... The role of FDI becomes even more important in the case of developing countries which lacks financial resources because its efficient use can bring prosperity to the economy of the country while a misallocated FDI can lead to adverse results.
The mission of this paper is to discuss the policies and approaches that are used for foreign direct investments in Thailand. Thailand, a country that has entered in to ASEAN Free Trade Agreement, and is still recovering from its economic recession in 1997.
The study has been conducted in the following pattern: in the first phase we will discuss about Thailand as a country using demographic and geographic indicators, in the second phase we try to analyze the economic review of Thailand using economic indicators, in the third phase we will analyze the Board of Investments Objectives, Strategies and Policies for the FDI, later we will study the impact of FDI analyzing the absolute figures in the past few years and the following trends, and the last phase includes a detailed analysis on FDI in Thailand.
What is FDI?
FDI stands for Foreign Direct Investment
Foreign direct investment is a key ingredient in economic growth. ... asp
FOREIGN DIRECT INVESTMENT IN THAILAND
Information about Thailand
ć Thailand is situated in the heart of South East Asian mainland. ...
ć The population of Thailand reached 63. ... The workforce of Thailand is amongst the most efficient in the world. ...
ć The minimum wage in Thailand is currently 169 Bath per day (US$4) in Bangkok and 133-143 Bath (US$3-3. ... A democratically elected government governs Thailand. ... Local banks, namely, Bank of Thailand, Siam commercial Bank, Bangkok bank, Krung Thai Bank, Thai Farmers Bank, etc. ...
Sources: Ministry of foreign affairs, Thailand Board of Investment
National Economic and Social Development Board.
Thailand¡¦s Economics Review
ƒá Thailand¡¦s economic development was considered to be as a continuous success with an average economic growth rate of 8% from 1991-1995. ... In 1997, Thailand was plugged in economic crisis characterized by massive foreign debts, unemployment, and inflation and depreciating currency. ... The table below shows the key macroeconomic indicators of Thailand for the 1995-2001, which will give us the better understanding of the economic situation of Thailand during the period of recession. ... Also Thailand required significant increases in competitiveness in the major export sectors. ... ¡¥Improve the way the BOI markets Thailand by enhancing networks in target regions through cooperative agreements with public and private sector organizations, other investment agencies, banks, and provincial governments¡¦
4. ...
Source: Presentation on Thailand¡¦s investment policy by BOI office.
FDI Policy Approach
By far, the Thai government has in general taken a very favorable approach towards FDI. ...
FDI Trends and Impacts in Thailand in terms of Absolute figures
ć Thailand attracted on an average US$0.9 billion dollars per annum of net FDI flows from 1986 to 1989. While from 1990 to 1996, the FDI was increased to over US$2 billion per year, with a slight drop to US$1. ... 3 billion in 1994 which addressed the problem of politically unstable government at that time and led the foreign investors to loose their confidence for FDI in Thailand.
ƒá During the economic crisis, there was dramatic increase in FDI flows both in Baht and Dollar terms, totaling US$3. ... This all figures have been derived from the table below, which shows the outward and inward flow of FDI¡¦s in Thailand since 1970.
ƒá The growth of FDI in the period after crisis was characterized by a rapid increase in Merger¡¦s and Acquisitions as foreign firms took over Thai Companies that faced severe debt and liquidity problems.
To link to this page, copy the following code to your site:
All Papers Are For Research And Reference Purposes Only!
You may not turn these papers in as your own! You must cite our web site as your source!
