[Hello Thailand] 'Thailand ready to join Asia's financial hubs'

Korea Herald

07-05-2025

Deputy finance minister touts tax breaks, digital banks in push for global investors
With its geographical connectivity and sound regulatory infrastructure, Thailand is well-positioned to emerge as the financial hub of Southeast Asia, according to Deputy Minister of Finance Julapun Amornvivat.
'We believe Thailand can serve as a strong financial hub in Southeast Asia,' Amornvivat said in a recent interview with The Korea Herald. He visited Seoul late last month to attend the Ignite Thailand-Korea Business Forum, co-hosted by Herald Media Group, the Royal Thai Embassy in Korea and the Industrial Estate Authority of Thailand.
'With our central location in Southeast Asia and proximity to neighboring countries such as Laos, Myanmar and Cambodia, we have a strategic edge over others.'
While Hong Kong and Singapore currently serve as Southeast Asia's key financial hubs, Julapun emphasized that Thailand can complement their roles and contribute to the broader region.
'There are already financial centers in Singapore and Hong Kong, but Southeast Asia still has room for another hub,' he said. 'We are committed to strong regulatory practices, transparency and sound governance.'
As part of this effort, Thailand plans to establish the Office of Supervisory and Promotion of Financial Hub Business — a one-stop regulatory body designed to streamline licensing and oversight processes.
'This is a long-term vision — not something for just a year or two, but a plan spanning the next decade or more,' he said. 'In the initial phase, we'll focus only on international financial services, not domestic activities. A phased approach is essential.'
For South Korean financial firms, Thailand has long been considered a challenging market, with high entry barriers in place since the late 1990s, when many withdrew during the Asian financial crisis. But that may be changing, Amornvivat said.
'Our banking sector has been protected for the past 50 years. Now, we are opening up select areas,' he noted.
One potential area of change is the approval of digital banking licenses. Kakao Bank, a South Korean internet lender, has joined a consortium led by SCBX — a major Thai bank — to bid for a virtual banking license. If successful, the SCBX consortium is expected to launch official operations by mid-2026.
When asked about the approval timeline, Amornvivat replied, 'It is in process,' without elaborating further. However, he reaffirmed Thailand's openness to foreign capital.
'The floor is open. There will be opportunities for all types of firms to enter Thailand,' he said.
'I hope that not only Korean firms but also global players will take advantage of our tax incentives and establish a strong presence here.'
Among other growth drivers, Amornvivat highlighted the Land Bridge project and the establishment of integrated entertainment complexes.
The Land Bridge initiative aims to connect the Gulf of Thailand and the Andaman Sea through a 90-kilometer highway and railway, providing an alternative trade route to the heavily congested Strait of Malacca.
'We've received significant interest in the Land Bridge project from countries like China and across the Middle East. We haven't heard from Korea yet — but we're waiting,' he said.
Although the project is expected to cost 1 trillion baht ($30 billion), Amornvivat said he sees no financing challenges.
'A high-speed railway linking China and the Pacific Ocean is also in the works, further strengthening our position as a strategic logistics hub,' he added.
Thailand is also exploring the legalization of gambling and has designated Bangkok, Chonburi, Chiang Mai and Phuket as candidate sites for its first integrated entertainment complexes. These would feature casinos, theme parks, concert halls and even a Formula 1-grade street circuit.
'Since the announcement, we've seen strong interest from investors eager to work with the government,' Amornvivat said.
'We're confident these man-made tourist destinations will attract substantial investment and inject new energy into the tourism sector,' he added.
'These entertainment complexes are where the dreams of the Thai people can come true.'