5 October 1995
The survey was conducted by the Australian Embassy in Bangkok and the Australian Thai Chamber of Commerce. Of the 46 companies surveyed, 22 are fully owned branches, agencies or subsidiaries, 23 are joint ventures with one or more Thai firms or investors, and one company is still determining its operational structure.
Senator McMullan said the survey shows Australian companies, on average, reach profitability in 3.1 years of operation in Thailand.
"The surveyed companies indicated their performance had met or exceeded expectations, with 85 per cent already profitable or expecting to be profitable by January 1996," Senator McMullan said.
"Benefits flow to Australia directly through royalties and technical fees, and indirectly because 69 per cent of the companies import goods and services from Australia.
"In the three surveyed sectors - services, construction, and manufacturing - the companies' decisions to invest and their subsequent expansion plans were influenced by Thailand's domestic economic strength and strategic location.
"The Thai economy has been growing at an average nine per cent per year over the last ten years, and projections for the next decade show continued dynamism with anticipated growth of between seven and eight per cent per year.
"Thailand's location at the centre of mainland South East Asia places it in the middle of the rapidly industrialising Asia-Pacific region, which is characterised by fast growing consumer demand.
"The survey showed other attractions for Australian firms were investment incentives offered by Thailand's Board of Investment and relatively low labour costs. On the other hand, major impediments are shortages of skilled labour, work permit and visa problems for expatriate managers, high import duties and bureaucratic processes," Senator McMullan said.
Further information: John Flannery, (06) 277 7420