Research Task: FDI Environment and Regulation of Thailand
By Panida Vesakha-Vahrinth
Overview of Thailand: The population of Thailand is approximated at over 67 million in 2012. The country is heavily influence by Buddhism. The country is surrounded by developing countries such as Laos, Malaysia, Cambodia, and Burma as well as the Andaman Sea and the Gulf of Thailand. The climate of Thailand is typically tropical and humid. However, it also varies from one region to another with the north of Thailand including its capital city, Bangkok, having 3 seasons while its southern region of Thailand only has 2. Thailand has a high risk of infectious disease, which is why the approximated population of the country took into account of excess mortality due to AIDS/HIV.
Despite the recent natural disaster and political events, Thailand emerged in 2012, ranking 16th (5th out of 10 countries within ASEAN) on the FDI Confidence Index. Along with strong export industries, Thailand government encourage foreign direct investment through tax incentives, import/export partnerships with other countries, and
Since the global financial crisis of 2008, Thailand slowly emerged back and reached $9,700 million in GDP per capita in 2011, approximately 10% grow from $8,800 million in 2009 (data are supplied in US dollars). Thailand participates in many major international organizations such as WTO, APEC, ASEAN, and UNCTAD. A.M. Best rates Thailand as moderate in all 3 of its risk assessment categories; Economic, Political and Financial System. While it did not place in the Global Retail Development Index, Thailand was ranked on www.doingbusiness.org in the 17th place in ease of doing business, but, although 19 ranks increased, its 78th place ranking in starting a business can still potentially scare away the potential new investors.
Figure 1: Thailand’s FDI Flow Overview in Millions of Dollars