15-5-2024 (BANGKOK) Thailand has the potential to lure major international companies by leveraging its ambitious Land Bridge megaproject and other advantages, Prime Minister Srettha Thavisin said on Wednesday, likening the country’s investment appeal to a “Switzerland of Asia.”
Speaking at the Subcon Thailand 2024 event in Bangkok, Mr. Srettha highlighted the government’s efforts to bolster the electric vehicle (EV) industry, building upon the well-established Japanese automotive sector, which has invested over one trillion baht in the country.
“The government has designed more investment privileges to offer carmakers that choose Thailand as a production base, as an incentive for them to move from producing combustion-engine cars to electric ones,” the premier said, citing the EV-3.5 policy, which offers tax breaks and other incentives to promote continuous investment in the EV industry and related supply chains.
Touting Thailand’s geopolitical neutrality and the one-trillion-baht southern Land Bridge megaproject as additional draws, Mr. Srettha emphasized the potential of the latter to address global supply chain disruptions.
“While the volume of global shipments continues to rise, last year’s shutdown of the Suez Canal paralysed global supply chains, while the Strait of Malacca has become notorious due to the higher rate of accidents affecting ocean cargo shipments,” he said.
The Land Bridge project, aimed at linking the Andaman coast with the Gulf of Thailand via ports, highways, and rail networks, could fill this gap and secure Thailand’s position in world trade, according to the prime minister.
“This project will make Thailand become a Switzerland of Asia, considering its potential to generate more investments here, ensure the continuity of industrial production and assure confidence among investors,” Mr. Srettha stated, underscoring the project’s importance over other major procurements.
With its strong automotive and electronics industries, Thailand is well-positioned to attract foreign direct investment, particularly in the burgeoning EV sector. The government’s strategic initiatives, coupled with the country’s geographic advantages, are poised to cement its status as an attractive investment destination in the region.
