A COMPARISON STUDY OF FDI-RELATED POLICIES BETWEEN THAILAND AND VIETNAM TO ATTRACT ELECTRIC VEHICLE MANUFACTURING SECTOR INVESTMENT

Abstract

Changing conventional vehicles to electric vehicle (EV) is one way to reduce or even eliminate CO2 emissions gradually. EV is a new sector, so foreign direct investment (FDI) is one that is needed to help develop EV. It is a challenge for Thailand and Vietnam in competing to attract foreign direct investment intended for the EV sector which is still new in Southeast Asia, with the EV market situation that is still under development and the addition of public facilities adapted for EV. This research study aims to determine how the Porter Classic Diamond Model analyzes the competitiveness of Thailand and Vietnam to attract foreign direct investment. Furthermore, a more in-depth analysis will be presented to determine one country that has great potential in attracting more foreign direct investment which is allocated to the EV sector. The purpose of this research is to compare Thailand and Vietnam for benchmarking in foreign investment, to analyze the competitiveness between Thailand and Vietnam using the Porter Classic Diamond Model, and to be considered by investors before investing in Thailand and Vietnam. The research method used to collect data in this study is a qualitative method by applying Porters Classic Diamond Model in analyzing variables. Reference is obtained from primary data, namely official government written documents from Ministry of Labour Thailand, EV Association Thailand (EVAT), Board of Investment Thailand, National Economic and Social Development Council, Socialist Republic of Vietnam, Foreign Investment Agency Vietnam, as well as Departement of Statistics Ho Chi Minh City and secondary data, namely journals, reports, official websites or online media related to the scope of research. The results of the study show that Thailand has a greater potential to attract foreign investment in EV in the future compared to Vietnam.