Thai green industries help power over 1,200 factories in six months
Thailand is flexing its manufacturing muscles as businesses in the Kingdom invested in building or expanding over 1,200 factories during the first half of fiscal 2023, with a significant percentage of them in green or advanced industries.
The new production plants are creating over 30,000 new jobs as Thailand’s rock-solid recovery from the pandemic recession continues to gain strength.
Minister of Industry Minister Anucha Nakasai attributed the strong performance to the administration’s policies designed to steer funds to promising new sectors of the economy that are more high-technology, sustainable or green. One of the new economic stars is the bioplastics sector.
“The government launched a corporate tax deduction program to encourage investment in bioplastic manufacturing,” Anucha said.
Bioplastics accounted for about 15 percent of the new investments with a value of roughly $560 million. But that percentage may continue to rise. Thailand is the world’s second-largest producer of bioplastic products, serving growing demand overseas, according to the Thai Bioplastics Industry Association.
Thailand has a competitive advantage in bioplastics and other bio sectors such as biochemicals, because its large agricultural sector can provide the raw materials for those industries while still maintaining the Kingdom’s food security and commodities exports.
Traditional industries, however, also drew large investments. The petrochemical industry invested the largest sum at $646 million, said Jullapong Thaveesri, Director-General of the Department of Industrial Works.
Bioplastics is just one of several growing green sectors in Thailand. Another is the electric vehicle and advanced automotive sector.