Factors and Legal Impacts on the Investment of Thailand with CLMV

Abstract

At the present time, Thailand is facing the effects of rapid change in the global economy. Economic cooperation with other countries is probably to be a proper solution for Thailand. The CLMV countries are considered to be a suitable group to trade and investment for Thailand. Thailand deems that the CLMV countries will be an important mechanism to strengthen Thailand’s domestic and international economy. Thailand has an advantage in respect of geography due to Thailand has adjacent areas with the CLMV group. Thailand’s public utility and transportation are efficient, which the CLMV countries still need to rely on.

The CLMV countries are experiencing the effects of rapid economic growth. The international market has speedily increased purchasing power; accordingly, the domestic business of the CLMV countries may not encounter the world market’s power of purchasing. For this reason, the CLMV countries need to import goods and services from other countries, especially products and services from Thailand, which are always popular with the CLMV countries. Thailand has recognized this opportunity to invest in the CLMV countries; consequently, Thailand has cooperated with the CLMV countries, which is now called the CLMV group. Even though the CLMV countries have been members of ASEAN, the collaboration of the CLMV countries is not easy to operate due to the differences in the context of each country, particularly the difference in law enforcement. In the matter of the existence of laws, some countries have announced and enforced the laws for a long time, while some countries have not enacted the law yet. The CLMV countries’ law enforcement has merely enforced within their own territory. In order to gain the benefits from this cooperation, the CLMV countries ought to have regulations to operate the group’s economy. The regulations will establish the unity of the CLMV countries’ investments. It will also provide more choices to foreign investors. Moreover, the member countries of the CLMV may independently move their goods and labor. They may also help and share their own resources with other member countries to develop the more equitable economy in the CLMV group.