The Asian Infrastructure Investment Bank (AIIB) has expressed interest in investing in Thailand's Land Bridge project, describing it as beneficial for both Southeast Asia and East Asia, according to Deputy Finance Minister Julapun Amornvivat.
Mr Julapun was speaking after a meeting on Tuesday with Jin Liqun, president of the AIIB, during the 46th Asean Summit in Kuala Lumpur.
Mr Liqun praised Thailand during the meeting for its cooperation with multilateral development banks on various infrastructure projects, such as the expansion and improvement of U-tapao airport through fundraising in collaboration with the AIIB.
Moreover, he expressed interest in participating in the Land Bridge project, viewing it as highly beneficial to both Southeast Asia and East Asia because it would reduce transport costs and shorten transit times.
The Land Bridge project has been considered by several Thai governments in the past, while the current administration has promoted it as a means to stimulate national investment.
The project is expected to involve an investment of around 1 trillion baht, including the construction of deep-sea ports in Chumphon and Ranong, along with a motorway and double-track railway connecting the Gulf of Thailand to the Andaman Sea. On completion, the project could cut the voyage duration for ships navigating through the Strait of Malacca by four days.
The Office of Transport and Traffic Policy and Planning, which is overseeing the project, outlined a timeline targeting the first phase of international bidding worth 520 billion baht within this year, with work expected to commence in October 2030.
Finance Minister Pichai Chunhavajira previously said instead of competing with China when it comes to trade, Thailand should strengthen its trade ties with the nation and "enjoy" the relationship, as China is one of the world's largest exporters and importers.
Given Thailand's geographic advantage in terms of logistics, the country should leverage its position as a gateway for Chinese exports to the Andaman coast via the government's Land Bridge project, said Mr Pichai.
Since the Asian Financial Crisis of 1997-98, the combined investment by the public and private sectors in Thailand has remained less than 25% of GDP for 25 years. In 2023, total investment reached 2.6 trillion baht, nearly returning to a level close to that of 25 years ago, which was 2.7 trillion baht.
Prior to the crisis in 1996, Thailand's total investment relative to GDP was as high as 51%.
