The first phase (early
stage) before the first half
of the 1980s saw a limited
amount of Thai investment
abroad. Much of the
overseas investment during
this phase went to a few
key destinations such as
the United States, Hong
Kong (China), Singapore
and Japan in that order
(table 2). These four
economies accounted for
over 85% of the net Thai
equity capital investment
abroad. Thai outward FDI
to Europe was negligible.
Most Thai outward FDI at
this stage was undertaken
by financial institutions in
response to the
Government’s strict capital
control in place at that
time, which drove Thai
banks to establish overseas
branches in key trading
partner countries and financial centres, such as Hong Kong
(China) and Singapore (table 3; Viraphong 1992; Pavida
2004). Manufacturing and resource-seeking outward FDI
was negligible. The limited pool of Thai enterprises with
capacity to invest abroad and the focus of Thai enterprises
to build a strong foundation at home constrained Thai
outward FDI during this period.