A Model of Chinese Government Promotion towards Business Investment of Chinese Investors in Thailand

Abstract

The research entitles "A model for promoting the government of the People's Republic of China in supporting Chinese businessmen to invest and trade in Thailand" aimed to study promotion methods of the government of the People's Republic of China in various aspects that supports Chinese businessmen in trading and investment in Thailand in order to present the appropriate guidelines for promotion from the People's Republic of China to present to various agencies that may concern to be applied to the Thailand context by conducting qualitative research and quantitative research. The researcher collected data with mixed methods research which combined the advantages of qualitative research and Quantitative research to answer research objectives. The researcher conducted the qualitative research first by in-depth interview in order to obtain reliable insights from a sample group for qualitative research. This in-depth interview consisted of 23 participants who were 1 Chinese scholar, 1 Thai-Chinese Executive of Association of Investor Promotion, 1 representative of Chinese industrial estate in Amata City Industrial Estate, and 20 Chinese business or agents who invested trading in Thailand in the Eastern industrial estate area based on the convenient time and location of the participants. Then, quantitative research was carried out in the PESTLE Model framework by collecting data from the sample of Chinese businessmen in the industrial estate area. After that, the data was analyzed by using the SPSS program, which was an analysis of research statistics using descriptive statistics, including frequency, percentage, mean and standard deviation in order to confirm the results from in-depth information of the obvious and meaningful methods to promote businessmen. The results from qualitative research showed that 1) the policy issues was distinctively clarified which was due to the strong political situation regarded as the part of the policy to enhance continuous and concrete policy, together with the cooperation of all government and private sectors together to propel. In addition, the government promoted and stimulated important projects to support policies such as “One Belt One Road project” that focused on the infrastructure, and then conducted patenting all items to contribute negotiating power, 2) motivation and facilitation issues supported by the government in funding support on operating business as well as facilitating various aspects such as establishing a bank in a foreign country, organizing seminar to business partners matching, and creating a guideline relating all countries in which Chinese businessmen invested, 3) international investment issues that the Chinese government participated in various key organizations around the world such as the WTO as well as ASEAN Economic Community in order to create a better and stronger relationship with many countries in terms of investment and trades, 4) national context issues which was cultivated a distinctive feature that was regarded as the strength of the Chinese society referring to succession of knowledge from ancestors and important concepts and strategies in trading. Besides, there was an effort to build a strong network both in the country and abroad in order to gather together to help each other when the problem occurred, and 5) Which is currently the 13th edition, which is environmental importance Therefore, other related issues according to the government policy as designated in the present National Economic and Social Development Plan: Edition 13 focusing on meet environmental standards. To clarify, any companies that did not meet the standard requirement were recommended to stop the business in China, and encouraged to do business abroad; however, still under the Chinese government’s support. The results from quantitative research showed that the mean and standard deviation of the level of opinions of Chinese businessmen or agents concerning the a model for promoting Chinese businessmen to invest in trading in Thailand were at high levels in all aspects ( X ̅ = 3.64; SD = .629) as considered item by item from highest to lowest as follows: in political aspects, policy and promotion of the People's Republic of China in supporting Chinese investors for investing and trading in Thailand ( X ̅ = 3.74; SD = .683), environmental aspect (Safety, appropriateness of investment and livelihoods) ( X ̅ = 3.70; SD = .788), technological and innovative aspect (X ̅ = 3.64; SD = .864), Social and cultural aspects (X ̅ = 3.63; SD = .699), economy and investment aspects (X ̅ = 3.60; SD = .728), and laws and regulation aspect (X ̅ = 3.55; SD = .785) respectively. In summary, the quantitative research results were consistent with the qualitative research results. Chinese businessmen had a positive confidence in the politics under strong government administration that it would be able to lead to continuous improvement and stability. Then, the aspect of the suitable environment for the investment, when investing, there would be a possibility that the business would be able to proceed to success subject to conducive investment with state-of-the art technology for all business operations. In terms of society and culture, it was regarded as the influential factors affecting Chinese businessmen’s decision to invest in Thailand although there were some business groups who did not give priority to the relationship between Thailand and China. However, it could not be denied that relationships for many decades created a social foundation and cultural learning between two countries leading to current trade and investment. Finally, the laws and regulations that facilitated investment was regarded the last priority affecting Chinese businessmen’ decision to invest. That was because there was a network of associations to assist and provide crucial information. Although the Thai labor law would extremely benefit Thai workers, but it was considered worth compared to the quality they obtained.