MONDAY, April 15, 2024

Investment outlook in EEC promising pending new govt

Investment outlook in EEC promising pending new govt

The Eastern Economic Corridor Office (EECO)'s Secretary-General, Chula Sukmanop, is confident that the EEc still has appeal for foreign investors, including those from India and China, despite a change in government.

He highlighted the benefits and stressed that there were no signs of investors relocating their production bases. The formation of a new government has yet to be concluded as it awaits the confirmation of Members of Parliament (MPs) by the Election Commission (EC), along with the selection of the Speaker of the House of Representatives before proceeding to the Prime Ministerial selection process, which involves voting by members of the Senate. Business leaders have expressed concerns at the slow progress in forming a government, saying it could affect investor confidence.

Foreign business investments in Thailand are currently on a positive trajectory, particularly in the EEC, despite the ongoing government transition, Chula said.

Investor groups interested in discussing and inquiring about investments are primarily from Asian countries such as China, Japan, and India. These investors are inclined to make investment decisions in industries with clear growth potential, such as the medical and pharmaceutical industries, Chula added.

However, he noted that there have been some delays in investment decisions in industries like electric vehicles and electronics as investors wait to see if the new government will introduce additional support measures for target industries.

Despite the ongoing government transition, Thailand is considered an appealing investment destination due to its clear target industries and the EEC's readiness to support investment. It is among the top five countries for investment opportunities, Chula said.

During the government transition period, investment promotional activities to draw foreign investments continue as usual. Thailand has engaged in activities to enhance investment cooperation with Russia, such as joint meetings of the Thai-Russian Joint Commission on Trade, Economic, Scientific, and Technological Cooperation. The areas of focus include trade and investment facilitation, energy, science and technology, education, sports, culture, transportation, tourism, environment, and public health.

There have also been discussions with the Federation of Thai Industries (FTI) and the Thai-Russian Business Council to promote better understanding between Thai and Russian businesses.

Furthermore, consultations have taken place with the Board of Investment (BOI) on potential collaboration between the EECO and the BOI. Thailand still holds the interest of investors from European Union countries, attributed to factors such as transportation systems, public utilities, environmental technology systems, and 5G technology, supporting the target industries in the EEC, according to Chula.

Despite the lengthy transition in government, Thailand continues to attract foreign investments, particularly in the EEC, due to its favourable investment environment, targeted industries, and EEC's readiness to support investments, Chula added.