Changes and Effects of Foreign Business Act

Changes and Effects of Foreign Business Act

Postby a watcher on Sat Feb 10, 2007 9:33 am

The purpose of this act since 1970s, is though no one clarify openly, to protect local industry against the foreign market invasion.
Therefore FBA is in fact Domestic Industry Protection Act.

Since 1990s of open door policy, Thailand had promoted vigorously FDI - foreign direct investment of almost every areas from manufacture and service by promoting foreign capital and technology.
During such passionate efforts, the passion of promoting local capital and technology was disappeared.

In any corporate in Thailand, if microscopic sight is given deeply, few firms are pure corporate based on complete indigenious capital, technology and marketing resources.

Even the PTT group companies, the mascott of Thai energy agency, they can not sustain without foreign marketing mechanism and support. They have to depend on who will supply crude oil, who will fund them, who will buy their products. They are merely local retailers who stand aloft over regional gas station franchisers.

Look at the Siam Cement Group companies who are the most praiseable corporates.
Without peculiar exclusivity marketing power, their cement, glass and paper business would have been lost to the multinational capitalists and technology innovators. Their petrochemical business must depend on foreign capital, technology, marketing and management technology.

Other corporates mainly owned by TRT connection politicians are no body. They are
merely Agent, barely a distributors, and simple commission takers in pure term of industry. They imported mobile handphone at 6000 baht and once sold 35000 baht.
In this degree, they are the thief. so called systematic corruption structure is Thai industry structure.

There is a famous joke over expatriate circle,
"Thai sales manager is one that just sit in airconditioned office and call buyer".
In a dynamic society, the company do not give table and chair to the sales manager but airticket, finest mobile appliances, 24hours standby travel bag only with unlimited credit cards. The company take care of his family.

In such business circumstance, What can Thailand protect and promote local industry ?.
TRT government made a mass production of the poor people although most of the poor people do not feel they are poor.

In same logics, Thai industrialists do not want to endeavor to raise local fund, create local technology, the will to go inter and bloody compete with Malaysian, Singaporean and Vietnamese cometitors.
Why do they have to protect these people ?.

The local protection policy written in new FBA will certainly produce a massive nominees among now on advertisement everywhere, 1000 BEST THAI CORPORATES.
Why do they suddenly come out and spend much money to advertise them, for what in this bearish market and the death of market psychology ?

The answer is simple. They try to take chance of free windmill to pickup the debris FB investor leave.

Foreign business will "weather" Thai business or 'close' it.
Weather means, leave it as it is to natural death or resurrect when politicians changed hands.

Investors have always 3 options. When their products are sellable, they come. Deserting a market means the death sentence of a nation economy. Hundred governments are very careful when a company leaves own country. Every ministers and diplomats are running to invite foreign investment in this globe. Even USA president Bush want small country president to appeal to invest in USA.
Every governor from California to Maine frequently travel overseas and beg for investment in USA.
" We had invested a lot in your country in past, you are rich now, please come and invest our country too please".

Nominee matter is already long settled business practise in Thailand. Therefore it became de-facto law or common law.
If people step cross grass yard and make it clear passage, it is a road undeniably.
Suddenly in a morning they come out and put a stake "Dont cross grass !".

What an international joke this is !.
Now the grass crossers come out in mass and weigh the retaliation measure through legitimate international organization like WTO.
If this kind of things happen, Thailand is nobody. They must look at their face in clearer mirror.
Many aliens now suspect "hidden agenda" in the FBA changes, that is, expropriation of foreign business and divided it to the already-noble-havings of small core circle of famous family Nam-Sakoon, from M to S.
This M -- S can operate TESCO or sophisticate petrochemical products ?.
Certainly not, once alien left, the business is dead because they sealed off channels of buying and selling of raw materials and products, as well as killing off their products in international market.

Thailand want another North Korea ?.
Thailand must have civilian government as soon as possible. The economic team try to make conspiracy under name of coup but the old generals do not know what now happening.
Before damage is deepened, things must be corrected.
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a watcher

RE: Changes and Effects of Foreign Business Act

Postby Aussie John on Tue Feb 13, 2007 4:03 am

The question needs to be asked who trully benefits from the changes to Thailands' FBA, it's certainly not the man in the street.
Incompetent business practices and shear greed, saw the downfall of the Thai economy in the 1990s.
Protectionist policies in Thailand only serve the ruling classes as they are the ones who can afford to control the companies and investments.
Changing the Industial Relations Laws and implementing Inheritance taxes in Thailand is what's trully needed.
The disparity between wages in Thailand is absurd as the wealthy classes enjoy profits in par with there Western counterparts.
Foreign investment and the knowledge it brings into the country can never flourish if incompetence is allowed the majority rule.
Not only is this unproductive but trully is of no benefit to the majority of Thai workers who struggle to support and educate their families.
The FBA does very little to help most Thais. It only serves the 10% ruling class that continually enforce their control over the present fragile economy.
Thailand's rich have to stop proclaiming to the world that they are poor and that Thailand is still developing.
As I see it the only development is the enrichment of the ruling classes.
The FBA serves them and them alone as it restricts and manipulates not only the flow of foreign investmant but also moral and ethical business practices that allow workers to benefit from their labour.
I always assumed democratic laws were made to help the whole population not just the few.
But in Thailand the laws are made by the very people who control the economy, why would they be fair as that would mean actually sharing the wealth that is undoubtly been generated in this continually developing economy.
When will Thais look in on themselves as see the true cause of disharmony in the country. It is not foriegn investment or foreign political ideology that influences Thai laws. It is more about the fear of the ruling class loosing control of the very monopolies they have created to control the country itself.
'Long live the Poor'
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Aussie John

RE: RE: Changes and Effects of Foreign Business Act

Postby rmigo on Tue Feb 13, 2007 3:00 pm

Some people like myself benefit from the change. I have been waiting for a good time like this to switch into the equity fund. I am not the from rich upper class Thai ... I am an employee with private company.
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RE: RE: Changes and Effects of Foreign Business Act

Postby a watcher on Tue Feb 13, 2007 4:37 pm

Migo, Yes, it is a simple mathmatics that if foreign shareholders dispose suplus share in Thai stock market, most of Thai people expect they pick up the scattering falling stock free of charge.
The damaged countries will show up with retaliatory measure, like raising this "Thai agenda' to international institute such as WTO and the damaged foreign firm wil sue to own court or international court. Such ghosts will hang around Thai economy and it will collapse in a morning. The buyer of free falling stock will be prohibited for next transaction until the legal claim is cleared.
Then, Thailand will not be able to remain "Mai Pen Rai" status. I believe Thai policy makers will waste some more time until they realize the mistake. FBA is not such adhoc appointee's job and it must have been conveyed to the next legitimate government.
They are real revolutionary than the military coup leaders are. What a nonsense !.
Migo, your investment may await for next 10 years to fruit if any or written off like useless papers. Be scrupulous !. Always the world rolls beyond Thai wisdom.
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a watcher

RE: RE: Changes and Effects of Foreign Business Act

Postby rmigo on Mon Feb 19, 2007 9:29 am

We will see... the fund I bought announced it way 1baht/unit in March.
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RE: RE: Changes and Effects of Foreign Business Act

Postby James on Mon Feb 19, 2007 8:41 pm

Im wanting to purchase a modest guest house and a nice home on a tropical lush island in Thailand. Employ Thai people and generally take time off from the driven corporate world. However, all this talk of restricted foreign ownership is a bit jittery. If I talk with one company they say business as usual, we will find nominees for you, all you need are the funds to purchase a business/ house. Not sure whos lead to follow. The info in the market place is varied and confusing.
Can any third party, non related, point me in right direction or advise on what the hell is going on for real. Not prepared to blow my money to feed some broken market place. There seems to be a plethora of business's for sale, has any one got some great advice or wise ideas? Muchly appreciated!!
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RE: RE: Changes and Effects of Foreign Business Act

Postby a passerby on Thu Feb 22, 2007 1:23 pm

Find a reliabel, really trustful friend of thai national and let him or her own for you. Second, you marry a real trustful Thai woman and register small limited partnership with her (she 51, you 49) and register the house under name of the limited partnership. In partnership memorandum, you can put up some conditions that without your consent you can not sell it and so on. in this regard, you must consult a lawyor. If you have a child -thai national with a Thai spouse, you can register the estate under the name of child and you can write the trust pledge with the mother "jointly" for any disposal. Another alternative, Buy a good condominium in bangkok under your name, rent it out to a expatriate, Using the rent income, you can rent the desired house. Personal advice, having a house in a country club or seaside is not fantastic much if you really reside for couple of months, worried by insecurity, caring garden and house. I sold it recently and take just hotel for holidaying.
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a passerby

RE: RE: Changes and Effects of Foreign Business Act

Postby harry on Thu Feb 22, 2007 11:21 pm

James, you should keep your dream, but keep it as dream. The waking up in the reality can be very brutal.
I knew some friends who try to fur fill their dream, they all came back home with empty pockets, or stranded in some bar in Pattaya were they pretend to be big business men with the tourist from their home country. I have a friend who had an successful restaurant in Belgium, he invested 2O million bath in building a small exclusive hotel in Pukhet. One day one royal even came to dinner their. Two years later he was back home also with empty pockets.
I gave him the same advise as I'm giving to you now. If you not backed up by some major international company don't make any business in Thailand. If you like to stay in Thailand you should have an sufficient income from your home country.
Otherwise visit Thailand as an tourist and enjoy your holiday time.
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RE: RE: Changes and Effects of Foreign Business Act

Postby James on Fri Feb 23, 2007 5:10 pm

Thanks for your post Harry. What has been your experience Harry? Or are these just stories youve heard, no doubt true, but what is the real excuse for failure. I doubt its Thailand, usually its a combination of errors. Business people are proud they will never reveal their true failures.
I believe there are two kinds of people in this world, the shepards and the sheep. The sheep follow the shepard because they have no purpose and no direction, following each other, head down with short vision. Now the shepard he watches far ahead, leading the sheep to pastures, protecting them from hungry eyes, thinking and managing his investments every move. He is the success of the herd. Everything is in his hands. Failure or prosperity is his sword.
In my country 90% of business's fail in there first year. Of the 10% remaining, 95% of these fail in 3 years. Of the 5% 0f that 10% that manage to last, in 10 years they are grey, stressed, addicted to work, failures in personal relationships and generally miserable souls that 95% of the population think are lucky.
Im a 5% of 10% ers, and I reckon that if Im going to be an ageing miserable bugger, Im going to do it where the sun shines everyday, the beaches are beautiful, and the fishing is just divine. The fear of losing money isnt a reason to live a little. Money comes and it goes.
Bit off track now, but thanks Harry for the enlighting tale about a sheep who lost his shepard.
Thankyou kindly passerby, the info you have provided is invaluable. Im excited by the country and the opportunities that lie there.
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RE: RE: Changes and Effects of Foreign Business Act

Postby Damsal on Fri Feb 23, 2007 5:15 pm

Is that your return migo? 1 baht per unit?
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