More and more investores send money to Thailand.
FDI in Figures
Foreign direct investment is an important element of Thailand's economic development, and the country is one of the major FDI destinations in its region. According to the UNCTAD World Investment Report 2018, in 2017, after several consecutive years of decline, FDI flows have largely recovered. They were multiplied by 3.7 between 2016 and 2017 and reach USD 7.6 billion. This recovery is due to increased investment by European Union countries and strong inflows from ASEAN countries and Japan. Through the Investment Promotion Act, offering more incentives to invest in advanced technologies, innovative activities and research and development, and the Eastern Enonomic Corridor (EEC) Act, which offers benefits to investors in this zone (tax subsidies, right to land ownership, issuing of visas), FDI flows should show satisfactory results in 2018. The stock of FDI increases by 15% in 2017 and reaches USD 219 billion dollars, or 50.7% of the country's GDP.
Japan and Singapore are by far the largest investors in the country and account for more than half of FDI inflows. Taiwan, the Netherlands, Germany, Switzerland, Mauritius and the United Kingdom are also among the major investors. Manufacturing and financial and insurance activities attract nearly 70% of all FDI inflows. Investments in real estate, commerce and information and communication are important.
Thailand is among the countries with the most reforms in business regulation over the past few years, which have facilitated the setting-up processes and reduced the time to start a business from 27.5 days to 4.5 days. The country has improved considerably its ranking in the World Bank's Doing Business, and it occupies 27th position in the Doing Business 2019 ranking, loosing one position from the previous year. The rights of borrowers and creditors have been strengthened as well as the system of land administration. The country has taken steps to clarify corporate governance, ownership and control structures by enacting legislation requiring companies to appoint independent members of the board of directors and to establish an audit committee.