Legal Issues and Its Implications in Fdi
Abstract
This paper examines and discusses how major legal factor directly relate to foreign investment; Board of Investment Regulations and its role affect ownership and operation of foreign direct investment (FDI) in Thailand. This paper also provides brief background of Thailand and comprehensive information on the above legal concerns. Furthermore, it illustrates how the outcome of these regulations is in favor of FDI and; therefore, attract foreign investors to invest in Thailand.
Introduction
Foreign Direct Investment has recently become increasingly significant in terms of capital inflow and capital formation which contribute largely to a development in Thai economy for the past decades. It has been significantly influenced the upbeat economic growth for the past decades and somehow prompt Thailand to change from solely agriculture-based export country to a more manufacturing-based country. There are 5 main regulations that foreign investors should be aware; Foreign Business Law, Labor Protection law, The Land code of Thailand, Taxation, and Board of Investment. However, this paper will emphasize primarily on Board of Investment as it is the main regulation that govern and support most of foreign direct investment in Thailand.
Thailand: The Overview
Thailand is a constitutional monarchy under His Majesty the King, Bhumibol Adulyadej. Thailand’s population is approximately 65 million with over 94% of its population are Buddhist. Thailand uses civil law system and most Thai laws are embodied by parliament. Thailand’s economy relies primarily on export of agriculture products, electronic parts, rubber, clothing and textiles. Thai government has been encouraging constantly to promote Thai economic development by encouraging foreign direct investment since 1981.
Basic Laws related to foreign investment
Both local firms and companies that have business operations in Thailand should review the following regulations promptly to ensure compliance with
This paper examines and discusses how major legal factor directly relate to foreign investment; Board of Investment Regulations and its role affect ownership and operation of foreign direct investment (FDI) in Thailand. This paper also provides brief background of Thailand and comprehensive information on the above legal concerns. Furthermore, it illustrates how the outcome of these regulations is in favor of FDI and; therefore, attract foreign investors to invest in Thailand.
Introduction
Foreign Direct Investment has recently become increasingly significant in terms of capital inflow and capital formation which contribute largely to a development in Thai economy for the past decades. It has been significantly influenced the upbeat economic growth for the past decades and somehow prompt Thailand to change from solely agriculture-based export country to a more manufacturing-based country. There are 5 main regulations that foreign investors should be aware; Foreign Business Law, Labor Protection law, The Land code of Thailand, Taxation, and Board of Investment. However, this paper will emphasize primarily on Board of Investment as it is the main regulation that govern and support most of foreign direct investment in Thailand.
Thailand: The Overview
Thailand is a constitutional monarchy under His Majesty the King, Bhumibol Adulyadej. Thailand’s population is approximately 65 million with over 94% of its population are Buddhist. Thailand uses civil law system and most Thai laws are embodied by parliament. Thailand’s economy relies primarily on export of agriculture products, electronic parts, rubber, clothing and textiles. Thai government has been encouraging constantly to promote Thai economic development by encouraging foreign direct investment since 1981.
Basic Laws related to foreign investment
Both local firms and companies that have business operations in Thailand should review the following regulations promptly to ensure compliance with
References: http://www.boi.go.th http://www.tourismthailand.org http://news.bbc.co.uk/2/hi/europe/country_profiles/1237845.stm http://www.thailand.com/exports/html/country_finvest.htm http://www.rd.go.th/publish/6044.0.html http://www.aseansec.org/publications/aseanstats08.pdf http://www.aseansec.org/publications/ASEAN-Statistics-Leaflet-SKI2011.pdf http://www.samuiforsale.com/Law-Texts/law-text-foreign-business-act.html http://www.thinkasiainvestthailand.com/download/Doing%20Business%20in%20Thailand.pdf