Thailand has the potential to attract large international companies with the aid of its Land Bridge megaproject and other draws, Prime Minister Srettha Thavisin said on Wednesday, likening the country to a “Switzerland of Asia” in terms of investment attractiveness.
He made the remarks at Subcon Thailand 2024, a three-day industrial parts-sourcing and business-matching event that is running until Saturday at the Bangkok International Trade and Exhibition Centre (Bitec).
With its strong automotive and electronics industries, Thailand is pushing to support more investments in the development of the electric vehicle (EV) industry, said Mr Srettha.
EV industry development will be built up on the well-established Japanese carmaking sector, which represents a combined investment value of more than a trillion baht, said Mr Srettha.
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.
The EV-3.5 policy, meanwhile, offers a variety of incentives such as tax breaks to promote continuous investment in the EV industry and related supply chains, he said.
Other factors that make Thailand attractive to prospective investors include its geopolitical neutrality and the one-trillion-baht southern Land Bridge megaproject, he said.
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, said Mr Srettha.
The Land Bridge project therefore has the potential to fill this gap and help Thailand secure a stronger position in world trade, he said.
The Land Bridge is intended to link Ranong on the Andaman coast with Chumphon on the Gulf of Thailand. The plan calls for ports and related infrastructure at each end, joined by a highway and rail network.
“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,” he said.
“The Land Bridge project is undoubtedly more important than a submarine procurement or a fighter jet purchase.”