Guru urges Thailand to set conditions for foreign investment

Thansettakij•Economy•4d ago

Reader Briefing

Dr. Paijit Viboonthanasarn proposes that the Thai government shift its investment promotion strategy from offering incentives to setting conditions that ensure long-term benefits for Thailand.

•Dr. Paijit Viboonthanasarn suggests moving from 'Investment Promotion' to a focus on 'investment quality'.
•Current investment promotion focuses on Local Content, but the expert proposes a shift toward Local Capability.
•The proposal includes requiring foreign workers to transfer skills to Thai workers through On the Job Training.
•Emphasis is placed on Upskill, New Skill, and STEM education to support Smart Factories.

Overview

•Thailand is facing competition in attracting global investment, particularly with increasing Chinese capital expansion in Thailand and ASEAN.
•Dr. Paijit Viboonthanasarn states that giving incentives for production bases is insufficient if it does not create jobs, develop skills, or transfer technology.
•Large factories may not provide maximum benefit if they rely on foreign technology, high-skilled foreign labor, and foreign raw materials.
•Dr. Paijit Viboonthanasarn proposes a model where foreign workers from China stay for approximately 3 months for On the Job Training to transfer knowledge to Thai workers.
•If Thailand lacks skilled labor for Smart Factories, investors may bring in workers from their home countries, causing Thailand to lose both employment and technology transfer opportunities.
•Dr. Paijit Viboonthanasarn suggests the government seriously pursue Upskill, New Skill, and STEM education adjustments to match industrial needs.
•Investment promotion should focus on creating an ecosystem that links foreign factories with Thai entrepreneurs in parts production, logistics, and R&D.
•Shifting to a condition-based approach ensures Thailand gains high-quality jobs and technology rather than just factories and capital.

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Key Entities

Person

Dr. Paijit Viboonthanasarn(ดร.ไพจิตร วิบูลย์ธนสาร)

An expert on the Chinese economy who proposes changes to Thailand's investment promotion strategy.

Place

Thailand(ประเทศไทย)ℹ️

The country seeking to attract high-value investment and develop its labor capability.

Organization

ASEAN(อาเซียน)ℹ️

The regional bloc where Chinese capital is expanding its role alongside Thailand.