Govt financial backing sought
Launched last year, the Thai American Chamber of Commerce of California is now seeking financial support from the Thai government to develop its community to compete with businesses from other countries.
The TACCC is seeking financial support from anywhere, not only from the Thai government but also the private sector, especially firms that have already set up a business in California or are exploring opportunities there.
The chamber hopes to set up a Thai community bank in California so that Thai businesses there will have access to a source of funds to expand their business. But the plan requires capital.
Thai businessmen in the US face many problems, ranging from labour shortage, lack of knowledge on trade and investment, migrant workers, tax payments and employment.
TACCC aims to continue addressing those problems as well as to lay down a business development plan for Thai-American businessmen there.
“Although it is one of the biggest [ethnic] communities in California, Thai businessmen there have ignored business cooperation to strengthen their competitiveness. They just concentrate on their own business and miss the chance to create bigger business opportunities,” Suthin Tewasart, chairman of TACCC, said recently.
The latest US survey registered about 300,000 Thais, up by 58.8 per cent in the last 10 years. California has the most Thai businesses in the US with 700-800 Thai restaurants, 200-300 Thai massage shops and others including grocery shops, wholesale operations, legal firms, trading companies and service providers.
A group of TACCC members visited Thailand to meet with Prime Minister Yingluck Shinawatra, key ministers and the Thai Trade Representative to propose projects for financial support. Besides the Thai community bank in California, there were ideas to increase connectivity and credibility between Thai businessmen in the US and Bangkok.
The chamber needs at least US$100,000 (Bt3 million) per year for working capital but its membership fee income is not enough.
“We have to sacrifice whatever we have to reduce our operating costs,” Suthin said.
He has allowed TACCC to use one of the rooms in his hotel in California as its office.
Keith Chatprapachai, another member, said $150,000 is needed to conduct a feasibility study on the bank.
Thai banks, including Kasikorn, Siam Commercial and Krung Thai, have opened branches there, but they concentrate on corporate rather than retail banking.
Successfully setting up the Thai community bank would encourage Thai businesses in California to compete with other countries such as South Korea, Vietnam and Cambodia.
South Korea already has a community bank to support its business community when they have urgent financial demands. For instance, Thai businesses have lost many opportunities to Koreans at property auctions because of a lack of financial support and financial guarantees.
In the beginning, the Thai community bank should have total assets of $50 million or Bt1.5 billion so that the bank can lend at a maximum of $500 million under US law.
The investment should come as a joint venture involving the Thai government, banks and the private sector. The government would be the major shareholder with 20-30 per cent, while 20-30 per cent would be split among the Thai businessmen in the US and the remainder would be offered to Thai banks.
Thai businessmen there would transfer their deposits and other financial business to the Thai community bank instead of parking their funds with American banks.
Wanida Srewarom, a chamber director for fund-raising and restaurant affairs, said Thai restaurants in the US now have trouble finding workers as they fear hiring Thais. They need to have legal Thai workers but most of them are students with serious restrictions on working.
Many Thai restaurants have been sued by their workers over lower payment than promised even though they were illegal workers. US law is designed to protect employees rather than employers, she said.
“It’s a serious problem among Thai restaurants in California. Each operation needs one cook less,” she said.
Business owners are also saddled with many extra costs for each worker such as taxes for the state and city, disability insurance and social security. Unavoidably, Thai restaurants now have to use Mexican, Chinese or Vietnamese workers to ensure smooth services.
TACCC also wants help from government agencies to upgrade Thai spas and massage shops operating not only in the US but also other countries to meet the requirements of each destination. Otherwise, below-standard businesses will smear the Kingdom’s image.
