Investment/Saudi Arabia

Chatrudee Theparat

Saudi Arabia plans to invest 300 billion baht in Thailand.

Saudi Arabia plans to invest 300 billion baht next year in tourism, medical oil and petroleum in the Eastern Economic Corridor (EEC) area.

Chairman of the Eastern Economic Corridor (EEC) advisory board Kanit Sangsubhan

Chairman of the Eastern Economic Corridor (EEC) advisory board Kanit Sangsubhan said Saudi Arabia plans to invest 300 billion baht in Thailand next year in tourism, medical oil, petroleum and renewable energy in the EEC areas, covering provinces in Rayong, Chachoengsao and Chon Buri.

“Talks between the two governments and private sector showed a strong collaboration trend. Investment of Saudi Arabia next year will help the agency to drive annual investment in EEC to achieve 400 billion baht as targeted. Thus, we’ve no longer needed to be worried about its target number.”

The agency plans to increase the investment in EEC to reach 400 billion baht a year over the next five year (2023-2027) and expected it would help boost 5% of economic growth annually.

Mr Kanit said EEC has proposed the government that Thailand’s investment target should be at least 600 billion baht a year if the government wants to drive the economic growth of 5% a year. Of the total 600 billion baht investment, 400 million baht alone will go to the EEC project.

“Saudi Arabia also asked the Thai private sector to invest in its country as well, especially in property businesses.”

Mr Kanit said Thai economy is expected to grow by 3.2% this year and 3.6% next year. If the investment in EEC reaches the target of 400 billion baht over next five years, Thailand’s per capita income will reach US$10,000, up from US$7,097 in 2021.

He is quite confident that Thailand would become a production base of electrical vehicles (EVs) in ASEAN region after Thai government has implemented a package policy to draw foreign manufacturers and many of them have already chosen Thailand as a production base for EVs.

Currently, Thailand becomes a production base of two million units a year of combustion engines. It leads Thailand to enhance its potential to manufacture components and parts, thanks to the country’s strong workforce. And this readiness helps turn the auto industry into EVs production base rapidly.

For China’s investors, they are very active. BYD Co Ltd plans to invest 17.89 billion baht to manufacture EVs in the WHA Rayong Industrial Estate, while Great Wall Motors plans to establish a factory with 80,000 units in capacity per year in Rayong with the total investment of 22 billion baht.

In April last year, the US’s Evlomo and Rojana Industrial Park Plc signed a memorandum of understanding (MoU) to manufacture battery in Chonburi, considered as the biggest battery manufacturing plant in ASEAN.

EVLOMO Incorporated and Rojana Industrial Park Public Co., Ltd. (ROJNA) announced a plan to set up 8 GWH Lithium Battery plant in the EEC. Under its operation, the two will spend up to US$1.06 billion (approximately 33 billion baht) through a new joint venture, with 55% owned by ROJNA and remaining 45% by EVLOMO.

Horizon Plus Co is also building a 36.10 billion baht EVs factory to produce 50,000 EVs units annually in Rojana Industrial Park and in 2067 its products will be rolled out commercially.

Mr Kanit said the dynamic investment scene forced Toyota, which used Thailand as the production base, to apply the government’s package to manufacture EVs. For Honda has applied BoI to manufacture electric motorcycles.

“I have just come from Germany which Thai team met BMW executives. The company agreed to manufacture 100% of EVs here and is producing a model of EVs. Within 1-2 years, half of domestic output will be EVs.”

He expected 30% of cars sale volume in the Motor Show held between December 1 and 12 will be EVs.