Chinese Enterprises Direct Investment Analysis In Thailand

The strong bond of China and Thailand was built on the cooperation in trading and economics and soon the bonds between the two countries would be even more enhanced due to the inclination of Chinese enterprises to be increasing their investment in Thailand. This is due to the initiation of "Chinese Go-Out Strategy" by China where the foreign direct investment of Chinese enterprises was shown to have grown progressively as the result. Thus, the thesis studies The Chinese enterprises direct investment in Thailand.The thesis begins with the analysis of the foreign direct investment theory and the investment environment of Chinese enterprise in Thailand as well as its state of investment, its problems and possible suggestions and opinions on the subject.Thailand has a good business environment for the investment by Chinese enterprises due to geographical advantage and available natural resources, large domestic market within the country, a market potential that could extend the trade to the neighbor countries, well facilitated public utilities, efficient policies and investors’ privileges, strong diplomatic relationship; and also the cultural and traditional similarities between China and Thailand.From those advantages, Chinese enterprises tend to mainly come to invest in Thailand for two reasons:the resources and the market. However, investors who want to invest in Thailand may have to concern also about the political problems in Thailand e.g. south Thailand insurgency, the capital and laborer’s demand and supply, the high capital of logistics and corruption problem.The investment state of Chinese enterprises in Thailand suggests that the projects and the capital accumulation of Chinese enterprises are currently not as profitable as compared to other countries even though several years ago, Chinese enterprises’investments in Thailand seem to be increasing. In2010China was in the top five of the countries invested in Thailand although it was a tiny project and the capital is not higher than fifty million baht.The problem of Chinese enterprises’investment in Thailand is because most of them are small-sized enterprises which are inexperience in the investment in Thailand, also they tends to have problematic service and management, and unpopular brand names unknown to most customers. These are the problems that need to be resolved in order to increase the effective of investing in Thailand by Chinese enterprises thus the thesis would also give possible solutions in order to make a progress in the cooperation and the developing between the two countries in the future.