Geopolitical tensions continue to draw relocations to Southeast Asia

Thailand and Vietnam were among the destinations that enjoyed production base relocation. While Thailand has an advantage in the automotive industry, Vietnam is the winner in the electronic industry.

Jarupong Krisanaraj

Jarupong Krisanaraj

The Nation

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File photo provided by The Nation.

January 18, 2024

BANGKOK – Thailand and Vietnam were among the destinations that enjoyed production base relocation.

While Thailand has an advantage in the automotive industry, Vietnam is the winner in the electronic industry, especially for components for smartphones and other electrical devices.

According to logistics giant WHA Corporation (WHA), the number of foreign investors who invested in its industrial estates has increased, especially those from China.

The company also expects more foreign investors in the automotive industry to set up their factories in Thailand following the electric vehicle (EV) growth.

Supporting new industries

To facilitate the increasing demand, WHA is planning to expand its industrial estates in Thailand and Vietnam in a bid to attract foreign investors. This expansion covers both existing and new sites.

The company will also improve infrastructure for wastewater treatment, renewable energy and digital solutions to facilitate customers and achieve carbon neutrality goals.

Such upgrades include a floating solar farm in the Eastern Seaboard Industrial Estate in Rayong province with an electricity production capacity of 8 megawatts, which is expected to be completed this year, and a solar car park at Ford Motor Company (Thailand) in the Eastern Seaboard Industrial Estate 1 that is scheduled to deliver electricity for commercial purposes later in the year.

The company is also looking for renewable energy and carbon credits

“We are actively promoting the expansion of industrial estates to meet the incoming new industries, the company’s chief operating officer, Pajongwit Pongsivapai said, adding that he did not expect natural disasters triggered by the El Nino phenomenon to impact WHA. He also confirmed that the company is working with government agencies to deal with this issue.

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