VZCZCXRO2174
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #0379/01 0430922
ZNR UUUUU ZZH
P 120922Z FEB 10
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC PRIORITY 9936
INFO RUEHCHI/AMCONSUL CHIANG MAI PRIORITY 7645
RUEHBJ/AMEMBASSY BEIJING 8030
RUEHKO/AMEMBASSY TOKYO 2367
RUCNASE/ASEAN MEMBER COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 BANGKOK 000379 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BEXP BTIO ECON CH BM TH
 
SUBJECT: Thai Business Leaders Tell DAS Marciel that the Regional 
Economic Future is Bright and the U.S. Should be Here 
 
BANGKOK 00000379  001.2 OF 002 
 
 
¶1.  (SBU) Summary: In a meeting hosted by Ambassador John for 
visiting DAS Scot Marciel, Thai business leaders expressed confidence 
in ASEAN as a stable business community and stressed the importance 
of the Greater Mekong Sub-region in U.S. foreign policy.  They are 
not concerned about China's growing influence and look forward to 
investing in Burma.  The U.S. has an opportunity to build on its 
historically strong ties with Thailand and invest in the region, 
especially in research and development, with renewed dedication 
before the 2015 creation of the ASEAN single market.  In an earlier 
meeting, DAS Marciel briefed the American business community on 
continuing difficulties in regional relationships and addressed a 
variety of "doing business" concerns.  End Summary. 
 
¶2.  (SBU) Comment: Even given that the Thai business leaders were top 
executives of their corporations and the U.S. business people were 
generally branch office heads of U.S.-based corporations, the 
difference in the outlook of the two groups was striking.  The Thai 
take a long-term view, and are optimistic about the direction of 
current trends, while the Americans are concerned with nuts-and-bolts 
obstacles to business operations in the here and now.  The Thai 
business leaders noted that their generation was by and large 
educated in the U.S. and would be supportive of doing more to build 
ties with us. The Embassy will be working with both Thai and U.S. 
business leaders to find ways to promote the National Export 
Initiative and increase U.S. business interest in, and U.S. exports 
to, Thailand.  End Comment. 
 
¶3.  (SBU) On February 10, the Ambassador hosted a small group of 
leading Thai business executives for a discussion of regional 
economic trends with EAP DAS Scot Marciel.  The business leaders 
included the president and CEO of the Siam Cement Group, Kan 
Trakulhoon, the CEO of Amata Corporation, Vikrom Kromdit, the 
president of the Thai Frozen Food Association, Panisuan Jamnarnvej, 
and executive vice presidents from the Charoen Pokphand (CP) Group, 
Sarasin Viraphol, and Loxley, Vasant Chatikavanij.  Siam Cement is 
one of the premier construction and infrastructure development 
companies in Thailand and the region, and Amata is one of the leading 
developers of industrial estates.  The vision of food production 
conglomerate CP Group is to become "kitchen to the world." 
 
¶4.  (SBU) The business leaders expressed confidence in ASEAN as a 
vibrant economic community with great potential for growth in the 
future.  They noted that the region is more stable than in previous 
decades and the member countries more cooperative, an attitude 
fostered by recent trade agreements.  Although China's influence will 
continue to grow, especially with the completion of infrastructure 
development projects such as a third bridge over the Mekong River, 
they and their ASEAN colleagues see this as a business opportunity, 
not as a threat, and they welcome Chinese companies in the Greater 
Mekong Sub-region, even though Chinese firms can be difficult 
business partners.  Mr. Vikrom of Amata foresees Burma as an emerging 
market for development projects and Mr. Kan from Siam Cement agreed 
and noted that if Amata found success there, they would follow 
without reservation. 
 
¶5.  (SBU) Through educational exchanges and business transactions, 
the leaders agreed, the United States remains the most influential 
country in the region.  They stressed that the U.S. should build on 
this foundation and regard ASEAN as an important entity in its own 
right, not simply a function of U.S. policy toward China or India. 
Dr. Sarasin, a former Thai ambassador to the Philippines, hoped that 
the U.S. would dedicate itself to economic development in the region 
in the same way that the U.S. once built military capacity.  DAS 
Marciel stressed that the President and Secretary regard the region 
with renewed importance.  He added that ASEAN nations would benefit 
if they could do more promotion of ASEAN as a unified entity and that 
they should work to develop educational exchanges and other 
interactions to raise the international profile of ASEAN, especially 
in the United States. 
 
¶6.  (SBU) Dr. Sarasin opined that the United States would achieve 
more success in ASEAN if it packaged trade issues with investment and 
noted that this was the strategy that China had adopted.  Although he 
and his colleagues agreed that China had been successful in the 
economic realm, they are skeptical about China's progress in 
technical fields.  Contrasting China with Thailand, they observed 
that Thailand is an ideal place for investment in research and 
development because of the technical education of Thai students, 
their capacity to speak English well, and the loyalty of Thai workers 
to foreign employers.  Foreign investors would not find their 
employees leaving to develop rival companies as in China. 
 
¶7.  (SBU) Earlier in the day, DAS Marciel addressed concerns in a 
meeting with members of the American business community at the 
American Chamber of Commerce.  DAS Marciel briefed AMCHAM members on 
his trip around the region. U.S. firms expressed concerns about weak 
 
BANGKOK 00000379  002.2 OF 002 
 
 
IPR protection in Thailand and difficulties with Thai Customs and 
said that they find it difficult to deal with the ASEAN market as a 
whole because the different national bureaucracies do not coordinate. 
 
¶8.  (SBU) The doing business concerns highlighted by the U.S. firms 
were not expressed by the Thai leaders, who see ASEAN as a place 
which will grow more unified and more influential in the coming years 
and see the Greater Mekong Sub-region as among the best areas for 
development in the world.  They believe that political gaps between 
ASEAN countries can be bridged by business deals, and urge the United 
States to invest in the region, especially in the years before ASEAN 
officially forms a single market in 2015. 
 
¶9.  (U) DAS Marciel did not clear this cable. 
 
JOHN