(Bloomberg) -- Thailand will explore offering fresh incentives to attract global companies looking to minimize the hit from the US-China trade war that’s likely to intensify in the wake of Donald Trump’s presidential election win, according to the country’s commerce minister.
The Southeast Asian country expects to see a rush of new investments in the coming years from China, the US and other countries which see Thailand as a neutral and friendly player in global geopolitics, Commerce Minister Pichai Naripthaphan told Bloomberg News on Wednesday.
“Trump’s win will be beneficial for Thailand, because Republicans are pro-business and the US-China trade war will continue and result in more investments from both countries into Thailand,” Pichai said in a phone interview. “Everybody wants to invest in Thailand and use us as a manufacturing hub for exports to other countries.”
Trump has threatened to ramp up the trade contest with China by slapping steep tariffs on imports, moves that could upend global trade. Southeast Asian countries were among the biggest beneficiaries of the US-China trade war during Trump’s first term in office as companies relocated businesses from China to the region to circumvent punitive tariffs and trade curbs.
A longtime manufacturing powerhouse for automobiles and electronics, Thailand has in recent months ramped up efforts to attract investment from global companies to bolster growth from an average of less than 2% under a decade of military-backed rule. Pichai last month said chip-designing firm Nvidia Corp. will unveil investment plans in December, joining Alphabet Inc. and Microsoft Corp. as the nation becomes a hot spot for building AI data centers and electronics components manufacturing.
US companies such as Seagate Technology Holdings and Western Digital Corp. are looking to ramp up investment in Thai operations, while Hewlett Packard Enterprise Co. is keen to relocate some production to the country, Pichai said.
As the oldest US ally in Asia, Thailand has also been known to take a neutral stance in the escalating geopolitical tension. Pichai said this positioning will give the country more edge, especially after the US presidential election.
“The US, China, India, Russia see us as a friend. We don’t have to choose anyone, and that makes us attractive for investments because we’re seen as safe,” said Pichai, who was in China earlier this week to court investors. “Israel, the United Arab Emirates, Iran, all think we’re a friend. Our benefits from this position will help Thailand’s economy grow.”
Xi Is Better Prepared for Trump Even as 60% Tariffs Risk Chaos
A number of foreign companies and business groups have urged the Ministry of Commerce to explore more incentives to facilitate investments, Pichai said. He’s scheduled to host a delegation of the US-ASEAN Business Council later this month.
Prime Minister Paetongtarn Shinawatra, who is in China on an official visit, congratulated Trump on his win and said her government was looking forward to advancing the long-standing alliance between Thailand and the US for the benefit of the two countries.
Thailand has seen a surge in new investment proposals, including from domestic companies, and commitments may reach as high as 1 trillion baht (29 billion) this year, according to Pichai.
The nation’s Board of Investment has reported a 42% jump in the value of investment proposals in the first nine months of this year to 723 billion baht, the highest level since 2015. A majority of the new investments are in electronics and data centers, and proposed by mostly by US and Chinese companies, according to the board.
©2024 Bloomberg L.P.