Political Aspects for Investment: Opportunities and Challenges for the Republic of ROK and Thailand under New Government
Keywords:
Thailand's Eastern Economic Corridor (EEC), Foreign Direct Investment (FDI), Political and Economic InfluenceAbstract
The Eastern Economic Corridor (EEC) is a cornerstone of Thailand’s Thailand 4.0 strategy, designed to establish the country as a regional hub for trade, investment, and innovation. Spanning the provinces of Chonburi, Rayong, and Chachoengsao, the EEC prioritizes high-tech industries such as advanced automotive manufacturing, biotechnology, and renewable energy. Major infrastructure projects-including the expansion of U-Tapao Airport, the development of high-speed rail, and the modernization of port facilities-serve as catalysts for economic growth. To attract foreign investment, the Thai government has introduced a suite of incentives, reinforcing Thailand’s position as a strategic gateway to ASEAN. The Republic of Korea (ROK) plays a pivotal role in the EEC’s development, leveraging its expertise in advanced industries and renewable energy to strengthen regional cooperation and support Thailand’s economic ambitions. This study examines investment opportunities for the ROK within the EEC, analyzing key factors influencing Thailand’s economic growth from 1980 to 2022, including infrastructure development, government incentives, ROK foreign direct investment (FDI), and technology transfer.
However, a comprehensive evaluation requires attention not only to the opportunities but also to the structural challenges and potential downsides of such investment flows. While large-scale FDI inflows contribute to infrastructure and employment, they may also produce uneven local benefits, limited spill-overs to small and medium enterprises, and profit repatriation that constrains domestic capital accumulation. Overreliance on foreign capital can further crowd out local industries and deepen regional inequalities within Thailand’s economy. A rigorous academic inquiry must therefore address both the enabling factors and the possible adverse outcomes of Korea-Thailand investment cooperation. Only through such balanced analysis can policymakers assess the EEC’s real contribution to sustainable and inclusive development.
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