Thailand is accounted to be the second-biggest economy in the region, only falling behind Indonesia. Thailand also has a strong influence among its neighboring countries as it serves as the economic anchor for Cambodia, Myanmar, and Laos. Thailand's success story needs to address the success of a couple nation's sector and one of it being the industrial sector.
Thailand's industrial sector established itself as one of the most important sectors of the country. It even managed to have a global reputation as a major hub for car assembly. Many other industrial products such as electronics and processed food also establish their manufacturing in this 68 million populated country. Industrial sector singlehandedly contributes 35% towards the total GDP of Thailand. The positive economic outlook is to be expected of Thailand's industrial sector.
In order to be able to develop much further, construction on the industrial sector will be the backbone of Thailand's future economic dominance in the region. Construction sector itself will play a critical role in developing the nation's economy. Despite the downturn of the sector during the 2014-2015 economic slowdown, the construction sector will experience an improvement parallel to the increase in the industrial sector.
According to YCP Solidiance's report, titled Will Thailand 2.0 Revive the Construction Industry?, Thailand's construction sector can take advantage of the government's massive plan to develop many economic-focused areas. Different areas will require different demand for construction that will be needed. Thailand's construction players must be able to grab these opportunities and adjust their specialties accordingly.
One of the biggest projects in Thailand is the development of Eastern Economic Corridor, which spans from Pattaya to Rayong. Eastern Economic Corridor itself is planned to stimulate the nation's economic growth, making Thailand as ASEAN's leading economic zone for industrial, infrastructure, and urban development. Numerous industries are planned to be established as a part of this grand scheme, those industries include automotive, electronics, digital, medical, biofuels, biochemicals, aviation, and logistics. Construction and investment towards the development of airports, seaports, as well as railways will be crucial to support these massive economic zones.
The development of Great Mekong Sub-region (GMS) Economic Corridors also presents another opportunity for Thailand's construction sector. Through the support of ASEAN Development Bank (ADB) to build economic zones between countries that are passed by the Mekong River, the construction of transportation routes as well as communication systems will be built in the near future with the help of interested contractors.
Amongst all these opportunities, however, Thailand needs to tackle several challenges surrounding the industrial construction sector. Most of the challenges in this sector are presented by the government's inconsistencies and uncertainties in its policies to support the development of all these potential economic zones. This is due to the continuous reshuffling of Thai's cabinet and current domestic political issues. Government's delays in implementing the plan also take part in hindering the confidence of industrial players, thus also slowing down the industrial construction growth. Other than that, natural causes such as floods could pose threats to the growing industrial sector, as many of the industrial players may prefer other neighboring countries to set up their business.
The rising of industrial construction in Thailand is expected to be around the corner in the near future. Government's plan to develop infrastructure in several economic zones has been a great opportunity that could boost the growth of the industrial construction sector. However, in order to gain the best possible development, the government must be able to tackle the challenges to overcome its natural problems and political issues.
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