Bangkok Base News & Views

On August 25 2008, The Nation reported new initiatives, announced the previous week by Thailand’s Commerce Minister, Chaiya Sasomsap. 

Proposed amendments to the Foreign Business Act (FBA), would see a review of industries in Annexes I – III; comprising protected businesses under the Act. The initiative would remove some industry categories, in which Thailand is now deemed ready to compete with foreign-owned organisations.

The Nation defined the categories listed in Annex III that are expected to become more flexible towards foreign investment under the latest proposed changes. These include rice milling, fisheries, forestry, accountancy services, service businesses, legal services, agriculture, engineering, leasing, advertising agencies and retail and wholesale.

Annex I (media, rice & animal farming, forestry of natural forests, etc) & Annex II (manufacturing/trading in firearms & armaments, military vehicles, domestic transportation, Thai arts & crafts, silk farming/manufacture, sugar, salt, mining, or timber fabrication), will also be included under the terms of the review.

Minister Chaiya said that the committee reviewing the Act was expected to complete its task by the end of the year, to ensure that the new conditions can take effect next year - and that foreign direct investment will be stimulated as a result.

In the context of Thailand’s current politically challenging agenda, this ministerial announcement appears to be based on a genuine recognition by key decision makers of how Thailand, as an emerging global economic player, must continually review its protectionism policies.

While the devil will inevitably be in the legislative detail, Bangkok Base remains optimistic about the review committee’s recommendation to be tabled in early 2009. Irrespective of that outcome, Bangkok Base is currently assisting record numbers of new entrant foreign investors to participate, as Thailand continues to transition from a traditional agricultural commodity-based economy, to one that priorities leisure & tourism, value-added food & beverage products, burgeoning service industries, & elaborately transformed manufactures.

The Bangkok Post reported on September 11 2008  that Thailand has risen in World Bank rankings for “ease of doing business”. 181 economies were surveyed, with Thailand elevated 6 places to 13^th place.