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The basic ingredients for a successful investment project can be found in Thailand. The country is strategically located in the Pacific basin and enjoys political stability. The industrial structure is well diversified and can therefore respond quickly to changes in international demand patterns or increases in protectionism.

The Thai economy is resilient and dynamic, with continuing high growth rates, favourable export performance and financial stability.

Thai economy took off into double digit growth in 1988 with GDP increasing by more than 13 percent the highest in Asia. This performance was repeated in 1989 and 1990, with growth of 12.3 percent and 11.5 percent respectively. The economy has slowed down somewhat, registering 7.5-8.5 percent growth in 1991-1994.

The country has a highly-productive labour force, approaching 32 million workers, with the majority being under 30 years old. In comparison with other countries in the region such as Indonesia, China and Vietnam, Thailand's labour force can no longer compete in terms of cost alone. However, when taking into account trainability and efficiency, the Thai labour force is among the most "cost effective" in the region. The minimum wage rate is just around US$ 5-6 a day and Thai workers have established a solid reputation among foreign investors for their diligence and adaptability. Each year about 800,000 join this force and the literacy rate is above 90 percent. More than 15,000 students are presently enrolled in engineering programmes at universities and about 76,000 students graduate each year from vocational schools around the country.

Land and other basic facilities are inexpensive and there exists extensive infrastructure for industry However, in 1994, specific emphasis is firmly on developing Thailand's infrastructure at all levels.

In 1992, the private sector was contracted to expand the telephone system in Thailand. Through April of 1995, over 1 million new lines have been added within Bangkok, and an additional 600,000 lines have already been installed in the provinces, with more on the way. Fibre Optic Submarine Cable Network Projects are expected to be completed by the end of 1997 and two communications satellites have been launched.

Construction of new roads has been a major priority both in Bangkok and the provinces. Several elevated roads and fly-overs to address congestion in Bangkok are well underway and two mass transit projects are under construction.

To help in the overall government policy of decentralization, 1994's budget earmarks US$ 8.4 million to upgrade infrastructure throughout the country and to accelerate industrial distribution in rural areas. This account for over 30 percent of the total budget and represents a 25 percent increase over 1993. Much of the new infrastructure investment is expected to be carried out by private sector consortia.

Of specific interest to investors are measures which have eliminated tax clearances, made work permits easier to secure, facilitated the establishment of regional offices, and lifted restricitions on foreign ownership of condominiums.