French investors are pursuing opportunities in Thailand, with automobile and electronics manufacturers making decisions to start up here, despite the political turbulence and Carrefour's pullout.
"Although some French companies in Thailand have been impacted during the turmoil, the business climate did not change a lot. Thailand still shows her competency to attract new investment, including from French firms," France's Ambassador Olivier Andretic said yesterday.
Thailand boasts strong economic fundamentals after the political turmoil and great potential to be an export base, he said after meeting with Deputy Commerce Minister Alongkorn Ponlaboot about the two new French projects.
Andretic insisted that French companies would maintain their investment in Thailand on strong consumption demand.
Franck Fougere, president of the Franco-Thai Chamber of Commerce, said the decision of Carrefour to leave is part of a global one and has nothing to do with the political turbulence here. Of more than 340 French companies operating here, less than 10 were physically damaged by the political turmoil.
Carrefour, the world's second-largest retailer, holds a 61-per-cent stake in its Thai arm, which had registered capital of Bt10 billion. Carrefour plans to dispose of its assets in Thailand, Malaysia and Singapore, but keep on investing in China and Indonesia.
Fougere said French firms still want to invest and expand here. However, it is also important that the government sends a clear message to the world community confirming that the country is back to normal after the political conflict.
Businesses involved in creative endeavours such as design and fashion, and media also show strong interest to come here, he said.
To increase trade and investment between both countries, Thailand and France agreed to hold an annual business forum, with France hosting the first summit this year.
Alongkorn said he has enquired about Carrefour's explanation for its withdrawal, as its executives earlier told the commerce minister that it would not abandon its operations here.
"The Thai government is willing to facilitate investors here. If there're any problems involved with regulations and laws, we will promptly help them," he said.
Finance Minister Korn Chatikavanij said Carrefour's decision does not signal low confidence among foreign investors. The domestic market is large with over 60 million people. Tesco Lotus, for example, is so successful that small retailers are complaining, he said.