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Thailand's international business community appears to be regaining confidence regarding the government's investment and business-related policies although they remain concerned over the issue of the foreign business law. Speaking to reporters following meeting with members of the Joint Foreign Chambers of Commerce in Thailand, Deputy Industry Minister Piyabutr Chonwicharn said representatives of the 25 chambers present sought clarity concerning the interim government's policy towards foreign investment in Thailand.

Mr. Piyabutr said he informed the foreign business attendees that the current government continues to value foreign investment and that there is no change in the investment privileges scheme operated by the Thai government's Board of Investment. Changes, if any, he assured the international business community, would only be for the better.

"Most foreign businessmen operating here understand that policy changes have no impact on the investment climate. However, the Europeans remain worried about the restoration of democracy. I informed them that the political situation at the moment is a massive improvement from the instability of the previous seven to eight months," the deputy minister said.

Among the main issues raised by the foreign investment community included development of logistics linking the Laem Chabang deep sea port with rail transport, and the shortage of human resources to accommodate Thailand's mega-infrastructure development projects. Mr. Piyabutr affirmed that the Industry Ministry is prepared to work with the Education Ministry to address the capacity and training of human resources.

BoI Secretary-General Sathit Chanchaokul, who also attended the meeting, said he told the foreign businessmen that the BoI's policy of promoting foreign investment in Thailand remains unchanged and unaffected. It continues to grant privileges to foreign investment projects and applications for these incentives still come at normal rate.

Chairman Peter Van Haren of the Joint Foreign Chambers of Commerce said the Chambers are concerned about changes in policy and regulations that affect investment chiefly the Foreign Business Law, and the government's self-sufficient economy policy. However, he said the members emerged reassured after the session.

He said he hoped the government continues to implement policy that establishes the Thai economy on the growth path.

This article was first published in Business Day October 24th 2006