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.
Triple incentives for foreign capital
“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.
Smart city like Songdo
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.
More than manufacturing hub
"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.
"Korea has great potential with its innovative technologies. The cooperation can benefit both countries."
The Korea Herald reporter Hong Kil-yong (kyhong@heraldcorp.com) contributed to this report
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