FRIDAY, April 19, 2024
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FTI to push government on local procurement in EEC

FTI to push government on local procurement in EEC

The Federation of Thai Industries (FTI) will propose that the government lay emphasis on procuring domestic materials in the Eastern Economic Corridor (EEC), suggesting up to 90 per cent in some areas.

FTI chairman Supant Mongkolsuthree said on Wednesday (December 18) that the federation has made four proposals:
1 Establish a committee under the Comptroller-General’s Department and The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) to set guidelines for local product procurement with an appropriate proportion.
2 Set the condition that government and state enterprises’ material procurement from local entrepreneurs should not be less than 40-60 per cent.
3 Set the proportion of domestic materials used for government projects in major industries, for example the government should procure 90 per cent from Thai entrepreneurs in the construction materials industry, 30-40 per cent in the rail industry and 40-50 per cent in logistics, automotive, and shipbuilding industries.
4 Consider using construction materials that comply with Thai Industrial Standards for government projects.
Supant said that production rate statistics during 2016-18 found that entrepreneurs in the construction materials industry still have a capacity of about 65 per cent.
“We suggested that the government should support a minimum procurement of 90 per cent, especially for the dual track railway, high-speed train, and infrastructure in the EEC, which Thai entrepreneurs are able to operate,” he said.
He added that for the rail industry, the government should develop Thai entrepreneurs to be able to produce parts and equipment in the country, because Thailand has a lot of investment in the rail system. Therefore, the government should support at least 30-40 per cent procurement.
“For logistics, automotive and shipbuilding industries, such as transportation businesses, modern logistics centre and the development of areas around the airport and industrial port, the government should support at least 40-50 per cent [domestic procurement],” he added.

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