Introduction: Blessed with a strategic geographical location and stable social environment, Thailand has regarded attracting and utilizing foreign investments as a key measure driving domestic economic growth since the 1980s. In terms of infrastructure development, the Thai government has continuously increased investment, leading to the steady improvement of infrastructure. Regarding policies and regulations, provisions have been made to ensure the operational and living security of foreign enterprises, with the formulation of relevant laws for foreign business operations establishing a robust legal framework that safeguards foreign investment in Thailand. As for institutional arrangements, investment service agencies, primarily led by the Thailand Board of Investment, have been established to provide high-quality and convenient investment services for foreign investors. The implementation of these measures has positioned Thailand as one of the primary countries in Asia attracting foreign investments.
Thailand boasts a sophisticatedThailand boasts a sophisticated infrastructureThailand boasts well-developed infrastructure, encompassing an advanced network of land, sea, and air transportation, increasingly modernized information and communication networks, as well as ample water and electricity supply, ensuring operational security for foreign enterprises and a comfortable living environment for expatriates. Modern industrial estates further provide investors with comprehensive, mature support systems and high-quality services.
I. Transportation Network
A. Roadways
Thailand boasts an extensive road network, covering urban and rural areas nationwide. The total length of roads is 64,600 kilometers. In Bangkok and neighboring provinces, there are nearly 100 kilometers of urban expressways, 165 kilometers of ring roads, and over 200 kilometers of intercity expressways, with planned intercity expressways totaling 4,150 kilometers. In 2004, Thailand signed the Asian Highway Network Agreement, connecting its transportation system with 32 countries in Europe and Asia. The Asian highways within Thailand span a total length of 5,111 kilometers. The Kunming-Bangkok Expressway, spanning over 1,800 kilometers and opened in 2008, serves as the most convenient route from Thailand to southwestern China. Presently, Thailand has four major highways:
- Highway 1, or the Northern Line, stretches from Bangkok to Mae Sai District in Chiang Rai Province, near the Thai-Myanmar border.
- Highway 2, or the Northeastern Line, runs from Nakhon Ratchasima Province to Nong Khai Province, near the Thai-Lao border.
- Highway 3, or the Eastern Line, connects Bangkok to Trat Province, near the Thai-Cambodian border.
- Highway 4, or the Southern Line, extends from Bangkok to Songkhla Province, near the Thai-Malaysian border. Additionally, Thailand has opened six priority transport corridors:
- Northern Line 1: Mae Sai-Chiang Khong- Jinghong (Yunnan Province, China)-Kunming
- Northern Line 2: Chiang Khong-Luang Namtha (Laos)-Jinghong (Yunnan Province, China)-Kunming
- Eastern Line: Mukdahan-Savannakhet (Laos)-Dong Ha (Vietnam)-Da Nang (Vietnam)
- Central Line: Bangkok-Phnom Penh (Cambodia)-Ho Chi Minh City (Vietnam)-Ha Tien (Vietnam)
- Southeastern Line: Chanthaburi-Koh Kong (Cambodia)-Sihanoukville (Cambodia)
- Western Line: Tak-Nabang-Myawaddy (Myanmar)-Yangon (Myanmar).
B. Railways
Thailand’s railway system spans a total length of 4,346 kilometers, radiating from Bangkok to major regions in the north, northeast, east, and south. The southern railway connects with Malaysia’s railway system, providing access to Singapore. In the north, the railway extends from Nong Khai Province, crossing the Mekong River to connect with Vientiane, the capital of Laos.
The northern line to Chiang Mai, passing through Sukhothai, spans a total of 751 kilometers.
The southern line, starting from Thon Buri to the border town of Ta Gong in southern Thailand (Narathiwat Province), constitutes the longest railway route at 1,144 kilometers; the segment to Songkhla Province is 974 kilometers long and connects with Malaysia’s railway network, providing direct access to Singapore; the segment to Trang Province spans 850 kilometers; and the segment to Loei Province (Nakhon Si Thammarat Province) covers a distance of 816 kilometers.
The eastern line, extending to Yala County in the Thai-Cambodian border town of Aranyaprathet, totals 255 kilometers; and to the industrial area of Map Ta Phut in Rayong Province, the length is 200 kilometers.
The northeastern line to Ubon Ratchathani Province covers a distance of 575 kilometers; it extends through Nong Khai Province, connecting to Laos, with a total length of 627.5 kilometers.
The western line, starting from Thon Buri to Phetchaburi Province, spans 194 kilometers; and to Suphan Buri Province, it covers 157 kilometers.
The Nakhon Ratchasima Line from Bangkok to Aranyaprathet spans 31 kilometers; the Ban Phlu Ta Luang segment to Nakhon Ratchasima is 34 kilometers long.
Additionally, the Thai Cabinet has approved collaboration with China to construct three high-speed railway lines: the Bangkok-Nong Khai Line, the Bangkok-Thailand-Myanmar Border Line, and the Bangkok-Rayong Line. The first two are integral parts of the cross-border railway network from Kunming, China through Vientiane, Laos, Thailand’s Nong Khai, Bangkok, and southern Thailand to the Malaysia border.
Aviation
The aviation sector in Thailand has experienced rapid development, with a plethora of domestic and international flight routes. Domestic flights, centered around Bangkok, span across the country to regions such as Kon Kaen, Udon Thani in the northeast; Chiang Mai, Nakhon Si Thammarat, Phitsanulok, Chiang Rai, and Trang Yala in the north; Trang Province, Nakhon Si Thammarat, Songkhla, Phuket, and Ranong (Surat Thani) in the south. Traveling from Bangkok to various cities domestically takes approximately an hour. Most of Thailand’s airports are operated and managed by Airports of Thailand (AOT), a subsidiary of the Ministry of Transport. AOT operates six international airports, including Suvarnabhumi Airport, Don Mueang Airport in Bangkok, Chiang Mai Airport, Chiang Rai Airport, Phuket Airport, and Hat Yai Airport. The Suvarnabhumi International Airport, inaugurated in the second half of 2006, serves as a crucial aerial hub in Southeast Asia and ranks fifth in size among 108 international airports globally. It features two runways, 120 parking spaces, with the capacity for 76 flights per hour, handling an annual passenger volume of 45 million and a cargo capacity of three million tons.
Ports
Thailand’s water transportation network spans approximately 3,999 kilometers, with navigable waterways of at least 0.9 meters deep covering 3,701 kilometers annually. Presently, there are six deep-sea ports in Thailand, namely Bangkok Port; the east coast ports of Laem Chabang and Map Ta Phut; as well as the southern coast ports of Laem Ngop, Phuket, and Songkhla. There are also two international river ports, namely Khlongsae Port and Khlongkone Port. The annual throughput exceeds seven million standard containers. Bangkok serves as the most significant port, handling 95% of the nation’s exports and virtually all imports. Additionally, from the inland river port in Chiang Rai Province in the north, through the Mekong River-Lancang River international navigational route, direct access is available to Jinghong Port and Guanlei Port in Yunnan, China.
Pipelines
Thailand extracts oil and natural gas from the Gulf of Thailand, transporting them via pipelines to the Map Ta Phut Natural Gas Separation Plant in Rayong as well as other locations using pipelines, such as the Bang Pakong District’s thermal power plant and the Bangkok Kyoto power plant. Additionally, pipelines are laid from Wachiraphot District in Lopburi Province to cement plants in Ayutthaya Province and Saraburi Province. Thailand has laid a natural gas pipeline from Myanmar, which is routed through Nakhon Sawan Province to the thermal power plant in Lop Buri Province. Presently, Myanmar transports over 300 million cubic meters of natural gas daily to Thailand from the Yadana and Yetagun gas fields. Thailand is also collaborating with Malaysia on a natural gas pipeline project currently underway. In 2008, Thailand planned to install three major natural gas pipelines nationwide, with a total investment of 34.85 billion Thai baht (approximately 6.9 billion Chinese yuan).
Public Transportation in Bangkok
Currently, the central area of Bangkok has two rail transit lines, the BTS Skytrain and the MRT Subway, spanning a total of 106 kilometers. In December 2010, the Airport Rail Link to Suvarnabhumi International Airport was officially opened. There is also a rapid bus route approximately 20 kilometers long within Bangkok. Moreover, Bangkok and its neighboring provinces boast over 800 public bus routes.
Information and Communication Networks
The diverse spectrum of telecommunications networks in Thailand blankets the entire nation, incorporating fixed-line telephony (proffering cost-effective international direct dialing services), mobile telephony, ADSL broadband internet, satellite modems, and dial-up services. Wireless networks and economical broadband expansively drape the regions with broadband capabilities reaching 5 Mbps. The Ministry of Information and Communication Technology in Thailand holds responsibility for the planning, enhancement, development, and administration of the national information and telecommunications network. Tasked with the allocation of telecommunication frequency resources, approval and issuance of telecommunications operating licenses, and the oversight of telecommunications enterprises, the National Broadcasting and Telecommunications Commission (NAC) plays a pivotal role. Among the primary telecommunications service providers are the state-owned entities such as the Communications Authority of Thailand (CAT) and the Telephone Organization of Thailand (TOT), alongside private firms like AIS, DTAC, and True.
Hydroelectric Supply
Electric Power
The Electricity Generating Authority of Thailand (EGAT) spearheads electricity production and distribution, while the Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) collaboratively facilitate the transmission of electricity to Bangkok and various provinces. In 2009, Thailand’s electricity production capacity surged to 29,212 megawatts, against a demand of 22,045 megawatts. Based on historical data analysis, Thailand’s electricity consumption coalesces with the economic growth rate; in essence, for every percentage point increment in the economy, there corresponds a commensurate rise in electricity demand. Thailand’s civilian power distribution operates on an alternating current voltage of 220 volts/50 hertz, while industrial power thrives on a 380 volts/50 hertz alternating current framework. The electricity tariffs are structured around a time-based fee schedule.
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Water Resources
Currently, Thailand’s annual water demand is 530 billion cubic meters, with 90% allocated to agriculture, 6% for daily consumption, and the remainder for industrial use. The water management department in Thailand is divided into two main institutions: the Metropolitan Waterworks Authority (MWA) is responsible for supplying tap water to 1.8 million users in a 2,100 square kilometer area covering Bangkok and neighboring provinces. The Provincial Waterworks Authority (PWA) is responsible for supplying water to most cities outside Bangkok. The residential tap water rate ranges from 8.5 to 13.15 Thai Baht per cubic meter, while the industrial and commercial tap water rate ranges from 9.5 to 14.85 Thai Baht per cubic meter, with rates increasing with usage.
Industrial Estates
The Industrial Estate Authority of Thailand (IEAT) is a state enterprise under the Ministry of Industry, established in 1979, responsible for developing and managing industrial estates. It exercises government management functions over these estates: approving their establishment, managing the construction, infrastructure improvement, land allocation, etc. It also provides services related to land use, industrial zone operation, tax incentives, work permits, and foreign labor for enterprises investing in industrial estates, in addition to the privileges granted by the Board of Investment (BOI).
Industrial estates provide the necessary comprehensive infrastructure for industrial production, including roads, electricity, tap water, flood control facilities, wastewater treatment systems, solid waste disposal systems, communication systems, and security facilities. Moreover, industrial zones also have commercial banks and post offices, some even have customs offices, schools, hospitals, shopping centers, and other life facilities needed by investors and workers.
Industrial estates typically offer one-stop services for enterprises to register companies and apply for factory production licenses. Those that comply with investment promotion policies can also apply for BOI incentives through the estate. When companies construct their factories, industrial estates can help them find construction and design companies, and assist in liaising with relevant government agencies. Once operational, industrial estates often help enterprises recruit local workers.
There are currently 45 open industrial estates spread across 15 provinces nationwide. Among them, the Industrial Estate Authority of Thailand manages 11, while 34 are developed and managed in partnership between IEAT and private enterprises.
The article is sourced from “Thai Social Culture and Investment Environment.”
