The Future of the Thai Steel Industry: Why Does the Government Still Support Foreign-Owned Factories?
Currently, the steel industry in Thailand is facing critical questions regarding its business direction, particularly among steel plants using Induction Furnaces (IF), of which there are approximately 11 to 12 nationwide. These factories have long been an essential part of steel production for construction and various downstream industries.
However, recent data indicates that the ownership structure of these steel plants has changed significantly. Today, most of these factories are no longer Thai-owned businesses but have become ventures directly owned by Chinese investment groups or joint ventures between Thai and Chinese entrepreneurs. Consequently, management and the majority of profits have shifted into foreign hands.
This shift has raised questions within the business community as to why the Thai government continues to maintain policies that support or provide incentives to this group of factories. While the original goal of such support was to assist Thai entrepreneurs, the fact that foreign capital now dominates nearly all these operations may cause the objectives of domestic industrial development to deviate from their original intent.
Beyond the issue of ownership, the influx of foreign capital also impacts competition within the domestic steel market. Small-scale Thai entrepreneurs may face difficulties competing on price and production costs, an issue that government agencies must urgently address to prevent local businesses from being forced to close down.
In the future, the government may need to thoroughly review its steel industry promotion policies to ensure that various forms of support truly benefit the Thai economy and Thai workers. Adapting to the changes in multinational capital is crucial to helping Thai industry achieve sustainable growth.