US firms commit to Thailand

Automotive firms represented by the US-Asean Business Council (USABC) reaffirmed plans to maintain and expand investment in Thailand, retaining the country as a key global vehicle manufacturing and export base.

They pledged factory upgrades for combustion-engine and electric vehicles. They urged the government to promote investment, strengthen local parts makers, review excise taxes and speed up free trade talks.

The proposals were among seven sets of recommendations presented by a delegation led by Brian McFeeters, USABC president and chief executive officer, during a meeting with Prime Minister Anutin Charnvirakul on Thursday.

The delegation comprised representatives from 33 US companies across seven business sectors.

Government spokesman Ekkapob Pianpises said on Thursday that the meeting provided an opportunity to exchange views on industry developments, business priorities and ways to strengthen cooperation with Thailand.

Mr Anutin described US businesses as longstanding partners in Thailand's economic development.

"The government aimed to make Thailand one of the world's 20 most competitive economies by 2030 and achieve high-income country status by 2037," Mr Anutin said.

To support these goals, the government is implementing the Thailand FastPass initiative to reduce approval times for qualifying investment projects by up to 50%, alongside the Thailand Skill Bridge programme to align workforce skills with industrial requirements.

It is also modernising energy infrastructure, expanding access to clean energy through Direct Power Purchase Agreements, and strengthening governance and transparency in preparation for Thailand's accession to the Organisation for Economic Co-operation and Development (OECD).

On trade and investment, the prime minister said negotiations with the Office of the United States Trade Representative had reached agreement on key substantive elements.

He said he hoped both sides would have an opportunity to reaffirm their commitment to proceeding with an agreement on reciprocal trade.

Thailand also welcomed further US investment in semiconductors, advanced electronics, artificial intelligence (AI) and the digital economy, as well as cooperation in agriculture, biotechnology, healthcare and creative industries.

"The United States remained an important and enduring economic partner," said Mr Anutin, adding that relevant ministries and agencies would follow up on the delegation's recommendations in coordination with USABC and the Board of Investment (BOI) to support investment and business expansion.

Mr McFeeters said USABC had brought representatives of leading American manufacturers, investors and businesses operating in Thailand to strengthen cooperation.

Previous discussions in New York and during the IMF-World Bank Annual Meetings had helped US companies understand Thailand's policy direction and investment opportunities, with some considering further investment.

USABC also expressed support for the reciprocal trade negotiations.

Beyond the automotive sector, other business groups outlined their priorities and recommendations.

The consumer goods sector commended Thailand's enforcement of intellectual property laws and efforts to combat counterfeit products, while supporting malaria elimination by 2030 through technology and disease-prevention products.

The transport, logistics and energy sector proposed increasing air cargo capacity and developing the aviation and defence industries.