CLMV economies, 5 years down the road: how will Thailand embrace the opportunities?
Published in EIC Outlook q3/2016
The CLMV economies, which consist of Cambodia, Laos, Myanmar, and Vietnam, have experienced rapid economic growth and attracted an influx of foreign investment because of their low wages, trade privileges granted as less developed countries, and abundance of natural resources. For the next 5 years, EIC thinks that Vietnam has the potential to step up and become an efficiency-driven economy through improving its production technology and labor efficiency. Myanmar, Cambodia and Laos, however, still face limitations especially in underdeveloped institutions and basic infrastructure.
Thailand’s industries have shown potential and are increasingly connected with the CLMV through growing trade and tax incentives as well as investment to obtain access to various resources. The CLMV economies are currently going through important transitions, both politically and economically regarding their industrial policies. In addition to understanding industrial trends and potentials in the CLMV, an ingredient for successful investment in CLMV is forming a reliable business partnership or counselor to provide advice on doing business in CLMV.