According to Thai government statistics, ROC businesses applied to invest US$2.1 billion in Thailand in 1988. That figure was second only to Japan's US$5.8 billion, ahead of the U.S.'s, and the ROC was tops in the number of applications.

As of May 1988, more than 300 ROC firms had already invested in Thailand.

In a speech last year analyzing the various environments for overseas investment, the chief of the Promotion Division of the Industrial Development and Investment Center in the ROC's Ministry of Economic Affairs, Steve Wu, stated quite clearly that the best place for Taiwan's small and mediumsized businesses to invest is Southeast Asia and that the best country there is Thailand.

"Thailand aims to become Asia's fifth little dragon, after the ROC, Hong Kong, Singapore, and South Korea," Wu has said. To encourage growth, the country welcomes investors from around the world with open arms, granting them privileges in tariffs and various other conditions.

Just what advantages does Thailand offer to attract investors to cross the waters and set up shop in a foreign land?

A glance at the "Relative Evaluation Chart of Investment Environments in Southeast Asian Countries," published by the Industrial Development and Investment Center, reveals that Thailand earns top marks for political stability, ethnic policy, labor-management relations, exchange rate stability, and GSP privileges.

Low wages are another important factor in attracting investment. The average monthly pay is about US$70 to US$90 for laborers, US$130 to US$290 for mid-level personnel, and US$330 to US$545 for managers and above. That's about one-fifth the scale on Taiwan.

In addition, Thailand, which has been called the granary of Asia, is comparatively large and rich in resources. Its surface area of 510,000 square kilometers is about 15 times that of Taiwan's, so real estate is easy to come by.

A low cost-of-living index is also good news for investors. Food, clothing, housing, and transportation are about one-fourth what they are on Taiwan.

As to geographical location, Thailand is situated at the heart of the Indochina Peninsula, about three and a half hours from Taiwan by air with convenient access to all the major continents.

All these plusses do indeed make an investor's heart beat faster. No wonder that business people continue to flock there in droves.

Generally speaking, the best lines for investment there are labor-intensive industries, such as garments, footwear, handbags, hardware, sports equipment, auto parts, toys, bicycles, and promotional gifts.

But while Thailand may be an investor's paradise, it's not a perfect, flawless heaven. Some points must be noted carefully.

Thailand has a work force of 25 million and an unemployment rate of 6.4 percent, so labor is still not tight. But under its present labor laws, workers do have the right to strike. And when they face off with management in courts, they often win the benefit of the doubt. "Decisions against management are already commonplace," one owner gripes. And if the company demands that they work overtime, employees can refuse.

So gaining a thorough understanding of the applicable laws and regulations before-hand is the heartfelt advice of one person who speaks from experience.

Also, the costs of setting up a factory in Thailand are generally higher than they are on Taiwan or in South Korea.

Thailand law stipulates that at least 51 percent of a company's shares should be held by Thai stockholders, and investors who have been through it agree that choosing partners is crucial and requires careful attention.

Firms with a high proportion of export business, however, can have a majority of foreign ownership, and a company that exports 100 percent of its production can be completely foreign owned.

In addition, Thailand strictly enforces its laws on foreign residency. Chinese citizens may not apply for permanent residence, but obtaining legal investment residence or a foreign worker's permit is not as difficult as might be imagined.

And there are quite a few other headaches in store for investors as well.

Thailand has not managed very well to keep pace with rapid development and the influx of foreign investment in terms of its infrastructure. Transportation snarls, water and electricity shortages, faulty communications, crowded seaports, troublesome customs procedures, and bureaucratic inefficiency are all a concern to investors.

If raw materials are tied up and production has to be halted, then that spells late delivery, which is a big no-no in business.

Exclaims one manager of an electrical equipment company: "All the problems we imagined beforehand happened, and so did ones we hadn't!"

Investing overseas always has an element of risk and uncertainty, so asking around and visiting the place in person to understand the relevant laws and regulations, the local customs, and the industrial structure are all required homework assignments for the potential investor. Making a thorough plan and evaluating its practicability before setting out won't mean being too late.

A measured pace, and you can stride along the bright, broad highway. Otherwise you may find yourself headed in the wrong direction.

[Picture Caption]

The resplendent Royal Palace is a must for tourists.

This ROC company makes athletic shoe uppers in Thailand.

The Toyo Industrial Co., which manufactures Christmas lights, is one of the few overseas factories with integrated production.

Thai dancing is lovely and graceful, and the dancers are filled with an Oriental charm.

This shiny gold statue says "Thailand" at a glance.

This factory, located in an industrial district outside Bangkok, is owned by an ROC entrepreneur.

The Taiwan & Thai Industrial Development Service Center, located in Bangkok, provides Chinese citizens with investment information. On the left is the director, Jimmy Wu.

Thailand's fruit and seafood are tourist favorites. This appetizing little stand is on Phuket.

ROC invest ment provides jobs for local workers. These workers are taking their noon break while building a factory for a Chinese firm.

This ROC company makes athletic shoe uppers in Thailand.

The Toyo Industrial Co., which manufactures Christmas lights, is one of the few overseas factories with integrated production.

Thai dancing is lovely and graceful, and the dancers are filled with an Oriental charm.

This shiny gold statue says "Thailand" at a glance.

This factory, located in an industrial district outside Bangkok, is owned by an ROC entrepreneur.

The Taiwan & Thai Industrial Development Service Center, located in Bangkok, provides Chinese citizens with investment information. On the left is the director, Jimmy Wu.

Thailand's fruit and seafood are tourist favorites. This appetizing little stand is on Phuket.

ROC invest ment provides jobs for local workers. These workers are taking their noon break while building a factory for a Chinese firm.