Foreign investors’ concerns go deeper as Thai economy barely grew

World Today

The Thai government is considering raising the amount of private investment through a series of government infrastructure projects planned for the next seven years. But outside Thailand there is greater concern that the long term prospects for the economy are not good, as exports and GDP growth continue to slip. CCTV’s correspondent Tony Cheng reported this story from Bangkok.

Foreign investors\' concerns go deeper as Thai economy barely grew

Foreign investors\' concerns go deeper as Thai economy barely grew

The Thai government is considering raising the amount of private investment through a series of government infrastructure projects planned for the next seven years. But outside Thailand there is greater concern that the long term prospects for the economy are not good, as exports and GDP growth continue to slip. CCTV's correspondent Tony Cheng reported this story from Bangkok.

The goldfish at the Thai stock exchange have certainly seen considerable prosperity in 2015.

In January alone, the SET index increased 5.6 percent since the military coup. Thailand has had the best performing stock market in the region.

That is the result of stability, said some analysts, who credit the military government with steadying an economy shaken by years of street protests.

But while domestic money has poured into the stock exchange, foreign investors have pulled out to the tune of $180 million in January.

Overseas, concerns persist that Thailand has only been stabilized temporarily. And the concerns go deeper than Thailand politics.

Recently-released export figures showed Thai exports have fallen for the 20th month in a row.

Exports make up 70 percent of GDP and the drop has shown some fatal flaws in Thai manufacturing.

An over reliance on old technology has seen Thailand easily surpassed by manufacturers in Vietnam, the Philippines, and Indonesia.

High labor costs, and an aging workforce have also cut Thailand competitive edge. And while the kingdom has bounced back in the past, earning the name Teflon Thailand, this time the problems are deeply embedded.


Dane Chamorro of Control Risks discusses Thailand’s economy

CCTV America interviewed Dane Chamorro, the region’s managing director for risk consultant firm Control Risks about Thailand’s economy and his expectations for Thailand moving forward.

Dane Chamorro of Control Risks discusses Thailand\'s economy

Dane Chamorro of Control Risks discusses Thailand\'s economy

CCTV America interviewed Dane Chamorro, the region's managing director for risk consultant firm Control Risks about Thailand's economy and his expectations for Thailand moving forward.