BOI eyes Southern Economic Corridor for investment opportunities

Thailand’s Board of Investment (BOI) is monitoring the progress of several investment projects and assessing the potential of the Southern Economic Corridor (SEC), BOI secretary-general Narit Therdsteerasukdi said recently.

The SEC covers the provinces of Chumphon, Ranong, Surat Thani and Nakhon Si Thammarat.

The BOI is also exploring the land-bridge project, which will connect the Gulf of Thailand and the Andaman Sea, with planned deep sea ports on either side of the country. Discussions have been held with local leaders, regional agencies and business executives from the Federation of Thai Industries, the Chamber of Commerce, the Tourism Industry Council, and the Young Entrepreneurs Council (YEC).

The SEC’s four provinces are strategically significant, as they serve as tourist destinations, long-term homes for high-spending retirees and large digital nomad communities. These provinces also provide crucial raw materials like rubber and palm oil, and are also central to seafood and halal food processing, regional trade and logistics.

“The BOI plans to harness these strengths to attract investments, especially in industries that add value to local resources and are environmentally friendly. The aim is to also create business opportunities, jobs and income for the region’s residents,” Narit said.

The government hopes the land-bridge project will serve as a gateway to East Asia for South Asia, the Middle East, Africa and Europe. It also has a high potential of becoming a new economic and investment hub for the region.

To bring this ambitious plan to fruition, the Transport Ministry is working on drafting the SEC Act, preparing the environmental and health impact assessment (EHIA), creating investor invitation documents and holding international roadshows to capture the interest of foreign investors.

Many international investors, including major port developers, shipping and logistics companies, commercial area developers, and financial institutions from Japan, China, the US, Europe, and the Middle East, view the land bridge as a global strategic project and a game changer for global logistics routes.

The land bridge is expected to drive Thailand’s economic growth, with investments exceeding one trillion baht and creating more than 280,000 jobs.

Narit said that based on BOI’s site visits and consultations with local executives and entrepreneurs, several valuable proposals were garnered, notably in three key areas:

Preparing local personnel to support the project construction, logistics and future industries, in a bid to ensure residents benefit fully.

• Expanding public utilities and infrastructure to support large-scale investments, including roads, electricity, water sources, industrial water production, and waste-management systems.
• Establishing mechanisms for community collaboration to achieve balanced and sustainable development.

Over the past decade (2015-2024), there have been 275 investment promotion applications totalling 73.21 billion baht in the SEC’s four provinces. This accounts for 30% of total investment in the South of Thailand. Most investments are in agriculture, rubber products, processed food, and renewable energy.