Bangkok: When opportunities arise, we must quickly "unlock" the rules to compete against Vietnam and Indonesia. Amidst the latest developments during the visit to Vietnam by the Thai delegation, led by Prime Minister Anutin Charnvirakul, to participate in the Thailand-Vietnam Investment and Business Forum and sign important MOUs on the development of smart industrial parks and the application of AI, Dr. Thitima Chucherd, Senior Director and Head of Macroeconomic Research at the Economic and Business Research Center of Siam Commercial Bank (SCB EIC), offered an interesting perspective. She noted that while Vietnam appears to be a "young, attractive country" with a GDP growth of 7-8%, Thailand is also beginning to show its own strengths that inspire confidence in global investors.
According to Thai News Agency, Dr. Thitima pointed out that the Thai economy expanded by 2.8% in the first quarter of this year, exceeding many expectations. A notable driving factor was the 10% growth in private investment, a double-digit expansion not seen for a long time. This was particularly evident in investment in machinery and related industries by foreign companies that continuously sought investment promotion from the BOI.
The structure of foreign investors in Thailand has changed from its previous dominant Japanese capital. Currently, capital from China, Hong Kong, and Taiwan (including those investing through Singapore) has become the largest group, accounting for 70-80% at certain times. The majority of this capital flows into targeted industries such as digital technology, AI, semiconductors, and cloud services, as well as green industries and clean energy.
The government initiated the "Thailand Fast Pass" project as a one-stop service for projects valued at over 1 billion baht, facilitating permits, utilities, and labor visas. Positive results in stimulating investment have been seen since the end of last year.
To ensure Thailand's long-term competitiveness, Dr. Thitima proposed that the government must maintain its strengths in political and economic stability, which are superior to competitors like Indonesia, while driving policies through the "4T" concept as follows:
1. Targeted Help: Assisting vulnerable target groups, such as those facing energy crises.
2. Transform: Reform government regulations to reduce business barriers (Regulatory Reform) in preparation for OECD membership.
3. Transition: Transitioning to a digital economy and clean energy.
4. Together: Collaboration between the public and private sectors to drive large-scale projects without relying solely on government funding.
In conclusion, the key to attracting future investment is not just "quantity," but "quality." Dr. Thitima emphasized that Thailand must require foreign investors to transfer technology and utilize local content from Thai SMEs so that the incoming capital creates a truly sustainable economic ecosystem, and not merely serves as a transit point for production bases.