Thailand won’t wait for foreign investment – why?
Big companies are leaving China and moving production to other countries, but Thailand fears it will be bypassed
A number of economists believe that increased geopolitical tensions may cause a spillover effect, with one possibility being the relocation of industries to other regions, including Thailand. Nevertheless, analysts fear that Thailand will be overlooked in favor of its regional counterparts.
Payong Srivanich, chairman of the Thai Bankers Association and a key member of the Joint Standing Committee on Trade, Industry and Banking, recently predicted that tensions between China and the United States over Taiwan could favour Thai supplies and attract relocated investment to the region.
Apple product supplier Foxconn and U.S. tech giant Apple Inc. were among the latest foreign companies to make the move. Foxconn last week signed a $300 million memorandum of understanding with Vietnamese developer Kinh Bac City to expand its facility in northern Vietnam to diversify and increase production, while Apple Inc plans to begin manufacturing the iPhone 14 in India as the company looks for alternatives to China after the Xi administration clashed with Washington and blocked production across the country.
Although Thailand’s government has said that foreign investment should be a key component in rebuilding the country’s fragile economy, analysts doubt that Thailand will be able to attract foreign investors to choose the country to locate industry.
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