The sentiment in February declined due to businesses’ concerns over the slowdown of domestic and external demand, the central bank said. Moreover, the respondents in food and beverage sector affected by the shortage of agricultural raw materials from drought expressed negative confidence in production cost in this month.

However, over the next three months, most respondents expected business conditions to improve, indicating confidence in the pace of economic recovery, the central bank said.

Most respondents expected that both inflation and production cost over the next 12 months would

decline from the previous month, given continued lower energy cost.

Current and expected liquidity sentiment indices remained below 50, attributable to weak confidence on sales and concerns on higher interest.

During his meeting with top executives of Japanese auto makers today, Prime Minister Gen PrayutChan-o-cha said that these cars would pave way for the manufacturing of high-technology electric and hydrogen-driven vehicles.

He also stressed the Thai government’s focus on low-emission vehicles as well as those that are driven by ethanol and biodiesel.

Attending the “Prime Minister Meets CEOs #2nd Series” today were the executives of Toyota, Isuzu, Nissan and Honda.

According to Deputy government spokesman Maj-Gen Veerachon Sukonthapatipark, all the Japanese automakers showed their supports to turn Thailand into the manufacturing centre of high-technology vehicles.

Veerachon said that Toyota planned to manufacture hybrid cars in Thailand, while Isuzu mulled the production of environmental-friendly and hybrid pickup trucks.

Nissan eyes export-oriented manufacturing of electric cars in Thailand while Honda is turning Thailand into the regional-level research and development centre, Veerachon added.

During the meeting, Prayut said that automobiles were one of 10 target industries to drive Thailand’s economic growth. He also invited the executives to explore investment opportunities in new special economic zones.

Trade between the province and these neighbouring markets was worth Bt48 billion last year, some 14 per cent higher than bilateral commerce worth Bt42 billion in 2014, Anurat Intorn said, adding that Chiang Rai also had a combined trade surplus with the three countries.

The chamber, meanwhile, targets bilateral trade value reaching Bt50 billion this year.

The main products exported to China, Laos and Myanmar include consumer products, construction materials, agricultural products and processed food.

The chamber chief said Chiang Rai had also been designated a special economic zone (SEZ) under the government’s policy to promote investment in border provinces, as a result of which the province would challenge for both local and foreign businesses wishing to expand their investment.

Chiang Rai, which borders southern China, Laos and Myanmar, has good links to the three countries for the transportation of products via Chiang Khong, Mae Sai and Chiang Saen.

The number of investors expanding their presence in the province is therefore expected to expand as a result of such advantages, he said.

“We have seen CP Land taking over a hotel in Chiang Khong, while SCG Group is interested in investment in warehousing for construction materials, and beverage tycoon Charoen Sirivadhanabhakdi also owns more land in Chiang Rai, which may be developed into a hotel in the future,” Anurat added.

Meanwhile, enterprises in China are interested in investing in logistics business in Chiang Rai, especially in Chiang Khong district, he added.

Most of these parties are currently waiting to see the benefits that will be provided by the government under the SEZ in Chiang Rai.

Once benefits such as tax incentives are formally announced, they will provide a strong boost for both local and foreign direct investment in the province, particularly in logistics business, agricultural processing, tourism-related business, packaging, jewellery and medicine, he suggested. “Chiang Rai has potential for warehousing, logistics and hospitality business, and our group is interesting in expanding our investment in the province,” said CP Land’s president and chief executive officer, Sunthorn Srunanondchai.

The company is currently developing a hotel in Chiang Khong district, with its next interest being investment in logistics and warehousing in the province to serve increased trade with neighbouring countries, he added.

TCC Land Asset World, a property arm of Charoen, is also interested in developing a hotel in Chiang Rai, said Wallapa Trisorat, its deputy CEO. “Chiang Rai is a province in which we will expand our investment, with a hotel to serve local and foreign visitors, especially for the MICE [meetings, incentives, conferences and exhibitions] market,” she said.

TOT president Montchai Noosong said that TOT did not permit AIS to commercially use the spectrum but had allowed it to use it for technical preparations.

A source from the National Broadcasting and Telecommunications Commission (NBTC) said that the watchdog had last week probed TOT’s decision to allow AIS to trial the service for a total of 15 megahertz.

The source said that the probe followed the lodging of an informal complaint in which it was claimed that TOT should not allow AIS to carry out the trial, as they had yet to sign the planned partnership deal.

NBTC officials found that some customers of Advanced Wireless Network (AWN), an AIS subsidiary, used TOT’s 2.1GHz spectrum and called in AIS and TOT for inquiry last week, the source said, adding that TOT insisted that AIS used the spectrum on a trial basis only.

The source said TOT also claimed that the trial was part of AIS’ and TOT’s preparation to sign a memorandum of understanding for a joint 3G service on TOT’s 2.1GHz spectrum. The deal is being examined by the Office of the Attorney-General.

AWN currently provides a wireless broadband service on its own 15MHz of 2.1GHz and 15MHz of 1800MHz under the NBTC licensing regime.

Given its subscription base of over 38 million customers, AIS is keen to acquire additional bandwidth to serve mobile-data hungry customers.

AIS has migrated around 4 million of its 11 million 2G customers from its 900MHz network to AWN ahead of switching off its 900MHz service once the NBTC awards a 900MHz licence to one of the two bid winners for 900MHz licences, True Corp and Jasmine International.

Once one of them pays the first instalment of the licence fee upfront to NBTC’s telecom committee, the committee will convene to consider granting the licence.

Both winners are obliged to pay the first instalment by March 21.

True reportedly told a group of investors at a meeting on Friday that it had already installed some of its 900MHz network.

Some parties have reportedly lodged informal complaints with the NBTC about this, as True is yet to be granted the 900MHz licence.

True plans to spend Bt36 billion on the rollout of the 900MHz network to reach 16,000 sites nationwide in May before raising the total to 20,000 sites by the end of the year to provide 2G and 4G services.

As part of AIS’ efforts to prevent service disruption to its 2G customers after the 900MHz service switch-off, it reached the agreement with DTAC to allow it to roam 2G subscribers on DTAC’s 1800MHz network.

DTAC chief technology officer Prathet Tankuranun said the operator was willing to support AIS on this matter in order to create a collaborative atmosphere in the telecom industry.

According to Somjetn Tinnapong, managing director of Myanmar Industrial Estate (MIE) – an ITD subsidiary responsible for the development of the 27-square kilometre initial phase – the consortium will consist of private and state-owned Chinese companies. Their focus will be on the 132-kilometre, four-lane road, which will require an investment of Bt13.5 billion and three ports that will cost US$400 million (Bt14 billion).

“What was planned earlier has been altered under the new paradigm,” he said, adding that ITD president Premchai Karnasutra led the delegation to Nay Pyi Taw last week to meet the Dawei Special Economic Zone management committee.

He said the Chinese companies include King Trillion and China Railway Engineering Corp (CREC), a key player in China’s ambitious One Belt One Road project.

The four-lane road connecting Thailand’s Kanchanaburi and Dawei is considered a must to materialise the DSEZ, which is 374km from Yangon. Dawei is at one end of the East-West Economic Corridor, linking Myanmar in the West to Vietnam in the East.

Somjetn did admit that this would depend on the political winds in Myanmar.

U Han Sein, Myanmar’s deputy transport minister, now sits as chairman of DSEZ Committee. The new government takes office on April 1.

It remains uncertain if the consortium would get the green light from the committee, also because this project was supposed to involve only Thailand, Myanmar and Japan. Japan Investment Coopeation Agency’s survey team was in Dawei in September and October to explore the possibility of the four-lane road. It is expected to greatly boost Dawei’s development potential, on top of a two-lane road, which is under construction as part of the special economic zone’s initial phase.

The consortium of ITD, Rojana Industrial Park and LNG Plus was given the green light last August to kick off the development of the initial phase, part of the 204sq km project, after Japan agreed to join hands with the Thailand and Myanmar governments to set up the special purpose vehicle to develop the project.

Somjetn unveiled that the industrial land in the initial phase is now ready for booking. A Thai seafood company belonging to the Aimimjit family is the first to sign the lease contract to buy approximately 10 rai, costing about Bt30 million. The leasing period is 50 years, extendable to 75 years.

“It’s a must that first buyers be Thais. This will help us better understand potential problems. What matters now is Myanmar’s readiness in servicing investors in the industrial estate. Plus, we expect them to draw those in the supply chain.”

A one-stop service centre will be set up soon in the initial phase, to accommodate investors who will be entitled to tax privileges that include a seven-year tax exemption for those exporting over 75 per cent of output. According to Somjetn, MIE stands ready to work with Thai clients to smooth things out, before making next moves to draw investors from other countries.

Somjetn is optimistic about the potential of DSEZ given the abundant resources in Myanmar. As a plus, seafood and textile exports from Myanmar to the European Union are also entitled to the generalised system of privileges (GSP). “We are targeting at least 10 upstream companies within this year,” he said.

Other targets are Japanese companies, which naturally operate with a long value chain, as well as soybean-based vegetable oil companies from Brazil. MIE is also set to approach LPG packaging companies. MIE aims to annually sell 1,500-2,000 rai of the 17,000-rai plot, said Somjetn.

He noted that the site has been visited frequently by potential investors. However, they were avoiding signing contracts now, pending completion of infrastructure as well as a clearer picture of Myanmar’s servicing capacity.

MIE is committed to complete nine infrastructure items in the initial phase by the year-end. The first of nine five-floor workforce apartments is nearing completion. A port, where vessels with maximum capacity of 13,000DWT can dock, is ready. The 15-megawatt power plant is up and running and its capacity can be expanded to 35MW.

 

As things stand, foreign companies are first required to seek a permit from the committee overseeing businesses operated by foreigners if they want to enter any of these fields.

Director-general Pongpun Gearaviriyapun said the committee generally granted permission to foreign applicants to enter these fields of activity, hence it was better to remove them from the restricted list to make it much more convenient for foreigners to invest in the three areas.

The commerce minister recently signed a ministerial regulation removing four business types – commercial banking, banks’ representative offices, life insurance, and property and casualty insurance – from Annex 3 of the FBA, meaning such businesses will no longer have to seek operating permits from the department as they are subject to specific banking laws and regulations of the Bank of Thailand and the Office of Insurance Commission, respectively. The aim is to reduce the number of redundant laws and regulations and to promote foreign businesses in Thailand, she said.

The agency head said the department had requested a budget of Bt6 million for fiscal year 2018, to be used to hire consultants to conduct a study of additional amendments to the FBA to ensure that the law and regulations keep up with the current business environment and can be enforced effectively.

As for the problem of Thais serving as shareholders on behalf of foreigners so that overseas interests can evade shareholding rules, or engage in prohibited types of business in Thailand without obtaining operating permits, the department over the past two to three years has joined other agencies to regularly monitor and inspect tourism-related businesses, brokerage services and real-estate business in provinces popular with foreigners, such as Chiang Mai, Chon Buri, Phuket and Krabi, Pongpun said.

Her department has in that time discovered numerous violations related to the appointment of nominees, which the Department of Special Investigation has followed up on accordingly, she added.

“In amending the Foreign Business Act, we must study the pros and cons thoroughly as laws or regulations that are too restrictive could hinder foreign businesses and investments, while those which are too lax could be harmful to local business operators.

“Hence, in opening up businesses to foreigners, we may have to set the minimum investment capital limit in business areas in which Thais are not ready to compete with foreigners, and specify which businesses are fully liberalised in the annexure to the Act; [this is something] which the current attachment does not specify,” she explained.

The Business Development Department had earlier tried to revise the FBA, and especially the definition of “alien/foreigner”, as it creates a loophole leading to problems pertaining to the appointment of nominees. It is necessary to tighten such a definition to include voting rights and management authority of aliens/foreigners, which must comply with laws and regulations governing a company’s shareholding ratio at no more than 49 per cent for foreigners, and no less than 51 per cent for Thais.

The move marks China’s first sub-7 per cent target since its opening up and reform in the late 1970s. It is also the first time in two decades that it has set a growth range – instead of a specific target – reflecting its leaders’ desire for policymaking flexibility as they push for longer-term economic reforms.

Speaking at the opening of the national legislature yesterday, Premier Li Keqiang said the growth range was set in part to “help guide market expectations and keep them stable” and to ensure relatively full employment.

He also acknowledged that the economy, which slowed last year to a 25-year low with a 6.9 per cent expansion, faced tough challenges such as falling global demand and investment and financial volatility.

“Our country’s development faces more and greater difficulties, and more severe challenges this year, so we must be prepared for a tough battle,” he told some 2,900 delegates of the National People’s Congress (NPC).

Adding to worries of China’s top trading partners, Li did not specify a trade growth target, with analysts saying it could stem from difficulties in forecasting the number or having failed to hit its target last year of 6 per cent by too much. China’s imports fell 14.2 per cent and exports dipped 2.8 per cent last year.

There are also growing fears over rising unemployment and social instability this year as China dismantles inefficient state firms and companies lay off workers. This is even as it is maintaining a target of 10 million new urban jobs and an urban jobless rate of within 4.5 per cent.

There was also disappointment among some that China is not aiming for a more aggressive budget deficit to prop up growth. The projected deficit of 2.18 trillion yuan (S$460 billion) this year accounts for 3 per cent of the gross domestic product – higher than the 2.4 per cent deficit last year but lower than the 4 per cent called for by some.

Still, striking an upbeat note, Li said the economy had great potential and promise if it could harness the strength of an increasingly skilled and educated workforce and shift towards higher-value and higher-technology industries.

Over the next 10 days or so, the NPC delegates, along with some 2,200 members of the Chinese People’s Political Consultative Conference, will be poring over Li’s government work report.

They will also be scrutinising the 13th Five-Year Plan, a road map for China’s economic development from this year to 2020.

The new plan plots China’s final stretch towards achieving its goal of building a moderately prosperous society by 2020. Chinese policymakers say a minimum average growth of 6.5 per cent yearly is needed to achieve the goal.

A report yesterday by the National Development and Reform Commission, China’s top economic planning agency, said the growth range this year was set with the 13th Five- Year Plan’s targets in mind, adding that it would avoid pressure for higher growth rates later.

Hoang Ngoc Tan, 23, of Duc Long Commune in Ha Tinh province’s Duc Tho district, said he was hired in Vietnam after graduating from a vocational college, but the income was low, so he considered moving to Laos in hopes of making better wages.

A number of his friends have found jobs in Laos with a monthly income of 9 million dong (Bt14,000), Tan said.

“Once I was there, I would work hard to save money to assist my parents and my marriage later,” he said.

A 24-year-old woman who identified herself as Huong, of Thach Ha district’s Ngoc Son Commune, said that after coming home for Tet, she decided to return to work in Thailand because workers there enjoy higher incomes than in Vietnam.

After paying all expenses, she could save about 7 million dong (Bt11,000) from working as a waitress at a restaurant in Thailand, Huong said.

Nguyen Duc Thuan, head of Ha Tinh province’s immigration office, said the number of people who applied for passports increased sharply on the first working days after Tet (February 15 and 16).

Thuan said the office’s staff had worked hard to handle more than 1,000 applications on February 15, whereas normally they receive 500 people.

Most applicants travel to Laos and Thailand, he added.

Geographical advantages, easy-to-find jobs and a high percentage of overseas Vietnamese in these countries are reasons for the free flow of labour into Thailand and Laos, insiders said.

Vietnamese workers normally enter Thailand on tourist visas and then stay on to work as hired labourers without permits, they said.

Most Vietnamese labourers in Thailand work as household helpers, food servers, and employees in the fishery industry or on construction sites, according to Nguoi Lao Dong (The Labourer).

On average, a worker there can earn between 6-8 million dong ($269-358) Bt9,500 and Bt12,700 a month. Some can earn wages between 10 million dong ($448) and 12 million dong ($538) Bt16,000-Bt19,000 a month.

This is a considerable sum of money compared with the average monthly salary of a Vietnamese worker, which was 3.8 million dong (Bt6,000) last year.

In the central province of Nghe An, the number of illegal workers heading to neighbouring countries is also growing.

cited Hundreds of people reportedly came to the immigration office to apply for travel documents such as passports and laissez-passer documents after Tet.

To Huu Tri, deputy head of Nghe An province’s immigration office, said the number of applications increased fivefold from the normal rate after Tet.

It is difficult to pinpoint the exact number of labourers working in Thailand, even though illegal migration is a pressing issue in the province.

Statistics from Nghe An province’s police showed that |about 378 people had worked |illegally in Thailand in 2014 |while the province’s Labour, Invalids and Social Affairs Department office estimated the figure was 800.

These workers are mainly from the districts of Do Luong, Con Cuong, Nghi Loc and Hung Nguyen.

Labour shortage’

While Vietnamese labourers struggle to earn a decent living abroad, many domestic businesses are short of workers.

Nguyen Tien Hoa, director of the Ha Tinh Employment Service Centre, which is under the Department of Labour, Invalids and Social Affairs, said 35 enterprises took part in the first job fair in Ha Tinh province, seeking around 300 employees in the fields of accounting, business management, mechanical engineering, and information technology.

However, Hoa said, a number of businesses found it difficult to find suitable employees, including manual labourers, because few workers registered for jobs at the centre.

“One should not blame local authorities for not informing local people about the issue. As a matter of fact, employees flocked to places where wages are higher,” he told the Nong thon ngay nay (Countryside Today) newspaper.

In hopes of improving their livelihoods, many people continue working abroad illegally despite facing problems like being underpaid, forgoing protections and medical insurance, and having a higher risk of being laid off, Hoa said.

Le Tien Dung, deputy director of Ha Tinh province’s Labour, Invalids and Social Affairs office, said it was difficult to stop labourers from going to Thailand to find jobs, but they should be warned about the risks they might face.

He called for better management of household registration books to prevent local residents from working abroad illegally.

Rattana Theanvisitsakool, deputy director-general of the Business Development Department, said the department and the Franchise Licence Association (FLA) planned to help franchise business operators penetrate 11 foreign markets this year.

Nine of the markets are in the Asean Economic Community, and the other two are China and Japan. The food, beauty and education sectors are attractive targets in foreign markets.

The department aims to see 30 franchise operators expand overseas this year. At present, 22 Thai franchisers are engaged in business abroad.

Thailand’s franchise market is worth Bt280 billion. Half of that is in food, beverage and bakery franchises on expectation of high annual growth rates. “Asean countries now are interested in Thai franchise businesses. Laos is interested in food and beverages and the Philippines in food and beauty. Soon, 25 Thai franchise operators will be led to penetrate markets in Myanmar,” Rattana said.

The department yesterday joined a signing ceremony for a three-year franchise contract between Thailand’s N & B Pizza Crepe Co and Laos’ Friendship Trading. Friendship Trading will open five branches within three years in Laos.

“N & B Pizza Crepe is the 23rd franchise operator to expand overseas,” she said. Of the 22 Thai franchise operators already doing business in 38 foreign countries, 11 are in food and beverages, five in retail, three in education, two in beauty and spas, and one in a service enterprise. The department is collaborating with the FLA and other partners to search for new markets for Thai franchisers. As of January 31, there were a total of 1,509 Thai franchise operators. Of that total, 1,220 were juristic persons and 289 were ordinary persons. All told, 757 were in retail, 425 in food and beverages, 350 were services, 84 were educational enterprises and 75 were in the beauty and spa industry.

“Regulators have an incredibly difficult task ahead of them,” CASBAA chief policy officer John Medeiros said recently.

This study on Asian over-the-top (OTT) regulation was titled “Same Same but Different? Video Policies for Asian Pay-TV and OTT”.

CASBAA says the report is the result of a collaboration of highly regarded experts in Asian capitals. It takes an in-depth look at the |regulation of pay-TV and OTT |video in countries and regions |across Asia and Australasia, drawing comparisons with current legislation in Britain and the United States.

“Root-and-branch reform is needed,” Medeiros said, pointing out that the pay-television industry environment today is radically different from what it was only five years ago, and the hard work of adapting policy instruments and practices has only got under way in a small number of markets.

CASBAA also described licensed pay-TV companies facing sharp competition from legal and illegal offshore media ventures, even while their hands are tied behind their backs as a result of heavy burdens from taxes and government mandates on content, advertising, competition and social policy.

CASBAA noted that a large portion of OTT content delivered to many Asian markets came from pirate syndicates that operate outside of all legal constraints.

“This in-depth study provides a detailed view of the state of pay-TV and OTT throughout the region, providing vital insights for anyone looking to enter the local marketplace, |or indeed anyone who simply |wishes to be more informed,” said CASBAA chief executive Christopher Slaughter.

The report provides specific descriptions of each government’s policies affecting OTT television on subjects as diverse as content censorship, advertising limits, copyright protection, and consumer protection.

It observes that many governments are levying burdens on onshore OTT operations while leaving offshore services virtually unregulated. One result of this discrepancy is a big boost for offshore operations providing pirated content. These offshore outfits are unburdened by any ethical, legal, or social constraints, and they continue to grow in importance.

CASBAA also urged that governments review their pay-TV rules and determine whether existing burdens are still required given the evolution of the television market in recent years. It said governments should also seek to stem the growth and proliferation of illegitimate OTT services