1 AIT Asian Institute of Technology

Taiwan Foreign Direct Investment in the electronics industry of Thailand

AuthorHuang, Ping-sheng
Call NumberAIT RSPR no. SM-95-4
Subject(s)Investments, Taiwan--Thailand
NoteA research submitted in partial fulfillment of the requirement for the degree of Master of Business Administration, School of Management
PublisherAsian Institute of Technology
AbstractForeign Direct Investments (FDls) were mainly generated by industrial countries before 1985. For Taiwan, FDis have been increased rapidly since 1986. This research tried to study the reasons why Taiwan increased FDis. Taiwan FDI in the electronics industry of Thailand was chose as target for effecting this research. The framework of study included: 1) evolution of macroeconomic environment pushing Taiwanese overseas investments; 2) characteristics of Taiwanese overseas investments in the electronics industry of Thailand; 3) motivations and advantages of Taiwanese overseas investments in the electronics industry of Thailand; 4) Thailand's incentives for promoting foreign direct investments; 5) practices of Taiwanese overseas investments in the electronics industry of Thailand; and 6) performance and problems of Taiwanese overseas investments in the electronics industry of Thailand. Basing on the framework, the questionnaire set was developed for surveying the companies invested by Taiwanese. Second data were also used to assist the study. The significant findings of this research are listed below. The most important two factors pushing Taiwan companies invested of Thailand were the increases of labor cost and appreciation of New Taiwan dollar. The using of technological advantage and management techniques was evaluated as the most important motivation by surveyed companies. Thailand was chosen as host country due to its cheap labor force; import duty reduction; political stability and preferential tariffs provided by developed countries. The surveyed companies were relatively strong in the technology of production but weak in the development of products. They needed to import key inputs which dominated production cost for further processing. The sources of the inputs of surveyed companies were mainly Taiwan and the third countries. Most of the surveyed companies presented better performance than local companies. The most important two problems facing the companies were lack of adequate talent and communication problems with local employees. By comparing the findings in this research with some Asian countries, Taiwan FDis may be necessary under the current situations of economy, but the government should focus on the promotion of domestic investment for long-term economic development. At the last of this research, suggestions were submitted for further researchers' reference, and also gave some recommendations to host country, Surveyed companies and home country.
Year1995
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, John C.S.
Examination Committee(s)Ramanathan K. ;Kim, Y. B.
Scholarship Donor(s)Taipei City Government, R.O.C.
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 1995


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