A Comparative Study Of China And Japan's Direct Investment In Thailand

With the effective promotion of national policies,China has grown from a recipient country to a net exporter of capital through a series of reforms and then to a large foreign investment country and a powerful investment country.During the healthy and orderly development of China's foreign investment and cooperation,the countries along the Belt and Road initiative are the potential points of cooperation.As a neighbor of China,ASEAN has become the best platform for China to enhance its overseas investment because of its advantageous geographic location and strong economic development needs.In the upsurge of Chinese enterprises' investment in ASEAN,Thailand has become a hot spot for Chinese enterprises to invest in its highly-developed development strategy,prominent geographical advantages,profound Chinese social background and good investment environment with China's "One Belt and One Road".However,Japan's investment position has consistently ranked first in Thailand,and it is China's stronger competitor to invest in Thailand.Judging from the current status quo,Japan has a high level of economic development,strong capital and comprehensive investment information,which make its industrial layout,technology and management even more complete in Thailand,and even with monopoly status.Therefore,there is a clear advantage over China in terms of investment size and total amount,but the gap between China and Japan is narrowing.The most important industries for Chinese and Japanese companies,investment are metal products and machinery,but China's direct investment in agriculture,minerals,and textile industries is slightly more than Japan's,and it is labor-intensive,while Japan has more investment in electrical and electronic products and services than China,which is capital or technology-intensive.The industries that China and Japan invest in Thailand are mainly distributed in the second district.The similarity in the regional distribution leads to increased competition between the two countries in investment projects.Japan's investment in Thailand is highly diversified,dominated by large multinational corporations and relative proportion of shares occupied by SMEs.China's investment in Thailand is dominated by large state-owned enterprises,but the share of SMEs has increased year by year.In terms of investment and financing,China is richer than Japan.China's investment methods include sole proprietorships,joint ventures,and cross-border mergers and acquisitions,and the financing methods include loans and the establishment of funds,while Japan is mainly based on loans.In analyzing China and Japan's investment status in Thailand,this study further compares the benefits of the investments made by China and Japan in Thailand.Because Japan's direct investment in Thailand has a larger cumulative scale and longer investment time,its effects on Thai economy,trade,technology,and human resources are all greater than those of China.On the other hand,China is trying hard to increase the level of investment in Thailand on the way to speed up its pursuit,and increase investment returns to host countries.In order to further enhance China's investment in Thailand,this paper analyzes and summarizes the reasons for the differences in investment efficiency from the four perspectives of the country's politics,economy,science and technology,and social culture,and proposes some feasible suggestions.It is recommended to increase China's investment in Thailand through enhancing the comprehensive investment ability of enterprises,developing powerful multinational companies,establishing Chinese brand image,focusing on high value-added industries,establishing government coordination mechanism,strengthening cultural exchanges,maintaining orderly competition.