Thailand’s infrastructure, incentives a magnet for FDIs: WHA Group CEO

In an exclusive interview with The Nation, Jareeporn Jarukornsakul, Chairman of the Executive Committee and Group CEO, WHA Corporation PCL, pointed out that Thailand has numerous investment incentives, supportive measures for technology and green industries, stable infrastructure, and environmentally friendly businesses and ecosystems that make the country appealing to prospective investors.

Her confident remarks came after the company attracted higher-than-expected foreign direct investment (FDI) compared to a few years ago.

According to the Group CEO, Thailand is one step ahead of its neighbours in terms of investor attractiveness because there is a surplus of skilled labour, particularly in the automotive industry.

“Thailand has been dubbed the ‘Detroit of Asia’, and it already has a thriving automotive ecosystem. This means that future businesses and investors will not have to start from scratch,” she explained.

WHA Group has already signed contracts with one of China's major electric vehicle manufacturers and will soon sign more business contracts with other major electric vehicle manufacturers from China.

The catalyst for relocation from China to Thailand, as well as to Southeast Asia, especially Thailand, Vietnam, and Indonesia, is also supporting the FDI, she said.

The Covid-19 pandemic made many multinational companies consider relocation out of China so that they could diversify their supply chain in order to sustain their businesses, Jareeporn explained.

She noted that the trend had put Thailand, Vietnam and Indonesia in the global spotlight, helping WHA Group's net profit reach an all-time high last year, led by the industrial estate business.

“This year, I think the FDI in industrial estates maybe at an all-time high again," she said, adding that WHA Group has seen a large influx of investors from China since the border was opened.

Meanwhile, she emphasised that the increase in FDI supports the growth of WHA Group because the company offers locations with excellent logistical connections, skilled labour, stable infrastructure, a green ecosystem, and appropriate technology-related solutions to manage their industrial estate.

“WHA Group has been working on its digital transformation road map since 2017. In 2020-2021, we implemented a number of digital transformation projects, and last year we announced that we would transform from an infrastructure company to a tech company in three years,” she said.

She pointed out that digital transformation not only helped WHA Group improve its effectiveness but also met the global trend of being environmentally friendly.

She cited the example of Green Logistics projects, which are part of the company's “Mission To The Sun” campaign for environmentally friendly and sustainable. Within the estate, the company has already implemented renewable energy such as solar power.

The WHA Group became carbon neutral in 2021 as a result of solar power and green energy, ahead of its goal of achieving net zero-carbon emissions by 2050.

Apart from improving its technologies and green energy, she said WHA Group was expanding by investing in other Southeast Asian countries, such as Vietnam, Indonesia and Laos.

In addition, the WHA Group is currently focusing on investing heavily in Vietnam as that country’s economy is seeing high growth. WHA has achieved success investing in projects involving industrial estates and utilities & power businesses in Vietnam and is planning to expand more in the industrial estates area due to Vietnam’s land price appreciation, she said.

Jareeporn, however, emphasised that Thailand remained the top strategic location in this region, with many opportunities, but Thailand must continue to move forward and consider what it can do to sustainably drive the country's growth.

WHA Group’s DNA is to keep developing and that difficulties have never been a concern because WHA Group always plans with the idea of what the company can do for the country, Jareeporn said.