Even though Thailand's once go-go economy now resembles an infamous Bangkok traffic jam, its comparatively bright prospects for recovery, and its ability to move into the new economic era on a firmer foundation are being recognized by international business and investors taking a closer look at medium and longer term prospects in Asia in the new economic era. The Thai Government's demonstrated commitment to following the IMF guidelines, and its active international lobbying to restore international investor confidence, is bringing cautious optimism. There is little concern about violent social and political upheaval. Nonetheless, it is generally recognized that the regional crisis is not over and Thailand is vulnerable. With a world of emerging markets to choose from, some U.S. companies have backed away from Thailand, and, indeed, from Asia.
Caution is the wise advice of today.
Projects are being postponed and progress payments for ongoing projects are being held up. High interest rates mean a credit shortage. Orders are not being taken and products are not being delivered. Still, many major U.S. investments are proceeding generally as planned. Opportunities will emerge as Thailand, following IMF instructions, accelerates its plans to privatize state owned enterprises that provide utility services, and to seek direct foreign participation in the newly established entities.