There is no better time for Thailand to develop its business environment
and stringently implement plans to prevent flooding amid an influx of foreign
investors to rising Asia and the strong integration of the Asean Economic
Community, said the president of the American Chamber of Commerce in Thailand.
Thailand is already one of the
top destinations for US investors. However, with the current political
stability, it now is able to do more to attract investment and promote business
expansion, Amcham president Joe Mannix said in an exclusive interview with The
Nation.
According to a survey by Amchams
in Asean nations this year, Thailand is the only member of the bloc where US
businesses have shown concern about political stability.
However, now that politics is
stable, the government could do many things to improve the country's
competitiveness, Mannix said.
He explained that after the
recent quantitative-easing (QE3) measure in the United States, Americans would
spend more and look to expand their businesses to Asia, including Thailand.
With strong growth of investment
in Asean, Amcham has established a chapter in Laos and is working closely with
the US Embassy in Myanmar to organise a chapter to support US companies doing
business in and with that country.
QE3 will help ensure that US
companies have more cash on hand.
It should help promote production
and employment as well as encourage companies to expand investment overseas, he
said.
In Thailand, one of the top
issues for American and other foreign investors is water management and flood
prevention.
Mannix said US firms were closely
monitoring water management and had their own plans to ensure business
continuity this year.
He is strongly confident that
Thailand will not face a repeat of last year's flood disaster.
"Thailand has moved in the
right direction to improve prevention of flooding. I have less concern ... as
the water level in dam [reservoirs] is quite low and manageable. I do hope the
government will keep on its work to improve facilities for business
protection," the Amcham president said.
However, if there is repeated
heavy flooding, Mannix expects that Thailand will lose its attractiveness for
new investors and opportunities for promoting business expansion and
reinvestment here.
He explained that while existing
businesses might not leave Thailand in the case of another disastrous
inundation, newcomers to the region would shift their investment plans to other
countries.
To improve the business
environment in Thailand, which ranks sixth among Asean countries where American
investors have foreseen a very positive outlook for doing business, Amcham
Thailand has suggested some ways for the Kingdom to improve its competitive edge.
Although the increase in the
daily minimum wage to Bt300 will affect some businesses, labour cost is only
one of many factors to be considered by investors, Mannix explained.
Most US companies already pay
their workers more than the minimum wage. First, the government should amend
the Foreign Business Act to liberalise the service sector.
Mannix, who is also country
manager for Thailand and Vietnam of United Airlines, said Thailand has high
potential to draw more tourists. Promotion of the tourism sector by creating a
level playing field for both Thai and foreign enterprises would help improve
the business environment.
The next thing Amcham would like
to see is increased transparency and reduced corruption, which the private
sector is highly tempted to indulge in to cope with red tape.
The customs laws should also be
reviewed. Mannix said Thailand's customs laws are not yet considered to be up
to world standards.
Thailand has room to develop
customs regulations and procedures to facilitate trade growth.
The Kingdom should also
stringently promote awareness on intellectual-property rights, continue its
infrastructure development plan, and promote industries' growth.
He noted that many US companies
were looking at starting new investments and expanding business in the Kingdom.
They include businesses in the automobile industry, heavy machinery and
agriculture equipment, healthcare and other services.
Additionally, as the
representative of more than 700 US companies in Thailand that employ of more than
215,000 Thai workers, the Amcham president encouraged Thailand to join the
Trans-Pacific Partnership negotiation among nine countries in the Asia-Pacific
region.
PETCHANET PRATRUANGKRAI
Business & Investment Opportunities
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