THAILAND

Topics: Investment, Macroeconomics, Tax Pages: 67 (1929 words) Published: April 14, 2015
THAILA
ND

Special Topic in Managerial Economics

Outline
• Thailand in Brief
• Analysis Frameworks






– SWOT Analysis
– PEST Analysis
Exclusive Interview: Thailand vs. Vietnam
Investment Climate
Business Implications
Conclusion

PART 1)
THAILAND IN BRIEF

THAILAND IN BRIEF






GDP Size (USD billions) 365.6
GDP PPP (% of world) = 0.78
GDP Per Capita (USD) = 5,678
Population (millions) = 69.5
Setting: the center of the Indochina peninsula,
Southeast Asia

Comparing Thailand’s GDP with other ASEAN Countries

USD
60,000
50,000

GDP Per Capita

%
1.6

GDP PPP (%World)

1.4
1.2

40,000
30,000
20,000

1
0.8
0.6
0.4

10,000
0

0.2
0

Source: Global Competitiveness Report 2013-14, WEF

PART 2)
ANALYSIS
FRAMEWORKS
-SWOT ANALYSIS
- PEST ANALYSIS

ANALYSIS FRAMEWORKS

1
SWOT
Analysis

PEST
Analysis

Investment
Decisions

SWOT ANALYSIS
Internal Analysis

External Analysis

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

• Outstanding Geographic
location and logistic
system.
• Rich and abundant
Natural Resources
• World’s Kitchen
• Tourism
• Production Base
• Medical Hub of Asia

• Political and
Government
Instability
• Corruption
• Terrorism
• Poor Intellectual
Property Rights
Protection
• Congestion and
Pollution
• Poor English
Literacy

• AEC 2015
• Trade Liberalization
• Financial
Liberalization and
Supportive
Investment Policies
• Robust Business
Sectors

• Global Economic
Crises
• Competition on
Cost-Effective
Workers

STRENGTHS

1 Strengths
Outstanding Geographic Location and Logistic System
• Located at the center of the South East Asian region
• Availability of logistics and transportation connectivity (i.e. Suvarnhabhumi Airport)
• Implementation of Infrastructure investment plans in logistics. • Greater Mekong Sub-region (GMS) connectivity
– Played significant roles in actively pushing forward transport connectivity among the members, consisting of 326.8 million people in the region.

Outstanding Geographic Location and Logistic System
GMS Flagship projects
1) The East West Economic Corridor (EWEC)
• Passing from Myanmar to Thailand to
Laos and to Vietnam
2) The North South Economic Corridor
(NSEC)
• linking Thailand, Laos, Myanmar and
Southern China;
3) The Southern Economic Corridor (SEC),
• crossing from Cambodia, Thailand and
Myanmar, ending at Dawei as a gateway
destination in the West.

STRENGTHS

2

THE WORLD’S KITCHEN

• Possess geographic
advantages both climate and
location
• Exhibit competitive
advantage in agricultural
production .
• E.g. rice, sugar cane, maize,
cassava, various tropical fruit,
as well as animal products.

3

ATTRACTIVE AND UNIQUE
TOURISM

• Offer a variety of tourist
attractions ranging from
unique cultural places to
charming nature
• Thai people’s hospitality and
service-minds.
• Inexpensive and convenient in
terms of transportation
system.

STRENGTHS

4

PRODUCTION BASE

• Cost-effective workforce
(unskilled and skilled
with relatively
affordable wages)

5

“Medical Hub of Asia”

• A world leader in medical
services
• Availability of fully-equipped
and internationally-trained
doctors and physicians.
• High quality with
surprisingly affordable
prices.
• “Medical tourism”

WEAKNESSES

WEAKNESSES
The Most Problematic Factors to Do Business in Thailand (2013-14)

Source: Global Competitiveness Report 2013-14, World Economic Forum

1

WEAKNESSES
CORRUPTION
• The most problematic factor in doing business in
Thailand (WEF, 2013-14)
• Mr. Surin Pitsuwan (2013)
- Cost of corruption =30-35% to any investment.
- Corruption costs the country about 100 billion
baht a year.
- This may discourage the foreign investors not
to invest in Thailand.

WEAKNESSES

2
POLITICAL AND GOVERNMENT
INSTABILITY

4
Congestion and Pollution

3...
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