Trade & Investment
From The Report: Thailand 2014
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Thailand is the second-largest recipient of foreign direct investment (FDI) in South-east Asia after Indonesia, with exports accounting for 62.3% of GDP in 2012, or 75% including goods and services. Japan has cemented its position as the largest source of FDI: its share of investment reached 44% in the first three quarters of 2013, up from the 30-40% annual range in the decade to 2012. Trade in China has been instrumental in supporting Thai Exports throughout the global financial crisis, growing 21.03% in 2011. As the Chinese economy slowed in 2013, however, exports to the mainland shrunk 1.61% year-on-year in the first three quarters of 2013. Although trade with ASEAN has grown swiftly in recent years, accounting for 16% of total exports in 2012, slowing regional growth and the effect of slumping currencies caused exports to ASEAN to grow at a slower 6.3% year-on-year in the first nine months of 2013.

This chapter contains interviews with Udom Wongviwatchai, Secretary-General, Thailand Board of Investment (BOI); Håkan Buskhe, President & CEO, Saab; and Takanobu Ito, President & CEO, Honda Motor Company.

Articles from this Chapter

Overview

A time for trading: As inward FDI recovers, focus shifts to securing Thailand’s position as a regional trade centre
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Thailand is the second-largest recipient of foreign direct investment (FDI) in South-east Asia after Indonesia, and exports accounted for 62.3% of GDP in 2012, or 75% including goods and services, according to the International Monetary Fund (IMF). Thailand stands as a key beneficiary of ASEAN integration given its central location, competitive production costs, investment climate and extensive industrial base. As multinationals expand their production chains in ASEAN, Thailand’s regional trade…

Interview

OBG talks to Udom Wongviwatchai, Secretary-General, Thailand Board of Investment (BOI)
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Interview:Udom Wongviwatchai What are some of the BOI’s current priorities? UDOM WONGVIWATCHAI: Thailand is committed to overcoming the “middle income trap” and is striving to raise standards of living by transitioning into a knowledge-based economy. It is vital that the nation continuously reinvents itself, leveraging unique strengths to upgrade from an economy driven by low labour costs to one based on innovation and sustainable development. The BOI, in turn, is shifting its investment…

Interview

OBG talks to Håkan Buskhe, President & CEO, Saab
OBG
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Interview:Håkan Buskhe What role will the ASEAN region play in the future of defence contracts in the aerospace sector? HAKAN BUSKHE: The ASEAN region will play a very major role in large-scale defence contracts in the aerospace sector for virtually the same set of reasons that we have seen in Central Europe: old, depleted fleets; a need for next-generation aircraft which can be part of a comprehensive, data-linked, network-centred security environment; and the need for aircraft that are…

Analysis

Outbound investment: Local corporates move to expand in regional markets and further afield
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Overseas investments by Thai corporates have grown significantly, overtaking inward foreign direct investment (FDI) for the first time in 2011. Encouraged by both the Bank of Thailand (BOT) and the government, cash-rich Thai firms leveraged the strengthening baht (until May 2013) to expand both regionally and further afield in developed markets, through both cross-border mergers and acquisitions (M&As) and greenfield investments. Small and medium-sized enterprises must now follow suit to achieve…

Interview

OBG talks to Takanobu Ito, President & CEO, Honda Motor Company
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Interview:Takanobu Ito What changes were made to production and supply-chain operations following the floods of 2011? TAKANOBU ITO: The event made us realise that Thailand is well connected to the world as one of the major supply sources of automobile parts and components. Instead of relocating parts production to other countries from the point of view of mitigating risk, we revisited our risk management measures by getting a clear grasp of the status of our supply-chain management, revisiting…

Analysis

Neighbourhood trade: CLMV countries are becoming a primary target for Thai exports
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Leveraging its central position to drive trade and investment with neighbouring countries, Cambodia, Laos, Myanmar and Vietnam (CLMV) in particular, will be a driving force for Thailand’s economic prospects. Long dominated by trade with Malaysia, which accounted for roughly 60% of Thailand’s border trade in 2013, cross-border trade is increasingly developing with northern neighbours. While the value of Thailand’s trade with CLMV doubled in the five years to 2012, with a consistent trade surplus,…