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China tops Thailand’s FDI but Vietnam also receiving a lot of Chinese investment
China has become the leading source of foreign direct investment (FDI) in Thailand, especially in the sectors of electronics, electric vehicles and data centers. However, Vietnam is also attracting a large share of Chinese investment, thanks to its favorable trade agreements and lower labor costs.
Key Takeaways
- China has become the leading source of foreign direct investment (FDI) in Thailand, but Vietnam is also attracting a large share of Chinese investment due to lower labor costs and favorable trade policies.
- Thailand can attract and retain FDI from China by improving its infrastructure, logistics, and digital connectivity, while not raising its minimum wage too high to remain competitive with Vietnam.
- Thailand needs to address challenges such as improving ease of doing business ranking, enhancing innovation capacity, diversifying its economy, and upgrading human capital to boost…
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