Investment potential in Thailand remains high

The current situation in Thailand with political conflicts among the people, the southern border problem, the world economic slump, and lately the action taken by the Thai court in suspending 76 projects in Map Ta Put industrial zone, seems to affect investors’ decision-making in putting their investment in Thailand.

However, quite a number of investors are still confident to expand their investment in Thailand such as LG Electronics (Thailand) Co., Ltd., and Nissan Motors. Those entrepreneurs kept expanding their business bases in Thailand since they remain satisfied with the government’s performance and the advantages that could be gained from investment in Thailand.

The economic improvement was another factor that the investors would consider to invest in Thailand. The economy in Q1-Q3 /2009 has been shown on an uptrend. The Thai economy continued to show further signs of revival while economic stability in terms of both unemployment rate, fiscal position and international reserves remained robust, according to Dr Ekniti Nitithanprapas, Director of Macroeconomic Policy Bureau and Ministry of Finance Spokesperson in the Ministry’s Monthly Economic Report (September and 3rd Quarter of 2009)

In regards to ING Investor Dashboard, the survey organization of Investment Index in Asia – Pacific, has shown the Thai investors’ confidence index figure in Q3/2009 the same as Q2/2009 at 113. The figure derived from the political problems and the outcome of the government’ stimulation programs had not been seen. The Thai investors anyway viewed the economy on an uptrend due to the stimulus program worth 12,000 USD by the Thai government sector.

A 2006 survey conducted by the Japan External Trade Organization (JETRO) revealed that Thailand was the most optimal location for establishing a production/sales base in the coming 5-10 years. This supports the findings of a 2005 survey conducted by the United Nations Conference on Trade and Development (UNCTAD), Thailand, which ranked Thailand the 3rd most attractive Foreign Direct Investment (FDI) location in Asia and the 9th most attractive location in the world for the next four years. The following were the reasons for the rankings; gateway to Asia, hub of ASEAN, Social and political stability, Growing economy, Sufficient infrastructure, and FDI policies – with well-defined investment policies focusing on liberalization and encouraging free trade.

Consequently, in the investors’ point of views, the Thai economy maintains high potential in investment as shown in the figures on economic growth rate, confidence index and the appraisal from international agencies. Thus, it is the Thai government’s task to strengthen investors’ confidence on the measures to cope with the internal problems and to improve as well as to develop the facilities to support the investment to flow in shortly.