FDI in Thailand up 21% in 2013



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


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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