Thailand’s PTT calls for investments from Korea in EVs, semiconductors

Diplomacy

Published: 15 May. 2023, 18:43 Updated: 15 May. 2023, 19:02

Thailand’s PTT calls for investments from Korea in EVs, semiconductors

Buranin Rattanasombat, chief new business and infrastructure officer of Thai oil and gas conglomerate PTT, seventh from left in second row, Ambassador of Thailand to Korea Witchu Vejjajiva, eighth from left in second row, and members of PTT and Korean corporate executives representing the electronic vehicle and energy sectors attend a networking event organized by the Embassy of Thailand in Seoul and PTT at Four Seasons Seoul on Monday. [PARK SANG-MOON]

Thailand’s largest conglomerate and oil and gas company PTT called for investments from Korea to expand its supply chains on electronic vehicles and in the semiconductor industry by engaging with dozens of Korean companies in Seoul on Monday.

“As Thailand finds a new course for the country, PTT is also charting a new path,” said Buranin Rattanasombat, chief new business and infrastructure officer of the company.

PTT was founded in 1978 as a state-owned oil and gas company and was listed on the stock exchange in 1997. It is known to be the only Thai company among the Fortune Global 500.

“PTT now has a new vision of ‘Powering Life with Future Energy and Beyond’ to grow beyond its conventional business areas of petroleum business into future industries, namely the EV value chain, life sciences, smart electronics including semiconductors, and renewable energy including hydrogen,” said Rattanasombat. “We see great potential for collaboration between PTT and Korean businesses in these and many other areas.”

The networking event hosted by PTT and the Embassy of Thailand in Korea at the Four Seasons Seoul was joined by over a dozen Korean companies including Hyundai E&C, Kia Corporation and SK Bioscience.

Korean corporate executives attending the event showed particular interest in PTT’s plans related to autonomous vehicles, solar panels, and hydrogen development, as well as in the mechanisms to ensure the safe maintenance of EV batteries — something that local EV makers have struggled with.

Ekachai Yimsakul, managing director of Arun Plus, PTT’s EV company, reiterated its interest in partnering with Korea in the EV market.

“With government support and partners, we plan to have locally produced EVs in the next two years,” said Yimsakul.

According to Arun Plus, there are at least 14,000 EVs registered in the country as of this year, a number which grew from 9,580 last year. The most popular EV in the market is the ORA Good Cat from China.

Ambassador of Thailand to Korea Witchu Vejjajiva stressed how the economic strengths of Thailand and Korea can be complementary.

“Against the backdrop of the geopolitical tensions and the aftermath of the Covid-19 pandemic, where all economies are still experiencing their disruptive effects, the Royal Thai Embassy decided to create a new platform for this kind of fresh dialogue to promote economic partnership between the highly credible Thai and South Korean businesses,” said Vejjajiva while addressing the audience at the networking event on Monday.

“Thailand is the largest economy in mainland Southeast Asia and the second largest in the Asean region,” he said. “We are confident that our country will continue to expand, to experience a growth rate of 2.7 to 3.7 percent in 2023, with support from the recovering tourism sector, expansion of both private and public investment, and the high capacity of business firms like PTT and other big conglomerates in Thailand.”

The Thai Embassy in Seoul hosted a similar networking event for Thai conglomerate SCG last November.

When asked about whether the recent election in Thailand may have an impact on its companies’ ability to draw investment including from Korea, the top Thai envoy in Seoul dismissed any need for concerns.

“It has been proven time and again, different governments of Thailand will focus on the same agenda, which is the economic development of Thailand,” he said. “They will focus on providing better incentives for foreign businesses or foreign investors. Given where Thailand is situated, and given its logistics infrastructure, connectivity is Thailand’s strength. Coupled with Korea’s technology, I have no doubt that we will be able to reap benefits for both nations.”

Korea invested a total of $140 million in Thailand in 2022, according to the Foreign Ministry in Seoul. The two countries’ trade volume stood at $16.4 billion.

BY ESTHER CHUNG [chung.juhee@joongang.co.kr]