Helping Thailand’s Shipbuilding Industry

Good prospects are seen for the shipbuilding industry in Thailand, as the Ministry of Industry approved a comprehensive package of measures to stimulate the industry. The package includes strategies for the shipbuilding and repair sectors with related public and private organizations and addresses promotion, amendments to related laws and regulations, and efficient management. In order to promote and support the local maritime industry on an immediate basis, it is proposed to establish a shipbuilding industrial estate within the next five years and upgrade existing ports to facilitate marine transport, especially the transportation of goods in coastal areas. More ports in the regional areas of the country will be built to reduce road transport while boosting marine transport.

Under long-term measures to be implemented from five to ten years, a fund for shipbuilding and repair industrial development will be set up. A study will be conducted to find out the demand of manpower in this industry. In a move to attract more personnel to the shipbuilding industry, incentives will be offered to encourage more researchers to support the needs of shipyards. An institute will be established to upgrade skills in shipbuilding and repairs to international standards. Related industries, such as raw material and equipment production and iron manufacturing, will be promoted to encourage foreign shipbuilders to undertake joint ventures with Thai entrepreneurs.

Regarding amendments to related laws and regulations, the Government will exempt import tariffs for machinery, raw materials, and equipment used in the shipbuilding and repair industry. Promotional privileges, together with an exemption of corporate tax, will be granted to this industry in all investment promotion zones. Software technology and modern management systems will be adopted to develop the production process in shipyards. Concerning efficient management, the Government will form a committee to promote cooperation with various countries in several areas, such as technology, expertise, personnel development, and the promotion of research and development in this field. In addition, a database for the shipbuilding and repair industry will be developed and this will also include information about related businesses.