BANGKOK, Thailand – Commerce Minister Pichai Naripthaphan has called on American investors to expand their investments in Thailand, leveraging the country’s Free Trade Agreement (FTA) advantages to drive economic growth. Speaking at the AMCHAM Member Luncheon, organized by the American Chamber of Commerce in Thailand (AMCHAM) on December 9, 2024, with over 250 AMCHAM members in attendance, Pichai outlined the ministry’s plans to revitalize the Thai economy and promote trade and investment, particularly with U.S. businesses.
Minister Pichai highlighted his observations from the recent APEC Summit in Peru, where he noted that countries in South America, such as Chile, Brazil, Argentina, and Peru, boast higher GDPs and per capita incomes than Thailand. Over the past decade, Thailand’s economy has grown at an average annual rate of only 1.9%. To accelerate economic growth, the Thai government aims to attract more foreign investments, particularly in emerging industries such as semiconductors, PCB manufacturing, and data centers.
Thailand’s trade surplus with the U.S. was also attributed to exports by American companies operating in Thailand, including Western Digital, Seagate, and HP. Minister Pichai announced plans to visit the U.S. in February 2025 to negotiate with American officials against imposing higher tariffs on Thai exports. In return, Thailand may propose reducing tariffs on U.S. beef imports or increasing corn imports. He urged AMCHAM members and U.S. private sector representatives to advocate for enhanced trade and investment cooperation between the two countries.
Pichai emphasized Thailand’s strategic advantages as a regional trade and investment hub, underpinned by its 15 FTAs with 18 countries. He also highlighted the recent success of the Thailand-EFTA (comprising Switzerland, Norway, Iceland, and Liechtenstein) FTA, which is set to be signed during the World Economic Forum (WEF) in Davos in January 2025. Additionally, Thailand is pushing forward FTAs with the EU, UAE, South Korea, and ASEAN-Canada to further strengthen its trade position.
The Minister also outlined plans to support SMEs by creating a “Thailand Brand” certification to guarantee high-quality Thai products. Addressing a major challenge for SMEs—difficulty meeting large order volumes—he announced plans for the Commerce Ministry to act as an intermediary, consolidating products from various SMEs to fulfill bulk orders.
During the Q&A session, AMCHAM members raised various concerns, including government support for investments, labor shortages in the industrial sector, and opportunities in the overlapping claims area (OCA) between Thailand and Cambodia, a potential resource for oil and natural gas. (TNA)
