The Royal Thai Government maintains an open, market-oriented
economy and encourages foreign direct investment as a means of
promoting economic development, employment and technology
transfer. Thailand welcomes investment from all countries and
seeks to avoid dependence on any one country. The on-going
regional economic crisis has slowed the flow of new investment
during the past year, and as a consequence, the Thai Government
is in the process of adjusting its legal and regulatory regime
with the objective of creating a more competitive climate for
foreign investment. This process is on going and is meeting some
resistance from indigenous business and political interests.
However, it is likely that the current government will be able to
implement some positive changes with respect to restrictions on
land ownership, limits on equity stakes in Thai businesses and
activities reserved for Thai nationals.