The Emerging Market in Thailand

The Emerging Market in Thailand

Introduction

Thailand has been making remarkable progress in social and economic development as it has moved from a low-income country to an upper-income country within a brief period. The long-term financial goals strategy in Thailand is based on its 20-year national plan (2017-2026) as it wishes to attain a developed country status. The country seeks to achieve this through broad reforms that will address economic stability, human capital, environmental sustainability, and equal access to economic opportunities as well as competitiveness and effective governance. The country’s quality of the reforms will be based on promoting innovation in agriculture.

Characteristics and challenges facing the emerging market in Thailand

There has been a lagging educational system in Thailand, which has dramatically impacted the economic growth of Thailand. Thailand has a massive percentage of the aging population, which has covered more than 60% of its total population; this has become a significant threat to the economy of Thailand. The election outcome of Thailand has been surrounded by uncertainty, which has threatened to set back the economy of Thailand.

Migration analysis in Thailand

Thailand has been taking part in various types of trade, which have resulted in its rapid economic growth. Thailand has been taking part in merchandise trading of its products. This has in return, led to numerous dividends in the country’s economy. Thailand also takes part in the export trading of its products. Some of the products that Thailand exports include; food and agricultural products, metals articles, manufactured consumer goods, machinery and complex manufactured products, chemical, industrial &fuel products. Thailand exports its products to various countries such as Japan, the USA, mainland China, Vietnam, and Hong Kong. Thailand also imports some products into the country as this is aimed at bringing a balance of trade in the country. Some of the imports include; metals& articles, food& agricultural products, machinery and miscellaneous manicured goods and more others. The countries import from countries like japan USA, Malaysia, China, and the United Arab states.

Trade analysis in Thailand

Thailand is also a member of WTO for many years. The removal of tariffs has led to the booming of Thailand in the regional trade. Thailand’s economy has grown due to the double taxation policy with other 61 countries. Abolition of tariffs has benefited Thailand in the local business due to Free Trading Affairs with some of the Association of Southeast Asian Nations (ASEAN)

Investment analysis in Thailand

Due to the foreign direct investment policy, the climate in Thailand has been positive over the years and welcoming.in return, the local customs in Thailand prioritize domestic companies. Every business in Thailand can register and acquire a trading license. The first piece of legislation in Thailand is the Foreign Business Act (FBA), which is done concerning foreign business activities. In Thailand, specific business activities are reserved for their nationals according to the FBA act. Foreigners are not allowed to own land in Thailand as this saves governments industrial estates according to the land code, the Condominium Act. There is an alien employment act that prohibits foreigners from working in 39 occupations and professions, but the small-scale foreigners are not limited. Thailand does a Free Trade Zone and Investment. She is a member of the Eastern Economic Corridor (EEC)

 Economic factors in Thailand’s emerging market

Tourism has boosted the growth of Thailand as there is an increment every year, promoting the country’s GDP. The inauguration of a cross-border railway will significantly help in developing the economy of Thailand. Thailand’s revenue has increased by 2.4% than its budget target of 6.4%. The sizeable youthful population in Thailand will significantly influence in improving the country’s economic prospects. Thailand is aimed at attracting more foreigners through the ‘relocation package’ of incentives

Ideological factors in Thailand’s emerging market

The launching of an overseas video streaming service would boost the gaming business in Thailand. The hosting of the ASEAN summit in Thailand, the leaders have promised to work in hand with Thailand to tackle marine pollution. There has been a resumption of free trade agreement negotiations with Thailand by the European Union.

Political factors in Thailand’s emerging market

The cabinet in Thailand has approved a state railway which is of high speed and is expected to link three major airports. There has been a prolonged power struggle, which has undermined the economy in Thailand. The foreign reserves in Thailand have been major envies of the emerging market in Thailand. There has been instability in the coalition government of Thailand; this has a significant influence on the dragging of the economy.

Recommendations

Thailand should emphasize on expanding the state welfare card eligibility and allow a three-year debt moratorium for funding the village debtors to ease the burden for the other debtors. The government should aim at developing a low-cost housing project by allocating farmland to farmers and focus on alternative crops, reduction of costs and also innovations. Supporting community businesses and tourism is also useful in improving the economy. The decrease in taxes by the government will boost the income earned by farmers and small-scale enterprises as well as young entrepreneurs. When the country engages in more trade talks, it will enhance the increasing of the economy.

Conclusion

In conclusion, the country needs to find a way out of the current political mess to give hope to some of the investors. Thailand needs to focus on a stable coalition government as it will better the impact on the economy of Thailand. This is because all the political parties in Thailand have similar economic policies.

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