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

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

Abstract

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.


 

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References

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