The Situation and Legal Problems of Thai Jewelry Business that Hinder Outward Foreign Direct Investment: A Case Study of the Investment of Thai Jewelry Business in Vietnam
Article Sidebar
Main Article Content
Abstract
Thailand is another important jewelry market in the world with prospect to continue growing in the future owing to the skilled workmanship and the unique patterns and designs of jewelry in the middle to hi-end level. Nevertheless, Thailand's jewelry industry has been impacted by a number of factors, including shortage of raw materials in the country, which has led to the relocation of production bases to countries with raw materials. In addition, the higher minimum wages and shortage of labor in the country are some of the factors to push the owner of jewelry business to have the factory to other countries which have plenty and cheaper labor cost. Currently, the rate of wages in Thailand is higher than that of neighboring countries including Vietnam. Another push factor is that the domestic market is not growing as predicted. There are many different stages of jewelry business which can be related to foreign direct investment. Stage of business is related to the decision on the suitable host country, for example, in case those entrepreneurs would like to set up production bases, they may decide to invest directly in foreign countries with lower production resources and wages. Differently, in case that the owner of jewelry business in Thailand has the main goal to expand the market, he may need to have stores in the country with high purchasing power. To consider all relevant factors, one of the most attractive countries to invest in jewelry business is Vietnam. Although Vietnam is an attractive market for Thai jewelry manufacturing and distribution businesses, there are many obstacles to hinder outward foreign direct investment of Thai entrepreneurs. All obstacles cannot be solved by entrepreneurs themselves; therefore, the support by legal instruments, measures and government agencies concerned is important to increase the efficiency and success of the investment.
Article Details
The copyright in this website and the material on this website (including without limitation the text, computer code, artwork, photographs, images, music, audio material, video material and audio-visual material on this website) is owned by Chulalongkorn Law Journal and its licensors.
1. Chulalongkorn Law Journal grants to you a worldwide non-exclusive royalty-free revocable license to:
- view this website and the material on this website on a computer or mobile device via a web browser;
- copy and store this website and the material on this website in your web browser cache memory; and
- print pages from this website for your use.
- All articles published by Chulalongkorn Law Journal are licensed under the Creative Commons Attribution 4.0 International License. This permits anyone to copy, redistribute, remix, transmit and adapt the work provided the original work and source is appropriately cited.
2. Chulalongkorn Law Journal does not grant you any other rights in relation to this website or the material on this website. In other words, all other rights are reserved. For the avoidance of doubt, you must not adapt, edit, change, transform, publish, republish, distribute, redistribute, broadcast, rebroadcast or show or play in public this website or the material on this website (in any form or media) without appropriately and conspicuously citing the original work and source or Chulalongkorn Law Journal prior written permission.
3. You may request permission to use the copyright materials on this website by writing to [email protected].
4. Chulalongkorn Law Journal takes the protection of its copyright very seriously. If Chulalongkorn Law Journal discovers that you have used its copyright materials in contravention of the license above, Chulalongkorn Law Journal may bring legal proceedings against you seeking monetary damages and an injunction to stop you using those materials. You could also be ordered to pay legal costs.
If you become aware of any use of Chulalongkorn Law Journal's copyright materials that contravenes or may contravene the license above or any material on the website that you believe infringes your or any other person's copyright, please report this by email to [email protected].