as the current pact signed by the two
governments in 1997 on purchasing 3,000 MW of power from 1996 to 2006 will
end this year.
Thailand plans to increase its purchase of electricity from the current
3,000 MW to some 5,000-6,000 MW from neighboring Laos, which produces
large-scale electricity generation from hydroelectric dams. Electricity
power production in Laos at present has the capacity to generate up to
10,000 MW, Pornchai said.
The additional electricity to be purchased by Thailand is produced at six
Lao hydroelectric projects—the Namngum 2 and 3, the Namngiep 1, the Namtheun
1, Namtheun Hinboun, the Xepien-Xenamnoi and a lignite-fueled
electricity-generating facility at Hongsat.
The agreed decision will be based on the capacity of each project and the
contracted demand for energy in Thailand, he said.
Pornchai believes that Thailand’s demand for power will increase from the
current 30,000 MW to 60,000 MW over the next 15 years.
In addition to agreements with the Lao PDR, the Thai government is
negotiating with the China, Myanmar, and Cambodia to purchase additional
electricity.
Thailand currently uses nearly 30,000 MW of imported electrical power.
Otherwise, it is 90 percent dependent on gas and charcoal and seeks more
electricity generated by hydroelectric dams in neighboring countries. (TNA)
Thai exports to China plunge with receding Mekong River
Traders in Thailand’s northern border town of Chiang Rai
said that the falling water level of the Mekong River has affected the
country’s trade with China, both imports and exports, by forcing boats to
reduce their cargo capacity to survive their journeys.
Attaphan Rangsi, president of the border traders association in Chiang Saen
district, told TNA that fully loaded riverboats cannot complete their normal
journeys as the river has dramatically receded to a critical level.
Drought has been blamed by some, but large-scale dam construction in China’s
Yunnan Province and the resultant retention of water upstream on the river
that China calls the Lancang has worsened the situation.
“The government knows the problem very well, but because the Mekong River is
an international river it cannot do much,” Attaphan said.
“This problem recurs every year around January until April,” he said,
referring to the problem of low volumes of water flow due to an increasing
number of dams, as well as industrial and agricultural water use upstream.
“This is a prolonged problem and we really want our government to discuss
the issue with China and find a solution,” said the local business
association chief.
Attaphan also complained over a sharp hike in transport fees charged by boat
operators despite the smaller loads they are able to carry.
The normal dry season phenomenon of low water levels, lower cargo capacities
and the higher prices of fuel combine to make the cost of doing business
ever higher.
The more difficult upstream journeys normally carry less cargo.
The Mekong River, Southeast Asia’s longest, originates in the eastern
Tibetan highlands. (TNA)
Foreign workers in Bangkok required to report to BMA by March
Foreign laborers working legally and illegally in Bangkok
are required to report to the Bangkok Metropolitan Administration (BMA) by
the end of March.
Director of the BMA’s Administration and Registration Division Somsak
Kongmak urged employers of foreign workers in the capital to bring their
workers for legal registration from March 1-30 at the city’s 10 district
offices, which are in Bangkapi, Bangkokyai, Bangkae, Bangkhunthien, Prawet,
Bang Khen, Phra Nakhon, Din Daeng, Yannawa and Min Buri.
“Workers who have registered with the BMA can have their documents renewed
or extended for a Bt10,000 fee; while those who have never reported to the
authorities will have their legal documents issued for the first time for a
Bt50,000 fee,” he said.
“Foreign workers who fail to report to the city’s authorities during the
period will be fined up to Bt100,000 each if arrested thereafter,” Somsak
warned.
Currently, there are more than 100,000 illegal foreign laborers working in
the capital, according to the official. (TNA)
GE Money Bank insists it has no desire to buy shares of Thai banks
Giant GE Money Bank has insisted that
it has no intention of buying shares of other commercial banks or merging
with other financial institutions in Thailand, according to Finance Minister
Thanong Bidaya.
His revelation came after a group of the bank’s top executives led by Chief
Executive Officer David R. Nielsen paid a courtesy call to him last
Wednesday.
He said Nielsen insisted the bank did not want to invest in other commercial
banks by holding their shares. Instead, it wished to seek a partner or a
joint venture with financial institutions or private companies to increase
its credit card services.
The bank intends to expand its business once it receives a license to
operate a financial institution in Thailand. In particular, GE Money Bank
wants to expand housing and auto loans in addition to deposit and consumer
loan services.
Dr. Thanong said GE Money Bank has confidence in Thailand’s economic growth
and plans to expand its business activities in the country. However, it has
no desire to merge with other financial institutions in Thailand.
Dr. Thanong believes that GE Money Bank is fully capable of expanding its
business in Thailand because asset-wise, it is the second largest in Asia,
after the Japanese Bank.
Currently, GE Money Bank has cooperated with Bank of Ayudhya and the Central
Group in providing credit card services. (TNA)
Thai people urged to register intellectual properties
Deputy Commerce Minister Preecha
Laohapongchana urged Thai people to pay greater attention to registering
their intellectual properties, especially patents.
Speaking after a seminar on “Management of Thai Intellectual Properties” he
said Thai people have given more significance to registering their
intellectual properties each year.
But when compared with those of foreign countries, the number of the
properties, particularly patents registered by Thais, are very small.
At present, there are only 7,000-8,000 applications for patents each year.
So far, only 15,000 applications have been approved.
However, applications for trademarks are as much as 25,000-30,000 each year
because the registration process is much easier to understand than that of
patents. He said the number of patents registered in the world have totaled
more than 51 million. Of this, 19.4 percent is owned by the United States, 9
percent by Japan, 8.6 percent by the United Kingdom and only 0.017 percent
by Thailand. It shows that the number of inventions and innovations by Thai
people remains very small.
Therefore, the Commerce Ministry aims to hold a seminar to encourage Thai
people to bring intellectual properties for commercial use because it
believes their inventions can be commercially developed.
Preecha added that state financial institutions, including the Small and
Medium Development Bank of Thailand (SME Bank), are ready to extend loans
for development of intellectual properties. (TNA)
M&A cases likely to rise in Thailand along with economic growth
The number of business mergers and
acquisitions (M&A) in Thailand is expected to increase along with the
country’s economic growth, according to a leading brokerage house.
Udomsak Chakreevanich, president of Asia Plus Securities Public Company
Limited, said that the company had been engaged as an advisor for two cases
of business amalgamation, including Oishi Group Public Company and Asian
Seafood Storage Public Company Limited since early this year. The company is
set to carry out approximately 4-5 more amalgamation cases this year.
Udomsak believes that mergers and acquisitions in Thailand is likely to gain
momentum since the overall economy has opened up on the world market.
Competition with foreign counterparts is unavoidable.
Therefore, he said, Thai companies need to step up building their strengths.
One way to do this is through the merger and acquisition of Thai companies,
or partnerships with foreign investors to boost expertise and business
network.
“The Thai economy is opening up. Mergers and acquisitions are inevitable. In
the past, we witnessed the Ta Ta Group of India acquiring steel and
securities businesses. Companies cannot survive unless they are very strong.
Recently, United Securities got a strategic partner from Japan. Many firms
in the communication sectors have been taken over by foreigners,” he noted.
(TNA)
Deputy PM explains advantages of Thai-US free trade talks to academics
Deputy Prime Minister Somkid
Jatusripitak clarified the framework of the proposed Thai-US Free Trade Area
agreement to academics, saying that the FTA would benefit the two countries
equally. Somkid, who is also minister of commerce, said he had talked to
many academics in both the state and private sectors about Thailand’s free
trade negotiations, particularly with the US. The Ministry understands
academic’s fears that the Thai-US FTA would put Thailand at a disadvantage.
He said he had made it clear that they shouldn’t worry because the
negotiations are based on ‘win-win’ principles.
Somkid said he asked the academics not to be biased and divided the
political issue from the trade issue. The last six rounds of talks were only
about what would be discussed in the FTA negotiations and there were no
conclusions or agreements reached, as implied in rumors.
More details would be discussed in the following rounds of talks. If there
were any issues that would put Thailand at a disadvantage, it would not be
put on the agenda.
The Deputy Prime Minister said the academics now understand Thailand’s
stance and are relieved.
He said that early next month he will meet Thai negotiators for both the US
and Japanese FTA agreements, and that they would brief the House of
Representatives and the Senate on the details of FTA negotiations. The
briefing is expected to take two days beginning March 6, Somkid said, adding
that he believes that both countries would benefit on an equal basis. (TNA)
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