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Businessmen have asked me this question many times before
in specific reference to the local food industry , which I
have worked with for nearly two decades. Before 1997, the
answers came easily. Lately, however, due to the perceived
vulnerability of the economy, it takes a lot more explaining
to present the potential of Thailand as a market or as a manufacturing
base. Putting the effects of the baht float in perspective,
I shall try to assess why investors will still find Thailand
a worthwhile place to put their money into.
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Reason 1
Thailand has geographic
advantages.
Thailand is strategically located on the Indochina
Peninsula, a gateway to the world's two most densely
populated continents, with links by land, air and sea.
A small country, the size of France, at 513, 000 kilometers
(198,000 square miles), Thailand shares borders to the
east with Kampuchea; to the north with Laos; to the
west with Myanmar and to the south with Malaysia. Total
coastal area adds up to 2,615 kilometers (1,625 miles)
with 70% on the Gulf of Thailand (Pacific Ocean) and
the rest on the Andaman Sea (Indian Ocean) . Natural
disasters such as earthquakes, volcanic eruptions, hurricanes
and floods very rarely affect Thailand.
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Reason 2
Thailand enjoys
autonomy and stability unique in Asia.
Through wise diplomatic policies, Thailand is the only
country in Asia not colonized by foreign powers. It
has been spared of world wars, regional wars and civil
wars. Inspite of being surrounded by countries troubled
by political or religious unrest ,Thailand has maintained
peace and its own democratic system of government. The
constitutional monarchy (one of the longest-reigning
worldwide) is revered and holds the nation together.
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Constitutional
monarchy
|
|
Official name
|
Kingdom of Thailand |
|
Area
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513,115 sq.km(198,114
sq.m) |
|
Head of state
|
His Majesty King
Bhumibol |
|
Head of Government
|
Mr.Chuan Leekpai
Prime Minister since November1997 |
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Gross National Product(1996)
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4,107,377 million
baht |
|
GNP per capita(1999)
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74,585 baht |
|
Population(1998)
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61,466,178 |
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Time difference
|
GMT+7 hours |
|
Capital
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Bangkok |
|
Political System
|
Constitutional
monarchy |
|
Minimum wage Bangkok and vicinity
Balance of trade(1998)
Balance of payments(1998)
Current account balance(1998)
|
162
baht/day, effective Jan1,1998
Surplus 474,718 million baht
Surplus 57,635 million baht
Surplus 591,583 million baht(11.7%of GDP) |
|
Currency unit
|
Baht |
|
Total merchandise imports(1998)
|
1,774,050
million baht |
|
Total merchandise exports(1998)
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2,248,768 million
baht |
|
Most important trading partner,value
of total trade(1998)
|
Japan 800,548 million
baht |
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Most important exports, FOB value(1997)
|
Electrical equipments
and parts 337,968 million baht |
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Most important imports, CIF value(1997)
|
Machanical equipments
and parts 415,071 million baht |
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Largest company, in terms of sales(1997)
|
Thai Airways International
Co.,Ltd. 87,576 million baht |
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Largest commercial banks, in terms
of asset(Dec.1997)
|
Bangkok Bank Pcl.,
1,416,435 million baht |
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