Thailand's manufacturing base is weakening and competitiveness is plummeting. Key issues like the EV car gamble and economic integration with China should be dominating Monday's showdown between Prime Minister Srettha Thavisin and his economic ministers. Thailand's weakening manufacturing base and lack of competitiveness are key issues ahead of a showdown on Monday between Prime Minister Srettha Thavisin and his economic ministers. Chief among them is the country's trade and closer economic integration with China. Next, as if to highlight this, is the country's gamble on EV car technology at the expense of its traditional automotive sector, which has been left reeling with plunging sales both at home and abroad. Sales of EV cars slumped in Thailand by over 73% in February compared to the same period last year. They have not recovered in March nor in April. Meanwhile, the trend is the same in the United States, Europe, and Australia. Thailand's auto industry has traditionally been bigger than countries such as Canada, the United Kingdom, and Italy. The old-fashioned automotive industry used to account for no less than 10% of the country's GDP. However, the old-fashioned automotive industry used to account for no less than 10% of the country's GDP. Car production in Thailand declined by 11% in April. For the opening four months of 2024, the total output was 518,700 units. That is equivalent to a 25% slump. Thailand expects to be manufacturing 725,000 EV cars a year by 2030 in addition to 675,000 motorcycles and 34,000 utility vehicles. The International Energy Agency reports that 20% of all cars sold worldwide in 2024 will be electric. In the meantime, a large proportion of Thailand's exports are on the line. Thailand is generating a gigantic annual trade deficit with China. Thailand is being compromised by dumping from China. Thailand's economic planners are being warned about this. China's enormous and controlled production base, when it cannot find markets, dumps them on the wider market that is still open to them. Thailand is dealing with scorching temperatures and oppressive heat. Thailand's internal battle for power over the control of the country's economy is intensifying. Thailand's Finance Ministry proposes a debt shift to boost the economy. Thailand's Finance Ministry wants to rejig public debt figures by offloading 1997 financial crisis fund debt of ฿570 billion. Thailand's Finance Ministry proposes a debt shift to boost the economy. Thailand's Finance Ministry wants to rejig public debt figures by offloading 1997 financial crisis fund debt of ฿570 billion. [9d244ee6]
Thailand's government is set to complete a deal for a Chinese-built diesel-electric attack submarine, but experts say the motivation for the deal may be more political than military. The original deal to purchase three submarines was made in 2017 under the previous government led by Prime Minister Prayut Chan-o-Cha. However, only one submarine deal materialized and faced delays. The deal was put on hold due to the outbreak of COVID-19 and concerns about integrating a German-made diesel engine. With the rise of Prime Minister Srettha Thavisin in September 2023, the submarine deal looked dead in the water. However, Thai Defense Minister Sutin Klungsang recently announced that Thailand's Royal Navy had dropped demands for the German hardware and opted for a Chinese-made diesel engine, bringing the submarine deal back to life. Experts question the necessity of a Thai attack submarine and believe the deal is emblematic of the evolving military-to-military relationship between Thailand and China. The deal is seen as important to China, and Chinese pressure may have pushed it through. The docking of the Chinese-made submarine in Thailand could raise concerns about espionage and information gathering by the US. The finalized details of the deal and the trade component are still being negotiated.