ASEAN

[Bruno]

Even though this has been around for sometime, in a little over 3 years, Thailand will be entering the ASEAN community.

This demographic union, according to one report, will cover almost 3% of the world. Quite a substantial proportion. However, will this have any affect on us? How will this affect the locals in the coming years?

Rumors place the level of English currently spoken in this country as being "below average." Inta-regional trade is strongly outlined on the charter, but how will this play out? Professional occupations such as doctors, scientists and such-like might greatly benefit from this as wages might be more of an attractive lure in Thailand, than say, Java.

I admit, my knowledge is limited on this subject. Nevertheless, big changes are sure to happen and with a free-trade agreement will we see an exodus of Thais leaving for greener pastures? Or quite the opposite?

Thoughts?

[Albert Shagnastier]

We can only speculate at this point, but you would definately assume a lot of investment will pour into Thailand.

[nidhogg]

Professional occupations such as doctors, scientists and such-like might greatly benefit from this as wages might be more of an attractive lure in Thailand, than say, Java.

Not sure how much real difference ASEAN will make to some of the professions, as they are pretty much "closed shop" practically - try getting certified to practice medicine in one country when you are trained in another - difficult -very very difficult, and I don't think the ASEAN regulations will change that....

Personally, I think Thailand will do little more than pay lip service to much of what ASEAN is supposed to achieve.

[bushwacker]

I am not so sure that there will be a huge impact. I am thinking that the lack of English will act as a protective buffer for the Thais. Think about it .... why would a doctor from another country want to relocate here if they cannot speak Thai. Sure he can speak English, but his customers cannot. Thais would not go to a doctor that could not talk to them. An external Engineer coming to Thailand speaking English would have the same problems as many of us Farang when trying to build something. So.... I am thinking an overall small impact.

[crocman]

Is it true that the level of foreign ownership in Thai companies will be forced to rise to 70% by Thailand joining the AEC and if so what implications would this have for Farangs looking to purchase property?

[nidhogg]

Is it true that the level of foreign ownership in Thai companies will be forced to rise to 70% by Thailand joining the AEC and if so what implications would this have for Farangs looking to purchase property?

None. Most farangs are not citizens of ASEAN.....

[crocman]

Does this mean that only foreign nationals from ASEAN member countries can hold 70% ownership of a Thai company?

[nidhogg]

Does this mean that only foreign nationals from ASEAN member countries can hold 70% ownership of a Thai company?

That is my current understanding - but I am more than prepared to be corrected.....

[DrAndy]

Thailand will be entering the ASEAN community.

I think Thailand will do little more than pay lip service to much of what ASEAN is supposed to achieve.

well, there was me thinking Thailand was already an important member of ASEAN

for instance, The Secretary-General of the Association of South East Asian Nations (ASEAN) is Surin Pitsuwan of Thailand

Thailand was a founder member

The Association of Southeast Asian Nations[5] (ASEAN /ˈɑːsi.ɑːn/ AH-see-ahn,[6] rarely /ˈɑːzi.ɑːn/ AH-zee-ahn)[7][8] is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand.[9] Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam.

[DrAndy]

Thailand joining the AEC

right, that is more like it

that body will be formed in 2015

[crocman]

Thailand joining the AEC

right, that is more like it

that body will be formed in 2015

So does the answer supplied by Nid stand?

[draco888]

Does this mean that only foreign nationals from ASEAN member countries can hold 70% ownership of a Thai company?

That is my current understanding - but I am more than prepared to be corrected.....

I think you need to think a little deeper on this. Since other ASEAN nations allow 100% ownership of their companies you could therefore control a Thai company via a corporate set up elsewhere.

Whatever the theory it would be simple enough for Thailand to prevent this through some exemption/prohibition relating to land holding companies I would have thought.

[nidhogg]

Does this mean that only foreign nationals from ASEAN member countries can hold 70% ownership of a Thai company?

That is my current understanding - but I am more than prepared to be corrected.....

I think you need to think a little deeper on this. Since other ASEAN nations allow 100% ownership of their companies you could therefore control a Thai company via a corporate set up elsewhere.

Agree that would be an interesting scenario. Honestly however, the AEC (or ASEAN 2015 as it is often seems to be called) will commit Thailand to a lot of things I can't see them following through on.

At my place of work there are rumblings about this, but mostly about where they think they will will benefit, and I see few real analysis as to how this will cost them. I think they are going to run big and hard into a wall when it all gets really going....

[crocman]

I think you need to think a little deeper on this. Since other ASEAN nations allow 100% ownership of their companies you could therefore control a Thai company via a corporate set up elsewhere.

Yes,this is what I was thinking.

Whatever the theory it would be simple enough for Thailand to prevent this through some exemption/prohibition relating to land holding companies I would have thought. ___________

Perhaps AEC membership would not allow such an exemption law as this is all about free trade in the region?

[Necron99]

i don't think much will change for Thais. You can be sure as shit that as soon as some situation goes against them in some way they didn't anticipate they will abrogate, change or ignore that provision.
The only issue for us is what happens to people who need border runs and what happens to visa extensions.

[Bruno]

The only issue for us is what happens to people who need border runs and what happens to visa extensions.

Lots of interesting hypothesizing going on. As already mentioned, company holdings and land disputes will create interesting reading as to how much Thailand will "embrace" this union.

With regards to visas however, I have already read somewhere that cambodia and thailand will be entered through a joint visa, valid for both (maybe a separate issue).

Change will undoubtedly come. But I think for us that live here, we will be swimming up the river, as appose to down it.

[draco888]

I think you need to think a little deeper on this. Since other ASEAN nations allow 100% ownership of their companies you could therefore control a Thai company via a corporate set up elsewhere.

Yes,this is what I was thinking.

Whatever the theory it would be simple enough for Thailand to prevent this through some exemption/prohibition relating to land holding companies I would have thought. ___________

Perhaps AEC membership would not allow such an exemption law as this is all about free trade in the region?

This would be an extremely optimistic view IMO. The aim is not zero barriers, far from it. There is not even an attempt being made at European level of free trade. Expect minimum investment levels, modes of investment restrictions, Composition of companies board of directors, voting rights, Economic needs test, agricultural land restrictions and a host of others if not an outright exemption for land. Don't hold your breath. ASEAN does not even have the supranational bodies that are supposed to rule on the implementation of free trade practices.

[DrAndy]

The only issue for us is what happens to people who need border runs and what happens to visa extensions.

fair enough

if the ASEAN community gets a visa similar to the EEC Schengen, then renewing every 90 days on a visa run would mean leaving the region, not just popping into a neighbouring country

so it would be to China or India, for example

but different countries have different requirements at present, it might all be made easier!

[DrAndy]

Honestly however, the AEC (or ASEAN 2015 as it is often seems to be called)

you can call it that, but then you would be incorrect

but I am more than prepared to be corrected.

fair enough

[draco888]

even pushing ASEAN Economic Community back another year is too optimistic, may as well adjust it to AEC 2020, has a better ring to it i think.