Trade & Investment
From The Report: Thailand 2018
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With a robust export economy dominated by the manufacturing industry, Thailand has long benefitted from foreign investment in key sectors, such as automotive and electronics, while its agriculture and agro-food base has pushed it to the forefront in global rubber, rice and seafood production. Trade and investment have been under pressure in recent years, and a number of factors have contributed to foreign direct investment gradually falling in recent years. Combined with an ageing population and a shrinking low-cost labour force, Thailand is struggling to compete regionally. Government plans to attract new investment in special economic zones located on the border have not come to fruition, and the country is being outpaced by its ASEAN neighbours in terms of investment growth. This chapter contains interviews with Sontirat Sontijirawong, Minister of Commerce; Duangjai Asawachintachit, Secretary General, Board of Investment; and Hiroyuki Ishige, Chairman and CEO, Japan External Trade Organisation; and a viewpoint from Steven Ciobo, Minister for Trade, Tourism and Investment of Australia.

Articles from this Chapter

Overview

High-tech shift: Policies target a diversified and digitalised industrial base
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With a robust export economy dominated by the manufacturing industry, Thailand has long benefitted from foreign investment in key sectors, such as automotive and electronics, while its agriculture and agro-food base has pushed it to the forefront in global rubber, rice and seafood production. Trade and investment have been under pressure in recent years, however, a number of factors have contributed to foreign direct investment (FDI) gradually falling in recent years. Combined with an ageing population…

Interview

Effective collaboration: Sontirat Sontijirawong, Minister of Commerce, on fostering strategic partnerships for regional prosperity
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Interview : Sontirat Sontijirawong What sectors will benefit from the leveraging of free trade agreements (FTAs) and bilateral agreements? SONTIRAT SONTIJIRAWONG: Our ministry has always been active in negotiating FTAs as a way to liberalise enterprise and open up investment opportunities. All in all, Thailand has concluded 12 FTAs with 17 countries. This has led to a large increase in trade between Thailand and its FTA partners. Since each FTA entered into force, the kingdom’s trade with ASEAN…

Analysis

Paved with prosperity: Infrastructure upgrades within the Eastern Economic Corridor (EEC) attract further private and public funding
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The EEC project is one of the most important components of the government’s economic development agenda, Thailand 4.0. Strategically located along the eastern seaboard, the EEC is set to become the country’s primary investment attraction, with stakeholders moving to build on existing infrastructure, and in doing so, promote the development of 10 priority industries as highlighted in the national agenda. EEC development is expected to accelerate in 2018, helping to attract new foreign direct…

Interview

Smart solutions: Duangjai Asawachintachit, Secretary-General, Board of Investment (BOI), on improving productivity and attracting foreign investment in high-technology industries
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Interview :Duangjai Asawachintachit What impact do you expect the tax incentives for investment in smart solutions and telecoms to have on the development of smart cities? DUANGJAI ASAWACHINTACHIT: The tax incentives introduced by the BOI apply not only to new smart cities, but also to the further development of existing cities and the creation of smart industrial estates. Additional tax incentives will also be offered to smart cities in the Eastern Economic Corridor (EEC), which…

Interview

Role in regional innovation: Hiroyuki Ishige, Chairman and CEO, Japan External Trade Organisation, on the role of Japanese companies in Thailand
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Interview :Hiroyuki Ishige How can Japan capitalise on strong bilateral ties with Thailand to create business opportunities? Hiroyuki Ishige In 2017 we celebrated the 130th year of diplomatic relations between Thailand and Japan, and Thailand has been a major investment destination over the years; at the end of 2016 foreign direct investment (FDI) stock from Japan reached $71.5bn, which accounts for 40% of foreign investment in Thailand. Many Japanese-affiliated companies in Thailand have…

Analysis

Strong baht stable: Local currency gains raise concerns over exports
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The baht was one of the best-performing currencies in South-east Asia in 2017, making significant gains against the US dollar as macroeconomic recovery continued and foreign investment surged. A strong baht is a double-edged sword for trade and investment stakeholders, however, as some predict that Thai exporters will be negatively impacted in 2018. Thailand remains at risk of being labelled a currency manipulator by the US, which could prompt a more protectionist approach that could slowdown Thai…

Viewpoint

Committed partners: Steven Ciobo, Minister for Trade, Tourism and Investment of Australia, on the strength of the ASEAN-Australia partnership
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Viewpoint : Steven Ciobo One of the most striking things about the economic transformation of the ASEAN region over recent decades is the scale of opportunities yet to be realised. The IMF forecasts that over the next five years, six of ASEAN’s economies will grow faster than China, and every single one of ASEAN’s economies will grow faster than both the US and the EU. In market terms, this means that the number of middle-class households in the ASEAN region will quadruple, exceeding 160m by…

Viewpoint

Committed partners: Steven Ciobo, Minister for Trade, Tourism and Investment of Australia, on the strength of the ASEAN-Australia partnership
OBG
plus

Viewpoint : Steven Ciobo One of the most striking things about the economic transformation of the ASEAN region over recent decades is the scale of opportunities yet to be realised. The IMF forecasts that over the next five years, six of ASEAN’s economies will grow faster than China, and every single one of ASEAN’s economies will grow faster than both the US and the EU. In market terms, this means that the number of middle-class households in the ASEAN region will quadruple, exceeding 160m by…