Thailand is encouraged to focus on promoting the nation as a production hub for medical products to develop its financial strategy amid the coronavirus crisis as some industries like tourism and hospitality struggle.
Aat Pisanwanich, Director of the Center for International Trade Studies at the University of the Thai Chamber of Commerce (UTCC), told associated press that a latest survey of 200 foreign and Thai entrepreneurs from June 1 to July 15 has shown some worrisome financial results.
The poll reveals that although Chinese companies remain the nation’s number one investors, many foreign entrepreneurs are likely to relocate their production base out of Thailand after Covid-19 as neighboring countries provide cheaper wage costs and international trade preferences.
Aat told the Associated Press: “Countries like Vietnam and Myanmar offer more attractive investment incentives than those offered by Thailand. They have advantages over Thailand in terms of lower labor costs while they provide almost the same natural resources and manufacturing process.”
According to the director’s statement, Thailand needs to promote its strengths in order to keep investors active in the country.
Thailand is always well-known for electronic product-related industries, rubber products or rubber gloves, food supplements, and medical equipment and supplies as well as skilled labor, well-developed infrastructure, and advanced processing industries according to Aat.
By promoting the country’s strengths, Aat expects that Chinese investors may stay active in expanding investment in Thailand, especially in electronics and IT, while Japan will focus on office supplies and air conditioners and Malaysia specializes in hard-disk drives.
Thailand should also turn a crisis into an opportunity by promoting health-related industries during the wave of Covid-19 outbreak since the country has shown an ability to cope with the pandemic.
Aat added: “We predict that the investments nationwide may recover in the second quarter of 2021, which might be the same time as a COVID-19 vaccine is released on a global scale.
“Meanwhile, Thailand should take this opportunity to increase the promotion of health-related industries such as rubber gloves, supplementary food, health-related cosmetics, and medical supplies like masks to boost the national economy.”