ID :
13914
Sat, 07/26/2008 - 19:59
Auther :
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http://m.oananews.org//node/13914
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Investment w/BoI privileges in 2008 to grow less than targeted
BANGKOK, July 26 (TNA) - Private investment in Thailand with promotional privileges from the Board of Investment (BoI) in 2008 is now estimated at Bt300 billion only, less by half than the originally planned target, according to Chakkamon Phasukvanich, permanent secretary for industry.
Speaking to a seminar, Mr. Chakkamon said Deputy Prime Minister andIndustry Minister Suwit Khunkitti had earlier projected private investment with BoI privileges this year would be at least Bt600 billion.
But several organizations, including the ministry, have forecast that investment amount would be only about Bt300 billion due to a number of negative factors, including the sluggish economy, rising inflation, the sub-prime lending crisis in the US, soaring oil prices and theappreciation of the Thai baht, he said.
Despite these problems, foreign investors have not moved their production bases from Thailand during the first half of 2008, said Mr. Chakkamon.
Foreign business interests, especially the Chinese, still find Thailand an attractive investment destination, he said. However, existing investors are asking the Thai government to help solve a number of problems facing business operators, including Thailand's domesticl political turbulence and the lack of coordination among concerned government agencies, for example, regarding energy saving measures.
Mr. Chakkamon said he believed more investment could be seen in the second half of this year but still less than the corresponding period of 2007, if political problems ease and government policies beccome more transparent.
On rising domestic oil prices, he said his ministry would provideknowledge to about 10,000 small- and medium-sized enterprise operators nationwide on ways to reduce production costs and save energy.
Major industrial operators wishing to change machinery could also seekfinancial help from the ministry as it would ask financial institutions to provide loans to them at 3 per cent less than the prevailing rate, he added.
Speaking to a seminar, Mr. Chakkamon said Deputy Prime Minister andIndustry Minister Suwit Khunkitti had earlier projected private investment with BoI privileges this year would be at least Bt600 billion.
But several organizations, including the ministry, have forecast that investment amount would be only about Bt300 billion due to a number of negative factors, including the sluggish economy, rising inflation, the sub-prime lending crisis in the US, soaring oil prices and theappreciation of the Thai baht, he said.
Despite these problems, foreign investors have not moved their production bases from Thailand during the first half of 2008, said Mr. Chakkamon.
Foreign business interests, especially the Chinese, still find Thailand an attractive investment destination, he said. However, existing investors are asking the Thai government to help solve a number of problems facing business operators, including Thailand's domesticl political turbulence and the lack of coordination among concerned government agencies, for example, regarding energy saving measures.
Mr. Chakkamon said he believed more investment could be seen in the second half of this year but still less than the corresponding period of 2007, if political problems ease and government policies beccome more transparent.
On rising domestic oil prices, he said his ministry would provideknowledge to about 10,000 small- and medium-sized enterprise operators nationwide on ways to reduce production costs and save energy.
Major industrial operators wishing to change machinery could also seekfinancial help from the ministry as it would ask financial institutions to provide loans to them at 3 per cent less than the prevailing rate, he added.
