Thai-Chinese trade centre to bring benefits to all
PETCHANET PRATRUANGKRAI
23-01-2011
There are many concerns among private enterprises that they will lose competitiveness after China establishes a Bt45-billion (US$ 1.47 billion) Thai-Chinese trading complex on Bang Na-Trat Road. Will you move on the project, and how do you respond to these concerns?
The project has been put forward according to normal procedures to the Board of Investment. It will not affect Thai enterprises, but increase export opportunities for small and medium-sized enterprises.
Currently, only large enterprises can be exporters. The Thai-China trading complex will increase Thai SMEs' opportunities to become exporters and create links with other buyers.
The private sector recently submitted a letter to concerned agencies voicing worries over the complex. Have their been any studies to estimate impacts from the project?
I plan to meet with the Federation of Thai Industries, the Board of Trade of Thailand, the Thai National Shippers' Council, and related trade associations such as traders in Bobae market, and Platinum and Pratunam, very soon to clarify understanding for the need of the project.
It is not a minor deal, but a giant issue concerned with international relationships. Private enterprises should listen to the facts first before voicing their concern.
Problems arose in the United Arab Emirates and Spain after China established wholesale centres in those countries. Will Thailand face similar problems, as local enterprises suffer from a flood of Chinese goods?
The project will create win-win benefits for Thailand and China, as China will not only build its wholesale centre here, but will also set up manufacturing in Thailand in the future, which will create at least 70,000 jobs for Thais. Unlike the wholesale centres established in the UAE and Spain, in which Chinese investors occupied 100 per cent of the trading areas, Thai enterprises will have a minimum of 30 per cent and up to 50 per cent of the trading area.
Will Ashima Group get any privileges for investment here? Wholesaling business is restricted to Thais under the Foreign Business Act (FBA). Does the company have to be investigated over its ownership structure and nominee, as it would hold a majority share?
The company has come to Thailand under Board of Investment privileges. We cannot prefer only investment from Western countries. With the rising of China comes the opportunity for Thailand to form closer cooperation with the Chinese and grow together. I cannot say what the shareholding percentage between Thai and Chinese enterprises will be. However, the firm will not break the FBA and is allowed to invest here under the act.
Under the FBA, a wholesale or retail business with a minimum investment of Bt100 million may invest in the country and hold a minority share up to 49.99 per cent.
However, there are still questions over whether the firm will have a Thai nominee, as previously the company said it would hold 100 per cent of the trading complex here.
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