Vachara Phanchet, Thailand Trade Representative (TTR), who is familiar with both private and public service, tells The Nation's Sasithorn Ongdee about the principles and concepts of his work which challenge him tremendously as it can be a part of what drives the country's economy. He is one of three TTRs headed by Kiat Sittheeamorn, president of the TTR Office.
How do you find your current tasks at Government House as a Thailand trade representative?I was appointed TTR in May last year. This job is very challenging for me. As Thailand is neither a large country nor a technology leader, we have to find out what our niche or core competence is. My responsibility is to take care of promotion of both inbound and outbound investments. I promote investment abroad by local companies while inviting foreign firms to invest here in Thailand. My area is Latin America and Japan as well as doing trade and investment promotions.
In the past, we have thought primarily about how many products can be sold. However, selling products to other people gets harder and harder because everybody would like to sell their products rather than buy products from others.
But if we talk about cooperation or joint ventures, it sounds like a way of opening doors.
We do this as a matrix - bringing state agencies, private bodies [Thai Chamber of Commerce and Federation of Thai Industries] and firms together and match them with those of the countries we visit.
The private firms that we bring with us are in such industries as automotive, herbs, drinks, silk, construction, food, food supplements, jewellery and engineering.
What is the scope of your work? Five things can move the threshold of cooperation in trade and investment abroad: products, services, investment, ventures, and human resources.
All the income then will be repatriated to the country eventually. We categorise our work into three levels: government to government (G-to-G), organisation to organisation (O-to-O), and business to business (B-to-B).
As an example of the G-to-G level, we met with Italy's economic minister to urge relaxation in the visa application process and renewed the SME [small and medium-sized enterprises] cooperation agreement between the two nations' industry ministries. In Russia, at the G-to-G level we helped ease the custom clearance procedure to release such perishable products as vegetables and fruits quicker. So did the Port of Long Beach in California - custom clearance for Thai products is now eased.
At the O-to-O level, we use the TCC, FTI and related associations to sign agreements of trade and investment cooperation with their counterparts in such countries as Chile, Brazil and Panama.
In Brazil, we have brought property funds and investors there. This was satisfying - a different feeling from selling. We have struck many deals in jewellery cooperation and technical exchanges in cow breeding at the organisation level, including herbal products supplied to a large spa business with 65 outlets. In the case of Brazil, we won six agreements at all levels.
Do you assess your work? Yes, we normally assess all work after a month as to whether anything else needs to be followed up. I also have experience working in the private sector - whatever jobs we do expect real returns.
Do you think what you have done is deserving of being called a success? We can't say how good we are. So far, it has been OK, as we are part of what drives the economic machine. Our work is collective, not individual. Some countries are not available for private contracts, but TTR [arrangements are] OK. Luckily, the government has many professionals, while I have been a public servant for 10 years. So I have good connections with many public servants. We are just a catalyst for cooperation between the government and private sector to resolve any problem. It's a never-ending story, but what we have done has reached the target.
Do you think your tasks overlap with those of other state agencies? No. It's not overlapping with others. A Thai trade representative's function is like that of the United State Trade Representative. We have the Commerce Ministry and the TTR and they both are working to support each other.
A TTR helps close deals.
For example, the Oblast [region] of Kaluga in Russia has signed a memorandum of understanding with Thai organisations and private firms to construct 12,000 residential units to serve expatriates. We have brought contractors, property funds and workers to sign the deals.
The TTR is subject to Prime Minister Abhisit Vejjajiva, and we do not duplicate works of other ministries, but help free workflow.
We have also been assigned to oversee Thailand's economic partners such as China, [South] Korea and Honk Kong when there are agreements to be followed up. Currently, will have the Thai-Hong Kong Free Trade Agreement.
What's your next trip? Our teams along with private firms will visit Peru and Mexico [this] week and expect to see many agreements signed.
Eleven private firms in key competent sectors will join the trip. This time, an energy-drink company is planning to open a beverage plant over there. Thailand and Peru have recently signed an FTA package. Meanwhile, Mexico in where the energy business is growing, and it also is part of NAFTA [North American Free Trade Agreement].
Do you think it is the right time for local companies to take advantage of the strengthening baht to invest abroad? We will have to invest outside to diversify, balance and reduce risks from income in only baht term. That is the reason large firms can survive. Toyota invests all over the world. In fact, we have to sell products, not currencies.
Therefore, we do not want to have too much in the way of foreign-exchange losses or gains. My idea is to use the Singapore model in sending firms to invest outside the country.