Author: Yaowalak Thammanitichock
AIT Library Call Number: AIT RSPR no.DS-23-03
Year: 2023
Academic Program: Development and Sustainability (DS)
Type: Research Studies Project Report (M.Sc.) – Asian Institute of Technology, 2023
Examination Committee: Takuji W. Tsusaka (Chairpeson); Kyoko Kusakabe, Mokbul Morshed Ahmad (Examination Committee Members)
Abstract: Thailand became the top exporter of tapioca starch products in the world. The industry initially received substantial investment from Europe in the 1970s. Thereafter, foreign capital involvement appears to have decreased. However, Thailand has remained to be the global leader to date. There is no study that investigated the possible changes in the role of domestic and foreign capital in the growth and performance of tapioca processors in Thailand. This research aims to assess the growth of the tapioca processing industry in Thailand and evaluate whether foreign capital or Thai capital leads to better revenue and profit among tapioca processors. The research study contains three methodological components, which are: (i) key informant interviews, (ii) descriptive data analysis of changes in production and export by type of products and by sub-national region, and (iii) panel regression analysis with corporate financial data for tapioca processors from 2010 to 2019 to evaluate the effect of foreign or Thai capital. The results concluded that the factors that influenced the growth of Thailand’s tapioca processing industry, and success were measured across multiple dimensions, including systematic operational management, and collaboration between cassava and tapioca starch trade associations. The presence of foreign shareholders positively impacts revenue but has a negative impact on gross profit for these tapioca processing companies in Thailand. The conclusion is that the tapioca processors with foreign shareholder investment (or FDI) are disadvantaged in the long run. Working capital is Thai capital from Thai financial institutions, and the collaboration among the public-private partnership is the key performance driver of Thailand’s tapioca processors at the macro level. To enhance Thailand’s tapioca industry and exports, recommended policies include investing in research and development, promoting sustainable agricultural practices, fostering downstream processing, ensuring quality control,
Scholarship Donor(s): Royal Thai Government Fellowship
Note: A research study submitted in partial fulfillment of the requirements for the Degree of Master of Science in Development and Sustainability, School of Environment, Resources and Development
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