Prime Minister Gen Prayut Chan-o-cha gave an opening and keynote speech at the Nikkei Bangkok Forum.
July 6, 2015, at 1300hrs, at the Ballroom, Conrad Hotel, Prime Minister Gen Prayut Chan-o-cha gave an opening and keynote speech at the Nikkei Bangkok Forum. Gist is as follows:
Nikkei Bangkok Forum is a forum to exchange useful information on business operation in Thailand, the region’s business hub. The Forum is jointly organized by Thailand’s Board of Investment (BOI), and Nikkei Shimbun, Japan’s no. 1 business newspaper, under the topic “Business Strategy in the Era of ASEAN Economic Community: Thailand, a major manufacturing hub for Japan”. Participants of the Forum are 400 Japanese investors in both Thailand, Japan, and the ASEAN countries.
The Prime Minister expressed his pleasure and honor to preside over the opening ceremony of the Forum, and to deliver a keynote speech on “Government’s Policy in National Development for Thailand to Become a Business Hub”.
Japan and Thailand has had long-standing relations at all levels, and collaboration in both economic, social, cultural, educational, and tourism aspects. There are also constant exchange of visits between leaders of the two governments which have led to Thailand and Japan becoming economic partners, and signing of Japan-Thailand Economic Partnership Agreement (JTEPA) in 2007, the year that marked 120th anniversary of diplomatic relations between the two countries.
Thailand has been Japan’s main production base in the ASEAN region for over 30 years (1985- 2014). There are over 8,000 Japanese projects, worth 3.2 trillion Baht, that have been approved for investment promotion by the BOI. This has led to immense growth of Thai economy, as well as increase of employment and technology transfer to Thai labors which well demonstrates economic dependence between the two countries.
The realization of ASEAN Economic Community (AEC) at the end of 2015 will strengthen cooperation among the ASEAN member countries in various aspects, both at government, private sector, and people-to-people levels, and increase more business opportunities. The objective of AEC is economic linkage towards single production base. ASEAN member countries agreed to revise rules and regulations, as well as related systems to accommodate such linkage, and facilitate business operation in terms of infrastructure, single-window customs development, and product standardization.
AEC also put priority on connectivity and cooperation expansion at a global level. Such cooperation has been made with several countries under the ASEAN framework, such as ASEAN+3, ASEAN+6, as well as the cooperation with Japan under Japan-Thailand Economic Partnership Agreement (JTEPA) which have contributed to the growth of ASEAN economy and made the region a potential market for business opportunities.
Since the Government has taken charge of national administration, it has accelerated implementations in various aspects as part of the preparation for the realization of ASEAN Community, for instance, a policy on border special economic zones to connect with the neighboring countries. As Thailand is situated in the center of ASEAN with the borderline of over 5,000 km adjacent to Myanmar, Lao PDR, Cambodia, and Malaysia, as well as the approximate population of 100 million, 90 border crossing points in 25 border provinces, and border trade value of over 900 billion Baht/year, it is advantageous for Thailand in conducting business and trade with the neighboring countries.
With such potentials, the Thai Government has put effort in expanding border trade and investment. Border special economic zones are established in the provinces adjacent to the neighboring countries, that is, Tak and Kanchanaburi (Thailand-Myanmar border), Chiang Rai, Nongkhai, and Mukdaharn (Thailand-Lao PDR border), Sakaew and Trat (Thailand- Cambodia border), and Songkhla and Narathiwat (Thailand- Malaysia border).
The Government also put priority on various infrastructure development projects to accommodate investment in the border special economic zones, especially in Tak’s Mae Sot district, and Sakaew’s Aranyaprathet district. The 2nd Friendship Bridge crossing Mei River between Mae Sot and Myawaddy is also planned to promote transport network and border trade, and to facilitate logistics activities.
On facilitation of business operation and investment promotion, the Government has ordered concerned agencies to lay out clear plans and frameworks, as well as to implement one stop service. BOI was assigned to expand and improve services to include consultation on establishment of international headquarters (IHQ) and international trade centers (ITC), as well as investment in special economic zones for the investors’ convenience and transparency in dealing with the Thai public sector.
Development of broadband internet and international internet gateway network will also be a strong foundation for electronic transaction and cyber security. ICT cooperation development among ASEAN member countries will also elevate the ASEAN region to become one of the world’s ICT hubs.
On investment promotion policy, the Prime Minister took the opportunity to announce that Thailand now welcomed investment in research and development, either sole proprietorship or joint investment with the Thai private sector/educational institutions of which research works are ready for commercial use. This is because the Government has an aim to increase R&D investment to 1% of GDP, and to encourage more investment from the private sector to make public: private investment ratio at 30:70, which PM Prayut believed would result in a good progress of Thai technology and innovation.
In addition, the Thai Government has also implemented educational reform in parallel to enhance Thailand’s competitiveness, and produce labors in accordance with the market’s needs. PM Prayut called for support from Japanese firms in personnel trainings.
Lastly, the Prime Minister thanked BOI and Nikkei Shimbun for organizing this seminar, and would like to take this opportunity to call for cooperation from all sectors in creating pleasant atmosphere for investment in Thailand. It is important to boost confidence of both Thai and foreign investors in order to drive economic growth in a stable and sustainable manner.
PM Prayut also thanked Japanese investors for their confidence and understanding towards Thailand, and for their part in pushing forward the country to become industrial hub of the region. He also insisted that the Thai Government would continue to promote pleasant atmosphere in investment, and that Japanese investors were always welcome with genuine friendship.
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Source: Royal Thai Government
