The Board of Investment (BoI) opened its Thailand Overseas Investment Center yesterday, aimed at strengthening the country's competitiveness by encouraging and directing business operators to invest abroad.
The centre is on the fifth floor of the BoI Building on Vibhavadi Rangsit Road in Bangkok.
The government decided to develop the centre out of concern the country might lose its competitive advantage over the long term if it does not diversify from relying on capital inflows.
BoI secretary-general Udom Wongviwatchai said the centre will provide information and advice to Thai companies lacking international experience.
At this stage, the priority destinations are Cambodia, Laos, Myanmar and Vietnam among other emerging markets.
Prof Aat Pisanwanich, dean of the University of the Thai Chamber of Commerce's School of Economics, said after the Asean Economic Community kicks off in 2016, operating costs in Myanmar will increase by 60% due mostly to office leases and labour costs.
He suggested small and medium-sized enterprises sell their products in Myanmar through local distributors, department stores or business-to-business websites, keeping in mind that risks related to poor logistics, infrastructure and corruption will remain for quite some time.
Singapore is the top foreign investor among Asean countries at US$25 billion last year, followed by Malaysia. Thailand ranked third at $10 billion, twice as much as in 2010 due to the takeover by Sahaviriya of a steel plant in England.
Thailand's foreign investments have exceeded foreign direct investment (FDI) inflow since 2007.
From 2006-11, some 27% of Thailand's investments abroad went to the mining and petrochemical sectors, with 14% to banking and the rest to food and other sectors.
Mr Udom acknowledged most Thai investments end up in Singapore and Hong Kong in the form of holding companies as well as FDI in Myanmar, but the new trend leans towards India, China and the Middle East.
About the author
- Writer: Nanchanok Wongsamuth
Position: News Reporter