Interview
with the Thai Ambassador
 (real
audio file)
1.
Congratulation on being named a “CEO Ambassador.” Could you tell
us what that term means? What are your responsibilities as
a “CEO Ambassador”?
When
Prime Minister Thaksin Shinawatra assumed office at the beginning of last
year, one of his priorities was to restructure the administrative system
of the country to make it effective and efficient. Towards this end,
he has also tried to inject more business practices to make our civil service
more streamlined with less red tape.
The
term “CEO Ambassador” was therefore coined to refer to the initiative of
the Government to try to reorganize the management of Thai embassies by
unifying its work plan, command, and structure, so that the embassies will
be able to work on consistent policies more efficiently and effectively
for the country’s national interests.
Thai
Ambassadors in six capitals (Washington, D.C., Tokyo, Brussels, Beijing,
Vientiane, and New Delhi) were chosen as the first “Chief Executive Officers”
for this pilot project and will act as the de facto head of all Thai government
agencies in that country. The “CEO Ambassador” in Washington, D.C.
will lead “Team Thailand” and with the following aims:
-
To
continuously discuss and implement a combined work plan with all Thai government
agencies in the United States and conduct joint projects to protect Thai
interests in the United States, particularly in the promotion of trade,
investment, and tourism. Joint projects as the Team Thailand Roadshows,
Thai Day at Congress, and the Thai Week in DC, will receive a special budget;
-
To
establish a centralized command structure with the “CEO Ambassador” as
the “host” and head of “Team Thailand”;
-
To
save government budget by sharing resources among the different Thai government
agencies of the embassy and house all agencies under one roof.
My
responsibilities as a “CEO Ambassador” will be to manage and lead “Team
Thailand” and conduct weekly meetings, which will serve as information
sharing sessions with the heads of the different agencies. I will
also lead the “Team Thailand” projects and evaluate the performance of
each agency head. As “CEO Ambassador”, I will not only represent
His Majesty the King abroad, but I will also represent the Prime Minister,
or the “CEO of Thailand”, and the whole Thai Government, while leading
our Team in the United States.
Note
that in addition to CEO Ambassadors, we also have CEO Provincial Governors
with similar objectives.
2.
What are currently the most pressing issues regarding US-Thai relations
that are occupying most of your time?
There
are a number of issues at the moment that are important in Thai-U.S. relations.
Our co-operation in the realm of defence and security continues to be important
and, indeed, urgent given the increased threat of terrorism in the world
today. In addition to our joint military exercises and co-operation
on counter-terrorism, we are also co-operating in other areas of transnational
crime, some of which are closely linked to terrorism, including anti-money
laundering and narcotics suppressions as well as on other areas of common
concern--all of which will help to strengthen our ties even further.
At
the same time, in the economic sphere, we in Thailand would like to see
increased market access in the United States. For example, we would
like the United States to further open its market for our agricultural
products. We are also concerned about pending legislature on the
Hill that will grant duty-free access to the Andean countries for canned
tuna, as part of the Andean Trade Preference Act (ATPA). What is
inconsistent in U.S. policy here is that such privileges are being granted
to the Andean countries in recognition of their role in the fight against
narcotics. Yet, this same act will destroy the level playing field
in the trade of canned tuna, discriminating against countries such as Thailand
which have long worked with the United States in this very same area.
3.
What lessons has Thailand learned from the financial crisis in the late
90’s? How has it affected government policy under Thaksin?
The
financial crisis of 1997 and the country’s high dependence on exports revealed
that Thailand was overly dependent upon foreign demand and exports, particularly
in such traditional markets as the United States, the EU, and Japan.
As
a consequence, upon assuming office last year, the Government under Prime
Minister Thaksin adopted a new economic strategy—a dual track development
model aimed at both the strengthening of our domestic economy and the continued
opening of our markets to foreign trade and investment. While continuing
to enhance its links with the global economy and proceed with economic
reform, we have initiated several measures and programmes to strengthen
the domestic economy at the grass-root level, helping to improve the capabilities
of the poor. And through the multiplier effect, it has hoped that
new jobs will be created, domestic consumption stimulated, our competitiveness
enhanced, and our business confidence and local economy reinvigorated.
To
diversity our trading base, we are also trying to find new markets outside
our traditional ones, particularly with neighbouring countries, as well
as to promote more co-operation and co-ordination between countries within
Asia itself, giving rise to the Government’s proposal to promote the Asia
Co-operation Dialogue or ACD.
4.
What are the major issues in bilateral trade between the US and Thailand?
Is Thailand affected adversely by the tariffs imposed by the US on steel
imports to the US?
Main
issues in bilateral trade between our two countries include the promotion
of increased market access for our products, particularly agricultural
products for which we face many sanitary and phyto-sanitary (SPS) measures.
As
I mentioned earlier, we are also concerned about pending legislature on
the Hill that will grant duty-free access to the Andean countries for canned
tuna, as part of the Andean Trade Preference Act (ATPA).
Intellectual
property rights continue to be an area in which Thailand and the United
States are closely working on, with the United States acknowledging our
progress in this area. At the same time, Thailand is also proceeding
with the registering of many of our products in the United States, including
that of Thai Pathum Thani 1 jasmine rice.
On
steel, the recently imposed temporary safeguard measure on steel products
for the next three years has provided exemption for developing countries.
As this exemption also covers the majority of Thailand’s steel exports
into the United States, the safeguard measure has had limited effect upon
Thailand. Nevertheless, if the U.S. market is closed, Thailand is
concerned that much of the excessive steel products from other major exporting
countries will possibly be redirected to open market as Thailand.
5.
How would you describe the state of restructuring of Thai banks and other
firms? What steps still need to be taken? Why is
restructuring proceeding so slowly? What can, or should, the
US Government do to assist Thailand with this restructuring?
The financial crisis in 1997 has greatly affected banks and financial institution
in Thailand. Non-Performing Loans (NPLs), as a percentage of total
loans extended to borrowers, reached its peak at 47.7 per cent in May 1999.
The Government has quickly implemented necessary measures to deal with
the troubled financial sector, since a healthy and fully functioning financial
sector is critical to Thailand’s sustained economic growth. Given
our efforts, at the end of December 2001, NPLs had declined to 10.46 per
cent.
One important development has been the establishment of the Thai Asset
Management Corporation or TAMC in October 2001. The TAMC centralizes
the management of NPLs being purchased from banks and takes the lead systematically
and efficiently in dealing with non-performing assets and related corporate
restructuring activities. To further improve the financial mechanism,
the Government is focusing on strengthening the efficiency of state-owned
financial institutions and increasing the volume of domestic loans through
these institutions. The asset transferred to the TAMC and the adequate
capital base in the banking system should allow banks to revert their attention
to new lending, which, in turn, will provide the needed working capital
to support corporate restructuring as well as business expansion and economic
growth.
The restructuring proceeding is going on smoothly, not slowly, because
it is a big and complicated issue.
6.
Why should an American firm-or any firm for that matter-invest in Thailand?
What sectors in Thailand are most conducive to US investors?
What areas/sectors is the Thai Government promoting?
Thailand
is a growing developing country that presents many opportunities for foreign
investors. We have a large domestic market which will increase even
further once we achieve a full and sustained economic recovery. And
as we are strategically located at the centre of mainland Southeast Asia,
we can also act as a staging area or gateway to the region. Therefore,
businesses from the United States can serve not only 62 million consumers
in Thailand, but also over half a billion people in Southeast Asia—a figure
rising to over a billion if you include southern China as well.
In
addition, Thailand has a conducive economic, political and business environment
for foreign investment. These include the following:
A
reform-oriented economics policy.
Favourable
approach to the private sector.
Consistently
positive attitude forward foreign industry.
Steady
moves to liberalize business environment and privatize state-owned enterprises.
Economically
competitive in term of production cost.
Political
stability
Infrastructure/communication
availability
Large
and high productive workforce
What
sectors in the Thai government promoting?
There
are 7 industrial sectors that the government (BOI) are promoting namely:
-
Agro-industry
-
Mining, Ceramic and Basic metal
-
Light industry
-
Machine/transport equipment
-
Electronic /Electrical
-
Chemical
-
Services/Public utilities
Priority
activities are in agriculture, environment protection, technological and
human resource development, transportation, infrastructure, targeted industries.
Best-non
agriculture industry sector that the American companies can do in Thailand
are:
1.
Automotive Part/Service
2.
Computer Software
3.
Lab/Scientific equipment
4.
Pollution control
5.
Medical devices
6.
Telecom equipment
7.
Electronic industry
8.
Food processing equipment
7.
What opportunities exist for the US and Thailand to work together in the
bioscience area?
On
medicine and pharmaceuticals, Thailand imports 55 per cent of our total
usage or over $ 440 million each year. Therefore, opportunities exist
in the area of joint research and development of medicine as well as in
their production by using local ingredients and raw materials.
In
foodstuff, opportunities also exist as Thailand is a major food exporting
country. Here, through the use of food science, we could work together
to increase production and exports of ready-to-eat food, increasing the
value-added component of our agricultural exports.
In
energy, there are opportunities in the production of ethanol from sugar
as a substitute for oil. According to press reports, the Government
is currently amending the import duty on sugar to promote ethanol production.
Lastly,
opportunities exist in the area of joint research in biotechnology, with
such organisations as our BIOTEC center and our Department of Business
Development and Biolaw.
8.
How would you characterize the Thai Government’s relationship with the
foreign and local media these days?
Contrary
to some negative press reports, Thailand remains one of the freest countries
today in terms of freedom of the press and freedom of expression.
This is clearly reflected by the fact that, whether we like it or not,
the Government is criticized openly and freely by the media, both local
and foreign, both of whom we have good working relationships with.
Having
said that, I accept that problems may arise from time to time when journalists
publish articles that affect our national security for which we are duty-bound
to take action. These articles are written for the most part because
the journalists in question do not know any better or have inaccurate information.
As journalists, while they enjoy press freedoms, they must also act responsibly.
9.
You are still relatively new to your post as Ambassador here in Washington,
D.C. What have you learned during your brief stay here?
Have you been surprised by anything?
I
am especially struck and gratified by the numbers of Americans in the business
community and the government who have lived and worked in Thailand, and
who understand the long alliance relationship between our countries.
This is a precious asset for Thailand which we need to preserve.
In
addition, while the growth of the Thai-American community is well-covered
in Thailand, one really must see it in person to appreciate it.
Overseas Thais are a unique asset for our country, both in economic terms
and in helping to broaden America’s understanding of our country and our
culture.
10.
What has Thailand done to assist the US in the war on terrorism?
Thailand
and the United States have, in fact, been co-operating in the fight against
terrorism even prior to 9/11.
Regarding
the tragic events of 9/11, Thailand condemns the attacks in the strongest
terms. As a long time friend and treaty ally, Thailand has been co-operating
closely with the United States, providing assistance in many areas, including
intelligence, law enforcement and the blocking of financial assets of known
terrorists and terrorist organisations.
At
the international level, Thailand has already signed five out of the twelve
international conventions against terrorism, including the International
Convention for the Suppression of the Financing of Terrorism, signed by
my Foreign Minister this past December. We are also committed to
the signing of the seven remaining conventions.
As
many of you may have read, increased attention is now being given to Southeast
Asia in the current campaign against terrorism. Although Thailand
has a sizeable muslim population living in the country, they are well assimilated
into our society and have contributed much towards the Kingdom’s development,
particularly that of southern Thailand. And given the increased level
of alert in the Kingdom after 9/11, I am pleased to inform you that, to
date, we have found no evidence of terrorist activities in Thailand.
We shall, however, continue to remain vigilant and not let our guards down.
11.
What are some of the misperceptions held by American businessman regarding
doing business in Thailand?
The
American business that are already active investors in or exporters to
Thailand are very knowledgeable about our country, and tend to have long-term
commitments that survive up and downs.
My
bigger challenges are to raise awareness of Thailand among those companies
that are not doing business there now. Because Thailand and
Southeast Asia generally receive relatively little new coverage, some of
them can look at Thailand as a very small and faraway market. The
challenge is to provide them with some better information about the size
of our trade relationship, and the opportunities they have in the future.
As
for misconceptions, perhaps one misunderstanding that American may have
is that Thailand is perceived by some as pursuing an economy policy that
may make the country less open to the foreign investors. This is
not true. As I mentioned earlier, we have a dual-track policy of
both promoting our domestic economy as well as continuing to promote more
foreign direct investment. We will continue to liberalise and open
our economy to the rest of the world.
12.
How committed is Thailand to AFTA?
Thailand
has abided by all its commitment under AFTA. Since AFTA’s establishment
in 1992, the volume of ASEAN exports have increased tremendously.
Total intra-ASEAN trade for 2000 reached US $95.2 billion, compared to
US $44.2 billion in 1993. In 2000, tariffs on 85 per cent of
all AFTA products traded within the region in the Agreement on the Common
Effective Preferential Tariff (CEPT) Inclusion List among the six original
member countries have been reduced to 0-5 per cent. This proportion
was increased to 90 per cent in 2001 and by the beginning of this year,
only 3.8 per cent of products were not included. The average tariff
rate for AFTA products for the ten countries has now fallen to 3.8 per
cent from the regional average of 12.76 per cent in 1993.
13.
What do you plan to accomplish during your tenure as Thailand’s Ambassador
to the US? What are your priorities?
As
Ambassador, I am very fortunate to inherit the results of nearly 170 years
of Thai-American diplomatic relations. My predecessors, from
recent Ambassadors Tej Bunnag and Nitya Pibulsonggram through such predominant
figure as Kasem S. Kasemsri and Anand Panyarachun, Seni Pramoj and many
more, have built a strong foundation for Thai – American relations.
My staff and I have a great responsibility in preserving and building on
this foundation. I hope we can be remembered as people who
did our best in this regard.
At
the direction of the Royal Thai Government, we are also looking to update
our network of agreements and relationships. A major priority of
the government, as noted in the Prime Minister’s recent visit, is to develop
a 21st-century framework for Thai-American economic relations.
In addition to this are a broad range of new issues to consider, for example
HIV/AIDS and environmental protection.
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