LIFE Magazine July, 1939.

"On June 24, 1939 the Government of

Siam, the only free nation (the only non-European colony) in
Southeast Asia, changes its name to Thailand, which means 'Free
Land' ".

The Thai Flag

I. Brief Historical Overview

The history of Thailand begins with the migration of the Tai- Lao
speaking people from their ancestral home in southern China into
mainland southeast Asia around the 10th century AD. Prior to this,
Mon, Khmer and Malay kingdoms ruled the region. The Thais
established their own states starting with Sukhothai, Chiangsaen and
Chiangmai as Lanna Kingdom and then Ayutthaya kingdom. These
states fought each other and were under constant threat from the
Khmers, Burma and Vietnam. Much later, the European colonial powers
threatened in the 19th and early 20th centuries, but Thailand survived
as the only Southeast Asian state to avoid colonial rule. After the end
of the absolute monarchy in 1932, Thailand endured sixty years of
almost permanent military rule before the establishment of a
democratic elected-government system.

Post-1973 has been marked by a struggle to define the political

contours of the state. It was won by the King and General Prem
Tinsulanonda, who favored a monarchy constitutional order.

The post-1973 years have seen a difficult and sometimes bloody

transition from military to civilian rule, with several reversals along the
way. The revolution of 1973 inaugurated a brief, unstable period of
democracy, with military rule being reimposed after the 6 October
1976 Massacre. For most of the 1980s, Thailand was ruled by Prem, a
democratically-inclined strongman who restored parliamentary politics.
Thereafter the country remained a democracy apart from a brief period
of military rule from 1991 to 1992. The populist Thai Rak Thai party,
led by prime minister Thaksin Shinawatra, came to power in 2001. Yet
his rule was under attack due to several charges; human right abuse,
suppression of freedom press, conflict of interest, anti- monarchy, and
corruption. In mid-2005, Sonthi Limthongkul, a well-know media
tycoon, became the foremost Thaksin's critic. Eventually Sonthi and his
alliances founded an opposition mass movement called 'the People's
Alliance for Democracy (PAD), beginning its mass street protest.

On September 19, 2006, after the dissolution of the parliament,

Thaksin then became the provisional government. While he was in New
York for a meeting of the UN, Army Commander-in-Chief Lieutenant
General Sonthi Boonyaratglin launched a bloodless coup d'état. A
general election on 23 December 2007 restored a civilian government,
led by Samak Sundaravej of the People Power Party, with close relation
to Thaksin.

In mid-2008, the People's Alliance for Democracy (PAD) led large

protests against the government of Prime Minister Samak Sundaravej,
whom they criticized for his ties to former Prime Minister Thaksin
Shinawatra. On 26 August 2008, the protesters occupied several
government ministries, including the Government House Samak
refused to resign, but also elected not to use force to remove the
protestors. Beginning August 29, protesters disrupted air and rail
infrastructure. On September 2, Samak declared a state of emergency,
banning gatherings and use of media by the PAD. As of September 8,
the protesters are still occupying Government House.
 On the 15th of Dec, 2008 The Parlament voted Abhisit Vejjajiva of
Democrat Party as Thailand Prime Minister and on the 17th – His
Majesty, the King signed a royal command to appoint the Democrat
Party Leader Oxford-educated Abhisit "Mark" Vejjajiva as Thailand's
27th Prime Minister2008.

II. Country Analysis

a. Political /Legal Environment

Change in 1932

The politics of Thailand took a very significant turn on 24 June 1932

when a group of young intellectuals, educated abroad and imbued with
the concept of Western democracy, staged a bloodless coup
demanding a change from absolute to constitutional monarchy.
Determined to avoid any bloodshed, King Prajadhipok (Rama Vll)
agreed to the abolition of absolute monarchy and the transfer of power
to the constitution-based system of government as demanded.

On 10 December 1932, King Prajadhipok signed Thailand's first

constitution and thus ended 800 years of Thailand's absolute
monarchy. Despite the number of successive constitutions that
followed in the span of just over half a century, the basic concepts of
constitution have remained unaltered.

Major Ingredients in Thai Politics

The first and foremost concept is the status of the monarch as head of
the armed forces and upholder of Buddhism and all other religions.
Every constitution provides that the monarch's person is sacred and
inviolable. His sovereign power emanates from the people, and as
head of state, he exercises his legislative power through parliament,
executive power through the cabinet headed by a prime minister, and
judicial power through the courts. The monarch is empowered with the
right to be consulted, the right to encourage, and the right to warn
whenever the government appears not to administer the state affairs
according to his wishes and for the good of the people.

The second concept concerns the legislative branch. The new leaders
of 1932 realized that the goal of popularly elected government could
not be attained immediately, and that considerable experimentation
and adaptation would be necessary before a balance could be struck.
For this reason, the first constitution was a cautious document that
created a bicameral National Assembly with two categories of
members, the House of Representatives (the Lower House) which were
elected by the popular vote, and the Senate (the Upper House) which
were appointed by the King on the recommendation of the Council of
Ministers (now called the cabinet). The number of members in the
House of Representatives is determined by the size of the population,
while the number of senators is normally restricted to no more than
three-quarters of the total number of the representatives. This concept
remains a basic principle of successive constitutions in Thai politics.

The third concept concerns the executive branch. Every constitution

holds that the Prime Minister is head of government and chief
executive. A slight difference between the Thai Prime Minister and
those in other countries is that, since the creation of the post of Prime
Minister in 1933. The Thais have often looked upon their Prime Minister
as a protective figure, possibly due to their tendency to extend family
structure into the sphere of government.

For the past six decades, Thailand has been adopting the Western
democratic system to the needs of a nation with its own identity and
time-honored culture. The constitution was amended in June 1992,
making it mandatory that the prime minister be an elected member of
parliament.

The Government

The cabinet is responsible for the administration of thirteen ministries

and the Office of the Prime Minister. Each ministry is headed by a
politically appointed minister with one or more deputy ministers. The
Prime Minister is assisted by Deputy Prime Ministers as well as a
number of ministers holding the portfolio of "Minister to the Prime
Minister's Office."

Smaller cabinet committees are set up to help screen proposals from

the various ministries sent to the larger cabinet. This process enables
the government to ensure that no policy is made that is incompatible
with other related ones. The committees may be assigned by the Prime
Minister to thoroughly examine the merits of each project or policy for
the cabinet so that the latter will not have to go into such details
before deciding on proposals and spare itself time to consider other
matters.

The Office of the Prime Minister is a central body, which in itself ranks
as a ministry, whose responsibility is largely concerned with
formulating national policy. Some of its primary subdivisions are the
Budget Bureau; the National Security Council; the Juridical Council; the
National Economic and Social Development Board; the Board of
Investment; the Civil Service Commission and several other
organizations vital to the formulation of national policy.

The fourteen ministries are divided on functional basis. At a time when

the economic growth of the country is one of the highest in the region
and the country is in the process of diversifying from agriculture to
industry, the Ministry of Agriculture and Cooperatives, the Ministry of
Industry, the Ministry of Commerce and the Ministry of Finance play
important roles in the Thai Government
The Ministry of Defense, the Ministry of Interior, and the Ministry of
Justice are in charge of maintaining peace and security and regulating
law and order of the country.

The Ministry of Education, the Ministry of University Affairs, the

Ministry of Public Health, the Ministry of Labor and Social Welfare and
the Ministry of Transport and Communications are concerned with
laying down the ground works of social and physical infrastructure and
welfare for Thai society.

The Ministry of Science, Technology and Energy effectively keeps pace

with accelerating developments in the country through modern
technology, while the Ministry of Foreign Affairs undertakes to
strengthen friendly relations between Thailand and the outside world.

The head of career civil servants in each ministry is the permanent

secretary, who has administrative control over all the departments of
the ministry, each of which is headed by a director-general, also a
career civil servant.

The Armed Forces

The Thai Armed Forces are divided into three branches: the Royal Thai
Army (RTA), the Royal Thai Navy (RTN) and the Royal Thai Air Force
(RTAF). Thai soldiers are composed of professional career soldiers and
conscripts. Every male aged between twenty-one and twenty-five is
subject to two years of military service.

The King is Commander-in-Chief of the Royal Thai Armed Forces and

the cabinet is the instrument through which national security policy is
formulated. The Defense Ministry co-ordinates the administration of
the Armed Forces.

Thailand's fighting forces are governed by the Supreme Command

Headquarters which is staffed by leaders of the Army, Navy and Air
Force. Organized into divisions and combat regiments, the Royal Thai
 Army is divided into four army regions, covering Bangkok and the
central Plains, the Northeast, the North and the South.

Thailand's naval fleet, though small, has always given a good account
of itself. It perates primarily out of the sprawling, modern naval station
at Sattahip, southeast of Bangkok. The Royal Navy has a marine corps,
modelled on the American pattern, skilled in both amphibious and
jungle operations.

The Royal Thai Air Force has its main base at Don Muang airport,
adjacent to Bangkok's International Airport. The RTAF also has large air
fields and facilities in the North and Northeast.

THAI POLITICS: FOUR MINISTERS IN 2 YEARS

1 Oct 2006 – 29 Jan accused of economic

Surayod Chulanont 2008 mismanagement
and forest reserve encroachment
29 Jan 2008 - 9 Sept
Samak Sundaravej 2008 violated the Thai Consti by being paid
for his appearances in his TV cooking
shows
Somchai 18 Sept 2008 - 2 Dec
Wongsawat 2008 brother -in-law of Thaksin
accused of violating the constitution
by holding shares of Thailand's CSLox
Info PCL
Abhisit Vejjajiva 2 Dec 2008 - present

THE PRESENT ADMINISTRATION : Abhisit Vejjajiva

Administration

"We have assumed office through the democratic parliamentary

process, and my government is committed to fostering reconciliation
and harmony in Thai society. I have also sought to make clear from the
very start that my government will uphold the rule of law. We will
emphasize good governance, accountability, honesty, and integrity in
discharging our responsibilities as the people’s government."
(An excerpt from Prime Minister Abhisit Vejjajiva’s remarks at the
reception for the diplomatic corps and heads of international
organizations in Thailand, Government House, 14 January 2009)

Abhisit Vejjajjiva was formally endorsed by King Bhumibol Adulyadej

as Prime Minister on 17 December 2008. He ascended to power amid a
global economic crisis and his first act as Prime Minister was to send
SMS texts to tens of millions of Thai mobile phone users. The
message, signed "Your PM", asked people to help him solve the
country's crisis. Abhisit was criticized for violating privacy regulations
in the mass SMS. The National Telecommunication Commission says
that mobile phone service providers may not exploit client information,
including phone numbers, without their consent. However, it did not
seek actions against Abhisit.

Prime Minister Abhisit said that the Government would perform its
duties, based on four principles:

 protect the monarchy and prevent any infringement of the

inviolable royal position

 foster reconciliation and harmony on the basis of righteousness,

justice, and concurrence of all sectors of society

 calls for economic revival to ensure sustainable growth and

minimize economic impacts on the people

 develop democracy and the political system for greater stability, in

compliance with the rule of law

The Prime Minister also gave eight principles as guidelines for Cabinet
members to follow:
 1- All Cabinet members should adopt the principles in the royal speech
of His Majesty the King given to the new Cabinet members when they
were sworn in

2- All ministers should work with honesty

3- Quick operations with efficiency and in harmony

4- All Cabinet members must attend parliamentary sessions regularly

5- All ministers should care about the people’s feelings and views

6- All ministers were told to listen to the people and support the
process of public hearings and related matters

7- Members must be ready to be scrutinized, and their responses and

explanations must be based on facts and rationality

8- All ministers must respect the law, and their political responsibility
should be higher than their legal responsibility

PM Abhisit’s administration is cored on the following values as reflected in the

principles he has given: good governance, accountability, honesty, and
integrity

His national administration plan focuses on:

 efforts to restore reconciliation and harmony in Thai society as an

urgent policy of his administration

 need to limit the scope of political conflicts

 the justice system should be free from political interference

 officials serve as mechanisms to translate government policies into

action

PUBLIC HEALTH ICT

-continued the Surayud junta's -(ICT) policy focused on censorship of
policy of compulsory licensing of internet sites that he considered
pharmaceuticals offensive to the monarchy
LEGISLATION DEFENSE
-proposed a stricter new lese -approved the purchase of 6 JAS 39
majeste law that would make Gripen fighter aircraft from Sweden,
"contemptuous tones" and which costs 19.5 billion Baht
putting inaccurate content about
the Thai monarchy on the
Internet a criminal offense
CELEBRATION OF MONARCHY
-made celebration of the
monarchy and suppression of ABHISIT ADMINISTRATION
critical discussion of the
institution major priorities

Key Players in Politics and Economy

In Governing Coalition

 Democrat Party (Phak Prachatipat), (Occupies 173 out of 480

seats in the House of Representatives of Thailand (ca. 36%))

 Proud Thais Party (Phak Bhum Jai Thai) (founded in 2008 by

former members of the NDP), (Occupies 46 out of 480 seats in
the House of Representatives of Thailand (ca. 10%))

 Thai Nation Development Party (Phak Chart Thai Pattana)

(founded in 2008 by former members of the CTP), (Occupies 29
out of 480 seats in the House of Representatives of Thailand (ca.
6%))

 For the Motherland Party (Phak Pua Paendin) (founded in 2007),

(Occupies 26 out of 480 seats in the House of Representatives of
Thailand (ca. 5%))

 Thais United National Development Party (Phak Ruam Jai Thai

Chat Pattana) (founded in 2007), (Occupies 10 out of 480 seats
in the House of Representatives of Thailand (ca. 2%))

In Opposition
  For Thais Party (Phak Puea Thai), (Occupies 187 out of 480 seats
in the House of Representatives of Thailand (ca. 39%))

 Royalist People's Party (Phak Pracha Raj) (founded in 2006),

(Occupies 9 out of 480 seats in the House of Representatives of
Thailand (ca. 2%))

New Formed Parties

 New Politics Party (Karn Muang Mai), Parliamentary grouping of

the People's Alliance for Democracy

Banned Parties

 Thai Rak Thai Party (Phak Thai Rak Thai) – dissolved by the
Constitutional Court of Thailand on May 30, 2007 for violating
electoral laws

 People's Power Party (Phak Palang Prachachon) – dissolved by

the Constitutional Court of Thailand on December 2, 2008, for
violating electoral laws

 Thai Nation Party (Phak Chart Thai) – dissolved by the

Constitutional Court of Thailand on December 2, 2008, for
violating electoral laws

 Neutral Democratic Party (Phak Matchima) – founded in 2006,

dissolved by the Constitutional Court of Thailand on December
2, 2008, for violating electoral laws

B. Economic Environment

The economy of Thailand is an emerging economy which is

heavily export-dependent, with exports accounting for more
than two thirds of gross domestic product (GDP).

Thailand is classified as the 2nd largest economy in Southeast

Asia after Indonesia. Despite this, Thailand ranks midway in the
 wealth spread in Southeast Asia as it is the 4th richest nation
according to GDP per capita, after Singapore, Brunei and
Malaysia.

It functions as an anchor economy for the neighboring

developing economies of Laos, Burma, and Cambodia.
Thailand's recovery from the 1997–1998 Asian financial crisis
depended mainly on exports, among various other factors.
Thailand ranks high among the world's automotive export
industries along with manufacturing of electronic goods.

Most of Thailand's labor force is working in agriculture. However,

the relative contribution of agriculture to GDP has declined while
exports of goods and services have increased.

Tourism revenues are on the rise. With the instability

surrounding the recent coup and the military rule, however, the
GDP growth of Thailand has settled at around 4-5% from
previous highs of 5-7% under the previous civilian
administration, as investor and consumer confidence has been
degraded somewhat due to political uncertainty.

Main Natural Resources

• Tin, rubber, natural gas, tungsten, tantalum, timber, lead,

fish, gypsum, lignite, fluorite, and land

Main Industries

• Agriculture, Forestry and Fishing

• Mining

• Industry and Manufacturing

• Services

o Tourism

o Banking and Finance

Agriculture, Forestry and Fishing

Thailand is the world's leading exporter of rice and a major exporter of

shrimp. Other crops include coconuts, corn, rubber, soybeans,
sugarcane and tapioca.

In 1985 Thailand officially designated 25 percent of the nation's land

area for protected forests and 15 percent for timber production.
Protected forests have been set aside for conservation and recreation,
while production forests are available for the forestry industry.
Between 1992 and 2001, exports of logs and sawn timber increased
from 50,000 cubic meters to 2 million cubic meters per year.

The regional avian flu outbreak led to a contraction of Thailand's

agricultural sector during 2004, and the tsunami disaster of December
26, 2004, devastated the west coast fisheries industry.

Mining

Thailand's major minerals include fluorite, gypsum, lead, lignite,

natural gas, rubber, tantalum, tin and tungsten. The tin mining
industry has declined sharply since 1985, and so Thailand has become
a net importer of tin. As of 2008, the main mineral export was gypsum.

Thailand is the world's second largest exporter of gypsum after

Canada, even though government policy limits gypsum exports to
prevent price cuts. In 2003 Thailand produced more than 40 types of
minerals with an annual value of about US$740 million. However, more
than 80 percent of these minerals were consumed domestically.

In September 2003, in order to encourage foreign investment in the

mining industry, the government relaxed severe restrictions on mining
by foreign companies and reduced mineral royalties payable to the
state.

Industry and Manufacturing

The most important subsector of industry is manufacturing. Thailand is
becoming a center of automobile manufacturing for the Association of
Southeast Asian Nations (ASEAN) market. By 2004 automobile
production had reached 930,000 units, more than twice as much as in
2001. Two automakers active in Thailand are Toyota and Ford. The
expansion of the automotive industry has led to a boom in domestic
steel production.

Thailand's electronics industry faces competition from Malaysia and

Singapore, while its textile industry faces competition from China and
Vietnam.

Thailand is also involved in light manufacturing such as jewelry and

electric appliances, computers and parts, integrated circuits, furniture,
plastics, automobiles and automotive parts.

Services

The services sector ranges from tourism to banking and finance. It

contributed a great part of the country’s GDP and employed 37% of
the total workforce.

Tourism

The tourism industry in Thailand truly took off when US soldiers started
to arrive in the 1960s for Rest and Recuperation (R&R) during the
Vietnam War period. It has been receiving increased competition ever
since Laos, Cambodia and Vietnam opened up to international tourism
in the 1980s and 90s. Tourism makes a larger contribution to
Thailand's economy than that of any other Asian nation. . Most tourists
come to Thailand for various reasons -- mostly for the beaches and
relaxation, although with the recent insurgency in the South, Bangkok
has seen a large increase in tourism over the past 4 years. Also, a
sharp increase in American tourists has contributed largely to
Thailand's economy even though the Baht is gaining strength to the
dollar. In 2004 some 11 million tourists visited Thailand. However,
terrorism in southern Thailand and in Indonesia and natural disasters,
most notably the December 2004 tsunami, has taken their toll on
tourism. One of the negative side effects of Thailand's tourism industry
is a burgeoning sex tourism industry and a related threat from human
immunodeficiency virus/acquired immune deficiency syndrome
(HIV/AIDS).

Thailand is actively targeting niche markets such as golf holidays, or

holidays combined with medical treatment. The present monetary
crisis, the 2008–2009 Thai political crisis and the 2009 flu pandemic
have had a very negative impact on foreign tourism to Thailand. Thai
government proposed a support package to combat the tourism crisis,
amounting to 5 billion Thai baht spread over a 5 year period. This Thai
strategy aims on giving visitors a worry-free vacation while enjoying all
the value and charm of Thailand. Their current Tourism tag line is the
AMAZING THAILAND, AMAZING VALUE.

Banking and Finance

The banking industry in Thailand forms an essential segment of the

nation's financial services industry. The industry started when agents
of HSBC went to Thailand making them the first foreign bank to
establish a name in the country. Then this was followed by other
foreign banks. Due to this, the Thai government implemented the Thai
Protective Policy that limits foreign banks from having several
branches in the country, thus making local banks the dominant players
in the industry.

The industry faced a downturn when the Asian financial crisis in 1997-
1998 was triggered by dangerous levels of nonperforming assets in
Thai banks. The Thai government is attempting to strengthen the
financial sector through the consolidation of commercial, state-owned,
and foreign-owned institutions. The government provides tax breaks
to financial institutions that engage in mergers and acquisitions, and
this reform was deemed successful having several mergers and
acquisitions following the announcement of the reform.
EXPORTS OF THAILAND

$178.4 billion f.o.b. (2008 est.) country comparison to the world: 26th

Exports - commodities:

textiles and footwear, fishery products, rice, rubber, jewelry,

automobiles, computers and electrical appliances

Export Partners:

US 12.6%, Japan 11.9%, China 9.7%, Singapore 6.3%, Hong Kong

5.7%, Malaysia 5.1%

Japan is almost near to becoming Thailand's largest export

destination, giving credits to tariff cuts under the Japan-Thailand
Economic Partnership Agreement (JTEPA).

Recovery from the financial crisis depended heavily on increased

exports to the rest of Asia and the United States.

Thailand has joined the ranks of the world's top ten automobile
exporting nations.

Thailand's implementation of more outward-oriented policies, which

include placing export and domestic sectors on a more equal
footing, have created a more open economy and have increased the
exposure of Thailand's industry to international competition.

IMPORTS OF THAILAND

$ 179 billion f.o.b. (2008 est.) country comparison to the world: 25th

Imports - Commodities:

capital goods, intermediate goods and raw materials, consumer

goods, fuels, oil
Imports – Partners:

Japan 20.3%, China 11.6%, US 6.8%, Malaysia 6.2%, UAE 4.9%,

Singapore 4.5%, Taiwan 4.1% (2007)

TRADE AGREEMENTS AND ORGANIZATIONS

 Japan-Thailand Economic Partnership Agreement (JTEPA)

member of the World Trade Organization (WTO) and the Cairns

Group of agricultural exporters

 Part of the ASEAN Free Trade Area (AFTA)

 It has actively pursued free trade agreements, a China-

Thailand Free Trade Agreement (FTA) commenced in October
2003. This agreement was limited to agricultural products,
with a more comprehensive FTA to be agreed upon by 2010

 Thailand also has a limited Free Trade Agreement with India,

which commenced in 2003; and a comprehensive Australia-
Thailand Free Trade Agreement which started 1 January 2005.

 Thailand started free trade negotiations with Japan in February

2004, and an in-principle agreement was agreed in September
2005. Negotiations for a US-Thailand Free Trade Agreement
are underway, with the fifth round of meetings held in
November 2005

MAJOR ACCOMPLISHMENTS OF THAILAND

 Exports -No. 1 exporter of rice in southeast asia

 Education - New legislation allowing all children in Thailand

regardless of ethnicity or citizenship status to attend regular
schools

 Only nation in SEA that was not colonized

  One of the top manufacturers of automobile

PRESENT CONCERNS/PROBLEMS –Economic

 Economic recession

 Unemployment in January 2009 soared by 880,000 compared to

December

 Abhisit responded to the crisis with borrowing and increasing the

budget deficit, handouts, and general budget cuts. In order to
finance his stimulus program, Abhisit successfully rescinded a law
that banned it from borrowing more than 20% percent of its
spending

 Abhisit on poverty - approved the one-time issuance of 2,000 Baht

(approximately 75 USD) checks to people making less than 15,000
Baht (approximately $500) a month.

 From 2004 to 2006, Thailand’s poverty headcount fell by almost 2

percentage points (over 1 million people) with most of the
reduction occurring in rural areas. This trend is expected to have
continued in 2007 and early 2008. But there is evidence that the
urban poor, as well as the rural poor engaged in fishing and other
non-farm activities have been adversely affected by the higher
food prices

PRESENT CONCERNS/PROBLEMS –Political

South Thailand insurgency

 It has produced several human rights issues on both sides

(government and insurgents)

 Poverty and economic problems have also been cited as a

 factor behind the insurgency

 Muslims in the border provinces have lower levels of

educational attainment compared to their Buddhist
neighbours

 they also had reduced employment opportunities

Escalation of Violence

 On 22 November 2006, Wan Kadir Che Wan, leader of

Bersatu, an umbrella organization for southern separatist
groups, told Al Jazeera television that the Al-Qaeda-linked
Jemaah Islamiyah (JI) terrorist network was helping local
insurgents stage attacks in Thailand

PRESENT CONCERNS/PROBLEMS –Environmental

 Deforestation

Efforts to convert forested land for agriculture, such as slash-

and-burn agriculture, have greatly reduced forest cover in
Thailand in the past.

 Overfishing

Excessive fishing has reduced fish catches by as much as

90%. For small-scale fisher folk, decreasing catches are
leading to conflicts with commercial operators.

 Pollution
Thailand’s industrial expansion and population growth have
caused increased pollution levels. A decrease in air quality is
also causing major health impacts.

As a result of growing untreated domestic and industrial

wastewater and solid hazardous wastes, approximately one
third of Thailand’s surface water bodies are considered to be
 of poor quality. Pollution also affects the marine
environment. Red tides, caused by excessive algal growth
and a result of pollution, oil spills, and invasive species are
some of the factors that are affecting Thailand's marine
biodiversity.

OPPORTUNITIES OF THAILAND

 Tourism is recognized as one of the fastest growing industries

in the world. Tourism activities entail economic, social and
environmental benefits as well as adverse impacts

 Thailand is heavily engaged in promoting tourism along the

Asian Highway Network. Therefore, a plan of action for
sustainable tourism needs to be integrated and implemented in
the country

 Promoting the use of ethanol as a substitute of oil petroleum to

prevent further higher consumption of oil than production

 Promotion of medical tourism

 Taking advantage of opportunities in automobile export (tying

up with multi-national automobile companies)

 Developing agriculture to increase export on major crops

INTERNATIONAL CONFLICTS

 separatist violence in Thailand's predominantly Muslim southern

provinces prompt border closures and controls with Malaysia to
stem terrorist activities;
  talks continue on completion of demarcation with Laos but
disputes remain over several islands in the Mekong River

 Cambodia and Thailand dispute sections of historic boundary

with missing boundary markers;

 In 2004, international environmentalist pressure prompted China

to halt construction of 13 dams on the Salween River that flows
through China, Burma, and Thailand

THREATS TO THE FUTURE

Agriculture

 Major source of agricultural growth is the expansion of cultivated

land at the expense of forest area

 Due to climate change, water shortages could be experienced—

would yield negative impact on agriculture

 This may adversely affect the production of crops for exports

Political Instability

Sustained South Thailand Insurgency

Growing Sex Tourism

EVENTS – GLOBAL IMPACT

 The Asian financial crash and economic crisis originated in

Thailand in the summer of 1997

 Global Recession

 Tsunami in 2004

 Avian Flu Outbreak

 SWOT ANALYSIS

STRENGTHS
-1ST –Exporter of rice
-Growing industry of Tourism
-Growing export industry of
automobiles
-leading exporter of mining
minerals
OPPORTUNITES
-Use of ethanol as a substitute
for petroleum
-Increase Exports by
developing agriculture, auto
and other export industries
-Sustainable Tourism
-Medical Tourism
WEAKNESSES
- Political Instability
- Insurgency
-Greater Oil Consumption than
Oil Production
- Negative Balance of Trade
(higher imports than exports)
-High rate of corruption (CI-3.6
ranked 84th –world; 14th – SEA)
THREATS
-sustained South Thai Insurgency
-future political crackdown
-climate change
-growing sex tourism

MULTINATIONAL COMPANIES

AUTO ALLIANCE THAILAND

AutoAlliance (Thailand) Co., Ltd. was established in November 1995

as a joint venture company between Ford Motor Company and
Mazda Motor Corporation, to produce pickup trucks for both local
and overseas markers. Ford, which own 50% of the company's
shares, is the major share holder while Mazda, with 45%, hold a
slightly smaller stake. The remaining 5% stake is of Mazda Sales
(Thailand) Co., Ltd.

AAT invested over US$ 500 million on building the first state-of-the
art integrated vehicle automobile manufacturing plant in Thailand,
which comprises stamping, body construction, paint, engine, trim &
final assemble, and KD packing sectors. The company located on an
area of 529 rai in the Eastern Seaboard Industrial Estate, Rayong
Province, is granted promotional privileges by the Board of
Investment (BOI).

AAT is a global success story for Ford and Mazda worldwide; they
are recognized as a "Center of Excellence for Quality" exporting to
more than 130 countries.

As a Ford and Mazda joint venture, AAT helps set the standards of
automobile manufacturing in Thailand.

Back in year 1995, Ford and Mazda were attracted to Thailand's

potential as an automotive hub, and their decision to jointly
establish AAT made Thailand an important manufacturing base for
both their local and foreign markets.

The AutoAlliance facility currently produces three major models –

the Ford New Ranger, Mazda BT 50 and Ford Everest.

WEGO TRADING CO., LTD.

Established by a group of companies involved in selling cars for

more than 30 years, WEGO TRADING CO., LTD., is an exporter in
Sub Utility Vehicles and Pick-up Trucks. With export clients from
different parts of the world, the company ensures quality and
service to the best. .

They supply accessories and spare parts for the vehicles concerned.
Toyota, Ford, Isuzu, Mitsubishi, Nissan, Mazda and
Chevrolet are the different range of vehicles they supply.
.

DUTCH MILL CO., LTD.

Dutch Mill Co., Ltd. is one of Thailand's largest manufacturers and

marketers of dairy products. The company has such products as
UHT yoghurt drink, UHT fresh milk and ice lolly. The company was
established in 1984 under the name of Profood Co., Ltd. and was
renamed Dutch Mill Co., Ltd. in 1991. Dutch Mill employs a total of
1,300 employees including 11 engineers and 10 quality assurance
staff. Its market is in East and Southeast Asia including the
Philippines

They are currently in partnership with Monde Nissin Corporation in

the distribution of Dutch Mill products in the Philippines