Saturday, November 17, 2007

Thailand ’loosing investor appeal’

by Robert Carry

Uncertain economic policy and political instability are turning investors away from Thailand and towards its South-east Asian competitors, a major report has found.

Grant Thornton´s ´International Business Report 2007´, which surveyed 7,200 business leaders in 32 countries, concluded that Thailand has gone through a period of slowing growth this year and is losing investment opportunities to Vietnam and Malaysia.

Peter Walker, a partner in Grant Thornton International, said many are expecting the upcoming election to help turn things around, “Thai business persons are adopting a wait-and-see strategy,” he said. “They hope that business figures will be improved by the outcome of the forthcoming election and the new government´s policy actions.”

Walker added that the outlook was positive in the long-term, “In the short term, Thailand has lost investment opportunities to Vietnam and Malaysia due mainly to its uncertain investment policy. However, in the long-term, I still believe that Thailand shows a bright outlook and could return to be the most attractive country among foreign business persons, thanks to its strong infrastructure,” he said..

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