Industry Minister Unveils New Strategies to Bolster Thailand’s Industry
The Industry Minister, Thanakorn Wangboonkongchana, has pledged to implement a series of robust “quick-win” projects and more extensive measures to combat the dumping of cheap imports and to proactively safeguard Thai industrial products, along with strategies aimed at mitigating the complex effects of US tariffs on Thailand industry.
The minister acknowledged that many sectors are currently grappling with declining productivity and experiencing a shrinking market share, concerning indicators that suggest a potential loss of international competitiveness for Thailand industry.
He specifically noted that “Thai industry is impacted by the trade war, which has altered the global trade landscape.” Consequently, he emphasized that entrepreneurs throughout the supply chain must rapidly adapt or fundamentally restructure their industry models to align effectively with these pervasive global changes.
The government’s response will focus heavily on industrial restructuring and prioritizing forward-looking sectors. Mr. Thanakorn affirmed that the administration will continue its forceful promotion of high-potential industries such as electric vehicles (EVs), artificial intelligence (AI), green energy, and semiconductors, all of which are expected to make substantial contributions to the national economy and successfully attract greater foreign investment.
Furthermore, the ministry intends to actively encourage industries and companies that have already applied for investment promotion from the Board of Investment (BOI) but have not yet proceeded with their capital investments, urging them to accelerate their development plans to inject momentum into the economy.
Protecting SMEs and Promoting High-Value Sectors
A crucial component of the new industrial policy involves implementing protective measures for domestic businesses, particularly Small and Medium-sized Enterprises (SMEs), while simultaneously enforcing strict standards for future growth.
The ministry plans to implement additional, more comprehensive measures designed to counteract the ongoing issue of cheap imports being dumped onto the local market, ensuring a level playing field and protecting the viability of Thai industrial products.
This protection is viewed as vital, as Mr. Thanakorn anticipates that imports of cheaper Chinese products are likely to increase, which could severely affect Thai businesses, especially the vulnerable SMEs.
In response, the minister confirmed that the ministry has engaged in detailed discussions with the Federation of Thai Industries regarding specific strategies to provide assistance to SMEs and effectively protect Thai industries and manufacturers from unfair competition.
Moreover, the ministry is committed to actively working on improving SMEs’ access to essential financial support, recognizing that capital access is a major constraint on growth and modernization.
Regarding the continuation of the “Sudsoi” initiative, which was established by former industry minister Akanat Promphan, Mr. Thanakorn stated that it remains a valuable program that supports the industry in the long term and aids in reducing the prevalence of illegal, unregulated factories.
These initiatives reinforce the commitment to a competitive and well-regulated Thai industry.
Sustainable Development and Economic Drivers
The ministry’s long-term vision centers on achieving sustainable industrial development through the promotion of high-quality investments, targeted upgrading of the existing manufacturing base, and the introduction of stricter environmental regulations.
Mr. Thanakorn emphasized the commitment to fostering sustainable industrial growth by promoting investment that focuses on high-quality, advanced manufacturing.
This involves actively upgrading the current manufacturing base to integrate more modern technology and enforcing stricter regulations to effectively tackle pressing environmental issues associated with industrial activity.
Nattapol Rangsitpol, the industry permanent secretary, acknowledged that while the industrial sector has experienced a slowdown over the past decade, the government’s promotion of new-generation sectors, as part of its ambitious S-curve scheme, is designed to reverse this trend.
He assured that civil servants are fully prepared to collaborate closely with the minister to execute the new policy agenda.
Mr. Nattapol further detailed the major sectors that currently drive the economy and contribute the largest share to industrial GDP, comprising the automotive, electronics and electrical industries, as well as food and food processing.
Collectively, these established sectors account for roughly 50% of Thailand’s industrial output, highlighting their continued strategic importance alongside the push toward high-tech S-curve industries to ensure the future competitiveness and prosperity of Thailand industry.
