Twenty-four foreign firms were allowed to start businesses in Thailand in
March, up only 9 per cent from the previous month but a jump of 37 per cent
from March 2009, said a senior Commerce Ministry official last week.
Banyong Limprayoonwong, director-general of the Business
Development Department, speaking in his capacity as secretary of the Foreign
Business Committee, said that combined investment by the 24 foreign firms is
about Bt842 million.
Of the total, three - a German, an Austrian and a
Taiwanese firm - were given the green light to jointly engage in providing
consultant services for construction of the government-sponsored purple
route of an integrated mass transit rail system, aimed at easing traffic
congestion on the outskirts of Bangkok.
The 23-kilometre purple route runs from Bang Yai in
Nonthaburi province to Bang Sue in northern Bangkok’s outskirts.
Construction investment is estimated at Bt13 billion.
Banyong said Japanese business men and financiers
remained the top foreign investors in Thailand. Most of their businesses are
engaged in providing consultants on installing heavy machinery and computers
used in the industrial sector and cash management through an internet
system. (TNA)
The Thai government has agreed in principle to extend the
railroad line from Thailand’s northeastern province of Nong Khai to Laos’
Thanaleng for another 12 km to its capital Vientiane.
According to Akarasiri Buranasiri, director of the
Neighbouring Countries Economic Development Cooperation Agency (NEDA), the
project’s construction is to start in 2011 with a budget of over Bt1 billion
(US$31 million) to facilitate tourists travelling to Vientiane and to increase
trade and investment among both countries, as well as logistics and transport
systems for Thai goods to be sold in the Laotian capital in the hope that
Thailand would gain advantages over its competitor, China.
The NEDA director, meanwhile, signed an agreement with Lao
PDR’ Finance Vice Minister Viengthong Siphandone regarding Thailand’s soft loans
to her country at Bt655 million ($20 million) for two projects with interest
rates of 1.5 per cent per year and with a five-year grant period.
The funding of Bt405 million ($12 million) will be for a
development project on the route of Houay Xay and Ban Sod in between Thailand’s
Chiang Rai to China’s Kunming, or R3, while the Bt250 million ($8 million) loan
will go for a road development and a drainage system in Vientiane to solve its
traffic and flooding problems, and to support the upcoming 450-year anniversary
celebration of the capital.
Due to this assistance, Laos is obligated to buy 50 per cent
of the construction materials from Thailand, while consultant and contractor
companies must also be Thai.
“We have previously provided around Bt3.2 billion ($100
million) in loans to Laos for six projects. Four of them were completed, while
the other two are still under construction, a route development from Huay Kon to
Pak Beng and the Pakxe airport development project,” said Akarasiri.
In addition, NEDA has studied a road construction project
(R11) from the Lao capital of Vientiane to Thailand’s Loei by connecting to
Laos’ Luang Prabang for those travelling along the lower part of Thailand’s
north. A budget of Bt1.4 billion ($43 million) was expected, and this matter is
to be proposed for a Cabinet’s consideration in the near future.
Akarasiri added that NEDA is planning to extend its role by
asking for cooperation from Thai private and public commercial banks on
providing loans to Thailand’s neighbouring countries. (TNA)