Foreign investors 'considering moving production base to Thailand'
Many foreign investors are interested in moving their production base to Thailand, Kriangkrai Thianukul, vice president of the Federation of Thai Industries (FTI), said.
He was speaking after a meeting with foreign investors from Japan, the US and Europe, and many have expressed interest to co-invest with Thai entrepreneurs.
“The main reason for their interest in Thailand is the Covid-19 pandemic, which caused manufacturing facilities in China to shut down and affected the supply chain of the industrial sector,” he said.
“Many companies are planning to move out of China to reduce future risk and are eyeing countries in Southeast Asia. Thailand is among the top choices as we have several seaports to facilitate logistics and the geographical location is at the centre of the region.”
“Thailand also has basic infrastructure for high-tech industries, as can be seen from many foreign buyers importing electrical and electronic components from Thailand, which resumed production when suppliers in China were shutting down,” Kriangkrai said.
Kriangkrai also added that Japan had recently encouraged its manufacturers to move out of China to avoid future risk similar to Covid-19. “While most of the high-tech industries will return to the home country, many mid-tech manufacturers are aiming to move to Thailand due to cheaper labour,” he said. “The fact that Thailand has handled the Covid-19 situation better than many countries in the region also proves our ability in handling a crisis and helps strengthen investors’ confidence.”