Abhisit wins backing for train deal
- Published: 7/02/2009 at 04:50 PM
- Online news: Local News
Prime Minister Abhisit Vejjajiva has left Japan with a 63 billion yen (24 billion baht) loan secured by the Japanese government to help finance construction of a mass transit rail system in Thailand.
Mr Abhisit, who yesterday ended his three-day official visit to Tokyo aimed at encouraging Japanese businessmen to invest more in Thailand and boosting trade between the two countries, confirmed the loan.
The approval was made during his talks with Japanese counterpart Taro Aso, he said.
The loan will be used for financing the long-delayed construction of the 66.8km Red Line electric train from Rangsit in Pathum Thani province, passing through Bang Sue and Hua Lamphong, to Mahachai in Samut Sakhon province.
Mr Abhisit said that he had also discussed bilateral relations with Mr Aso, while the Japanese leader expressed his wish to see countries in the Asian region respond to the global economic meltdown.
Japan wanted Asean to support it in playing a significant role in the Greater Mekong Subregion (GMS) project.
Cambodia, China, Laos, Burma, Thailand and Vietnam are members of the GMS development project which involves cooperation in many areas including trade, tourism, telecommunications, transportation, energy and the environment.
Mr Abhisit said Thailand and Japan will again cooperate on battling the world economic slump as they did during the 1997 Asian financial crisis.
Touching on Thailand's political changes, Mr Aso told Mr Abhisit that he expected Thailand to overcome political obstacles.
He reassured him the problem would not become a hindrance to cooperation between the two countries.
Mr Abhisit also reassured Mr Aso that the political situation in Thailand has improved since his inauguration and there was no reason to worry.
Mr Abhisit also met the deputy leader of the Democratic party of Japan and had a working breakfast with senior officials of Japan's External Trade Organisation and ranking executives of several other groups.
The prime minister said he proposed cooperation in human development and urged Japanese institutions to help build a pool of skilled Thai personnel to meet the demand of Japanese industries.
The institutions will also help Thailand in exporting quality Thai goods and to meet rising Japanese market requirements.
Japan is Thailand's largest trading partner and the two countries have close diplomatic ties, including warm relations between their royal families.
Thailand and Japan signed a free trade deal in 2007 aimed at breaking down trade barriers and boosting trade and investment.
Under that agreement, about 97 per cent of Japanese exports to Thailand and 92 per cent of Thai exports to Japan will be tarifffree within 10 years.
But amid the global economic crisis, Japanese investment in Thailand fell more than half last year from 68.30 billion baht in 2007, Sumitomo Mitsui Banking Corporation said in a report.
Meanwhile, the Thai government wants to offer a loan guarantee programme to commercial banks, aimed at encouraging banking institutions to provide more loans to the private sector.
Mr Abhisit told the Japanese that his Finance Ministry would ask the economic ministerial committee next week to approve its plans.
He also asked the Japanese private sector to inject more funds into their subsidiary firms in Thailand to boost their liquidity and also help the economy.
Expressing satisfaction with the results of the visit, Mr Abhisit said Japan had pledged to expand cooperation with the kingdom and wanted the Thai government to play a larger role in regional development.
Mr Abhisit also met Thai students in Japan yesterday and discussed domestic politics.
Earlier Report:
Prime Minister Abhisit Vejjajiva has left Japan with a 63 billion yen (24 billion baht) loan secured by the Japanese government to help finance construction of a mass transit rail system in Thailand.
Mr Abhisit, who on Saturday ended his three-day official visit to Tokyo aimed at encouraging Japanese businessmen to invest more in Thailand and boosting trade between the two countries, confirmed the loan.
The approval was made during his talks with Japanese counterpart Taro Aso, he said.
Thai Prime Minister Abhisit Vejjajiva is welcomed by his Japanese counterpart Taro Aso.
The loan will be used for financing the long-delayed construction of the 66.8km Red Line electric train from Rangsit in Pathum Thani province, passing through Bang Sue and Hua Lamphong, to Mahachai in Samut Sakhon province.
Mr Abhisit said he had also discussed bilateral relations with Mr Aso, while the Japanese leader expressed his wish to see countries in the Asian region respond to the global economic meltdown.
Japan wanted Asean to support it in playing a significant role in the Greater Mekong Subregion (GMS) project.
Cambodia, China, Laos, Burma, Thailand and Vietnam are members of the GMS development project which involves cooperation in many areas including trade, tourism, telecommunications, transportation, energy and the environment.
Mr Abhisit said Thailand and Japan will again cooperate on battling the world economic slump as they did during the 1997 Asian financial crisis.
Touching on Thailand's political changes, Mr Aso told Mr Abhisit that he expected Thailand to overcome political obstacles.
He reassured him the problem would not become a hindrance to cooperation between the two countries.
Mr Abhisit also reassured Mr Aso that the political situation in Thailand has improved since his inauguration and there was no reason to worry.
Mr Abhisit also met the deputy leader of the Democratic Party of Japan and had a working breakfast with senior fofficials of Japan's External Trade Organisation and ranking executives of several other groups.
The prime minister said he proposed cooperation in human development and urged Japanese institutions to help build a pool of skilled Thai personnel to meet the demand of Japanese industries.
The institutions will also help Thailand in exporting Thai quality goods and to meet rising Japanese market requirements.
Japan is Thailand's largest trading partner and the two countries have close diplomatic ties, including warm relations between their royal families.
Thailand and Japan signed a free-trade deal in 2007 aimed at breaking down trade barriers and boosting trade and investment.
Under that agreement, about 97% of Japanese exports to Thailand and 92% of Thai exports to Japan will be tariff-free within 10 years.
But amid the global economic crisis, Japanese investment in Thailand fell more than half last year from 68.30 billion baht in 2007, Sumitomo Mitsui Banking Corporation said in a report.
About the author
- Writer: BangkokPost.com
