Thailand is a real emerging market place recently, it is also acknowledged as Asian Tiger. Thailand has developed very fast since 1997 Asian Crises, but the Bangkok has shown the most significant development among the cities in Thailand (Hutchinson M., 2012). Thailand has well-developed infrastructure and pro-investment policies (Martcher I., 2010). Thailand has improved and modernized transport facilities, upgraded communications tools as well as IT networks (Siemeastern, 2006). Thailand is located a strategic position where at the heart of Asia home as the largest growing economic market currently. Thailand is considered a gateway to Southeast Asia and the Greater Mekong sub-region, and it trade conveniently with China, India, and the countries of ASEAN (Siemeastern, 2006). Thailand has more convenient transport which connects to Southeast Asia, South Asian countries, and China, with river transport and coasting shipping (Rungfapaisarn K., 2012). Thailand was one of the founder members of ASEAN and has played an important role for establishing formation and developing the ASEAN Free Trade Area (AFTA). Thailand also acts a role which forged closer with ASEAN members in economic cooperation. Thailand manufactured products and services are accessing to the markets of ASEAN (Siemeastern, 2006). Thailand leaders have shown a true vision to form ASEAN in the past few years (Rungfapaisarn K., 2012). Thaksin Shinawatra, former Thailand Prime Minister, has established free market economic development on rural areas and Bangkok. Thailand has implemented various policy instruments that able to foster FDI since Asian crisis, former Prime Minister Thaksin Shinawatra had implemented pro-growth posture, including the dual track policy that been introduced in 2001 (Rajenthran A., 2004). Thailand’s economy is short on energy and minerals, but it able to manage balancing between manufacturing and services, with a strong agricultural sector. Thailand has lower labor costs compare to other Southeast Asian centers and competitive with coastal China. It is a great advantages from participation in China-centered supply chain (Martcher I., 2010). Thailand’s growth prospects looking good, expertise were expecting Thailand has 6% growth in 2012, however it reduced 0.1% as flood happened in 2012, but the GDP of Thailand was $346 billion. In 2013, they expect growth will be 4.6%. Thailand has low inflation at around 3% and government deficit is moderate at around 3.4% of GDP. Debt is well under control with a central bank and rapidly recovery from the floods. (Hutchinson M., 2012) In the long-term aspect, Thailand’s economic growth is extremely sunny. In a result, their exporting business has consisted 60% of GDP after suffered from Asian crisis. Thailand is playing a hidden role on two of the best emerging market of worlds, which are China and India. Thailand is a major trader with China and India, and will benefit a lot from their growth (Cole R., n.d). In 2010, Thailand need to put tax curbs in place to help slow appreciation of the Thai baht, as the baht started the domino effect that culminated in what is now known as the Asian Crisis of 1997 (Martcher I., 2010). The improvement of corporate governance has boosted a fresh impetus, which will provide better shareholder, corporate finance and related party rights. In order to improve corporate governance, Thailand has established several institutions, such as Election Commission, the Constitution Court, the Administrative Court and the National Counter Corruption Commission. These institutions will help to reduce corporate governance issues and increase investors’ confidence, as they are playing a role of effective and diligent watchdogs, in order to protect the rule of law and check bureaucratic practices (Rajenthran A., 2004). The changes of rule of law are creating a good sound throughout the country. One of the examples is Alien Business Law 1971 has been replacing Foreign Business Act 1999; another example is Investment Promotion Act 1977 has been amended. These changes of rule of law will provide a more comprehensive and clear manner of fundamental investment policies (Rajenthran A., 2004).
Thailand labor law provide little protection to migrant workers who from Burma, Cambodia, and Laos, they have been abused by local police, civil servants, and employers. A migrant worker has been registered and provided legal documentation, but it provided little protection for the migrant worker against employers violate such workers’ right. For some reported cases, female migrants always been facing sexual violence and labor trafficking, and male migrants were facing extreme labor exploitation (World report 2012, 2012). In 1992, Thailand has shown efficiency to strengthen intellectual property law. It has established Department of Intellectual Property (DIP) and it also enacted few intellectual property acts such as Patent Act 1979, Trade Mark Act 1991, Copyright Act 1994, and more. Besides that, Thailand also developed a police unit that concerning intellectual property, so call Economic Crime Investigation Division (ECID). However, it shows some problems on enforcement on Intellectual Property Law. For example, right owners might exercise their right on Section 66 of the Copyright Act, so that they able to sue infringer to court. In this stage, right owner can threaten infringer, so that right owner can demand a lot of money from infringer in order to prevent prosecution. However, this sum of money more than amount of fine from the court, and people consider this exercise as abuse of power. Other example, for those using trademark and copyright for personal use, are not considered as infringer and will not bring in to court (Vannasaeng P., Tankarnjananurak R., n.d). Thailand has established few institutions to reduce the corruption in the country. However, corruption is predicted to be increased in future. A survey from University of the Thai Chamber of Commerce (UTCC) shows that corruption situation index will be slightly increased from 3.5 points in last June to 3.9 points in last December (Arunmas P., 2013). Generally, Thailand is a country that accept bribe from related parties, and it is difficult for any politician to point who accepted bribe (TravelinAisa, 2012). A survey shows that 65.1% of businessmen mentioned that the corruption problem has reached a most serious level and 50.6% of businessmen had admitted that have paid bribes at one moment or another (Dubout R. P., 2009). Arunmas P. (2013). Corruption still robust in 2013. Bangkok Post Business. Retrieved from https://www.bangkokpost.com/business/economics/333695/corruption-still-robust-in-2013 Cole R. (n.d). Investing in Thailand: Revolutionizing Global ETF Investments. The Investment U Research Team. Retrieved from https://www.investmentu.com/2009/June/investing-in-thailand.html Dubout R. P. (2009). Doing Business in Thailand: Local Corruption Barometer. Retrieved from https://www.doingbusinessthailand.com/thailand-business/doing-business-in-thailand/doing-business-in-thailand-local-corruption-barometer.html Hutchinson M. (2012). Investing in Emerging Markets: Is it Time to Invest In Thailand? Global Investing Strategist, Money Morning. Retrieved from https://moneymorning.com/2012/03/22/investing-in-emerging-markets-is-it-time-to-invest-in-thailand/ Martcher I. (2010). Time to Invest in Thailand: Thailand investing opportunities are back, with these funds. InvestorPlace Contributor. Retrieved from https://investorplace.com/2010/10/time-to-invest-in-thailand/ Rajenthran A. (2004). Thailand as an FDI Oasis: Policy instruments and infrastructure are in place to foster inflows, but the challenge is sustaining them. The Business Times. Retrieved from https://yaleglobal.yale.edu/content/thailand-fdi-oasis Rungfapaisarn K. (2012). Thailand fit to be Aust’s hub fir Asean Trade Country. The Nation. Retreived from https://www.nationmultimedia.com/business/Thailand-fit-to-be-Austs-hub-for-Asean-Trade-Count-30194248.html Siameastern (2006). Why Invest in Thailand. Retrieved from https://www.siameastern.com/Features/boi/why_invest_in_thailand.aspx TravelinAsia (n.d). Corruption In Thailand – Bribes, Kickbacks, Payoffs And Dirty Deals – All Business As Usual. Retrieved fromhttps://travelinasia.hubpages.com/hub/thailand-corruption-bribes-kickbacks-dirty-deals Vannasaeng P., Tankarnjananurak R. (n.d). Issues of The IP Enforcement In Thailand. World report 2012 (2012). World Report 2012: Thailand. Retrieved from Human Rights Watch. https://www.hrw.org/world-report-2012/world-report-2012-thailand
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