Thailand’s Prime Minister, Srettha Thavisin, made a significant announcement on Sunday regarding substantial investments from tech giants Tesla, Google, and Microsoft, potentially injecting around $5 billion into Thailand’s economy. The Prime Minister revealed this commitment after returning from the 78th session of the United Nations General Assembly in New York, where he engaged with top executives from these influential companies to promote investment in Thailand, as reported by the Bangkok Post.
According to Mr. Thavisin, Tesla is considering the construction of an electric vehicle (EV) manufacturing facility, while Microsoft and Google are exploring the establishment of data centers within Thailand. While making this statement, he emphasized the vital role these investments would play in revitalizing Thailand’s economy.
This surge of investment comes at a crucial juncture for Thailand, whose economy faces challenges, with growth projected to be 2.8 percent this year, lower than initial estimates, primarily due to limited exports. Prime Minister Thavisin’s discussions with Tesla CEO Elon Musk in the U.S. underscore the potential of Thailand’s electric vehicle (EV) industry. The nation actively encourages EV and battery manufacturers to establish regional production centers. Simultaneously, the Thai government offers tax incentives to boost local EV adoption, with the aim of becoming a regional leader in EVs.
In addition, Thavisin expressed his intention to attend the upcoming Asia-Pacific Economic Cooperation (Apec) Leaders’ Meeting in San Francisco in November. He plans to collaborate with Thai business leaders to engage with global companies and discuss investment opportunities both in Thailand and the United States.
Thavisin stressed the importance of financial support for international investors seeking to establish branches in Thailand and hinted at potential collaborations with the New York Stock Exchange (NYSE) to list Thai companies in the U.S. This represents a significant step forward in international investment relations.
However, the Bangkok Post also reported that some experts, like Tawisant Lonanurak, a former secretary-general of the Thai Chamber of Commerce’s northeastern division, urge caution. They believe that major foreign companies will carefully evaluate various factors, including political stability, tax policies, and the rule of law, before committing to investments in Thailand. Lonanurak also emphasized the need for Thailand to prioritize negotiating more free trade agreements with its global trading partners to maintain a competitive edge.
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