Thailand spots opportunity in major infrastructure projects
Thailand has strong potential to expand its infrastructure and financial systems, underpinned by a resilient economy, according to speakers at the Ignite Thailand-Korea Business Forum held Tuesday.
At the event, Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, promoted the country's 1 trillion baht ($30 billion) Land Bridge project. It aims to link the Gulf of Thailand with the Andaman Sea through a 90-kilometer highway and railway, offering an alternative to the congested Malacca Strait.
'Through the project, we will establish a vital trade route, shortening time and bringing up the capacity,' Srichomkwan said.
'The Land Bridge project is only one of the many changes taking place in Thailand. Despite the heightened volatility in the global economy, mega projects such as the Land Bridge project will spur the growth of Thailand.'
Dr. Chula Sukmanop, secretary-general of the Eastern Economic Corridor Office of Thailand, also addressed the forum, outlining the strategic role of the Eastern Economic Corridor as a key driver in attracting foreign investment to the country.
The EEC, a special economic zone on Thailand's eastern seaboard, is central to the government's push to boost innovation and economic competitiveness.
'The EEC is about developing the east coast of Thailand. It would be more efficient to concentrate the development in a certain region rather than the entire nation,' Sukmanop said.
'By designating the eastern coast of Thailand as a free trading zone, we can attract innovative investments. Through developing the ECC, we can contribute to the entire Thai economy.'
The secretary-general noted that the EEC is designed to attract not only large-scale investments but also smaller ventures.
'The four pillars of growth are targeted investments, tailor-made incentives, total solutions and starting operations.'
Dr. Soraphol Tulayasathien, senior executive vice president of the Stock Exchange of Thailand, spotlighted the appeal of the Thai equity market. 'When the US President introduced the tariffs, the Thai stock market plunged by more than 3 percent. But it has been showing recovery lately,' Tulayasathien said.
He pointed to a range of ongoing projects fueling economic optimism, with the tourism sector playing a leading role in the recovery. 'Though the number of tourists declined during the pandemic, it has been on the recovery,' he said.
Tulayasathien further highlighted the Stock Exchange of Thailand's long-standing cooperation with its Korean counterpart, the Korea Exchange.
In May, the KRX secured a deal to modernize Thailand's clearing and settlement infrastructure — part of a broader effort to enhance market efficiency and investor confidence.
'The Stock Exchange of Thailand's partnership with the KRX has continued for over 20 years. The Thai stock market will improve through the partnership,' he said.
Other speakers at the forum turned their attention to Thailand's macroeconomic outlook. Among them was Burin Adulwattana, managing director and chief economist at Kasikorn Research Center, a think tank affiliated with Kasikorn Bank Group, one of the nation's leading financial service providers.
'Overall, Thailand has faced a backlash in terms of tariffs, which are much higher than we had expected,' Adulwattana said, referencing the US administration's plan to impose a 36 percent tariff on Thai goods.
While the Thai government forecasts gross domestic product growth between 2.3 and 3.3 percent this year, Adulwattana warned that retaliatory tariffs could shave as much as 0.9 percentage point off that estimate.
Beyond external pressures, he identified structural challenges — including an aging population and persistently low labor productivity — as headwinds to long-term economic growth.
Chaiyarit Anuchitworawong, senior executive vice president of Bangkok Bank, the largest commercial bank in Thailand in terms of total assets, presented an overview of the lender and the broader Thai banking sector, highlighting its resilience and international reach.
'Thai banks have a very good cushion to withstand any turbulence in the system, this is represented by the so-called loan loss provision,' he said.
He underscored Bangkok Bank's commitment to facilitating outbound expansion for Thai conglomerates, while also serving as a key conduit for foreign direct investment.
'Bangkok Bank has a strong history of supporting conglomerates to go overseas as well as bringing in foreign direct investment into the country,' he said, adding that the lender was the first Thai bank to expand internationally.
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