The soup is not eaten as hot as it is served
The Department of Commerce is trying to allay concerns among foreign companies about the proposed amendment to the Foreign Business Act to restrict those companies.
The Director General of the Business Development Department promises a transitional period. In addition, the change does not apply to foreign companies operating under international agreements, companies with representation in Thailand and companies with an investment privilege from the Board of Investment.
The amendment, according to Pongpun Gearaviriyapun, aims to close loopholes that are used to circumvent the rule that more than 50 percent of company shares must be owned by Thais. However, the law does not place any restrictions on the composition of the board of directors and the voting rights of shareholders, so that foreigners can still have firm control.
Industries affected by the change include e-commerce, telecommunications, logistics, technology-related companies [?] and foreign companies that have already been granted approval but are not yet in operation.
The change in law also has consequences for restaurants, food shops and tour guides (see photo homepage and above). Those companies and that profession are (from now on) exclusively reserved for Thais. In this way, the ministry wants to put an end to the lopsided practice, especially in tourist hotspots such as Chiang Mai, Phuket and Surat Thani. There, many companies are actually run by foreigners and foreign tour guides operate.
The article does not say whether Pongpun's defense makes an impression. The newspaper does repeat what it wrote yesterday that a foreign embassy considers the change as an attempt to protect Thai companies against competition from foreign companies.
(Source: bangkok mail, Nov. 3, 2014)
If I read this correctly then yesterday's story was thoughtless, deliberately incomplete or to deliberately cast a fish to see when one starts to beep, The beep and squeeze system.
Then the comments yesterday have become clear to them, regardless of what has been put down in diplomatic words in neat salons.
What I'm reading now is limiting the actual leadership in exclusively DOMESTIC companies in certain sectors. And the other measure is simply called protectionism. But say so and don't beat around the bush.
Fear has been sown and get that seed out of the soil. Neighboring countries benefit.
Arrived in Thailand last night – after a too long journey due to missing a connecting flight in Dubai – and this morning over coffee in my hotel I read the Bangkok Post. The article referred to above immediately caught my attention. Agree with Erik's response, above: eea has the strong smell of protectionism and that is a bad thing, it has now been sufficiently proven that this does not work in the longer term. It is rather counterproductive. In that light it is at least surprising to read the following quote from Pongpun: 'we focus on improving the standard of existing businesses and those contemplating investing in the country to be consistent with current global trade practices……………'. It is precisely in this current world trade practice that there is no place for protectionist measures and where they do appear they are at least strongly condemned by the WTO, the World Trade Organization – of which Thailand is also a member.
The article also makes a link with corruption, against which these measures could also help…………………… Of course, corruption is imported by foreign companies and investors………….,
Thailand is already the land of protectionism. Many foreign companies have already been taken over by Thai directors or bought out completely. like Mac Donalds and pizza companies etc. There is no 1 country that protects itself like Thailand.
Yes China .. The import duties are huge here. Not normal what a kilo of cheese costs here.. And you never ban corruption.. Because how does the current government get so much wealth. Corruption is now public. because the little man shows it, but you never see anything from the elite, while they are more corrupt than the ordinary police man. The policeman has not scraped together 125 million, but many in the government here have. In the Netherlands, corruption is under the table. You never see that. WTO can bark all they want. Thailand does what they want anyway. WTO is a purely administrative club and has no influence whatsoever on policy decisions here or any country. Thailand is lucky that wages are so low. Because which products have been invented in Thailand? Corruption has been introduced by the elite or better translated “by” those in power, not by corporations.
Look, here we go again.
Once again, the idiotic protectionism that is particularly, extremely, ingrained in the genes brought with it, especially in a certain population group, rears its head.
Of course supposedly to protect the country against the odious influences of the gwailoo.
But certainly to the detriment of the majority of the population.
In a certain large country in Asia, every effort is also being made to keep everything that is not native outside the borders.
And it's worked out pretty well so far.
Unfortunately, the draft is also getting into a bit of a mess there.
People are even beginning to see that trade is a two-way street.
But that understanding has not yet reached the ruling class in Thailand.
Investors want to be in control of their company and do not want to be saddled with an obligatory partner who often also wants to be in charge.
And the victim is……..
However, after reading all this little or nothing has changed since yesterday's news regarding the thoughts of the Thais.
Not much will change for large foreign investors , one would believe .
Yes , they are afraid of that .
If the Japanese electronics and car manufacturers were to move, the disaster would be incalculable.
But yes, a small private investor or entrepreneur from Holland or Belgium, for example, they would rather lose than rich.
And why, I wonder again??
There where I live not far from the Lamphun industrial estate or terwel, Nikom industrial estate.
Would it leave or go elsewhere the many or partial Japanese companies present here, and even a well-known Dutch company in airplane trolleys.
To be a complete DISASTER for the employment in the region here in Northern Thailand .
Thailand an island in South East Asia.
When will they start building a wall around this island , it will also provide employment for the then many unemployed Thais .
Just like the Chinese did against invaders centuries ago, better known as the Great Wall of China.
Now a tourist attraction.
Jan Beute.