Somkid sells 5% growth
Deputy Prime Minister Somkid Jutusripitak told Japanese investors that the Thai economy is on course for strong growth of as much as 5% this year, citing the continuity of social and economic reforms and political stability.
He also urged Japanese players to invest in Thailand’s infrastructure projects connecting with neighbouring countries, as well as the 10 targeted industries in the Eastern Economic Corridor (EEC).
“Now is an opportune time for Japanese investment in Thailand, as the government has been developing backbone infrastructure projects to link with Cambodia, Laos, Myanmar and Vietnam,” Mr Somkid said in his keynote speech, “Thailand as a Key Driver of Regional Economic Growth”, delivered at the “Thailand Taking Off to New Heights” seminar, held by the Board of Investment (BoI) in Nagoya.
“CLMVT (Cambodia, Laos, Myanmar, Vietnam, Thailand) are becoming a focal point of investment, with average economic growth of 6-8% and a population of 250 million population, along with a 100-million-strong middle class, which has high potential for consumption,” he said. “Asean and CLMVT are also a geographically important region for China’s Belt and Road initiative and Japan’s Free and Open Indo-Pacific Strategy.”
Mr Somkid said Thailand’s economic prospects are promising this year after GDP rose by 4.8% year-on-year in the first quarter — the fastest pace in five years — accelerating from 4% growth in the previous quarter.
“I am strongly confident that the Thai economy will exceed 4%, possibly 5% [growth], thanks to growing exports and tourism,” he said. “The government itself has allocated US$52 billion (1.737 trillion baht) in investment budget for infrastructure development this year.”
Mr Somkid said that key development projects for the EEC, including the 224-billion-baht high-speed railway project linking Don Mueang, Suvarnabhumi and U-tapao airports, will be put on the fast track, with construction bids opening this year.
The EEC Office reported last week that investment applications for the government’s flagship EEC scheme have reached 400 billion baht as of June 30, beating the target of 300 billion for the whole of 2018.
The BoI expects overall investment applications in 2018 to reach 720 billion baht because the global economy is recovering and the government is keen to put on roadshows abroad.
Prime Minister’s Office Minister Kobsak Pootrakool said at the same forum that the government is pursuing social and economic reform under the 20-year national strategy (2018-38), with a target of raising per capita income to $15,000 (482,044 baht) a year, with average GDP growth of 5-6%. That goal further entails raising Thailand’s competitiveness ranking to break into the global top 20.
Thai per capita income is $6,000 a year, while Thailand was ranked 30th in the IMD World Competitiveness rankings in 2018, slipping from 27th place in 2017.
Mr Kobsak said the government will also continue improving the ease of doing business in Thailand, developing digital technology, improving laws and developing infrastructure projects.
He said Thailand’s plans for key infrastructure development over the next five years include 56 projects with total investment of $65.62 billion.