Thailand's strategic position takes center stage: seizing opportunities in global supply chain realignment

KPMG explores Thailand’s position and strategic advantages as a key player in supply chain diversification and realignment for global businesses.

KPMG explores Thailand's advantages in global supply chain diversification and realignment


Bangkok, 19 June 2023 – KPMG in Thailand, a leading professional services firm, highlights Thailand’s potential as a preferred destination for businesses seeking to realign their supply chains amidst global economic concerns and geopolitical tensions. The country’s strategic advantages, robust infrastructure, competitive labor market, and favorable business environment make it an attractive choice for companies looking to diversify their supply chain risk in the long term.

Thailand, as the second-largest economy in ASEAN, recorded a nominal GDP of USD 495.2 billion with a 2.6% annual growth in 2022. Its well-developed transport infrastructure, significant cross-border trade, and supportive governmental policies have prompted many multinational corporations (MNCs) to shift their supply chains, particularly in the electronics, chemicals, and automotive industries, to the country.

Furthermore, Thailand’s robust infrastructure development plays a crucial role in supporting supply chain operations. The completion of the first phase of the high-speed rail project, connecting Bangkok to strategic locations within Thailand and the Malaysian border by 2026, will enhance connectivity and facilitate trade both domestically and regionally. Additionally, the implementation of the Thailand 4.0 model, which promotes the adoption of 5G networks and the advancement of digital infrastructure, creates opportunities for increased automation and digitalization within supply chains.

Moreover, Thailand’s investor-friendly climate and government support further reinforce its attractiveness for supply chain relocation. The development of the Eastern Economic Corridor (EEC) aims to establish Thailand as the leading economic zone in ASEAN, providing businesses with numerous investment opportunities. Thailand has signed 13 Free Trade Agreements (FTAs) and ratified the Regional Comprehensive Economic Partnership (RCEP) agreement, eliminating trade barriers and facilitating international trade.

Looking ahead, the “Thailand 4.0” economic model serves as a driving force for the country’s transformation into a value-based economy. By embracing innovation, technology, and creativity, Thailand aims to accelerate the manufacturing industry’s growth through smart manufacturing supply chains, increased automation, digitalization, and a focus on knowledge workers and highly skilled labor. The development of New S-Curve industries, including next-generation automotive, smart electronics, medical tourism, agriculture and biotechnology, and digital services, presents exciting opportunities for businesses in Thailand.

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About KPMG in Thailand

KPMG in Thailand, with more than 2,000 professionals offering Audit and Assurance, Legal, Tax, and Advisory services, is a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

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