MONDAY, April 15, 2024

No sign of foreign companies migrating from EEC, office says

No sign of foreign companies migrating from EEC, office says

The Eastern Economic Corridor Office (EECO), which supervises economic development in the eastern provinces of Rayong, Chonburi and Chachoengsao, one of the country’s largest industrial hubs, is confident that no foreign manufacturers will migrate from Thailand.

The office’s secretary-general Chula Sukmanop said on Thursday that Thailand is still Southeast Asia’s top manufacturing base for several industries, and is also the home of many targeted industries that continue to attract foreign investors.

Chula’s comment came after an unconfirmed report earlier this week that Japanese automaker Isuzu Motors is looking to relocate its production facility from Thailand to Indonesia amidst falling sales.

The report claimed that Isuzu was planning to commence the relocation process early next year.

Isuzu's representatives in Thailand, however, have not confirmed the report, nor has there been an official announcement from Tri-Petch Isuzu Sales Co Ltd.

Chula said the shift to a new government might have an impact on foreign companies’ decision to invest in Thailand in certain industries. However, several investors from China, Japan and India are expressing interest in investing in such major industries as medical, pharmaceutical, electronics, and electric vehicles, he added.

Chula added that EECO’s representatives will travel to France this month to discuss future investment projects with local companies, especially in the areas of aircraft manufacturing, aerospace, and aircraft maintenance.

“EECO will not wait until the new government is formed to continue its efforts to attract foreign direct investment,” he said. “We will continue using tax and other privileges to lure potential investors to move to Thailand.”

However, he said, that a delay in forming the government to August could affect certain measures, such as the setting of rental rates within the Digital Park Thailand (EECd) in Chonburi’s Si Racha district.

“As the price of land in Si Racha continues to rise, the new government must step in to set appropriate rental rates to attract entrepreneurs,” he said.