Thai Prime Minister Saita is targeting Tesla and TSMC to build Thailand s high tech economy

Mondo Technology Updated on 2024-01-29

Prime Minister Saita revealed that he has taken Tesla executives on a tour of three industrial zones in Thailand. "They are looking for 2,000 rai (3.2 million square meters) of land," said the prime minister. (Related reading: Tesla will build a factory in Thailand!)Prime Minister Saita attended the United Nations General Assembly to bring back at least $5 billion in investment from U.S. companies).

He expressed confidence that the EV manufacturer will invest not only in the manufacturing plant but also in Thailand's entire EV** chain, thereby creating a large number of jobs.

Saita had a meeting with Tesla CEO Elon Musk in September.

The prime minister said a major deal is currently being sought to entice Taiwan Semiconductor Manufacturing Company (TSMC) to use funds from the competitiveness to make microchips in Thailand. The ** budget has allocated 100 billion baht to improve the competitiveness of Thailand's manufacturing industry.

On Thursday, Saita delivered a speech at the National Institute of Development Management (NIDA) entitled "The Future of Thailand's Economy", outlining the progress made in attracting investment in three months.

Our goal is not to be middle-income, but to make Thailand a hub for the new era of industry," he said.

Part of that goal includes attracting leading microchip manufacturers to invest in Thailand, starting with TSMC, the world's largest chipmaker. Microchips form the heart and brain of new-age technology, with more than 80% of global microchip production in Taiwan, and these Taiwanese chipmakers are currently moving production outside of Taiwan.

Prime Minister Saita highlighted his direct relationship with U.S. Secretary of Commerce Gina Raimondo, who will play a key role in facilitating the relocation of microchip factories to Thailand.

This is an opportunity for Thailand to attract investment. We are not biased towards the United States, nor are we biased towards China. China is like Big Brother, and the United States is like Big Boss. In this case, we must take advantage of Thailand's advantages to attract investment. Our triangular diplomacy has a relationship with China, the United States, and the Taiwan region, allowing us to gain opportunities by being friends with everyone," Saita said.

Thailand's prime minister added that attracting leading microchip manufacturers to Thailand will be a cornerstone for the development of high-tech industries.

Thailand is ready to provide substantial financial support to foreign manufacturers, including free land and tax incentives of 30 to 50 percent of the value of the investment. If these benefits are not provided, Thailand could lose out to regional investment competition from Indonesia and Vietnam and continue to be stuck in a low-margin, low-tech economy. He stressed that seeking an investment strategy is crucial to Thailand's long-term development.

Talking about **, he said that in the past nine years, Thailand has seriously lagged behind in the negotiation of the Free ** Agreement (FTA) with other countries and has been overtaken by Vietnam. He said it was Hanoi's success in negotiating the Freedom** agreement that drove investors to Vietnam, not Thailand's new 400 baht minimum wage.

Thailand believes that the agreement is essential to Thailand's mission to become a modern economy and a center.

Saita said he would also develop investment incentives for Japanese automakers to move production to Thailand during his visit to Japan on Dec. 16-18. The incentive only covers production for export, in line with Thailand's carbon reduction policy. Parallel incentives for EV and hydrogen vehicle manufacturers.

In an exclusive interview with The Nation, Saita said that progress has been made in the past three months in efforts to attract global conglomerates to invest in Thailand, and that he has traveled abroad several times to meet with national leaders and top businessmen to promote government-business cooperation. **A number of agreements have been signed, but ongoing follow-up is still required to ensure that the deal is finalized, as such cooperation involves complex details.

He revealed that Tesla, a major US electric car company, is ready to invest more than $5 billion in Thailand. A Level 2 management delegation overseeing Tesla's investment program has arrived in Thailand to inspect the factory site and take the opportunity to learn about Thai culture and traditions.

In this context, Saita also accompanied Tesla executives to experience the Sky Lantern Festival in Chiang Mai, allowing them to learn about Thailand's traditional Xi, which is an important asset of Thailand.

Another key aspect is international negotiations. Thailand has made great strides in this area through cooperation with economic leaders and key industries. Major global companies such as Amazon Web Services (AWS), Microsoft, Google, etc., are in talks with ** or have already started discussions. The work of the incumbent ** has attracted global attention, portraying Thailand as a politically stable and attractive destination for investors.

The primary goal of Thailand's investment strategy is to promote the development of key industries such as aerospace, digitalization, and artificial intelligence, and ensure the future benefits of the Thai people. Thailand's environment, including tax measures, 8-15 year tax exemptions for businesses, and clean energy readiness, will be a significant attraction for investors. Political stability is another key advantage recognized by global investors.

As for the role of the Thai prime minister as a national salesman, Saita acknowledges that the goal is ambitious and challenging. This is just the beginning, and there is more work to be done and accelerated. (Related reading: Thai Prime Minister Sai Tama plays the role of a national "salesman" non-stop to seek investment from Saudi Arabia).

There are a number of issues that require immediate attention, such as improving the "ease of doing business", ensuring clear legal principles, and resolving existing issues quickly.

The welcoming attitude of foreign entities ready to invest in the midst of global tensions is noteworthy. Prime Minister Saitha's successful offer to remain neutral and not engage in any conflict has instilled confidence in Thailand's position. Thailand is not a major player on the international stage, but is proud of its identity. Thailand understands its strengths and does not intend to compete beyond its capabilities. Prime Minister Saitha said that this approach had made the discussion more friendly and beneficial.

Material**Thai media dailynews, etc. Produced by the editorial department of Siam Bird (Siambird) Infringement must be investigated.

Related Pages