While the market-seeking motive accounts for a large
part of Thai outward FDI for all industries, there are some
distinctive sectoral differences. The need to access natural
resources and to better control value chains are more closely
associated with outward FDI in mining, including the oil and
gas industries. In services, exploiting ownership advantages such
as brand, business experience and business networks appears to
be a more important reason. Speculative factors such as
investment opportunities and the growth potential of the host
country have also influenced investment decisions. In the
manufacturing sector, a wide range of reasons motivate outward
FDI. They include the sourcing of raw materials, exploiting
ownership advantages, strengthening distribution channels,
lowering costs and realizing the owners’ vision. Regional factors,
including economic integration and geographical proximity and
cultural affinity, have influenced the location decision of Thai
overseas investment in all three sectors.