THAILAND NEEDS ONE YEAR TO RESTORE CONFIDENCE

By D. Arul Rajoo

BANGKOK, Dec 13 (Bernama) -- Foreign investments in Thailand are unlikely to
pull out despite the current political turmoil, but it will take about a year to
restore confidence as the impact of the recent airport closures was huge and
bigger than the tsunami, bird flu or SARS (Severe Acute Respiratory
Syndrome).

The Joint Foreign Chambers of Commerce (JFCCT) said Thailand was not at
risk of losing current investments but would face difficulties in convincing
potential investors to set up new companies or relocate them from
elsewhere.

Also, it has to compete with neighbouring countries to attract new foreign
investors, it said.

Vice-Chairman Deepak Mittal said personally his confidence in doing
business in Thailand was not shaken by the recent turmoil, but many new
investors were afraid to come here due to their personal experiences of being
stranded during the two airport closures from Nov 24 to Dec 3, and from news
and images being broadcast abroad.

"I've lived here for about 30 years...Thailand has a reputation as a safe
place to live and do business. But the rule of law and a stable government are
important in the eyes of investors," said Mittal, who is a director of Aditya
Birla Group's chemical business here.

He said the Indian company, earning over US$1 billion in annual revenue,
has
no plan to stop its expansion plans, adding that the sooner the problems could
be solved, the faster the country would recover.

The Asean-India Free Trade Agreement, due to be signed in Chiang Mai during
the Asean Summit, has been postponed after the summit was deferred to next year,
said Mittal.

JFCCT chairman Nandor G. von der Luehe said Thailand must act quickly to
restore foreign confidence and suggested that the new prime minister, due to be
elected by Parliament on Monday, should meet foreign investors as soon as
possible to counter negative perceptions about the country.

"Thailand used to be the best place to do business in the region but now
there is a report it is the seventh most dangerous place to visit...I know that
it is not true but the world is thinking differently," he said after a meeting
between JFCCT and Thailand's Board of Investment (BOI).

Luehe said the new Thai Government should consider opening up the service
sector as the economy needs new injection, adding that every effort must be
made to minimise the impact from the global financial crisis and domestic
problems.

BOI secretary-general Dr Atchaka Brimble said despite the political
uncertaincies, they have approved 2,000 new projects worth 426 billion bahts in
11 months and was on target to meet the 600 billion baht investment target for
2008.
-- BERNAMA