Thailand Economic System

Thailand implements a controlled floating exchange rate system, pricing to market forces on the Thai baht, and the Thai central bank would only intervene in the market when necessary, in order to avoid excessive exchange rate volatility to the expected impact of economic policies. At present, the global economic slowdown, domestic demand is not good in Thailand. In order to keep the country's export competitiveness, the Bank of Thailand is more inclined to let the baht weaken.

Trade and investment barriers

(1). Trade barriers

Thailand establishes a lot of policies to control and protect the import and exports goods, Thailand control and manage the quotas of import goods, import license administration, and export registration, export quotas, export licensing administration. Other supporting measures are tariffs, domestic taxes levied, and import surcharges and special taxes to protect and support the export of particularindustries.Protection measures include security measures, anti-dumping and countervailing and technical barriers to trade.

1.1 Not entirely transparent or fair "anti-dumping and countervailing duty laws"

In 1995, the Thai Ministry of Commerce promulgated the "Ministry of Commerce on anti-dumping and countervailing duty notice," the notice contained in many of the specific requirements and procedures interpreted by the Department of Commerce Foreign Trade. In July 1999, a new "anti-dumping and countervailing duty laws" promulgated; however, the Department of Commerce Foreign Trade did notexplain many of the specific provisions. This time lag causes any possible interpretation in the future. In addition, there was no English version for many other trade-related laws and regulations.

1.2Technical Barrier...

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...onal trade and investment agreements Thailand is more open than before but the production of dairy products, automobile engines and motorcycle assembly are still subject to local manufacturing content, Thailand restrictions.

Other risks

First is the language communication problem. Thai is the official language of Thailand, all Thai laws and regulations are written in Thai, and this brings difficulties to foreign investors. And in local culture, people generally emphasis on the status and relationships, so it will increase the foreign investment in intangible costs.

Second is intellectual property protection problem. Overall, Thailand attaches great importance to intellectual property rights, but in software development there are still some problems. In recent years, the Thai Government puts a lot of effort this situation, and it becomes better.