H.E. Mr. Srettha Thavisin, Prime Minister and Minister of Finance, gave a keynote address on the Reformation of Thai Economy Amidst Polycrisis. More than three hundred representatives from the public and private sectors, ambassadors, diplomatic representatives, and large foreign investors in Thailand attended the event.
H.E. Mr. Srettha Thavisin, Prime Minister and Minister of Finance said: "Amid such global challenges as geopolitics, economic recession, and climate change, Thailand needs to reform competitiveness and chart a comprehensive and effective direction towards inclusive and sustainable social-economic-environmental development. We need to boost the growth of industries with potential and advantages by integrating technology to improve the overall productivity for high-value products and services."
To meet global demands and value chains, the Thai government is going forward with elevating the agriculture sector towards high-value production; transforming tourism into quality-focused and sustainable tourism; transforming the automobile industry into a comprehensive supply chain EV industry; propelling Thailand into becoming a high-value medical and wellness hub; implementing strategies to drive Thailand to be the key strategic gateway for trade, investment, and logistics hub in the region; accelerating the development of smart electronics and the digital industry; and promoting the circular economy with efficient and sustainable use of resources.
The Thai government also emphasizes investment policy and measures; preparation by the government to support investment from foreign investors such as infrastructure development, benefits to promote and facilitate investment as well as developing manpower to support the industries.
"We are ready to cooperate with the private sector and investors. Thailand will also transform into a New Economy by focusing on the targeted industries consisting of bio-circular-green economy (BCG), electric vehicles (EV), electrical and electronic (E&E), digital and creative industries," said H.E. Mr. Srettha.
Mr. Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI) said: Amidst the challenges that the global economy is currently facing, it is surrounded by a Polycrisis, with multiple facets. This includes technological transformations, trade wars and tech wars, geopolitical conflicts, and climate change. These factors collectively influence our competitiveness, and in response, businesses have been adapting and evolving by changing their business models to overcome these challenges.
Today, the Federation of Thai Industries or FTI, as a representative of the national industries, strives to enhance the competitiveness of our industrial sector. We have categorized industries into two distinct groups: The first group is the First Industries: These encompass traditional sectors, consisting of 46 industry groups and 11 clusters. These industries are currently grappling with the impact of disruptive technologies, necessitating a concerted effort to adapt and preserve their capabilities. The second group, Next-GEN Industries: These represent emerging industries that prioritize the integration of advanced technologies, such as smart electronics, future automotive sectors, robotics, automation systems, and digital industries. Additionally, they are steering industries using the BCG Model. Finally, we also need to make the industrial sector resilient in the face of climate change, with the goal being to achieve net-zero greenhouse gas emissions. This objective aligns with global trends and corresponds with Thai government policies and investment promotion strategies.
With its policies and a robust supply chain, particularly in the Eastern Economic Corridor (EEC) encompassing infrastructure, logistics, industrial hubs, and a skilled workforce aligned with Next-Gen Industries, Thailand stands out as a prime destination for foreign companies seeking to relocate and invest. These policies also offer incentives, driving a steady increase in foreign direct investment, showcasing foreign investors' confidence in Thailand, especially in sectors such as smart electronics, food processing, and future automotive manufacturing. The Thai government also places a strong emphasis on exploring new markets and creating trade opportunities. They are doing this by accelerating free trade agreement (FTA) negotiations with various countries, ensuring they meet the set timelines, and initiating fresh FTA talks to boost Thailand's competitive edge in exports.
"Under our vision of 'ONE FTI' policy, which emphasizes the significance of promoting trade and investment in Thailand, we take pride in establishing the Foreign Industrial Club or FIC. It serves as the first platform in Thailand for the private sector, government, diplomatic missions, and foreign investors in Thailand to convene, exchange perspectives on industry, trade, and investment-related
matters, thereby fostering cooperation and sharing business experiences. This network is expected to play a pivotal role in enhancing economic cooperation, attracting new investments, and facilitating the expansion of existing investments in the Thai industrial sector,"
"This event will create opportunities and promote investment in line with FTI's vision of "Strengthen Thai Industries for Stronger Thailand.' We look forward to working together towards the goal of "ONE FTI, ONE Thailand, ONE Global," said Mr. Kriengkrai.
Mr. Vichaow Rakphongphairoj, Chairman of FIC 2023 Organizing Committee and Vice Chairman of FTI said: "Thailand's journey towards becoming a regional economic powerhouse is truly remarkable. The synergy of its strategic geographical location, skilled workforce, and visionary policies has culminated in an environment dedicated to industrialization and foreign investment. The nation's unwavering commitment to fostering innovation, technology, and sustainable development has made it an appealing destination for businesses seeking to expand their horizons.
Foreign investment has greatly accelerated Thailand's industrialization, infusing essential capital into manufacturing, automotive, electronics, and textiles. This has spurred economic growth, job creation, skills development, and knowledge sharing among Thai workers. Collaborations between foreign investors and local businesses have fortified supply chains, enhancing Thailand's industrial prowess. This fusion of global expertise and local talent has propelled Thailand to a leadership position in innovation and production.
"We are dedicated to enhancing networking opportunities among Thai and foreign companies, dignitaries, and executives, thus advancing Thailand's public-private cooperation platform. The establishment of the Foreign Industrial Club or FIC will serve as a dialogue platform involving the Thai government, the private sector, and foreign investors, with a focus on industry, trade, and investment regulations and will become a central hub for building a strong business network between the Federation of Thai Industries and international companies investing in Thailand, as well as high-level executives from both the public and private sectors. This initiative will enhance mutual understanding and confidence when conducting business in Thailand, facilitating connections between Thai and foreign entities," said Mr. Vichaow.
Another highlight of this event was handing over the Action Plan to the Prime Minister following on from the October 6th meeting between the FTI and the Prime Minister to discuss cooperation and push for ways to drive the Thai industrial sector and economy. The Prime Minister had expressed a desire for the FTI to work on an Action Plan for the development of the Thai industry and the completed Action Plan was thus ready to be handed to the Prime Minister at the event.
Source: สภาอุตสาหกรรมแห่งประเทศไทย
