OECD Investment Policy Reviews: Thailand
Thailand has had a remarkable economic development trajectory over the past 60 years and foreign direct investment (FDI) has been pivotal in this success. Thailand was one of the first movers in opening up to manufacturing FDI and in establishing proactive investment promotion and facilitation policies. While challenges remain in some areas of responsible business conduct, there is strong political will to address them. Thailand aspires to become a high income economy by 2037 by upgrading to a value based green economy. Inward FDI will play a prominent role in achieving this goal but this requires a concerted effort to reform the investment climate to remain an attractive host to foreign investment and to benefit to the full extent from that investment. While the COVID-19 crisis might temporarily delay progress, the policy recommendations in this review draw attention to potential reform priorities to help Thailand fulfil its development ambitions aligned with the Sustainable Development Goals and to contribute to a more inclusive and sustainable recovery from the pandemic.
Trends and qualities of FDI in Thailand
This chapter examines the performance of Thailand in attracting FDI compared to Asian and OECD peers. It examines the sectoral and geographical composition of both greenfield FDI and cross-border merger and acquisitions. The chapter also analyses how FDI contributes to selected aspects of sustainable development, notably productivity, R&D intensity, skills, wages, gender equality and carbon footprint.
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