07:23 | Bangkok, Mar. 15 (ANDINA).
Peru is wooing Thai investment in several sectors, particularly food processing, as the free-trade agreement (FTA) goes into effect this year, promising to provide Thai companies with sound economic conditions and easier access to countries on the other side of Pacific Ocean.
"Investors from such Asian countries as Japan, Vietnam and Singapore have already invested in Peru in many sectors. However, no Thai investors have invested there," said Peruvian Ambassador to Thailand Jorge Castaneda.
Currently, Spain and Chile are the largest foreign investors in Peru. However, investments from Asia, mainly from China and South Korea but also from Singapore and Vietnam, are increasing significantly. Vietnamese firms have oil-exploration and mobile-telecommunications businesses in Peru.
Castaneda said Thai investors had high potential to set up food-processing plants in Peru as they had expertise in the industry, while Peru could offer abundant raw materials.
Other sectors with high potential for Thai investors included fishery and aquaculture, mining, forestry, textiles and apparel, tourism, and services such as telecommunication, real estate, and software.
There are incentives for foreign investment in Peru aside from abundant raw materials. Thai enterprises would not only enjoy a domestic market of 28 million people, but they could use Peru as a springboard for exporting to third markets in the region such as other countries in Latin America as well as the United States and Canada.
According to an article in Thai newspaper The Nation, Peru has economic-collaboration agreements with its neighbours in Latin America and expects to tighten cooperation with Vietnam under the Trans-Pacific Partnership.
Peru recently acquired a contract to build a road connecting with Brazil. Through the FTA, Thailand will be able to export products to Peru and transport them to Brazil via the road.
Peru has forged FTAs with the United States, Canada, Singapore and China. An FTA with the European Union is pending parliamentary approval, while the country is in negotiations with South Korea and Japan.
At present, the biggest chunk of exports from Peru goes to the United States, while China and the EU each account for about 22 per cent. The remaining 30 per cent is destined for Latin America and Asia.
Castaneda said that to attract investment, the Peruvian government allowed 100-per-cent ownership for foreign investors and land ownership 50 kilometres from the frontier. Labourers' wages are competitive at about US$200 (Bt6,050) per month.
The country is one of the best-performing in South America in terms of economic expansion, with 9-per-cent growth in gross domestic product last year and 8 per cent expected this year. Inflation in 2010 was estimated at 1.8 per cent.
The ambassador said Peru was expected to conclude comprehensive free-trade talks with Thailand on the service and investment sectors this year. The comprehensive pact will pave the way not only for trade expansion, but growth in investment and deeper cooperation in many areas.
The FTA covering 70 per cent of trade in goods between Thailand and Peru has been in force since early this year after negotiations since 2005.
Thailand is considered a strategic trade partner as a centre in Asean and the broader Asian region, Castaneda said.
Last year, bilateral trade between Thailand and Peru was worth $430.7 million. Thailand's exports to Peru were valued at $332.6 million, while import was worth $98.1 million.
While no Thai companies operate in the country, one Peruvian company, Aje Big Cola, has a manufacturing plant here, which to the ambassador is proof that distance is no obstacle for trade and investment.
To promote more investment and trade between Thailand and Peru, a seminar on "Peru's Business Opportunities within the Peru-Thailand FTA" will be held on March 30 at The Sukhothai hotel in Bangkok.
"At the event, we will focus on constraints and logistics issues and how to overcome these obstacles," Castaneda said.
(END) EEP
Publicado: 15/3/2011