Thailand remains an attractive manufacturing base as more foreign firms shift operations there

BANGKOK (The Nation/Asia News Network): The first half of this fiscal year has seen many foreign companies shifting their manufacturing bases to Thailand and taking over up to 2,900 rai (464 hectares) of land in industrial estates.

Veeris Ammarapala, governor of the Industrial Estate Authority of Thailand (IEAT), said on Tuesday (May 9) that 2,975 rai of land in industrial estates around the country was either rented or sold to foreign investors from October last year to March this year.

This marks an increase from 2022 and 2021 fiscal years, when IEAT sold or rented 2,016 rai and 1,222 rai to foreigners, respectively.

Veeris noted that Covid-related travel restrictions were in place in 2022 and 2021, which stopped foreigners from travelling to Thailand and making investment decisions.

He also noted that more foreign companies are moving their production bases to Thailand mainly due to Europe’s economic uncertainties caused by the Covid-19 pandemic and the Russia-Ukraine war.

Veeris said these uncertainties prompted investors to shift their production bases to Asia, especially Thailand, to lower risks.

He said the IEAT will continue cooperating with the Board of Investment (BOI) to hold roadshows in foreign countries to convince investors that Thailand will be a perfect manufacturing base for them.

IEAT recently joined (BOI) in a roadshow in Shanghai and received a good response, he said.

Another roadshow is planned in South Korea mid this month and more will be held in Japan and Taiwan, he added.

Veeris said IEAT has not slowed down the roadshows even though the country is under a caretaker government pending the May 14 election.