Thailand loses investments in Asia

Years of political conflict and last year's floods are starting to take their toll.

Thailand accounts for only 6 percent of foreign investment in the region and has since been overtaken by Indonesia (21), Malaysia (12) and Vietnam (10). In the period 2004-2009, 17 percent of regional investments took place in Thailand. According to a study by the Economic Intelligence Unit.

The study also shows that some electronics industries are considering relocating to other countries. Samsung and Toshiba have already established their new research centers in Vietnam and India respectively.

The dramatic figures for Thailand were discussed at the 'GDP Decoding' seminar. According to one of the speakers, Prasert Bunsumpun, member of the Strategic Committee for Reconstruction and Future Development, one of the two committees formed by the government after the floods, the government's ability to control the water is the most important factor determines whether the confidence of foreign investors returns.

Prasert also called on the government to maintain its policy of bringing energy prices in line with market prices. Continuing to subsidize energy prices is bad for the economy in the long term, he says. If the government continues, he said, it will cost 800 billion baht over the next five years.