Like the headquarters of the flagship company PTT, the Thai economy towers over its neighbors and embarks into new business ventures with more self-confidence and a greater determination to outperform other Southeast Asian nations.

With the hardships of the 1997 Asian currency crisis barely a distant memory, Southeast Asia endured a battery of trials in 2005 that once again tested the region’s resilience. An undiscriminating December 2004 Indian Ocean tsunami followed by the re-emergence of the deadly avian flu virus, a protracted drought and spiraling oil prices challenged many growth targets of Southeast Asian economies in the past year.

Although many of the region’s countries suffered in 2005, there were a few that exhibited strong determination and possessed solid enough economic fundamentals to surmount the hurdles. Among these sturdy economies was the Kingdom of Thailand.

Despite a sluggish global economy, Thailand posted a GDP growth of 6.1 percent in 2004 on the heels of free trade agreements and policies that encouraged more foreign investment. That year, the U.N. Conference on Trade and Development (UNCTAD) ranked Thailand as the No. 4 foreign direct investment location for global inflows.

Thai Finance Minister Thanong Bidaya

Under His Majesty King Bhumibol Adulyadej, who celebrates 60 years as the country’s monarch this year, Thailand has grown into a stable and well-built nation that continues to earn the admiration of its neighbors.

Led by second-term Prime Minister Thaksin Shinawatra, the government has identified key core competencies to target for future growth, from automobiles to electronics, texdtiles and fashion, medical tourism, food and steel.

With regards to automobile manufacturing, Thailand expects this sector to spearhead future growth as the country aims to become the ‘‘Detriot of Asia.’’

Under this initiative, annual output is expected to double from 900,000 units in 2004 to 1.8 million units by 2010, of which 45 percent is intended for export. Of total output, 60 percent is in the form of 1-ton pickup trucks, making Thailand the second-largest global producer of such models.

By 2010, Thailand intends to make it into the world’s top 10 auto manufacturing countries. It is currently the 15th-largest vehicle maker in the world.

Thai Minister of Industry Suriya Jungrungreangkit

Japanese business has a very significant presence in Thailand’s economy as 40 percent of foreign direct investment (FDI) is from Japan, the biggest investor in the kingdom. Led by trading houses such as Mitsui and Itochu, and facilitated by the Japanese Chamber of Commerce (JCC) and the Thai Board of Investment (BOI), bilateral trade reached nearly $35 billion in 2004.

As auto parts companies relocate to Thailand from Japan due to the increased activity and its proximity to cost-friendly Laos, Myanmar or Cambodia, the Thai-Japanese economic relationship is set to grow even further.

A vital component of the government’s economic growth strategy is to boost low-risk domestic investment, which includes a $41.51 billion infrastructure ‘‘megaproject.’’ According to the Ministry of Finance, this should boost GDP by 1.5 percent by 2009. As of 2004, domestic investment made up 26 percent of the investment market.

‘‘The financial sector is now much stronger than pre-crisis levels. We have become profitable and financial restructuring has been successfully achieved. The debt and bond markets have been developed and privatization has been ongoing,’’ says Finance Minister Thanong Bidaya.

‘‘Most new projects are financed through debt instruments and we have publicly listed many major companies over the years with several more — such as our electric and telephone companies — in the pipeline. Through such methods I would like to see our capital market increase from $119.71 billion to $244.20 billion,’’ he continues.

To complement efforts to bolster domestic and foreign investment, the prime

Atsuo Kuroda, president of the Japan External Trade Organization in Bangkok

minister has entered into or initiated efforts to secure preferential trade agreements with some of the world’s strongest economies, such as China, India, the United States, Australia, Mexico, New Zealand and Japan.

‘‘We cannot evade globalization. We need to be aggressive in order to gain a better position,’’ said Minister of Industry Suriya Jungrungreangkit.

‘‘When China entered the free market, many Thais thought we would lose business. Several years later, we have differentiated our products so that we no longer compete with China on lower-end products. With our FTAs with countries like China and India, we do not feel threatened. We see opportunity so long as we possess our niche markets.’’

One particular FTA that will play an integral role in shaping the economy’s future is the Japan-Thailand Economic Partnership Agreement (JTEPA).

According to Atsuo Kuroda, the president of the Japan External Trade Organization (JETRO) in Bangkok, the implementation of the JTEPA by late 2006 is ideal, as 2007 marks the 120th year of Japan-Thailand diplomatic relations.

‘‘I am very confident that the JTEPA will be very beneficial for both countries. Thailand will become an even more important base for Japanese production, R&D, and sales, particularly in the automotive, electronic, and food processing industries,’’ Kuroda said.

As Thailand wants to strengthen its domestic steel and auto industry, the bilateral agreement will gradually remove tariffs on OEM auto parts over a five-to-seven-year period.

The JTEPA includes plans for a Japan-built auto test track in Thailand, a technology transfer project to develop the Thai steel industry and a 10-year training program designed to educate 10,000 Thai technical and managerial personnel.

For Satit Sirirangkamanont, secretary general of the BOI, bigger and better is expected for Thailand’s future. ‘‘Come to Thailand. Let your success story begin here.’’