Industrial development, which had been seriously pursued since 1960, with major emphasis on import substitution industries in the early stage, gradually showed a growing capacity to compete in the global market. These changes were the product of a combination of factors, including the government’s policies, the dynamism of the private sector, and a favorable global market. Nevertheless, the World Bank noted that a consistent set of policy objectives was lacking in Thailand. Policy measures were changed frequently and institutions such as BOI retained considerable discretionary powers in the granting of promotional privileged and determining the extent of the incentives given. The range of incentive differed not only between industry, but between firms within the same industry. Aside from BOI, the ministries of industry, finance, and commerce, as well as the Bank of Thailand formulated and administered policies directly affecting industrial investment. The World Bank was surprise that, while inconsistent policies resulted in considerable consumption and uncertainty on the part of investors, the environment for industrial investment was generally favorable, and the manufacturing sector grew rapidly over the period (World Bank 1980, 13).