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…
