Now that the Kingdom's political scene has calmed down, the US-Asean Business Council is moving quickly to tighten trade and investment cooperation by resuming its trade mission to Bangkok late next month.
The US agency was initially planning to visit in March, but the trip had to be postponed due to the red-shirt rally.
In an interview with The Nation, Anthony Nelson, manager of the US-Asean Business Council on communications, marketing and the press, said that despite the political unrest, Thailand still offered strong partnership opportunities and had good economic fundamentals.
"There are a number of risk factors in every country and political instability is one of the investors' concerns. However, as long as US investors make money in this country, they will not go anywhere else," he said.
Nelson also added that Thailand had great potential in becoming a base for high-level US investment projects. Businesses eyed by American investors include telecommunications, infrastructure development, clean energy and healthcare.
If the government were able to clear up the regulations at the Map Ta Phut industrial estate, investors would not mind following the rules. He also encouraged the government to use this as an opportunity to clarify foreign investors' issues of concern so they have a clear idea about the rules and problems.
The other factor affecting investors' confidence is intellectual property violation. He pointed out that investors were worried about the huge losses incurred every year by illegal goods and IP infringement. But confidence will be boosted if the government continues cracking down on copycat producers.
In addition, he said, the Asean Economic Community was also making Thailand and the Asean region more attractive to American investors. The region has a combined population of nearly 600 million people and a gross domestic product worth US$1.5 trillion (Bt48.6 trillion), which translates to a much larger market and more export opportunities.
With Vietnam growing rapidly, American companies are eyeing that country for investments in basic manufacturing and developing infrastructure. However, Thailand is still a favoured investment destination because it is more developed, Nelson said.
During the US-Asean Business Council's mission in Bangkok next month, American business leaders will meet the prime minister, commerce minister, industry minister and Thailand Trade Representatives as part of a special forum.
The mission is part of the council's move to tighten its relationship with the government and the private sector. It also aims to increase trade and investment between both sides.
US firms participating in overseas missions include Bunge, Caterpillar, Chevron, Coca-Cola Company, ConocoPhillips, Dow, ExxonMobil, Ford Motors, General Dynamics, General Electric, Hanesbrands, IBM, JP Morgan, Levi Strauss, Microsoft, Monsanto, NewsCorporation, Oracle, Procter & Gamble, Raytheon and UPS.
According to the Board of Investment, US firms are the fourth largest foreign investors in terms of the number of projects. Last year, they applied for 56 projects and in the first five months of this year they had made investments worth Bt1.3 billion. The Commerce Ministry has reported that Thai exports to the US this year have accounted for 9.7 per cent of the total export value, with a 21.7 per cent increase to $7.29 billion. Imports from the US grew 35.4 per cent worth $4.19 billion.