Thailand's governing administration has been urged to act now regarding foreign policy reforms that will open opportunities to foreign investors as companies set their eyes on other countries amid the China-U.S. trade war.
According to the Bangkok Post, Secretary-General of the National Economic and Social Development Council (NESDC), Thosaporn Sirisamphand, Thailand's special investment deals can be used to attract firms that are currently being impacted by the raging trade dispute between Beijing and the White House.
"Investment policies should be attractive enough to entice them to choose Thailand as a base, not only for factory relocation but also production capacity expansion," he pointed out.
For many Thai politicians, the China-U.S. trade row is an opportunity for other Asian countries to grab. However, Thailand has yet to implement reforms for foreign investments to ensure that both sides will benefit equally.
Thosaporn's sentiments came after the American Chamber of Commerce in China (AmCham China) released a survey report suggesting that many companies are considering to relocate their businesses to Mexico and Southeast Asia.
Unsurprisingly, less than six percent of the companies surveyed considered moving their businesses to the United States, considering how the U.S. President Donald Trump's administration continues to pressure the Chinese government.
Beijing, on the other hand, is defiant and refuses to adhere to the Trump administration's demands. For Thosaporn, the tensions between both sides can pave the way for Thailand to shine.
Earlier this month, The Nation reported that the Investor Confidence Index in May saw a decline of 2.83 percent as the uncertainty over political issues after the election loom. Foreign investors sold net stocks worth Bt10.02 billion amid the political uncertainties.
While other economists and politicians are still positive about the opportunities ahead, others believe the Thai economy may not grow as expected due to global trade disputes. Furthermore, internal headwinds could have a significant impact on economic growth.
For Managing Director for Research at SCB Securities, Sukit Udomsirikul, the Stock Exchange of Thailand (SET) will most likely see a hike of 1,700 points if the new government is established and political uncertainties calm down.
In February, ASEAN Briefing economists noted that private investments will be a major driver in the country's economic developments this year. The government is expected to allow foreign participation in selected sectors such as medical industries, agriculture, smart electronics, and others.
With an increase in spending on machinery and equipment, growth in the foreign private investment sector is expected to improve this year, along with the possibility of firms relocating to the country.
