Thailand's Bold Plan: Tapping into Hong Kong's Financial Prowess

In an ambitious move to elevate its economic status, Thailand is looking to harness Hong Kong's global financial clout to secure funding for a groundbreaking smart city project in its flagship Eastern Economic Corridor.

Chula Sukmanop, the head of the public agency overseeing this megaproject, revealed plans to transform the corridor—a vital part of Thailand’s 4.0 initiative—into a thriving hub for advanced industries and innovation.

Eastern Economic Corridor: A Game Changer for Growth

The Eastern Economic Corridor, launched in 2017, encompasses three provinces: Rayong, Chonburi, and Chachoengsao. It aims to foster economic growth through projects like a massive, 24-square-kilometer smart city designed to rank among Asia's top business-friendly urban centers.

At the recent 10th Belt and Road Summit, Sukmanop expressed optimism about the smart city's potential, although it's still in its conceptual phase. He believes Hong Kong's ability to attract diverse funding sources will play a crucial role in turning this vision into reality.

Engaging with Hong Kong: Strategic Moves for Investment

"This is the main thing we are interested in, because Hong Kong can raise funds from anywhere," Sukmanop stated. To facilitate this, Thailand is collaborating with the Hong Kong Trade and Development Council to refine its approach in attracting investments.

Between 2018 and 2024, Hong Kong is projected to invest around $2 billion in the corridor, making it Thailand's fourth-largest foreign investor, just behind China, Japan, and Singapore.

Belt and Road Initiative: Boon or Bane?

As part of China’s Belt and Road Initiative—a global trade network aimed at linking economies through Chinese-backed projects—Thailand has faced scrutiny for its participation. Critics in the West argue that such initiatives could lead developing countries into debt traps.

However, Sukmanop countered these criticisms, insisting that the initiative is a tool that can be wielded effectively with proper management. He highlighted the surge of Chinese electric vehicle firms setting up factories in the region, which have created approximately 7,000 jobs for Thai workers.

Future Prospects: Managing Growth and Investment