The latest figures show that Korean FDIs here are only one-tenth and one-fourth of Korean FDIs in Vietnam and Malaysia.

At issue is Thailand’s inability to attract more Korean firms to invest here. This was recognised by Deputy Premier Dr Somkid Jatusripitak, who recently led a delegation to Korea to learn first hand the various problems hindering Korean FDIs in the country.

As Asia’s fourth largest economy and a member of the G-20 grouping of major economies, Korea plays a key role in the global economy. It’s also the world’s sixth largest exporter with shipments worth $526 billion in 2015.

In a bid to diversify Thailand’s foreign investor base, it’s necessary to step up efforts to woo more Korean firms to put their long-term money here.

According to Noh Kwang-il, the Republic of Korea’s ambassador, Korean firms in the 1990s viewed Thailand as a vast market – but most of the business sectors were already dominated by Japanese companies.

If a Korean firm invested, say, $100 million here, the return might be small – so most Korean firms have been looking at other alternative host countries.

Vietnam was seen as more attractive, especially after the country opened up its economy following the adoption of Doi Moi or economic reform policy. In addition, Japanese competitors were cautious about Vietnam back then due to its communist regime – but big Korean firms such as Daewoo and Posco took risks and went ahead with their projects.

Other Korean firms followed suit and reaped higher returns on their investments. Today, Korea is Vietnam’s largest foreign investor.

Besides Vietnam, Indonesia is another choice for Korean investors – seen as more attractive than Thailand due to Indonesia’s much bigger population of over 250 million and its economy being the largest among the 10-country Asean Economic Community.

During his official visit to South Korea, Somkid expressed concern at Thailand’s performance in the eyes of Korean investors. As a host country, he offered Korean firms several investment opportunities for infrastructure projects, including for water and flood prevention management, as well as railway construction.

K-water of Korea, for example, was given hope for the revival of its water management project in Thailand awarded by the previous government but suspended following the 2014 coup. However, there has been no progress on project revival so far.

Meantime, Korean firms were also asked to study the feasibility of an upper East-West economic corridor railway link to connect Thailand with Myanmar and Laos.

In other words, Somkid believed, major Korean firms needed a big boost from the Thai government to kick-start mega-projects and play a bigger role in the economy and FDI scene so that smaller firms could follow suit.

The deputy premier also needed to convince Agriculture Minister General Chatchai Sarikulya to give a hand on the water management project. It was felt the general might not be comfortable with the previous government’s approved project.

Regarding the East-West railway linkage, Transport Minister Arkhom Termpittayapaisith may turn to Korea for this feasibility study after China and Japan have already been invited to study and invest in high-speed trains on other routes.