Europeans see Thailand as gateway for push into Myanmar | Bangkok Post: tech

DEVELOPMENT

European companies are keen to use Thailand as a gateway to Myanmar as the latter opens up to the international community and grows more attractive to foreign investors.

Daniel: FTA talks with EU should begin

A group of European investors visited Myanmar last month and observed positive developments taking place that favoured foreign investors, said Rolf-Dieter Daniel, president of the recently opened European-Asean Business Centre (EABC).

"It is very likely that the process of opening up Myanmar will be very successful and continuing. Myanmar people are very keen to have European investors there, not only big businesses but small ones," said Mr Daniel, also president of the German-Thai Chamber of Commerce.

"The more Myanmar opens up, the more Thailand will benefit as your country will be used as a gateway. Thanks to the natural border and close connections with Myanmar people, European investors will develop business there through Thailand."

Thailand is the second largest investor in Myanmar after China. European businesses are interested in all kinds of natural resources and infrastructure projects.

Myanmar in 2013 will chair the Association of Southeast Asian Nations (Asean) and this is expected to further speed up the pace of political and economic reforms there, said Mr Daniel.

He believes that Myanmar needs to open up sectors such as the internet, telecommunications and health care to support the arrival of companies including those from Thailand to invest and upgrade the country's systems.

The presence of higher-standard communications and health care will facilitate and draw more investments from abroad.

The EABC was opened last week to support Europeans in Asean by providing basic information, identifying obstacles to investments and pursuing dialogue with government agencies.

Working groups have been established under the centre to deal with food and beverages, healthcare and pharmaceuticals, ICT, intellectual property rights, insurance, automotive and transport and logistics sectors.

Mr Daniel said the centre aimed to have 600 members in its first year of operation. They would include the 13 existing European chambers of commerce, which in turn have 2,500 corporate members, as well as companies not currently represented by either embassies or chambers of commerce in Thailand.

European investors are also encouraging the Thai government to enter negotiations for a bilateral free trade agreement (FTA) with the European Union. At present, the EU has FTAs with Malaysia, Singapore and Vietnam, but years of political drift in Thailand have stalled efforts to seriously pursue an FTA with the 27-country European bloc.

This is despite the fact that Europe is the second largest export market for Thai products after Asean, while European investors rank second in terms of foreign investors in Thailand.

"Thailand will be left behind the neighbouring countries if they don't have an FTA with us. Meanwhile, the Generalised System of Preferences granted to Thai products will expire next year, so your products will lose advantages in the European market," said Mr Daniel.

"We want to bring a European voice to your government so that European companies can be at least on the same level playing field in Thailand."