Thai enterprises are internationalizing for different
reasons, depending on the industries they operate in; the years
of experience in internationalization; the extent of overseas business networks; and the purpose of undertaking FDI. In
general, the main motive is market-seeking, which includes
extending market reach, supporting distribution and expanding
trade channels. Efficiency-seeking outward FDI is not a
significant feature of Thai enterprise internationalization but it
may develop in the future and is an area worth monitoring.
Resource-seeking FDI by Thai enterprises is limited. In terms
of geographical spread, most Thai outward FDI is in Asia. Thus,
Thai transnational corporations (TNCs) are mostly regional
entities and they play a role in strengthening regional integration
and South-South cooperation. The prospect for Thai outward
FDI is promising given the encouragement of the Government,
the maturing of more Thai firms with interest in venturing
abroad, improvement in corporate financial situations and
regionalization factors pulling Thai firms to invest overseas.