Status quo reigns for licensing

Status quo reigns for licensing

The Industry Ministry's pledge to speed up factory licence approvals by streamlining procedures is unlikely to succeed for lack of clear guidelines.

Permanent secretary Witoon Simachokedee said the ministry will maintain the 90-day approval time as the standard on paper, aiming for 60 days in practice.

"Documentation and procedures will need to be overhauled to decrease the approval time to 60 days from 90," said Mr Witoon.

Some SMEs have doubts.

Penthip Pornchaded, president of the Association for the Promotion of Thai Small and Medium Entrepreneurs, said: "It doesn't matter how long it takes _ whether it's 60 or 90 days _ as long as there are clear guidelines. In the past, the process could take between three and six months, or even longer."

In some cases they can take up to one year, forcing manufacturers to revise investment plans.

Also, some investors say "tea money" is an efficient way to shorten the process.

A clearer time frame would let firms begin production as planned and secure loans from banks, said Mrs Penthip, as well as boost foreign investment ahead of the Asean single market's onset in late 2015.

Mr Witoon acknowledged that graft has plagued the approval process but said that if the process takes too long or corruption is suspected then the business can lodge a complaint.

"Before, nobody wanted to say anything about corruption of the process because they were afraid it would affect them," said Mrs Penthip. "Now, with a definite time frame, I am sure business operators will be more vocal on the issue."

Concerns that the private sector has raised with the ministry include a lack of qualified engineers for environmental approvals, complicated documentation and the requirement of redundant approvals such as environmental impact assessments (EIAs).

The ministry plans to improve the situation by creating a permanent post dealing with documentation and the approval process for businesses.

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