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Foreign allies vital for Thai SMEs
The building up of networks of global partnerships is
becoming increasingly important for the success of Thai small and medium
enterprises (SMEs) as international competition heats up.
Speaking at a seminar the on, “Approaches to using
the APEC forum to solve the crisis of Thai SMEs,” Manoo Liewphairot,
permanent secretary for industry said that Thailand’s SMEs are not only
faced with increasing market competition but they are also at a
disadvantage in terms of technology, investment, research, and the lack of
good governance.
In 2003 Thailand will host the meeting of heads of
states from the Asia-Pacific Economic Cooperation (APEC) region, and in
August this year will host the APEC ministerial meeting on SMEs. Manoo
expressed confidence that matters raised by Thailand at the August meeting
would lead to greater assistance for Thai SMEs from fellow APEC members.
“The survival of Thai SMEs is increasingly dependent
on the foreign dimension, with a need to rely on foreign alliance networks
for the development of research, the development of marketing and the
search for new sources of investment,” Manoo said.
His remarks were echoed by Wai Jamornman, deputy
director of the Institute for East Asian Studies, who said that SMEs had
to rely on the creation of business networks both at home and abroad. He
called on Thai SMEs to form groups to ensure greater bargaining power and
increase their readiness to adjust to ever-changing business and market
situations. Wai cited the example of the 1,160 Japanese SMEs that had set
up shop in Thailand, with support from the Japanese government. (TNA)
US will not patent jasmine rice
Thai rice farmers will soon be celebrating over the
recent announcement that the United States has said in writing that it
will not patent Thailand’s famous hom mali rice.
In a letter sent to the Thai government on February 22,
the US Ministry of Agriculture said that Thailand could rest assured, that
it would see that US scientists stuck strictly to the letter of patent
laws. News last year that a US scientist was developing a strain of
jasmine rice suitable for growing in US climates provoked a storm of
protest from Thai farmers, who feared for their livelihoods.
Deputy Commerce Minister Suwann Waliasathiern said the
letter from the US government pointed out that the scientist in question
had obtained the rice strain from the International Rice Research
Institute (IRRI), which stipulated clearly in its regulations that anyone
obtaining strains from the institute would not be able to patent them.
The US government said that it attached great
importance to following these rules, and that no US scientist would be
able to patent Thailand’s famous hom mali strain of rice. A copy of the
IRRI’s MTA contract on the transferal of plant strains signed by the
scientist in question will be submitted to the Thai government in the next
few weeks.
In December last year Prime Minister Thaksin Shinawatra
discussed the rice issue with President George W. Bush during his visit to
the US, pointing out that rice was one of Thailand’s most important
products. Suwann said that Thailand is in the process of preparing an MTA
agreement on the transfer of rice strains, and will send the completed
contract to the US scientist working on jasmine rice.
The MTA plans to put a blanket ban on patenting Thai
rice strains, ban the use of Thai rice for commercial purposes and ban its
dissemination.
The agreement will cover not only researchers but also
other parties involved to ensure that there will be no loopholes. (TNA)
Government should urge multi-national corporations to set up regional HQs
The government’s plan to encourage multi-national
corporations to set up their regional operating headquarters (ROH) in
Thailand would benefit the country’s economy in many aspects, according
to Thailand’s leading think-tank.
Farmers Research Center stated the government has been
continuously launching measures to attract foreign investment since late
2001. One of the key measures is its decision to offer tax incentives to
multi-national corporations which intend to establish their ROH in the
country. A royal decree is being drawn up for the endorsement of the
decision.
Setting up of ROH inside the country will result in an
increase in foreign direct investment, state revenue earned from their
operations and tax collection, and a boost in local employment.
Still, TFRC said, the government must determine
specific industries to which the establishment of the ROH is allowed so it
can adopt an appropriate strategy to attract investment from target groups
of investors.
Presently the strong economic fundamentals of the
country should be used to attract multi-national corporations and
industries that are appropriate to Thailand including automobiles,
electrical appliances and electronics, chemical products, consumer
products, and services.
TGTC stressed that development of the county’s basic
industries should also be encouraged in coordination with the
establishment of the ROH to ensure that basic infrastructure meets the
demand. The Board of Investment must still play a role in balancing the
investment promotion objective with industry (TNA)
Public and private sectors join forces to reinforce Thai industries
The government and the private sector have agreed to
join forces in strengthening Thai industries. The agreement was reached at
a meeting held at Government House last week between Prime Minister
Thaksin Shinawatra, other key cabinet members, representatives of
government agencies, and representatives of the private sector, including
the Thai Bankers’ Association, Thai Chamber of Commerce, and the
Federation of Thai Industries (FTI).
Deputy prime minister and finance minister Somkid
Jatusripitak, who was also at the meeting, said that the agreement was
aimed at forging cooperation between the public and private sectors in
national development through the support of local industries.
The cooperation will be in the form of joint
participation in panels set up to separately develop selected industries,
which are considered significant to the development of the Thai economy,
namely the textile and fashion industries, tourism industry, rubber
industry, plastic industry, and automobile and auto-parts industries.
The cooperation will also extend to finding ways to
support and strengthen local small and medium-sized enterprises (SMEs),
namely the establishment of the venture capital fund and loans extended to
them by local financial institutes. “Prime Minister Thaksin wants the
panels to meet every week, and he would like to join the meetings to work
for the progress of the initiative,” Somkid said.
Also attending the meeting were industry minister
Suriya Jungrugnreankit and commerce minister Adisai Bodharamik. Suriya
said that over 80% of Thailand’s national income was derived from the
private sector; while the public sector contributed only about 17% of the
country’s gross domestic product. Therefore, the government needs to
seek cooperation and brainstorming from the private sector to push for
national development.
Meanwhile, Vachara Phanachet, secretary of the Thai
Chamber of Commerce added that what the private sector wants from the
government is primarily support in marketing strategies, including
exploration of new markets, expansion of existing markets, and measures to
promote the country’s competitiveness. He said that representatives of
the Office of the Council of State also joined in the meeting to listen to
problems of the private sector, including those concerning amendment of
laws, which would facilitate the development of local industries in the
future. (TNA)
PTT raises gasoline prices
PTT Plc. announced it has increased the retail price of
its gasoline due to rising world oil prices. March 12, retail prices of
its gasoline of all types at petrol stations nationwide were increased by
B0.30 a liter.
The upward adjustment of the gasoline price is due to a
continued increase of oil prices in the world market. Prices of Dubai
crude oil have risen to around US$22.46 a barrel; while those of refined
gasoline in the Singapore market have increased to around US$27.20 a
barrel for benzene 95, and US$24.13 a barrel for diesel.
With the latest adjustment, the prices of benzene 95
(PTT Performa Gold) and benzene 91 (PTT Max) will be B14.89 and B13.89 a
liter respectively in Bangkok and peripheral areas; while the price of
diesel rose to B12.29 a liter. (TNA)
APV expands supply to beer market
Allen Jensen, general manager of APV (Thailand) and
David Aitken, general manager of Bangkok Exhibition Services signed a
contract for ProPak Asia 2002, the 10th International Food Processing and
Packaging Technology exhibition and conference which will be held June
12-15 at BITEC, Bangkok.
APV is a world leader in process technologies for food,
beverage, pharmaceutical and healthcare industries. This year APV plans to
display technology for the production of beer. This intensely competitive
market in Thailand is now estimated to be worth more that 50 billion baht
per year with many new brands penetrating the market.
BES is the professional trade exhibition organizer of
ProPak Asia 2002, Southeast Asia’s leading processing and packaging
event. Over 500 manufacturers and suppliers of food, beverage,
pharmaceutical and cosmetic processing and packaging technology will join
the 2002 exhibition and conference program. Groups planned from Denmark,
Italy, Singapore, Spain, Taiwan, UK and USA will display the latest
equipment, materials and know-how from around the world to boost
Thailand’s fast growing core industry sectors.
PM calls for Thai people to unite and be-prepared for economic recovery
Prime Minister Taksin Shinawatra has called for Thai
people to unite and to jointly solve national problems. He has also asked
them to be prepared for the economic recovery, which he says is imminent.
“I want the whole Thai population to unite, and to be
determined to get through their own problems so that they can jointly
address national problems. This will prepare them to be beneficiaries of
the coming economic recovery,” Taksin said.
He stressed that his decision on a minor recent cabinet
reshuffle, with the Chat Pattana Party member Korn Dabbarnagsi being
invited to join in the coalition, was aimed to send a positive signal to
the international community.
“The cabinet reshuffle was done to show the
international community that Thailand is politically stabile and to boost
investors’ confidence in the Thai economy,” he said.
The Thai premier noted that Thailand’s economy was
showing signs of recovery in many areas, namely the construction and
property sectors, which could be witnessed by more bullish activities in
the Thai stock market in the past few days and the progress of debt
restructuring in the banking and corporate sectors. This was the result of
the indicators pointing to recovery of the U.S. market. This in turn will
lead to the overall recovery of the world economy, he pointed out.
“Thai people deserve praise. They have been patient
in the face of difficulties for some years. I’d like to urge all Thais
to be patient for a bit longer, and they will in turn reap the benefits of
a more vital economy,” he said. (TNA)
USTR to visit Thailand in April
U.S. Trade Representative (USTR) is schedule to visit
Thailand early in April to discuss ways to further boost bilateral trade
ties and cooperation between the two countries. Thailand’s Trade
Representative Kantathee Suphamongkol announced that that USTR will visit
Thailand on April 4.
Discussions regarding overall prospects of bilateral
trade, as well as problems and obstacles of two-way trade, including those
concerning the U.S. generalized system of preference (GSP), and ways to
further boost bilateral trade ties and cooperation will be on the agenda
during the USTR’s visit to the Kingdom.
In Kantathee’s view, the recent cabinet reshuffle
will not affect bilateral trade between Washington and Bangkok, since
every country is free to pursue political change.
He also believes that a recent move by the Royal Thai
Police Immigration Bureau to withdraw visas of two journalists from the
Far Eastern Economic Review (FEER) magazine, one of whom is American, will
not affect bilateral trade, either, as the case has been settled.
Kantathee said that Thailand wants to take this
opportunity to seek ways to expand trade to the U.S. market. There are
encouraging signs that the U.S. economy may recover in the second half of
this year. “The United States is among Thailand’s key export markets,
which we will try to maintain, along with efforts to explore new markets
of around 200 other countries around the globe,” he said. (TNA)
BOI to organize “Build Thailand Fair” in August
The Board of Investment plans to organize the Build
Thailand Fair August 20-25 with an aim to exhibit competency, progress and
the success of Thai industries to the world community.
Sompong Wanapa, the BOI’s secretary-general, said the
six-day grand fair would give local industrial operators, particularly
small and medium-size entrepreneurs, an opportunity to get access to
business and marketing channels in the international trade arena.
The exhibition will be held in three sections which
separately manifest the progress of production technology, the competency
of small industries initiated from local intellectuals, and the progress
of agriculture industry. Sompong said the function will serve as a venue
where SMEs have a chance to meet producers both locally and from overseas
to exchange their views and knowledge.
It is expected the grand fair will draw as many as
300,000 participants and will result in an increased production of
industrial goods worth of more than two billion baht from orders following
the exhibition.
The fair should also lead to the development of
production quality and design for the Thai industries. It will also
encourage the use of local parts and raw materials, which would help
reduce dependence on import contents, he said. The venue of the fair has
yet to be determined. (TNA)
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