Thailand underperforming in construction sector that holding 40billion

Thailand is in a status
of developing country, the country is moving forward quickly since 1980.
Thailand’s economic is recovering during these few years due to the country’s
well developed agriculture sector by expanding in 7.7 percent, it continued to
be broaden and gain thrust towards the whole world economic and it has shown
that the external demand amid growth is increasing and it recover from severer
drought. Besides that, seems Thailand is driving a positive effect towards its
economy, the mercantilism of records has a gain of 6.6 percent growth rates due
to increasing of global product price and trading partners. In order to invest
in Thailand, the company should offer shares to gain more shareholder and also
issue bonds in proportion in the country. The company should invest 60% of the
equity in Thailand. The reason is to lower down the risk while doing business
in Thailand. In addition, in order for Earger Bhd to have a long run profitability,
the company should have a good fundamentals of strong balance sheet for
investing in the company’s stock in order to have a high proportion of
intangible assets. This is because Thailand had faced before a underperforming
in construction sector that holding 40billion dollars investment project. For
example is a jointly-built Thai Chinese rail line. It has went through 13
bilateral meetings of disagreements in over cost, financing and land rights.
Besides that, the construction in Thailand is keeping slowdown by falling 7.3
percent as the sectors face challenges between the weakness of global economic
and poor consumer demand. In addition, the Thai real estate market is also
moving towards a slowdown which affected by the inflation rate of the country.
In a ways that buyers in the country are increasingly constrained and found
difficult to fund or finance the purchases. But currently according to    Thailand’s construction sector estimated to
reach up to 41.4billion dollars by 2016, with about 17.9billion coming from
private investments and 23.4billion from the public sector which are including
the infrastructure segment. According to Trading Economics global marco models
and analysis expectations, the inflation rate in Thailand is expected to be
0.90 percent by the end of the quarter, while the inflation rate was estimate
to stand at 1.50 in 12 month time. It will be a positive effect for Eager Bhd
to have a portfolio investment in Thailand to make profit. While the balance of
payment would probably remain surplus according to bank of Thailand. In
addition, according to Bank of Thailand stated that the policy rate of the
country remain in 1.5% unchanged. Which means that Thailand has a steady
interest rate which is able Eager Bhd to put a portfolio investment in the
country. Even though, the company is looking forward could have a good
profitability in Thailand construction sector, it is always a must that the
company to analyse the risk and remain low risk to have a high proportion
investment in the country to compete with the competitors and the world
economic.

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