Thailand Aims to Boost
Foreign Investment
The article was
published by the Epoch times, and written by Emel Akan. The main theme of this
article is how Thailand is becoming a large player in the industry business.
More specifically Thailand is largest automotive manufacturer in Southeast
Asia, and is increasing growth in industries such as aviation and aerospace.
Overall these increases in industry are bringing awareness to Thailand causing
countries to seek foreign investment with them.
Economist viewing Thailand see a
very profitable investment due to low tax rates, cheap labor, and geographical
advantage. However due to political instability in the past economist viewing
Thailand see the potential risks involved. The article then discusses the views
from Thailand economist and political figures. Their opinions differentiate due
to their belief that the “edgy” political system has calmed down in the past
year. They feel the their government is focused heavily on restoring investor
confidence in the two sector of automotive and aviation.
The takeaways from the article are clear
that Thailand is boosting production to try and be leaders in automotive and
aviation production in Asia. The reason it is achievable is because investment incentives
are large due highly skilled work force, and Thailand’s entry into ASEAN. From
an international business standpoint the creation of ASEAN allows 10 countries
to form a single market and production base, allowing the free flow of capital,
goods, services, investment, and skilled labor across the region. Why Thailand
sticks out is there highly skilled labor compared to other countries involved.
From a foreign investors view a highly skilled workforce is necessary when
contemplating opening a factory in technological sector such as aviation.
It would be interesting to compare their wages relative to comparable workers in other countries in light of Disney's decision to fly Chinese workers to another country.
ReplyDeleteAs more companies begin to take choose to manufacture in Thailand I wonder what the impact will be on neighboring companies, who have dominated car manufacturing in the past. Since Thailand did have a coup d'etat two years ago, I would believe government structure would also be a risk. Do they have the ability to protect copy right and trademarking for companies? Or protection for Laborers through Human Rights policies? I would imagine that in a country that has just changed their government, there might be more illegal practices; simply because they don't have the framework to protect businesses and specifically foreign businesses.
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