Issue 51

ASEAN has become an attractive destination for foreign investors from every corner of the globe in recent years, a trend the ASEAN Economic Community (AEC) is set to continue.

“Thailand is the hub for mainland ASEAN,” Kelly W. Hsieh, representative of the Taipei Economic and Cultural Office in Thailand tells the audiences at the Taiwan-Thailand Investment Cooperation Forum 2016 held on April 26 at the Dusit Thani Hotel, Bangkok. “It has several advantages including good infrastructure, high level of human resources and intensive investment from the government.”

Taiwan and Thailand have cooperated for many years both in public and private sectors. In 2016, the Taiwanese government will strengthen the cooperation between Taiwan and all countries in ASEAN.

According to Thailand’s Ministry of Commerce, Taiwan was Thailand’s 13th largest trade partner in 2015 with bilateral trade totalling US$11 billion, of which imports represented US$7.5 billion and exports US$3.5 billion.

“For Thailand, we will have cooperation in many industries such as artificial intelligence (AI), automotives, transportation and energy efficiency,” Department of Investment Services director-general, Lien Yu Ping adds.

According to the Thailand Board of Investment (BOI), Taiwan’s 274 investment applications amounted to US$1.39 billion between 2010 and 2015. The top three sectors were electrics and electronics, metals and machinery, and agricultural products.

Johnny Tam, director of Sales and Marketing Business Development for Delta Electronics (Thailand), explains why the world-class power management solutions provider has chosen Thailand as its major production base in this region since 1988.

“The Thai government has supported foreign businesses in the country by providing a wide range of incentives. Businesses can use Thailand as a hub for manufacturing value-added and high-end products while expand the production base for low-end products to the neighbouring countries,” he says.

Tam suggests there are several factors Taiwanese companies should consider when investing in the fast-growing ASEAN region. “To succeed in foreign countries, you must have a long-term business plan, respect local laws and regulations, understand the local people and culture, and learn how to work with them,” he says.

Nannatee Wiboonchutikula, the director of the Thai Trade Office in Taipei, encourages Thai companies to grab the plentiful business opportunities in Taiwan.

“Thai businesses can export … processed food, rubber products, cassava products and cosmetics to Taiwan, and are able to invest in several promising sectors including restaurants, Thai massage and spa, and retail shops to sell Thai products,” she says.

Words by Somhatai Mosika