Industrial Location Patterns Based on Foreign Direct Investment in Thailand After Trade Liberalization
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Abstract
After trade liberalization since the late 1970s, the sources of foreign direct investment (FDI) in Thailand have generally been quite diversified that include Japan, the United States, European countries, Taiwan, Hong Kong, and Singapore. Japan had been the Thailand’s largest source of FDI. Currently, most of FDI investment in the manufacturing sector has been in high technology industries such as the automobile and electrical industries. Meanwhile, most of FDI firms located in the Bangkok metropolis and the Eastern Seaboard (ESB) only, most of the investors also had industrial estates in the provinces, especially in the provinces with major investments and special infrastructures such as deep sea port or international airport. Based on the results of this study, some strategies and policies for foreign direct investment promotion are suggested. Most importantly, the ongoing industrial decentralization policy should be reinforced and further strengthened especially in Zone 3 by taking advantage of the economic cooperation with neighboring counties such as those in the Greater Mekong Sub-region (GMS) in terms of formulating various incentives such as the establishment of special economic zones (SEZs).
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