|
Future
Prospects
From
the mid-90s until the beginning of the next century, all
economic forecasts put Thailand on a steady upward course with
annual growth remaining strong around 8 percent and inflation
well under control at approximately 5 percent. Stronger emphasis
on sustainable development and science and technology are
evident as Thailand joins the ranks of Newly Industrialized
Economies. As of 1994, Thailand has a domestic market of around
60 million people, with rapidly increasing purchasing power (per
capita income US$ 2,500, and is projected to reach $ 3,860 by
the year 2000).
Continuing
liberalization of the tax and tariff structures, an open door
policy towards foreign investment, and macroeconomic stability
will keep Thailand a favoured investment location. Increasing
political stabilization and a trend towards regional cooperation
within ASEAN and the countries of the Greater Mekong Sub-Region
will attract more worldwide attention to the region as a whole.
Thailand's
role in this new regional order will be crucial, as its
strengths evolve beyond being merely a cost-effective labour
platform to greater industrial capability, diversity, and depth,
and its entrepreneurial leadership develops.
Thailand
is well-positioned to serve as a regional base for investment in
the emerging economies of the region. The government is actively
forging linkages with the countries of the Greater Mekong and
Thailand's newly-established offshore banking facility, the
Bangkok International Banking Facilities (BIBF) will further
enhance trade and investment between Thailand and her regional
neighbours.
With
the successful completion of the Uruguay Round of GATT
negotiations, the country is on course to continue as an export
powerhouse; its rapidly growing domestic market is also gaining
importance as an attraction for foreign investors.
As
Thailand begins its ascent up the value-added ladder, it is
starting to produce, domestically, a greater share of the
capital goods, parts, and components that fuel the manufacturing
engine. Tremendous investment opportunities are implicit in this
process.
The
new model for what is possible in Thailand may be seen on the
country's Eastern Seaboard, where one of the developing world's
most ambitious integrated development plans is currently being
implemented. By the year 2000, access to two new airports, three
deep seaports, a global transpark, and rail system will support
investments in a full range of industrial activities. Now that
the large scale investment in a number of basic industries such
as petrochemicals and steel manufacturing are on stream,
supporting industries and services are rapidly following.
As
Thailand consolidates its current phase of development, its
position in the new economic world order is stronger than ever
before. |
