Thailand gears up amid US-China tensions to boost local economy

[snoop1130]

 

As the economic strife between the United States and China continue, Thailand has surprisingly emerged as an unexpected winner on the global front. The Southeast Asian country is preparing to become a significant player in the electric vehicle (EV) industry, which could potentially change the automotive scenario not just regionally, but globally as well.

 

This news was revealed during the 4th Sweden-Thailand Sustainable Development Forum, a key event of the Sustainability Expo 2024 held in Bangkok. Taking place from late September to early October, the forum gathered a diverse group of experts and diplomats to discuss urgent environmental problems.

 

The expo’s theme, "Good Balance, Better World," highlighted a key point: being sustainable and profitable can go hand in hand.

 

The ongoing trade dispute between the world's economic giants has unintentionally created an opportunity for Thailand and its neighbouring countries. Industry experts, including Volvo Car Thailand’s Managing Director Chris Wailes and Siamnat Panassorn from the Electric Vehicle Association of Thailand, see these geopolitical challenges as possible stepping stones for the Thai EV industry.

 

Thailand's well-established automobile industry serves as a firm base for this possible transformation. With a powerful network of 2,500 parts suppliers and a workforce of 800,000 strong, the country is well-prepared to make a significant impact in the EV sector. Panassorn, however, urges for more government incentives to fully unlock Thailand's potential as an EV export hub.

While the future for EVs seems promising, specialists at the forum stressed that broad adoption depends on progress in battery technology and charging infrastructure. They predict a crucial turning point will occur when EVs match the price of traditional vehicles and can offer a driving range of 1,000 kilometres on a single charge.

 

Despite the promise of the EV industry, Thailand's total car production witnessed a slight fall in 2023. The 2.2% decrease, largely due to a drop in pickup truck production, serves as a reminder of the industry's challenges, including an increase in household debt and stricter lending policies.

 

As the global initiative to fight climate change gains momentum, Thailand’s possible transformation into an EV manufacturing hub could signify a remarkable milestone. This change not only brings potential economic benefits but also aligns with global sustainability goals, possibly placing Thailand at the front of the green car revolution.

 

The coming years will be decisive if Thailand can successfully balance its economic goals with environmental responsibilities. With the global car industry at a turning point, all eyes will be on Thailand to see if it can take advantage of this opportunity and become a leader in the EV era.

 

File photo for reference only

 

-- 2024-10-07