Journals Proceedings

Abstract

Thailand has great inherent to become the investment base to serve as infrastructure and the gateway to Asian and world market for Chinese firms. China FDI has been an important driver of Thai economic development and therefore assisted in the process of economic recovery from Asian financial crisis. The paper sought to provide information and data on these forms of assistance and also, by way of data analysis, determine if the benefits achieved are mutual or whether China stands to gain alone in the various ventures. Most of the assistance is received through concessional loans approved by the Chinese government, Bank of China and made out to Chinese companies in order to provide foreign direct investment in Thailand. These loans are then repaid by the various government bodies and individual clients engaging the Chinese companies. The paper seeks to determine: “the impact of foreign direct investments by Chinese companies in Thailand” thereby discerning whether the impact is positive or negative. Literature and data used was obtained from the Journals, Internet and organizations involved in promoting investment in Thailand. The study found that FDI by Chinese companies leads to economic development by through human capital development, employment, and capital supply.