Thailand gets a place among the top 20 countries with highest confidence index. The Southeast Asian country entered A.T. Kearney’s Foreign Direct Investment (FDI) Confidence Index for 2017 at 19th place. Thailand moved up two places from 21st place last year.
The boost in Thailand’s FDI can be attributed in the increasing trust that foreign businesses are putting into the Asia-Pacific region.
In particular, Thailand is seen to have a better chance this year because of various factors including the higher year-on-year applications for foreign investment from January to August of 2016 and the strategic ventures of the local government to improve investment appeal.
All of these indicate a stronger FDI for 2017.
The head of A.T. Kearney’s Southeast Asian branch, Soon Ghee Chua explained how FDI works, specifically, how leaders of the companies choose which country to invest on. He said, “Executives across the globe are putting a strong focus on governance and regulatory factors when making investment decisions. This year’s index shows factors they look at include efficiency and transparency of government regulations, tax rates and ease of tax payments, and government incentives. Thailand has been ticking the boxes on all of these.”
More countries in the Asia-pacific moved up. In fact, half of the top ten countries in the FDI list are from the region. The top three are the US, Germany, and China. Thailand’s FDI have had a steady growth in the last few years. According to a conducted survey, 21% of the sample population see a positive economic outlook for Thailand until 2020.
Soon Ghee Chua adds, “Thailand’s 12th National Economic and Social Development Plan, which aims to strengthen the economy and enhance the country’s competitiveness, has emphasised its commitment toward foreign direct investment. The country’s Board of Investment has unveiled a detailed plan that provides a series of incentives — both tax and non-tax — to foreign investors in Thailand. These measures, coupled with improved prospects for Thailand’s economy, are making the country an attractive destination for global companies.”