Thailand enters list of top 25 countries for investment

BANGKOK, 9 May 2016 (NNT) – Global management consulting firm A.T. Kearney has placed Thailand at 21 out of 25 nations considered prime for investment.

In an annual survey conducted by A.T.Kearney, Thailand has placed at rank 21 on a list of 25 countries garnering investment interest based on analysis of its investor confidence index. The survey characterized Thailand’s investment sentiment as improving.

It attributed returning interest to the country to its political peacefulness and positive economic trajectory over the next 3 years, pointing out both aspects are a result of the government reform efforts.

The USA placed number 1 on the list followed by China, Canada, Germany and the United Kingdom. The only 2 ASEAN countries to place on the ranking are Thailand and Singapore, which is at 10 on the list.

-- NNT 2016-05-09

ThaiVisa members will love this.

Beats me. I'm no expert but I fail to see how attractive a country with a so uncertain political future and so much ingredients for severe instability (not to write chaos and civil war) can be.

I wouldn't invest 1 baht here

t

hey have an office in Bangkok. Maybe need to protect their investments or get others to buy in and parachute out.

Investment in what exactly? Does A.T.Kearney really believe a country run by the military is a safe bet? Why aren't there thousand of investors queuing up at the gate. Why is this government desparately seeking investors from such countries as Belarus, Iran, etc? Why does no one want to invest here?.

Caveat Emptor!

political peacefulness and positive economic trajectory

Took the words right out of my mouth.

If you are a major conglomerate you could set up here and not worry if you lost money provided you could offset your tax via the head office located elsewhere

Good for Thailand. FDI was down 78% last year. A recovery is needed.

The obvious question, "What if the coup had not occurred?"

Here is their list direct from their website

https://www.atkearney.com/research-studies/foreign-direct-investment-confidence-index/2015

25 counties is a lot of choice and 21 is Ok but look at the options? And this looks really like something to PLEASE markets here. I see nothing for 2106 statistics on their website.

INVEST HERE but you cannot control nor own nor employ who you like and don't forget leave it all behind.

Just had a look. This is their justification:

"After a two-year absence, Thailand returns to the Index this year in 21st position. Although the military government that took power in a coup in May 2014 created some uncertainty for the future of Thai politics and policies, the government has kept the Thai economy open to foreign investment. In addition, the economy is on a stable trajectory thanks to its strong tourism sector, which has withstood a spate of bombings in 2015. FDI inflows to Thailand have declined, falling an estimated 78 percent in 2015 from a year earlier. Notably, investments from EU-based firms fell 42 percent while those from Japanhistorically Thailands biggest source of FDIplummeted 81 percent. The countrys reappearance on the FDI Confidence Index, however, suggests that investors may be taking a fresh look at Thailand. Thailand is giving preferential treatment to foreign projects in the technology sector. One example of such a project is China-based photovoltaic cell manufacturer Zhongli Talesun Solars construction of a new manufacturing factory in Thailand, which started in February 2015. Thailands Board of Investment (BOI) also introduced a new investment incentive policy in January 2015 to attract IT companies, including an eight-year exemption from corporate income taxes. The BOI approved further plans in March 2016 to expedite investment projects in other targeted sectors, including food innovation, aviation, and automation and robotics."

https://www.atkearney.com/gbpc/foreign-direct-investment-confidence-index/publication/-/asset_publisher/lsBVD71WgZDd/content/2016-a-t-kearney-foreign-direct-investment-confidence-index/10192

Edited May 9, 201610 yr by lkv

Would be very interesting to see whether Global management consulting firm A.T. Kearney put their money where their mouth is... and after that to see how long they remain Global . You know how to make a little money? Start with a lot of money and invest in Thailand

Investment in what exactly? Does A.T.Kearney really believe a country run by the military is a safe bet? Why aren't there thousand of investors queuing up at the gate. Why is this government desparately seeking investors from such countries as Belarus, Iran, etc? Why does no one want to invest here?.

Why don't you write to them, challenge their views and debate it with them?

Pretty amazing considering a few months ago we were getting briefings by the US Embassy top commercial officers and others that showed FDI in Thailand at nearly zero. Especially amazing considering A.T. Kearney is one of the top 10 advisory firms globally, though ranked 9th by Vault - and there's a huge difference between McKinsey at #1 and #9.

Overall though, really quite amazing, and apparently, for now...believable.

peed myself laughing. i would go for any of the other 20 countries before i invested here. got to jump through hoops, no control over labour force, the list goes on.

Just had a look. This is their justification:

"After a two-year absence, Thailand returns to the Index this year in 21st position. Although the military government that took power in a coup in May 2014 created some uncertainty for the future of Thai politics and policies, the government has kept the Thai economy open to foreign investment. In addition, the economy is on a stable trajectory thanks to its strong tourism sector, which has withstood a spate of bombings in 2015. FDI inflows to Thailand have declined, falling an estimated 78 percent in 2015 from a year earlier. Notably, investments from EU-based firms fell 42 percent while those from Japan historically Thailand's biggest source of FDI plummeted 81 percent. The countrys reappearance on the FDI Confidence Index, however, suggests that investors may be taking a fresh look at Thailand. Thailand is giving preferential treatment to foreign projects in the technology sector. One example of such a project is China-based photovoltaic cell manufacturer Zhongli Talesun Solars construction of a new manufacturing factory in Thailand, which started in February 2015. Thailands Board of Investment (BOI) also introduced a new investment incentive policy in January 2015 to attract IT companies, including an eight-year exemption from corporate income taxes. The BOI approved further plans in March 2016 to expedite investment projects in other targeted sectors, including food innovation, aviation, and automation and robotics."

https://www.atkearney.com/gbpc/foreign-direct-investment-confidence-index/publication/-/asset_publisher/lsBVD71WgZDd/content/2016-a-t-kearney-foreign-direct-investment-confidence-index/10192

Like all analyses of this country they ignore a significant issue.

Like all analyses of this country they ignore a significant issue.

Yeah I agree. They do ignore an upcoming event.

On top of that, there may be some human rights issues that could bring some sanctions perhaps in the near future?

Edited May 9, 201610 yr by lkv

I think they have their stats in a twist, some new analyst reading them upside down perhaps?

Just had a look. This is their justification:

"After a two-year absence, Thailand returns to the Index this year in 21st position. Although the military government that took power in a coup in May 2014 created some uncertainty for the future of Thai politics and policies, the government has kept the Thai economy open to foreign investment. In addition, the economy is on a stable trajectory thanks to its strong tourism sector, which has withstood a spate of bombings in 2015. FDI inflows to Thailand have declined, falling an estimated 78 percent in 2015 from a year earlier. Notably, investments from EU-based firms fell 42 percent while those from Japanhistorically Thailands biggest source of FDIplummeted 81 percent. The countrys reappearance on the FDI Confidence Index, however, suggests that investors may be taking a fresh look at Thailand. Thailand is giving preferential treatment to foreign projects in the technology sector. One example of such a project is China-based photovoltaic cell manufacturer Zhongli Talesun Solars construction of a new manufacturing factory in Thailand, which started in February 2015. Thailands Board of Investment (BOI) also introduced a new investment incentive policy in January 2015 to attract IT companies, including an eight-year exemption from corporate income taxes. The BOI approved further plans in March 2016 to expedite investment projects in other targeted sectors, including food innovation, aviation, and automation and robotics."

https://www.atkearney.com/gbpc/foreign-direct-investment-confidence-index/publication/-/asset_publisher/lsBVD71WgZDd/content/2016-a-t-kearney-foreign-direct-investment-confidence-index/10192

Short summary: FDI collapsed following the coup, so the junta took steps to encourage more outside investment. Since it can act without checks and balances, this was easy.

It will be interesting to see how long it takes to get FDI up to pre-coup levels.

Edited May 9, 201610 yr by heybruce

Investment in what exactly? Does A.T.Kearney really believe a country run by the military is a safe bet? Why aren't there thousand of investors queuing up at the gate. Why is this government desparately seeking investors from such countries as Belarus, Iran, etc? Why does no one want to invest here?.

Why don't you write to them, challenge their views and debate it with them?

Why don't I just ignore your stupidity instead!

AT Kearney must have gotten their tourism data from TAT.

The survey characterized Thailand’s investment sentiment as improving.

From what perspective?

FETCO Director Kanate Wangpaichitr predicted that ICI will be unchanged May-July 2016.

The Foreign Investor Index declined slightly in April 2016.

According to Mr Kuntra Ladavalya Na Ayudhya, Executive Director of Finansia Syrus Securities Plc in February 2016, if the annual GDP growth doesn't reach 3% the stock index could slip and test the support level at 1,200.

Beats me. I'm no expert but I fail to see how attractive a country with a so uncertain political future and so much ingredients for severe instability (not to write chaos and civil war) can be.

It's a certain political future, the military is in charge.

Thailand has never been a true democracy, in a true democracy there are no military coups every few years and the military is answerable to the government, not the other way around.

The PM can take his uniform off and wear a suit, but the military is in charge and that's a certain political future and past.

Surprised they didn't pay to be #1

Beats me. I'm no expert but I fail to see how attractive a country with a so uncertain political future and so much ingredients for severe instability (not to write chaos and civil war) can be.

All that and you can only own 49% of your possibly 100% investment. What idiot recommends this kind of investment.

I wouldn't invest 1 baht here

I want to invest a few millions in a mediocre Thai football team and then lead it to a championship....

oh wait... I am not allowed to.

just so you know ... a.t.kearney does get MONEY to write stuff like that like all the other consulting and rating companies.

but to be honest if your company is big enough thailand is perhaps worth some invest but for small/medium sized companies it is a place to avoid

link?

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Best time to invest is when blood is flowing on the streets.