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FDI inflow has become a volatile factor in Thailands economy, reaching its highest level in 2013 at $15.5 billion followed by a sharp decrease from $5.7 billion to $1.6 billion in 2016

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Transfer-Encoding: chunked Student ID: w17005765 Topic: FDIs and country attractiveness Country: Thailand Committee: United Nations Conference on Trade and Development Foreign direct investment (FDI) represents an important element of economic development between a foreign business body and a residing economy of a country, created upon an investment and lasting interests of both (UNCTAD, 2007). FDI inflow has become a volatile factor in Thailand?s economy, reaching its highest level in 2013 at $15.5 billion followed by a sharp decrease from $5.7 billion to $1.6 billion in 2016 (UNCTAD, 2017. p 228). In the Global Competitiveness Report (2016), Thailand was ranked 34th of 138, showing sustainable development and growth of productivity, however, Transparency International (2016) ranked Thailand 101 of 176 for corruption, this showing great risk of exposure to corruption in businesses. In 2016 the main sources of FDI in Thailand were coming from Japan, The Netherlands, USA and Singapore, this amounting for 43.5% of the total FDI. Services, agricultural products, paper and chemical goods being the main sectors of investment (Banco Santander, 2017). ...read more.


Military-led government applying protectionist policies aimed to restrict the development of FDI in certain business areas such as trading land, forestry and farming (ASEAN Briefing, 2015). FDIs can be affected by acts of corruption. Competitors in the market area could use bribes to gain advantages over FDIs. FDIs itself can encounter the inability of further development, facing exposure to corruption by bodies associated within the business sectors (Department for International Trade [DFIT], 2017). The Foreign Business Act B.E (2542) also poses as great constraint into development of FDIs in Thailand. Thru this Act the government restricts the access of FDIs to certain business sectors merely because of perceived competitive disadvantages, security reasons and cultural and environmental reasons. It also limits FDIs from owning certain percentages of its own business, restricting its number of shareholdings, FDIs being indicated by the Government to name several Thai nationals as directors of certain business sectors (UNCTAD, 2013). Although, the Investment Promotion Act (B.E 2520) ...read more.


Economic situation. Retrieved November 29, 2017, November 24, 2017, from https://www.gov.uk/government/publications/overseas-business-risk-thailand/overseas-business-risk-thailand Student ID: w17005765 International Trade Administration. (2017). Thailand country commercial guide, Thailand ? 1 -Openness to and restriction on foreign investment, Policies towards foreign direct investment, Retrieved November 26, 2017 from https://www.export.gov/article?id=Thailand-Openess-to-Investment Investment Promotion Act. (2002) Investment promotion act B.E 2520, Chapter 5, guarantees and protection. Volume (108), p 13. Retrieved November 21, 2017, from http://www.boi.go.th/english/download/boi_forms/proact_eng.pdf Schuman, M. (2014, May 23). Thailand is doing a great job of screwing up its potential. Retrieved November 29, 2017, from http://time.com/110059/thai-coup-thailand-brics-developing-economies-potential-politics/ The Board of Investment. (2017). Thailand board of investment. Retrieved November 27, 2017 from http://www.boi.go.th/index.php?page=what_we_do The World Bank. (2017). Thailand, GDP (current US$). Retrieved November 27, 2017, from https://data.worldbank.org/country/thailand UNCTAD. (2007). World investment report 2007.Foregin direct investment, p 245. Retrieved November 28, 2017, from http://unctad.org/en/Docs/wir2007p4_en.pdf UNCTAD. (2013). Thailand, Foreign business Act. Retrieved from http://investmentpolicyhub.unctad.org/InvestmentLaws/laws/40 UNCTAD. (2017). World investment report 2017, Investment and the digital economy, FDI stock, by region and economy, 2000, 2010 and 2016 (continued) p 228. Retrieved from http://unctad.org/en/PublicationsLibrary/wir2017_en.pdf?lien_externe_oui=Continue World Economic Forum (2016). The global competitiveness report 2016-2017, The global competitiveness index 2016-2017 rankings, p ix. Retrieved December 2, 2017, from http://www3.weforum.org/docs/GCR2016-2017/05FullReport/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf ...read more.

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