Since the end of 1986, Thailand has been a favourite location for foreign firms escaping appreciating currencies and escalating labour costs. The flow of foreign firms has been matched by local investors who, stimulated by lower interest rates and a booming economy, have also increased investment activities. The government continues to take a very positive stance towards foreign direct investment in the manufacturing sector. The Thai government has consistently welcomed foreign investment, recognizing the important role played by foreign technology, management and marketing skills as dynamic forces contributing to Thailand's economic development.
Investment is encouraged whether from domestic sources of abroad.
The emphasis is on increasing the role of the private sector in Thailand's economic development. Since 1990, the government has been exploring a variety of measures to promote the supporting industries. Sub-contracting activities are actively encouraged and a special incentive package has been implemented to promote their development to facilitate the growth of the electronics and other industries. As a result, Thailand's supporting industries have grown rapidly in the past five years. However, the private sector needs to join with the government to co-operate in solving economic problems and tackling development problems.