International investment policy and Thailand's food processing sector

Abstract

This paper employs Thailand as a case study for the analysis of developing country foreign direct investment (FDI) policy in the food processing sector. Thailand's investment policies include FDI promotion and liberalization policies. These undoubtedly help generate sound and favorable investment environment for the international investors seeking attractive investment opportunities in the food processing industry. There are larger investment opportunities to be tapped by foreign firms doing businesses in the food processing industry than primary agricultural production, especially through joint ventures. Nevertheless, inefficient public services, ambiguous regulations and complex administration processes are major hindrances to maximizing profits. Thailand definitely needs to strengthen its government transparency and improve competitiveness through economic reforms in order to increase FDI inflows and enhance food processing performance and development. © EuroJournals Publishing, Inc. 2012.