Latest news with #IgniteThailand-KoreaBusinessForum
The Star
07-05-2025
- Business
- The Star
Thailand turns to South Korea for major projects
Suksit Srichomkwan, deputy secretary-general to the Thai prime minister. — The Korea Herald SEOUL: As Thailand advances a sweeping plan to transform Asia's logistics landscape, it is inviting South Korean firms to participate in its one trillion baht or about US$30.5bil infrastructure initiative: the Land Bridge. The massive plan, spearheaded by the Thai government, aims to connect Chumphon on the Gulf of Thailand with Ranong on the Andaman coast via a 90km overland corridor of highways, railways and two deep-sea ports. Designed to bypass the congested Malacca Strait, the project is expected to reduce transport times by up to four days and lower logistics costs by approximately 15%. 'More than 85,000 ships pass through the Strait of Malacca annually, and that number is rising by 2% each year, raising the risk of congestion, accidents and delays,' said Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, in an interview with The Korea Herald on the sidelines of the Ignite Thailand-Korea Business Forum on April 22. With projections showing the strait nearing full capacity by 2030, Srichomkwan said that the Land Bridge is not merely an alternative but a necessity. 'The Landbridge complements – not competes with – Singapore and Malacca by diverting congestion and supporting feeder systems and smaller vessels. 'Beyond easing maritime traffic, the project could serve as a key driver of Thailand's long-term economic growth. 'The project could attract up to US$100bil in investment and boost Thailand's gross domestic product by between 1% and 2%, depending on the type of partnerships formed,' Srichomkwan said. In Thailand, the project could spur development in the southern provinces by expanding export routes for agricultural and seafood products, while also enhancing trade flows through the Eastern Economic Corridor – an economic zone spanning three eastern provinces. Cross-border cooperation is central to Thailand's bid to attract public and private investment, with positive talks ongoing with both China and Malaysia. One example is the project's reliance on goods from China to support its initial operations. In this regard, Srichomkwan expressed hopes of evolving the South Korea–Thailand relationship, traditionally strong in the travel sector, into deeper business and investment ties. He alluded to South Korean business models with the potential to scale in Thailand: 'We favour investors who bring the entire supply chain, not just final assembly.' Srichomkwan highlighted South Korea's strengths in shipbuilding, logistics, port operations and civil engineering, which make its companies particularly well-suited to seize the opportunity. 'Compared to past issues with Chinese contractors, Thailand has more trust in South Korean companies for reliable infrastructure development,' he said. 'Thailand is also very open to South Korean financial institutions supporting South Korean-led projects.' He noted that South Korean financial institutions and property developers could benefit from ground-floor investment opportunities, given that much of the project area is still undeveloped. — The Korea Herald/ANN
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Korea Herald
07-05-2025
- Business
- Korea Herald
[Hello Thailand] 'Thailand ready to join Asia's financial hubs'
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.'
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Korea Herald
07-05-2025
- Business
- Korea Herald
[Hello Thailand] From EVs to smart cities: Thailand seeks to unlock growth potential with Korea
South Korea and Thailand could seek synergy in diverse sectors, from electronic vehicle manufacturing to smart city development to waste management, according to senior executives of the Southeast Asian country's state economic development authorities. The Korea Herald interviewed three senior executives while they were visiting Korea for the Ignite Thailand-Korea Business Forum held last month. The executives highlighted that Thailand can offer streamlined investment procedures for foreign capital and that the country seeks integrated, balanced growth. 'Investment in Thailand costs less, takes less time, but yields high efficiency,' said Yuthasak Supasorn, chair of the Board of the Industrial Estate Authority of Thailand. The IEAT is responsible for developing and managing industrial estates, which are specifically designated areas for industrial activities. There are roughly 70 industrial estates across the country. Supasorn highlighted that investors could receive 'triple incentives' by selecting the right investment destination in Thailand. 'The Board of Investment can provide incentives for choosing Thailand as an investment destination. If a foreign company invests in Thailand's eastern seaboard, there will be incentives from the Eastern Economic Corridor. If the investor proceeds with the investment through the IEAT, there will be additional benefits. It is a triple incentive,' he said. While sharing the desire to form 'sincere friendship' with Korean companies, Supasorn suggested a potential partnership in the burgeoning electric vehicle sector. "Thailand is the powerhouse of automobile production in ASEAN (Association of Southeast Asian Nations), and Korea has cutting-edge technologies. The two countries can complement each other and create synergy,' he said. Thailand's upcoming Eastern Economic Corridor Capital City (EECiti) project, a smart city development situated near the popular beach resort city of Pattaya, was inspired by the city of Songdo in Incheon, Chula Sukmanop, secretary-general of the Eastern Economic Corridor Office of Thailand, said. Sukmanop highlighted the need for an integrated approach in city development projects, expanding the scope of development projects to surrounding facilities. 'When we are discussing high-speed trains, we do not just look at the train but the stations as well. We have to develop a transit-oriented development, where the stations can be developed for commercial purposes,' he said. Korean companies could set up consortia to participate in the development, which will be pursued in packages of energy, electricity, water, waste management and communication through the form of a public-private partnership, he suggested. Sukmanop shared his plan to meet with a local waste management company during his visit to Seoul. As Thailand grows, waste-to-energy transition will be a key technology for the country, he said. 'I will try to talk to many Korean companies, as we know that Korea has leading companies in this field,' he said. "Thailand does not compete with low-cost labor anymore. It aspires to be not just a manufacturing hub but to become a hub for research, design and services in Southeast Asia," Suthiket Thatpitakkul, deputy secretary-general of the Board of Investment of Thailand, said. The interview was conducted in Thai, translated to Korean on the scene. The Board of Investment of Thailand is responsible for promoting investment in Thailand by offering incentives and facilitating services. The institution pursues a 'transparent yet flexible' investment policy, according to Thatpitakkul. "Through a one-stop service, the BOI supports streamlining the foreign investment approval process. The BOI is not just about attracting investments, but it also cares about managing them. It can act as a middleman to resolve difficulties that investors face in Thailand,' he said, promising a thorough after-service. While countries such as Japan and China have continuously invested in Thailand, Thatpitakkul envisions that Korea could expand its investment in the country. 'Thailand cares for balance. Korea's investment can be relatively small, but what is important is that it has continued throughout the years. The BOI can support Korea in enlarging its investment in Thailand,' he said.
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Korea Herald
07-05-2025
- Business
- Korea Herald
[Hello Thailand] Thailand turns to Korea for key projects, eyeing mutual growth
$100 billion Land Bridge project aims to attract Korean firms across finance, shipbuilding, port operations and civil engineering As Thailand advances a sweeping plan to transform Asia's logistics landscape, it is inviting South Korean firms to participate in its 1 trillion baht ($30 billion) infrastructure initiative: the Land Bridge. The massive plan, spearheaded by the Thai government, aims to connect Chumphon on the Gulf of Thailand with Ranong on the Andaman coast via a 90-kilometer overland corridor of highways, railways and two deep-sea ports. Designed to bypass the congested Malacca Strait, the project is expected to reduce transport times by up to four days and lower logistics costs by approximately 15 percent. 'More than 85,000 ships pass through the Strait of Malacca annually, and that number is rising by 2 percent each year, raising the risk of congestion, accidents and delays,' said Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, in an interview with The Korea Herald on the sidelines of the Ignite Thailand-Korea Business Forum on April 22. With projections showing the strait nearing full capacity by 2030, Srichomkwan said that the Land Bridge is not merely an alternative but a necessity. 'The Landbridge complements -- not competes with -- Singapore and Malacca by diverting congestion and supporting feeder systems and smaller vessels." Beyond easing maritime traffic, the project could serve as a key driver of Thailand's long-term economic growth. 'The project could attract up to $100 billion in investment and boost Thailand's GDP by 1 to 2 percent, depending on the type of partnerships formed,' Srichomkwan said. In Thailand, the project could spur development in the southern provinces by expanding export routes for agricultural and seafood products, while also enhancing trade flows through the Eastern Economic Corridor -- an economic zone spanning three eastern provinces. Cross-border cooperation is central to Thailand's bid to attract public and private investment, with positive talks ongoing with both China and Malaysia. One example is the project's reliance on goods from China to support its initial operations. In this regard, Srichomkwan expressed hopes of evolving the Korea–Thailand relationship, traditionally strong in the travel sector, into deeper business and investment ties. He alluded to Korean business models with the potential to scale in Thailand: 'We favor investors who bring the entire supply chain, not just final assembly." Srichomkwan highlighted Korea's strengths in shipbuilding, logistics, port operations and civil engineering, which make its companies particularly well-suited to seize the opportunity. "Compared to past issues with Chinese contractors, Thailand has more trust in Korean companies for reliable infrastructure development," he said. 'Thailand is also very open to Korean financial institutions supporting Korean-led projects." He noted that Korean financial institutions and property developers could benefit from ground-floor investment opportunities, given that much of the project area is still undeveloped. One example already underway: 'SK Bioscience is interested in producing influenza vaccines in Thailand,' said Srichomkwan, highlighting biohealth and future industries as priority sectors for bilateral cooperation. Future opportunities are expected to grow as the area will be designated a Special Economic Zone offering streamlined regulations and targeted incentives for key industries. 'Tax incentives of up to eight years, subsidies and co-investment options will be available,' he said. 'We'll customize these benefits based on the strategic fit and demand of each investor.' The project is also expected to be insulated from political shifts as it progresses. 'This is a long-term endeavor,' Srichomkwan noted. 'A law has been drafted specifically for the zone, making government support legally binding, regardless of which party holds power." To strengthen economic ties, Thailand is planning a regional economic forum in Bangkok -- possibly this December -- with hopes to invite the Korean prime minister. 'There's also hope for deeper EPA negotiations and financial partnership models involving Korea and other countries in the region,' he said.
Korea Herald
24-04-2025
- Business
- Korea Herald
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.
