Current Situation And Countermeasures Of Foreign Direct Investment In Thailand's Auto Industry To Attract

Thailand, a rapidly economic developing country, developed from the traditional agricultural country to an industrial country. The living standards improved with the demand of vehicles. Thailand’s automobile industry began in the1960s, after Thailand’s automobile rely on the imports-substitutions period. The early1960s, Thailand began to introduce foreign automobile production lines, associated with foreign car manufacturers. The automotive equipment factory established in Thailand opened market for FDI to begin automobile industry. Nowadays, Thailand has become the Southeast Asia’s largest automobile manufacturing center and the ASEAN automobile market, thus the automotive industry has developed into the largest pillar industry in Thailand.In recent years, multinational automotive companies have entered to the Thai market. Thailand multiple size vehicles manufacturers have varying degrees of joint ventures with multinational corporations. Foreign-invested enterprises with advanced technology, capital and management experience, can effectively promote the development of local enterprises in Thailand. This will promote industrial organizations to develop in the direction of effective competition. Although the Thai automotive enterprise has invited a lot of foreign direct investment, but also brought many problems. The selection of this research title’The Analysis of the Current Situation in Thailand Automotive Industry Foreign Direct Investment and Countermeasures’is primarily aimed at analyzing foreign direct investment in Thailand’s automobile industry status and its existing problems, propose targeted countermeasures and suggestions.Firstly, the concept of foreign direct investment was studied in different theories as; for example, monopoly advantage theory, internalization theory, location theory, eclectic theory of international production, product life cycle theory and the theory of marginal industrial expansion. Secondly, the status of the Thai automotive industry and its status of foreign direct investment and problems were studied mainly from the following aspects of the analysis, namely:Thai automotive industry overview, Thailand’s automotive industry size of foreign direct investment, product structure, origin and circumstances of political, economic, social and technological environment, foreign automobile industry in Thailand Direct investment problems. Thirdly, the data and values were analyzed by using the SWOT analysis method for Thai automotive industry factors affecting FDI internal strengths, weaknesses and external opportunities and challenges. Finally, the results of the SWOT analysis put forward the following conclusions, relevant countermeasures and suggestions.According to the research presented in this thesis it concludes that Thai Automotive Industry by Foreign Direct Investment is greatly affected in every sectors and have its Countermeasures. Thus overall we can hope for2things1. FDI for the Thailand’s large economic development2. The automobile industry to provide some significant changes in the automobile world in Asia including China and Thailand.