There already has been some significant contributions from Japan, when it comes to investing in Thailand. It is expected that within a span of the next 10 years if everything goes as per plan; Thailand is going to emerge as one of the major economic forces in South-East Asia. Already, considering the future prospect of growth; many foreign companies have started showing interest to float their business in Thailand.
It has been estimated by the experts that within next decade, Thailand is about to experience a massive improvement in the industrial and manufacturing sectors. As per recent news updates, some of the economic giants of Asia are willing to invest in Thailand. With foreign direct investment coming in, the country’s NI or National Income is like to grow at a tremendous speed. Talking of foreign investment, Japan is at the top of the list. They not only have shown interest in investing money in Thailand but at the same time, they are willing to get into trade partnership, which would help to boom the economy of Thailand to a great extent. Besides, Japan is also interested in the transfer of technology and knowledge to Thailand.
One of the latest economic policies of Thailand is Thailand 4.0, which aims towards advancing and upgrading the industrial sector of this country. This process involves the modernization of the present commercial processes and re-engineering the technological and digital tools. Besides, they are also focusing on robotics in order to achieve cost-effective production, which would help the Thai industries gain a competitive edge in the global market. Japan has been a major contributor to this entire process. They have been transferring technology, offering training and helping the Thai government to create an ideal infrastructure for the development of their industrial sector. It is expected, that after the successful implementation of this project, there would be a massive rise in Thailand’s employment index, which would help to improve their GDP to a great extent.
One of the main aims of this project is to train and educate the workers at various levels which would help them attain more efficiency and productivity. Japan has been playing a very important role in this regard. They have agreed to transfer the latest technology to help Thailand achieve its goal of industrial modernization.
There are a couple of industrial and manufacturing sectors which have been identified by the Thai authorities to put more emphasis on. Japan has agreed to come in with investment in terms of capital, technology, and other aspects. Here are some of them
Recently WorldFolio has reported that the Ministry of Commerce of Thailand Sontriat Sontijirawong has stated “Japanese investment is an investment of quality. Japan not only invests to produce here, but they also transfer knowledge and technology. Japanese companies are very keen in terms of technology transfer, providing skills and being ahead in terms of innovation and quality.” This indicates that Japan is not willing to invest capital in Thailand, but at the same time, they are equally eager to train and educate the Thai workers on different latest technologies.
Here are a couple of segments in which Japan has decided to invest to help Thailand improve its industrial and economic infrastructure
The relationship between Thailand and Japan goes back to many years. Thailand would definitely benefit from this investment which is Japan has decided to make in the Thai industrial sector.
Source: Asian Correspondent
India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization measures, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and have served to accelerate the country’s growth, which averaged under 7% per year since 1997.
India’s diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the workforce is in agriculture, but services are the major source of economic growth, accounting for nearly two-thirds of India’s output, with less than one-third of its labour force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services, business outsourcing services, and software workers.
In 2010, the Indian economy rebounded robustly from the global financial crisis – in large part because of strong domestic demand – and growth exceeded 8% year-on-year in real terms. However, India’s economic growth began slowing in 2011 because of a slowdown in government spending and a decline in investment, caused by investor pessimism about the government’s commitment to further economic reforms and the global situation. High international crude prices have exacerbated the government’s fuel subsidy expenditures, contributing to a higher fiscal deficit and a worsening current account deficit.
In late 2012, the Indian Government announced additional reforms and deficit reduction measures to reverse India’s slowdown, including allowing higher levels of foreign participation indirect investment in the economy. The outlook for India’s medium-term growth is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy.
India has many long-term challenges that it has yet to fully address, including poverty, corruption, violence and discrimination against women and girls, an inefficient power generation and distribution system, ineffective enforcement of intellectual property rights, decades-long civil litigation dockets, inadequate transport and agricultural infrastructure, limited non-agricultural employment opportunities, inadequate availability of quality basic and higher education, and accommodating rural-to-urban migration.
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports – mostly electronics, agricultural commodities, automobiles and parts, and processed foods.
Thailand is trying to maintain growth by encouraging domestic consumption and public investment to offset weak exports in 2012. Unemployment, at less than 1% of the labour force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighbouring countries. The Thai government has implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.
The Thai economy has weathered internal and external economic shocks in recent years. The global economic crisis severely cut Thailand’s exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand’s economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The industry recovered from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The government has approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage and an additional $75 billion for infrastructure over the next seven years with a plan to start in 2013.
Comparing the economy of the two counties helps in understanding various economic functions of the country. One of the best ways to do so is to lay down the table for a better comparison. Mentioned below is a table of comparison between different economic aspects of India and Thailand:
|Budget||$172.10 billion||$72.08 billion|
|Debt||49.6 CIA||43.3 CIA|
|Exports||$301.90 billion||$226.10 billion|
|GDP||$1.84 trillion||$365.97 billion|
|GDP(Per Capita)||$2,625.09 per capita||$8,655.90 per capita|
|Gross National Income||$477.00 billion||$477.00 billion|
|Rate of Inflation||9.7%||3%|
|Below Poverty Line||9.8%||7.8%|
|Rate of unemployment||8.5%||0.7%|
|Per Capita of Exports||$244.12||$3,385.49|
|Per Capita of Import||$407.14||$3,261.21|
|Tourist visits||5.37 million a year||14.54 million|
|Gross domestic Savings||212.41$||212.41$|
|Discount rates from the central bank||5.5%||2.75%|
|Spending of consumers||121.54%||111.85%|
|Labour force rank in the world||18th||28th|
As per the calculations of 2018, the Gross Domestic Product of Thailand is US$ 504.9. The country has the second-largest economy in South East Asia. There is a deep-rooted connection found between India and Thailand which can be traced back in history. For years the two countries have been maintaining harmonious relations. In the year 2017 Thailand and India proudly celebrated their 70 years of diplomatic relation. Over the years India and Thailand have developed strong connections while establishing a very strong bilateral relationship.
For years the two countries have been continuing their trades with each other. In the year 2018, the two-way trade totalled up to the US $ 12.46 billion. According to Thailand, India is one of the largest partners in trade. AEC is one of the main reasons for such a harmonious relationship between the two countries. AEC took several initiatives to develop economic and cultural connectivity between the two countries.
The investors in Thailand are keen to invest in India. This is because India has a promising economy. With the rapid growth in the economy of the country, the Thai investors find major interest in investing. The market in India is one of the major export targets of Thailand. With the number of buyers in India, Thai businesses find it lucrative to invest in the country. Under the Association of Southeast Asian Nations (ASEAN) there is a huge reduction of tax which is encouraged by India when it comes to the export goods of Thailand. This is an important factor that contributes to the growth of business in Thailand.
Some of the major exports by Thailand to India includes parts of motor vehicles, data processing machines, integrated circuits. Alongside Thailand also exports stones and jewellery, chemical products and plastic products to name a few. For India, Thailand is also a lucrative market. The import of products for Thailand from India includes crude oil, chemicals, jewellery and various other product that benefits the business of India. In recent times it is seen that there is a huge growth in the investment from Thailand. As there is a growth in the economy of the country there are many investors in Thailand who are willing to invest in the country. Some of the major brands of India who are successfully functioning in Thailand include Tata, ZEE TV, Thermax, Dabur, Lupin, Ranbaxy and many others.
If you are living in Thailand then the chances are that you will be earning 2.5 times more money in the country as compared to India. This is due to the growing economy that contributes to the GDP of the country. Thailand also has high chances of employment as compared to India.
According to a report if you are living in Thailand then there are 92% fewer chances of you being unemployed. This is an indicator of the fact that Thailand has a very high employment rate. Alongside the country would offer you 67% lesser chances to be in bellow-poverty line.
However, one of the major disadvantages is the fact that in Thailand the cost of healthcare is high. You may have to spend 38% more in healthcare as compared to India. With 2.6 times more chances to be obese and being exposed to certain life-threatening diseases like HIV/AIDS, there are huge chances that health care investment would shoot up to a major extent.
However, the quality of life in Thailand is much higher as compared to India. The availability of basic needs is comparatively high in Thailand. This comparison helps in understanding the ways there are certain pros and cons of living in both countries.
However, the lifestyle of both countries is almost similar. When it comes to the urban lifestyle of the countries it is seen that there is a huge similarity between the two. This helps in understanding the fact that both countries have similar influences. These countries are highly influenced by western civilization. This is a common sight that is seen in the cities of both countries. With minor differences both the countries share a similar ideology.
When it comes to the commercial comparison one of the most important aspects that need to be considered is the cost of living. There is a huge difference in the cost of living between the two countries. The consumer prices of Thailand as compared to India is 96.81% higher.
The rent prices are also higher in Thailand. It is being estimated that the cost of Rent in Thailand is 113.96% higher than that of India. So it can be stated that while you have decided to live in Thailand there are chances that your budget will increase. You will have to spend more for various purposes. The most expensive thing in Thailand is rent. The rents in the country are exorbitantly higher. This will add up to the total cost of living. However, comparing the standard of living Thailand excels in various aspects.
A detailed comparison of various economic aspects of the two countries unveils several aspects of the country. Lastly, it is also necessary to make a cultural comparison as culture forms an important part of the relationship between countries and also encourages trade.
There are several similarities between India and Thailand. There is a deep-rooted connection between the cultures of the two countries. Khom is one of the oldest manuscripts of Thailand. However, the manuscript was deeply connected with the Hindu culture. This is one of the reasons why there are major similarities between the cultures of the two countries.
For instance, Sabai is a traditional attire of Thailand worn by women. This is very much similar to Saree which is being draped by Indian women. Jong- Graben is traditional attire for men and this is also similar to Dhoti which is a traditional men’s wear.
People in India join their hand in the form of prayer to welcome and greet people. This gesture is known as “Namaste” in India. A similar gesture of welcoming guest is followed in Thailand too. This is known as Sawasdee. There are several other similarities between the two countries. Understanding the similarities between the culture of the two countries revel several other aspects of the economy. This helps in understanding the fact that India and Thailand are deeply rooted in culture and the cultural exchanges that occur from time to time help in the development of better relationships.
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Source: Asian Correspondent
Lately, Thailand is emerging as one of the leaders in Crypto-currency. Many states in the world are aiming to find out ways that would help them set the right regulation when it comes to the implementation of Crypto-Currencies. However, Thailand has already found ways through which it can bring crypto-currency into the mainstream. The country is finding ways through which they can develop their digital currency that will their own.
The country has shown huge progress in the last few years and now it is ready to provide licenses that will allow the exchange and transaction. Several other countries are attracted to the new venture and are willing to invest in the same. This is one notable progress that is made by the country. So far, the country has approved four currencies that can be used for business and these crypto business operators received their approval from the Thai Securities and Exchange Commission. Alongside there are three digital portals for tokens that were being approved by the country. This shows the significant interest of the country to venture into the digital currency world.
In Thailand, a company can now get a license for the exchange operation and broking these currencies. A company can now deal with both currencies and tokens however when it comes to operation and broking of token the company needs to achieve a separate license. The government of Thailand has approved four operators for digital assets.
These companies are allowed to provide several services which include exchange services for token and crypto. This also includes the brokerage services for token and crypto. However, this completely depends on the license that is being availed by the government.
There were some of the most progressive legislative standards being set by the country in the year 2017. These standards have set benchmarks when it comes to the functioning of crypto-currencies in Thailand. Now, it has become necessary that a registration process is being completed by the exchangers and sellers of cryptocurrencies.
This registration needs to be done with the SEC for selling and exchange of or currencies. In Thailand, four exchanges are being approved by the government. Bitkub Online Co. Ltd., Bitcoin Co. Ltd., and Satang Corporation are the three companies that provide all-round services for exchange and selling of digital assets however the other one in the list got the approval for only brooking and dealing of the currencies.
As mentioned earlier three ICO portals got approval from the government. The name of these portals are Longroot (Thailand) Co. Ltd. (Longroot), SE Digital Co. Ltd. (SE Digital) and T-box (Thailand) Co. Ltd. (T-box. Though some of the inspection process and development of the regulatory framework is pending these portals have been added to the commission’s website. These portals play a very important role in the regulation purpose of digital token.
Alongside the country also maintains a list of websites that are supposed to venture into the crypto-currency. The Thai government also introduced a fiscal policy that helps.It is important for any company to acquire the authorization for the Thai Government to have the currencies.
The law of Thailand though of introducing new regulations for the crypto-currencies. One of the main purposes of the law is flexibility. The lawmakers have thought of ensuring the fact that flexibility is being offered to the regulations when it comes to the crypto-currencies. It was being figured by the lawmakers that the process of licensing for the company has become very complicated.
Since this concept is new so there needs to have a certain level of agility. This will make sure that the growth of digital assets in the country increases. Due to the complexities in the process of registration, it was seen that only a few companies could make it to the business. However, the lawmakers are in favour of the growth of crypto-currencies. This is one of the reasons why they believe in the fact that there should be a certain level of leniency in the law.
Certain amendments have taken place in Thailand. Though SEC is not in complete agreement with the new amendment it is believed that new laws introduced in this field will help in developing the country when it comes to the digital assets. The country among all the other countries in the world sees the fact that there is a potential of economic growth with Crypto-currency being a mainstream digital asset. This is one of the reasons the Government is tending to make all the possible changes in the process of registration.
Thailand also sees the risk associated with the unauthorized sales of crypto. This is one of the reasons why the country is also strict when it comes to the legal aspects of the same. For the same reason, the country also imposes strict penalties in the circumstance it is seen that illegal sales of token take place.
The government wants to preserve the whole process of growth and also tries to make sure that such digital assets are being prevented from fraud activities. There is some economist who is concerned about the functioning of the currency in the world.
To make sure that challenges associated with the illegal sales of the token are minimized there are strict penalties being imposed. However, in certain times it becomes complicated.
On one hand, there is a strict need for the regulation of token sales while on the other hand, the lawmakers are forcing upon the flexibilities of the licensing system. Like all the new process and approaches that are being introduced in an economy, this also has to pass through the challenges.
For the same reason, the right step must be taken for the growth of digital assets in the country. It is also essential that the government and the lawmakers find a middle way that will help the growth and the development of such currencies and also ensure the economic growth of the country.
Along with the advantages that Crypto-currency will bring to the country certain challenges are associated with the same. It is being predicted that with the growth of crypto-currency there will be criminals who would look for the digital assets as a major target. This will lead to an increase in money laundering cases in the country.
The economy of the country will face major challenges if such cases are seen often. The Lawmakers have stated the fact that with the growth of such currencies in Thailand there needs to have a proper law that treats currency laundering as important as money laundering in any other forms. Financial Action Task Force (FATF) is responsible for the detection of threats associated with digital assets.
The organization have already highlighted some of the major causes associated with the crypto-currency and also figured out some of the suspicious transaction associated with the same. While the government is showing keen interest in the implementation of such currency it is also necessary that certain regulatory measures are made strict. This will make sure that crypto-currencies being introduced to the economy will contribute to its growth.
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Source: Asian Correspondent