AN ANALYSIS OF CHINA-THAILAND INVESTMENT RELATIONS: THE CURRENT STATUS OF INDUSTRIAL SECTOR AND FUTURE PROSPECTS

Abstract

Purpose - The purpose of this paper is to analyze the economic relation between China and Thailand in the area of foreign direct investment (FDI). Design/methodology/approach - The study employed the use of quantitative (descriptive analysis such as percentages, ratios and correlation as well as cross tabulations), qualitative (key informant interviews and surveys). The use of surveys assisted the study to generate firm-level data that allowed the analysis of China-Thailand investment relations with respect to concerns such as the impact on employment. Relevant documents and reports obtained from various sources to corroborate the results obtained from primary data. Findings - The finding reveal that the majority motivation of China's outflow FDI to Thailand has positive impact on Thailand economic through Human capital, employments and Capital supply. The majority of Investment is investment in Industrial sectors. They lack true comprehension of the environment corporate social responsibility for the sustainable investment. The majority characteristic of Chinese investment in Thailand is its concentration in many industrial sectors that are of strategic interest to China, especially in the extractive industries which are carried out largely by state-owned enterprises or joint ventures. In addition, the analysis clearly shows that the engagement with China, just like any, has some advantages and that optimal outcome of the engagement will depend on the policies and institutions that are put in place to minimize the competing effects and to maximize the complementary effects. However, there is need to ensure implementation of regulations and laws in Thailand and to ensure compliance by the Chinese investors. Originality/value - The study was able to establish the sectors where the incoming FDI from China is directed and the extent at which Chinese FDI is bundled with inflows of aid. The study will be of