FDI in Thailand up 21% in 2013

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Foreign Direct Investment (FDI) in Thailand showed a 20.9-per-cent increase to US$13 billion (Bt419 billion) last year, though an uncertain political outlook poses a challenge, said a report by Escap.

According to the “Asia-Pacific Trade and Investment Report 2014” published by the United Nations Economic and Social Commission for Asia and the Pacific, the surge in FDI was driven mainly by a rise in mergers and acquisitions. In the year, Thailand was the second-largest target of M&A purchases in Southeast Asia, behind Singapore, with concluded sales worth $6 billion.

A major deal was the acquisition of Bank of Ayudhya by Bank of Tokyo for $5.3 billion.

Escap noted that future FDI trends of Thailand remained somewhat uncertain after months of political turmoil came to an end with a military coup in May.

“Foreign investors could begin to find neighbouring countries more attractive if the long-term political outlook remains uncertain. However, the situation is beginning to look more settled,” it said.

Thailand and China stood out among Asia-Pacific countries in terms of increases in FDI through M&As. While the entire region registered a slight decline of 3.6 per cent, the two countries attracted record values in deals in 2013, with China reaching a total of $25 billion and slightly more than $6 billion for Thailand.

In the same year, Myanmar recorded its three first M&A deals ever.

Between 2011 and 2013, Asean attracted $22.5 billion of FDI in the form of M&As from Asian countries outside the bloc, representing close to one-third of all FDI inflows through M&As to Asean. Japanese companies were involved in 51.6 per cent of intra-regional M&A-related FDI inflows, while enterprises from China including Hong Kong accounted for 21.6 per cent. The most attractive economies in this regard were Singapore and Thailand, both of which attracted $6.7 billion from Asia-Pacific firms outside Asean.

Low-income economies also took part in the intra-regional dynamic, with all M&As in Cambodia, Laos and Myanmar involving companies from the Asia-Pacific region. The financial, materials, energy and power industries were the most popular among investors in Asean, while the telecommunications sector attracted the most investments in low-income economies.

For higher-income economies, the financial sector was the main driver for intra-regional flows.

Between 2011 and 2013, Asean countries took an increasing part in M&A activities in the region.

 

 

 

Source : The Nation | September 25, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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