Ministry to woo trade war victims
The Industry Ministry is keen to attract foreign direct investment from China, convinced that Thailand is a safe haven amid the growing US-China trade war.
Industry Minister Suriya Jungrungreangkit said Thailand and Southeast Asia stood to benefit from the trade war, as Chinese investors were seeking new locations to avoid the fallout.
“The government will hold investment roadshows in China as part of efforts to attract new investment to the flagship Eastern Economic Corridor [EEC] scheme,” he said at the Bangkok Post Forum yesterday, adding that the roadshow would also visit Japan.
Mr Suriya is confident that Thailand remains a core investment destination in Southeast Asia. The EEC is being touted as a strategic location to cement sustainable economic growth in the country.
Japan has been responsible for the most foreign direct investment in Thailand for more than 30 years, and Mr Suriya does not believe that its companies will move their operations out of the country.
“The trade war sentiment has created upside as well as downside, so the government has teamed up with the Thai business sector to capture benefits from the trade dispute,” said Mr Suriya.
He noted that the EEC scheme is targeting 12 so-called S-Curve industries.
The 12 targeted industries comprise next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemical; digital; and medical services; defence; and educational development.
“The new targeted industries are the key engines that will drive the Thai economy’s future outlook,” he said.
The EEC scheme spans three provinces — Chachoengsao, Chon Buri and Rayong.
He added that the ministry would contact the central bank to discuss concerns that baht volatility is affecting the competitiveness of Thai manufacturers and exporters. “The ministry expects a rate of around 32 baht to the US dollar, which is healthy for the country’s export sector,” said Mr Suriya.