The China-U.S. trade war and the COVID-19 pandemic laid bare the need for companies to diversify supply chains outside of China. This has given rise to the “China plus one” strategy, in which multinational firms are moving to other countries, in addition to China. Some Asian countries have put forward plans to attract overseas investment as companies look for another center of production or distribution. These include Thailand, Malaysia, and Vietnam, which have introduced preferential policies for overseas firms investing in the country.
Thailand has made strides in improving its ease of doing business, streamlining the process for obtaining construction permits and improving minority investor protection. FDI applications rose 80 percent in Thailand 80 percent year-on-year in the first quarter of 2021. While the medical sector attracted the most FDI projects, foreign…
