The American Spectator

These are just a small fraction of the major efforts companies have undertaken to reach out beyond traditional business practices in order to improve the quality of life for Thai citizens. In fact, these practices are traditional for corporate investments abroad. And this is where Thailand is making a big mistake.

We believe the Thai government could suffer tremendous repercussions as a result of its latest actions. Foreign Direct Investment is already waning, and could possibly decline again in 2007. China has quickly become one of the darlings of the investment and business community, most recently permitting its citizens the same private property rights as the government. Vietnam’s stock market has boomed, up 145% in 2006, and some experts predict FDI to reach nearly $20 billion in 2007, which would be another 100% increase. Although both countries admittedly have drawbacks, they are opening their gates to private investment at a rapid pace.

As Asia continues to be a growth market, investors will shift their capital to those countries that they believe have the potential to generate the highest returns with the least amount of risk. Thailand has now become more risky in comparison to its neighbors. Once again, the market will dictate the best solution to the problem. Unfortunately for Thai citizens, that could mean less private investment, less growth, and less opportunity.