JTBF Mission to Thailand 2009 (2/23-2/27)

Visit to Board of Investment (BOI)

reported by Hitomi Morita (Vice Chairman of JTBF)

BOI Secretary General Mrs. Atchacker was absent because she was on a business trip to Japan, together with Administrative Vice Minister of Industry, to host "Thailand Investment Seminar" being held in Osaka. Then, Deputy Secretary General Ms. Sudjit （Right picture, center） represented BOI and welcomed us.

Message of Ms. Sudjit, Deputy Secretary General of BOI

• We would appreciate JTBF's support activities which have been extended to public and private sectors of Thailand so far. We heartily welcome JTBF mission team being led by Mr.Kitayama and express our congratulations to Mr. Kitayama's accession to Chairman of JTBF. In the beginning of February, BOI hosted "Thailand Investment Seminar" in Tokyo, to which Prime Minister Abhisit attended. It was very encouraging to us that the seminar drew over 1000 of audiences. Prime Minister Abhisit visited Japan earlier than other countries. It is because he considers Japan an important partner and expects continued investments from Japan to Thailand.
• In his remarks he said that he intends, first, to give an active stimulus to Thai economy, restore political stabilization and continue the open economy policy which has long been sustained. He also commented that, entering present century, no one Asian country can take an action independently from world-wide economy and that a strong alliance is required to cope with current centennial economy crisis.
• In the first half of 2009, investments continue to be declined, many companies are suffering from cash-flow problems due to tight monetary policy. Under this environment, BOI set up an attractive new investment policy, "Thailand Investment Year 2008-2009", to invite investments from neighboring countries.
  • In the region other than Bangkok, the privilege will be given as classified to 6 groups.
  • In addition, in 14 industrial segments, import tax is exempted for material to be used for export products, to be applied also to non-BOI-privileged companies. This will help relieve considerable cash-flow problems.
  • BOI is holding seminars, inside and outside of Thailand, to introduce this new policy. Osaka seminar, to which Mrs. Atchacker is attending now, is in line with these activities.
• We also emphasize domestic activities. We exchange opinions 3-4 times a year with foreign Chambers of Commerce resident in Thailand including Japanese Chambers of Commerce. It helps us understand foreign investors' motivations and outlooks in regard to investment to Thailand.
• Thailand has resources and power to support major industries as well as adaptability and growth potential to satisfy market demand world-wide. Thailand, as it is called Rice Bowl of Asia, is abundant in food supply not only for domestic but also for foreign demands. Agricultural and fishery industries have capability to satisfy world-wide demand towards the future. Especially, rice and tapioca (flour) have far exceeding supply capabilities.
• Thai people have flexibility to receive trainings and educations, which are required for new business as well as for improvement of work efficiencies. Especially, they are capable to manage customer oriented jobs, which deserves the name of "Country of Smile". Thailand keeps its competitiveness in the world economy and is ranked in the 13th position out of 181 countries in World Bank's report of investment-promising countries.
• Prime Minister Abhisit extended his expectation that Japanese companies continue to place their trust in Thailand and continue to invest. BOI also expect continued investment, as a matter of course.

Message of Mr. Kitayama

• I succeeded Mr. Maruko and was named Chairman of JTBF in July, 2008. This is the 4th mission of JTBF since 2006. JTBF consists of 74 members. All members have experienced in business management in Thailand in various sectors. We are Thai-favored Japanese also. We would like to utilize our experiences and contribute to enhancing Thailand-Japan relationship even further.
• Putting political problems aside, we have not been able to find a way out of current world-wide recession. In spite of such a situation, I am confident in sustaining economic relationship between Thailand and Japan as same as it has been.
• A visit of Prime Minister Abhisit to Japan is favorably accepted by the business community also and expected to contribute to even closer relationship between Thailand and Japan.