Thai investment in Asean lagging behind regional colleagues
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Thai investment in Asean is lagging well behind that of Singapore and Malaysia, according the Board of Investment (BOI), which said more regional business was needed to ensure strong economic integration into the Asean Economic Community (AEC), when it co
Deputy Secretary-general of BOI Chokedee Kaewsang said that despite a sharp increase in Thai investment to Asean last year, the trend was not constant.
“Many Thai entrepreneurs are interested in investing in other Asean countries but actual investments have hardly been realised, except among large corporations,” he noted.
BOI has sought to help potential middle-enterprise ventures tap into other Asean countries and is planning to open regional offices in all its Asean neighbours by 2015.
Intra-Asean investment has been emphasised in parallel with attracting foreign investments, however, the national interest of Asian members has ensured the focus remains on attracting investment to their own shores, Chokedee said.
In order to overcome this obstacle, the Asean Investment Area (AIA) council has been looking at promoting investment in specific industries that will enable all Asean member states to benefit economically.
“The Asean supply chain should be a target that adds value to every Asean member,” Chokedee said, adding that he believed industry areas with the most potential for Asean members included those in cars, electronics, food processing and textile industries.
Every year, the BOI and its Asean counterparts share their knowledge and exchange best practices. The exchanges seek to define Asean economic standards, while also boosting Asean intra-investment, Chokedee said.
The BOI is also actively seeking to develop its bilateral relations with Asean counterparts. Recently, it has focused on building relations with the Directorate of Investment and Company Administration (DICA) a new administrative body of the Myanmar government that assists Asean countries looking to invest in the country.
With similar targeted industries, both countries are finding closer ties beneficial. The DICA has also expressed a keen interest in learning more about Thailand’s investment regulations – a positive step that could be useful for future Thai investors looking to invest in the country.
The BOI said that in the decade to 2012 Thai entrepreneurs invested US$5 billion in the Asean region. Thai investors are also ranked as Myanmar’s second largest foreign investors after China, spending about Bt10 billion last year.
