Prime Minister Yingluck has confirmed that Thailand has committed to spending US$72 billion on a raft of infrastructure projects over the following five years, as she highlighted the main obstacles facing Thailand’s economy.
rom major political instability, cumulating in a military coup in 2006, to widespread floods last year, Thailand has seen a number of significant barriers to growth. However, this new investment is hoped to represent a change in direction for Thailand and an opportunity to put the troubles of the past behind it.
Thailand has annual GDP growth that most Western counties would be envious of and an economy that was resilient against the worldwide economic downturn. Thailand’s economy increased by an average of 6% during 2002-2004. The worldwide downturn slowed growth to 4.9% in 2007 and 3.6% in 2008. The new decade brought with it gains with the first quarter, with GDP in 2010 increasing by 12% on the same quarter in 2009.
One of the main components of the Thai governments infrastructure investment programme is the development of the rail network in the north of the country, which is intended to improve the transport network in Thailand and promote inward investment. The 750km railway line is the largest of these projects, connecting Bangkok and Chiang Mai.
External funding is also pouring into Thailand, with UK energy company Smart Green Energy planning to build three power plants in the Chaiyaphum, Roi Et and Khon Kaen province. This US$387 million commitment will ensure that Thailand is at the forefront of green technology and will create many skilled jobs in these provinces.
The key objective of these infrastructure investments is to ensure Thailand remains competitive in a increasingly global marketplace and makes doing business in Thailand as worthwhile as possible.
by Finbarr Toesland
