A study of Chinese MNE’s (Multinational Enterprises) direct investments in Thailand

Last modified: October 26, 2019
Estimated reading time: 2 min
Project Title: A study of Chinese MNE’s (Multinational Enterprises) direct investments in Thailand
Author: Mr. Liao Jie
Advisor: Dr. Sajeerat Metheesuwapab
Degree: Master of Business Administration
Major: Business Administration
Faculty: Graduate Schools
Academic year: 2017

Citation

Liao, Jie. (2017). A study of Chinese MNE’s (Multinational Enterprises) direct investments in Thailand. (Independent study, Master of Business Administration). Bangkok: Siam University.


Abstract

Thailand lias great potential to become the investment base to serve as the gateway to ASEAN and world market for Chinese enterprises. The objectives of this study are: I) fo investigate the determinants of Chinese firm’s outward foreign direct investment into Thailand; 2) To examine the firm internal factors and external factors that impact Chinese investors’current performance; 3)To provide Chinese investors with sustainable investment suggestion in order to help them insight and avoid reasonably investment risk, enhance their own competitiveness to carry out scientific foreign direct investment as well.

At present, with the continuous development of economic globalization and the capital internationalization, outward direct investment plays an increasingly important role in adjusting the industrial structure, promoting the development of economic and enhancing national competitiveness. Under the “Go globally” and “the Belt and Road” policy China gradually integrated into the world economy with its remarkable achievements. Especially in recent years, an increasing number of enterprises begin to invest in foreign country. As Thailand has close cultural and ethnic ties with China and strategic location in ASEAN, in light of the China-ASEAN Free Trade Area (CAFTA), Thailand would play an important role in manufacturing and exporting of Chinese products to ASEAN region. The foreign direct investment between these two countries gained a considerable development which led to development of Sino-Thai Economy. Follow the trend of the growth, China will play a more and more important role in inward FDI of Thailand. On the other hand, inward FDI has been an important driver of Thai economic development. Therefore, exploring the current status of Chinese enteiprises will help the authority to understand the trend of Chinese outward FDI in Thailand and to create conducive business environment to retain the existing inflows as well as to persuade the remaining to invest.

This paper is a quantitative study and primaiy data was collected from 113 Chinese enterprises in Thailand while secondary data was collected from previous researches. Principal Component Analysis was applied to investigate the motives and factors determining Chinese firm’ร outward foreign direct investment into Thailand. Research findings showed that motive of China’s outflow FDI to Thailand is marketing seeking, the influence factor of Chinese decision-makers invest in Thailand are lacks of effective management and fierce competition.

At the same time, this paper will be helpfill to study and further strengthen the lelationship between China and Thailand, deepening economic and trade cooperation between those two countries in the field of economy and trade, achieve mutual benefit and win-win situation.

Keywords:  Foreign direct investment, Chinese enterprises, Thailand.


A study of Chinese MNE’s (Multinational Enterprises) direct investments in Thailand

International Master in Business Administration (IMBA), Siam University, Bangkok, Thailand

 

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