Thamrong Mahajachariyawong, deputy BoI secretary-general, said China would be the most active investor among Asian countries, as the Chinese government - aware of the high foreign-exchange reserves at home - has a policy to promote overseas investment to ease pressure on the yuan.

Beijing has encouraged those wanting to invest abroad by offering low interest rates on loans to support their industries' efforts.

Thailand, meanwhile, welcomes Chinese investment in sectors such as machinery, electrical appliances, electrical parts, and processed agricultural goods such as rubber, tapioca and herbal industries.

The BoI expects that investment from China this year, through the agency, will be 20 per cent higher than last year.

Japanese investors have long been the biggest investors in Thailand, but this year, the growth of applications from Japanese wanting to invest here may be less than 20 per cent if the government does not approve the eco-car project.

If the project goes ahead, growth will be higher than 20 per cent.

Thamrong said that in a recent survey by the Japanese Chamber of Commerce, a number of the respondents said their confidence had been affected by the Bank of Thailand's decision to impose the 30-per-cent capital-control measure.

However, he said a recent survey by the Japan Bank for International Cooperation showed that Thailand remained an attractive destination. Of the 6,000 Japanese companies worldwide, those in the Kingdom are the most profitable.

He also said that once a free-trade agreement between Thailand and Japan is signed in April, as expected, investment between the two countries would continue to increase further.

Chalida  Ekvitthayavechnukul

The Nation