A group of Peruvian businesspeople will visit Thailand next year to seek investment opportunities in a number of sectors, while Thai businesses are interested in exploring investment in the land of the Incas.
The Peruvian mission will be |led by top officials from the coun-try's Foreign Trade Ministry and |representatives of the Private Investment Promotion Agency of Peru.
The moves are in line with Thai policies for integrating economic growth in the lead-up to the establishment of the Asean Economic Community (AEC) in 2015, which will make the Kingdom a springboard for companies wishing to export to other countries in the region.
Speaking from the Peruvian |capital, Deputy Commerce |Minister Alongkorn Ponlaboot |said Lima and Bangkok had agreed to tighten cooperation in many areas.
Peru will cooperate with Thailand in organising the countries' first "Business Forum" next year and a Joint Trade Committee will facilitate business-matching for private enterprises. There will also be exchanges of in-depth trade and investment information on both nations.
Alongkorn discussed the matter with Peru's vice minister of foreign trade, Eduardo Ferreyros Kuppers, during this week's trade and investment mission to Latin American countries.
"Although only one Peruvian firm, Aje, a producer of cola drinks, has invested in Thailand, more investors have showed high interest to start investing in the country as they foresee benefits from the AEC," Alongkorn said.
Aje built a US$25-million (Bt775 million) Royal Cola factory in Chon Buri three years ago. It has recently expanded by setting up a $15-million factory in Rayong, after seeing good business growth in the Kingdom. The company's Big Cola currently enjoys a 9-per-cent share of the Thai market for cola beverages.
NINE MAIN SECTORS
Other sectors in which Peruvian businesses are interested in in-|vesting in Thailand are food processing, garments, fishery, and |logistics services.
Moreover, Thai businesses see good investment opportunities in Peru in nine main sectors: the automobile industry, agri-industry, gems and jewellery, textiles and fabrics, pharmaceuticals and cosmetics, tourism, logistics and related services, construction and real estate, and energy.
Alongkorn said that because of Peru's rich natural resources, strong economic fundamentals, the rising number of people living in its cities and the government's uncomplicated rules on investment, Thai businesses should look to invest in the country.
In doing so, investors would enjoy not only the domestic market, but linkage to other countries in Latin America, he said, adding that Thai construction firms would have a chance to compete for concessions to build public housing in Peru.
To facilitate investment and export growth for Thai products, Alongkorn said the two countries' governments were also considering a plan to set up a distribution centre for Thai products in Callao, the biggest port in Peru and the second-largest in South America.
Jorge Leon Ballen, executive director of the Private Investment Promotion Agency of Peru, said |the country offered foreign investors the same treatment as local investors. Those with a minimum investment of $5 million can secure concessions ranging from 10 to 60 years.
He also pointed out that Peru is the leading country in the region for government readiness for private investment in infrastructure, as ranked by the World Economic Forum 2009. The country also ranked first for favourable business climate in Latin America.
Sumida Buranasiri, senior vice chairman of the Federation of |Thai Industries, said three major sectors in which Thai investors |had a high chance of growth in Peru were auto parts, textiles and garments, and jewellery and ornaments. Thai manufacturers could benefit from their high technology and design know-how in these fields, he said.
Techa Boonyachai, president of Kairos - a company involved in recovery systems from waste - said he was considering investing in the renewable-energy industry in Peru, as it presented a robust opportunity for business expansion.