Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 09CHIANGMAI74, WHILE THAILAND BEGS FOR FDI, NORTHERN INVESTORS VOICE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09CHIANGMAI74.
Reference ID Created Released Classification Origin
09CHIANGMAI74 2009-06-04 07:52 2011-08-25 00:00 UNCLASSIFIED Consulate Chiang Mai
VZCZCXRO0150
PP RUEHCN RUEHDT RUEHHM
DE RUEHCHI #0074/01 1550752
ZNR UUUUU ZZH
P 040752Z JUN 09
FM AMCONSUL CHIANG MAI
TO RUEHC/SECSTATE WASHDC PRIORITY 1055
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/USDOC WASHDC 0017
RUEHCHI/AMCONSUL CHIANG MAI 1137
UNCLAS SECTION 01 OF 02 CHIANG MAI 000074 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV BTIO EIND ECON TH
SUBJECT: WHILE THAILAND BEGS FOR FDI, NORTHERN INVESTORS VOICE 
COMPLAINTS 
 
REF: A. 08 CHIANG MAI 160 (LAMPHUN INDUSTRIAL ESTATE) 
     B. 08 CHIANG MAI 128 (SPACE FOR INVESTMENT) 
 
CHIANG MAI 00000074  001.2 OF 002 
 
 
------------------- 
 
Summary and Comment 
 
------------------- 
 
 
 
1. Amid a downward trend of foreign direct investment (FDI) in 
Thailand and the northern region in particular, the Board of 
Investment (BOI) expressed Thailand's thirst for a new wave of 
foreign capital by highlighting a range of incentives for new 
investment to an audience of foreign business owners in Chiang 
Mai on May 27.  These foreign investors, who already operate in 
the northern region, reacted assertively to the BOI's 
presentation, calling for Thailand to relax labor laws and 
improve BOI services for current foreign investors before 
putting its effort on attracting new ones. 
 
 
 
2. Comment:  A revision of BOI policy -- from encouraging 
investment in certain lesser developed regions of Thailand to 
encouraging any investment anywhere in the country -- highlights 
Thailand's desire for more FDI as a possible aid to economic 
recovery.  With current investors being so unhappy with the 
legal and cultural barriers of operating here, the RTG will have 
to do much more than provide tax breaks to attract new foreign 
capital.  After all, Thailand's current investors may be its 
best bet for new foreign capital.  End Summary and Comment. 
 
 
 
---------------------------------------- 
 
Amid Falling FDI, BOI Expands Incentives 
 
---------------------------------------- 
 
 
 
3. The disappointing downward trend of foreign investment in 
Thailand and in the northern region in particular were the 
opening comments of Board of Investment (BOI) Secretary General 
Atchaka Brimble during a May 27 open forum she hosted with 
foreign investors in northern Thailand.  The SecGen reported 
that in the first quarter of 2009, the number of new foreign 
investment projects country-wide dropped 29% from the same 
quarter last year, and the value of new investments dropped 10%. 
 In the north, the news was gloomier with the number of projects 
dropping 42% and the value of FDI dropping 50% in the first 
quarter. 
 
 
 
4. The SecGen tried to balance the bad news with the good.  She 
reminded foreign investors about generous BOI incentives for 
certain types of new investment (for which the BOI certification 
application is due before the end of this year).  Benefits from 
new investments filed by the end of 2009 include eight years of 
corporate tax exemption, and exemption of import duties for 
machinery.  The SecGen also highlighted that these incentives, 
which have historically been reserved for new foreign investment 
in lesser developed regions of the country, now apply to 
investment anywhere outside of Bangkok, a policy the BOI calls 
"one country, one zone."  (Comment:  The BOI's shift away from 
trying to manipulate where investors choose to operate 
highlights the RTG's desire for more FDI country-wide as an aid 
to economic recovery.)  The BOI is also targeting investment in 
certain sectors that it would like to see Thailand develop as 
competitive advantages, including energy-saving technologies, 
eco-friendly products, high-tech agricultural business, 
logistics, and tourism. 
 
 
 
-------------------------------------------- 
 
Investors Complain of "Crippling" Labor Laws 
 
-------------------------------------------- 
 
 
 
5.  After a generally cheery presentation by the SecGen, the 
dialogue turned sour as investors bombarded her with complaints. 
 A U.S. firm and a Singaporean firm told her that strict Thai 
labor laws were "crippling" their firms' ability to pull 
themselves out of the current economic crisis.  A representative 
 
CHIANG MAI 00000074  002.2 OF 002 
 
 
of the U.S. firm Innovex, which produces small electronics parts 
at the Lamphun Northern Regional Industrial Estate (ref A), 
recounted that incentives for Thai laborers to work harder over 
years of employment decreases because of the nature of Thai 
labor laws, which require that severance pay for laid off 
workers be proportional to the length of time employed by the 
firm.  Thus, according to Innovex, higher-ranking Thai staff 
become non-performing employees who are extremely costly to 
dismiss.  The Innovex representative pleaded with the SecGen to 
address this issue with the RTG and said that "the costs of 
these strict labor laws are so high that they are offsetting the 
benefits of operating in northern Thailand."  The Singaporean 
firm echoed Innovex's comments, and the SecGen responded that 
she would be meeting with the Labor Minister on June 16 and 
plans to raise the issue at that time. 
 
 
 
----------------------------------------- 
 
A Welcoming Invitation, but A Lousy Host? 
 
----------------------------------------- 
 
 
 
6. Aside from costly labor laws, which the SecGen agreed are 
among the most costly obstacles that foreign firms face in 
Thailand, foreign investors raised a range of other complaints 
that they say make operating in Thailand challenging or costly. 
Most of the complaints were problems caused by poor BOI 
services, particularly in the north.  A Pepsi-FritoLay 
representative complained that BOI staff would not approve the 
duty-free importation of certain used machinery because the 
machines were available on the Thai market, a BOI regulation. 
His argument was that the machines should be duty-free since 
they are not produced here and Thai sellers import the machines 
used from Japan.  The SecGen agreed and invited the company to 
contact the local BOI office. 
 
 
 
7. A European firm complained about a lack of understanding 
among the Thai courts, lawyers, and the BOI about Thailand's 
regulations on majority Thai ownership of shares.  Thai 
regulations allow for foreigners to own majority shares in 
several industries; however, firms complained that lawyers and 
judges generally believe that any firm operating in Thailand 
must be owned (with a majority of shares) by a Thai citizen. 
The BOI SecGen admitted that this was a misunderstanding. 
 
 
 
8. Several U.S. and European firms raised complaints about poor 
communication between the BOI and registered foreign investors. 
One firm representative complained that the forum was the first 
time he had heard of many of the BOI's new incentive programs; 
and, with only half of the year remaining, the firm has very 
little time to apply to take advantage of them.  Others 
complained of poor English skills among BOI staff and the lack 
of English-language BOI resources and correspondence.  A 
Singaporean firm called for the RTG to do more to develop 
technical skills in the northern region, a complaint U.S. firms 
have raised previously with us (ref B).  Several expatriate 
investors complained of excessively strict Thai visa policies, 
particularly for investors' family members.  One investor 
commented broadly to the BOI SecGen, "We want to invest in 
Thailand, but you are making it difficult for us.  Help us to 
invest here; make it easy for us to invest here." 
 
 
 
9. This cable was coordinated with Embassy Bangkok. 
MORROW