Thailand Investment Opportunities Outflow to India: Has Japanese FDI Played a Role?

Main Article Content

Wanida Wadeecharoen
Rungsun Lertnaisat
Pard Teekasap
Bandit Aroman
Somchai Lertpiromsuk
Sombat Teekasap


Thailand start outsourcing and looking for international investment opportunity into new market with lower labour cost. India represent one of the dominant country whereby cheap labour available, over 500 population structure are below 25 years old and largest demand of motor vehicles, vehicles parts and electronics part. This condition make India absorbed FDI inflows including equity investment inflows worthy $ 355.42 billion in 2014. India was ranked as the top 14th largest economic inflows in the world worthy $28 billion. Thailand already ranks as India’s 35th largest FDI equity inflows from April 2000-February, 2015 worthy $201.04 billion. Leading Thai companies in the fields of automotive and engineering have active and growing business presence in India. The major commodity export from Thailand to India are Chemical, Plastic, combustion engine and vehicles parts. In fact, these commodities production supported by Thai-Japanese IJV firms, whereby capital goods were imported from Japan. This could be explain why Thailand trade balance has been continue surplus India while continue deficit Japan”. Thus, Thailand investment opportunities outflow to India and the relationship between Japanese FDI and Thailand major export commodities to India will be examine in detail.



Download data is not yet available.

Article Details

Research Article


[1] Wadeecharoen, W. et al., “Thailand Investment Position Outlook Through the lens of Japanese Investors: An Examination of the Japanese Investment Trend towards the ASEAN Economic Community (AEC),” presented at National Institute Development Administration (NIDA). The Fourth International Conference on Advancement of Development Administration 2015—Social Sciences and Interdisciplinary Studies (the 4th ICADA 2015). BKK. Thailand, 28-30 May, 2015.

[2] Wadeecharoen, W. et al., “The Determinant Factors of International Joint Venture (IJVs) in Thailand Small and Medium Enterprise (SMEs),” presented at National Institute Development Administration (NIDA). The First International Conference on Advancement of Development Administration 2011—Social Sciences and Interdisciplinary Studies (the 1st ICADA 2011). BKK, Thailand, 8-10 March, NIDA BKK, 2011

[3] Suwannarat, P. et al., “The Characteristics of International Joint Ventures in Thailand,” Journal of International Business and Economics, Vol: 10, Issue 1, 2010

[4] rata, S., “Japanese foreign direct investment in Asia: Its impact on export expansion technology acquisition of the host economic,” (Unpublished paper). Waseda University and Japan Center for Economic Research, 1998.

[5] Tiwari, P. et al., “Spatial pattern of Japanese manufacturing industry in four ASEAN countries,” Regional Science, 82, 403-415. 2003

[6] Ministry of Commerce & Industry, Government of India, (2015). Annual Report 2014-2015 Available:

[7] India, Ministry of Commerce and Industry (2013). Fact sheet on foreign direct investment (FDI) from April 2000 to March 2013. March. Available: https:// Statistics/2013/india_FDI_March2013.pdf

[8] Wadeecharoen, W. et al., “An Examine of Thailand International Investment Position and the Role of Small and Medium Enterprises (SMEs) International Joint Venture (IJV) towards Thailand Economic Development,” presented at Novotel Bangkok on Siam Square. International Conference on Contemporary Business and Management, ICOM 2012. Bangkok, December 10-12, 2012

[9] Wadeecharoen, W. et al., “A Contribution of Small and Medium Enterprise (SMEs) International Joint Venture (IJV) to Sustain Thailand Economic Development,” presented at Thai-Nichi Institute of Technology. International Conference on Business and Industrial Research. Bangkok Thailand, May 17-18, 2012

[10] Suwannarat, P. “Thailand as location for International Joint Ventures: Exploring the host country location factors,” International Journal of Business Research, Vol.12, Number 2, 2012

[11] Hanson, “Increasing returns, trade and the regional structure wages,” Economic Journal, 107: 113-133. 1997

[12] James, P. (2013) “Thailand Introduces Nationwide Minimum Wage” The Diplomat: Read the Diplomat, Know the Asia-Pacific, January 11, 2013, Available: thailand-introduces-nationwide-minimum-wage/

[13] Racela, O.C. and Thoumrungroje, “A Organization learning, marketing strategic chance and performance of wholly=owned and international joint venture ventures in Thailand,” Global Conference on Business and Finance Proceeding. Vol.7, No.1. 2012.