At the heart of a vibrant region

Apr 5th, 2021

Thailand is a preferred investment destination for many foreign corporations because of the country’s ideal position at the heart of the Association of Southeast Asian Nations, or ASEAN, where it has become a hub for a broad variety of activities, supported by a number of tax and trade incentives across the ten-member country bloc.
Additionally, Thailand’s government has removed administrative barriers to make it easier for foreign investors to set up regional headquarters or production facilities in Thailand. This underlines the country’s role as a hub for products and services to an ever-more connected ASEAN community, a single market of over 655 million consumers with a combined GDP of some $3.1 trillion as of 2020 and an economic growth of around 5% in 2021, as per a forecast by the Asian Development Bank.
This ASEAN community, in which Thailand is centered, further opens up opportunities in regional growth areas such as transport, energy, healthcare, tourism and agriculture. Given Thailand’s comparative advantage in these areas, the country is well equipped to match the growing dynamism of the ASEAN community and the growth of foreign investments in the region.
To support regional connectivity in ASEAN, the government is committed to invest in logistics and transport networks including roads and rails that will link Thailand with its neighbors through important economic corridors. One of those projects is a high-speed railway connecting Bangkok with the northern province of Nong Khai, which border Laos, that will close up with an already under-construction high-speed railway route from there to Laos’ capital Vientiane and up north to China’s southern Yunnan province, deemed to become an essential trade route between the countries.
There are also plans for a high-speed railway to connect Bangkok with the Eastern Economic Corridor in the Southeast which will provide a network between the country’s main two airports, Suvarnabhumi and Don Mueang, as well as local U Tapao International Airport in Rayong province.
Apart from China, other powerhouse economies such as Japan, South Korea, Taiwan and India are also easily reachable from Thailand by virtue of its world-class infrastructure for air, land, sea and rail transportation. The country also boasts excellent digital connectivity at an outstanding cost-effectiveness paired with a burgeoning logistics sector, features which become increasingly important for market participants in a growing digital economy to which Thailand is certainly no stranger.

 

Image source and article copyright: Amata