23/02/2010 Thailand is fourth choice for Japanese investors
A 2009 survey by the Japan Bank for International Cooperation (JBIC) showed that Thailand is fourth on the list of countries most preferred by Japanese investors - behind China, India and Vietnam - Stock Exchange of Thailand (SET) president Pattareeya Benjapolchai said on Tuesday.
“Japanese investors considered Thailand to have several positive factors that help their business and investments. However, they were still concerned about social and political instability,” Mrs Pattareeya said.
She was speaking at a forum on “Thailand: A Promising Country for Foreign Companies”, a part of a seminar on “The 2009 JBIC Survey Report on Overseas Business Operations by Japanese Manufacturing Companies” jointly organised today by the SET and JBIC.
The SET president pointed out that since this survey was conducted before the emergence of the Map Ta Phut environmental impasse, covering the period January to September 2009, the government should rapidly settle the problem to maintain the country’s credibility.
Mrs Pattareeya said Japanese combined investment accounted for 22 per cent of total foreign investment in Thailand. Japanese had invested about US$2.1 billion here over the past five years.
Japan is a major trading partner with Thai exports to Japan in 2009 totalling US$15.7 billion, second only to the United States.
Zusumu Ushita, senior economist at JBIC’s Singapore office, said Thailand is among top four for Japanese investors because of its low wages and it is an important for-export-production base of Japanese firms.
“But its weak points include a fierce competition climate, lack of top management human resources and political uncertainty,” Mr Ushita said. The Thai government should act to rapidly resolve these investment obstacles.
As for the tourism industry, Thai Hotels Association (THA) chairman said Prakij Chin-amornpong it was worried about the possible effects of this Friday's verdict on the seizure of Thaksin Shinawatra's wealth.
“Operators of the tourism related businesses are keeping a close watch on movements of the red-shirt people group, especially on Friday. They do not want any violence as it would directly affect the tourism sector's recovery,” Mr Prakij said.
He said room ocupancy rate during the Chinese New Year festival was as high as 90 per cent and it was expected that the number of foreigners visiting Thailand this year would rise by 15 to 20 per cent over 2009.
“If there is any unrest it could derail this target,” he said.
Mr Prakij said if the government was forced to invoke the security law, as it had in the past, it would definitely deter foreign tourists and the occupancy rate would drop sharply.
The Supreme Court’s Criminal Division for Holders of Political Positions will on Friday give its verdict on the seizure of 76 billion baht in frozen assets from ousted former prime minister Thaksin Shinawatra and his family.
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