In the present landscape of Thailand’s industrial growth, there are four standout industries: construction, automobile manufacturing, iron and steel production, and energy generation. Gernot Ringling, the managing director of Messe Dusseldorf Asia, a profound subsidiary based in Germany and renowned as a major trade fair organiser, highlighted these industries at a recent press conference.
In Ringling’s view, the current upsurge within these sectors traces back to decisive initiatives undertaken by the government as well as significantly increased private-sector investments. The people of Thailand now have a heightened demand for raw materials, advanced production technologies, and innovative products, primarily due to the aforementioned factors.
Recent data released by the Bank of Thailand reflects a promising prediction for the country’s economy, revealing a steady growth of 3.6% in the second quarter of the present year. The country is also witnessing a resurgence of broad-scale investment projects, predominantly sparked by the private sector. The momentum behind this sudden surge is expected to propel it into the next year as well.
Apart from private sector efforts, the government’s interest in mega-infrastructure projects and in sunrise industries like electric vehicles (EVs) and the bio-circular-green economy also plays a significant role in boosting the economy. To stimulate growth in specific industrial clusters, the Board of Investment has announced various strategies to attract more investment.
Among the four industries, construction is assuming a dominant role in Thailand’s growth story, fuelled by ongoing and new mega-projects, primarily concentrated in the Eastern Economic Corridor, as underlined by Ringling.
Despite a minor setback in the iron and steel industry, which exhibited a contraction compared to the preceding year due to fluctuating energy costs, trends suggest a positive future. A comeback in the sector can be attributed to significant advancements in mega-construction projects, especially those requiring underground power cables and communication pipelines.
Riding the wave of a robust consumer demand revival, increased microchip production across various nations, and particularly those producing batteries for EVs, the automotive industry in Thailand is also witnessing remarkable growth. This positive trend in EV manufacturing is not only beneficial in terms of revenue, but it also contributes to rising electricity consumption, Ringling further explained.
Lastly, the energy generation sector is benefiting from the government’s net-zero carbon policy, triggering investments in new plants for renewable energy production, as articulated by Ringling. These combined factors are driving a significant upturn in these four thriving industries, helping to fabricate Thailand’s vivid industrial growth narrative.