Thailand improves in the World Investment Prospects Survey 20102012 The World Investment Prospects Survey 2010-2012 was recently released by the United Nations Conference on Trade and Development (UNCTAD). The report, which provides insight on future trends in foreign direct investment by leading transnational companies, shows that Thailand remains as competitive and attractive a location for investing in as it ever has. Overall, the report notes the impact that the downturn in the global economy has had on foreign direct investment with the overall level in mid-2010 not even at the level it was three years ago. Nevertheless, the findings of the Survey show that while the immediate period will still be choppy, investors become more optimistic looking out over the medium-term. Whereas last year’s report showed that 47% of investors were pessimistic about their business environment, this level has improved significantly, now with only 36 percent sharing that view. The level of optimism increases more than three-fold into 2011, when viewed both in terms of the global environment, and rises from 13 percent to 62 percent into 2012. “On the basis of the findings of the survey, as well as other indicators of TNC and FDI activity, UNCTAD estimates the level of FDI inflows in 2011 to reach a range of US$1.3–1.5 trillion, rising in 2012 to between US$1.6 and US$2 trillion.”
One thing that is made clear from the Survey is the rise of Asia, with six countries from the region now counted among the top 15, including Thailand, which comes in ahead of Poland, Australia and Malaysia. Thailand now ranks 11th in the Survey, up from 15th last year. It is interesting to note that while the Survey includes the automotive industry as being among those that have cut their international investment programs in 2009 due to over capacity, 2010 has in fact been a very strong year in Thailand for this sector. In June, Ford Motor Company announced its US$450 million investment in Thailand, Toyota invested in a factory expansion, and Mitsubishi Motors named Thailand its export hub for the Global Small Car. Another industry that was noted suffering from over capacity in 2009, globally, was electronics. Here again, in the first half of 2010 Thailand experienced a 16 percent increase in E&E export growth, and a 37 percent increase in its export value.