FROM THE EDITOR

Dear readers,

The construction industry is one of the major contributors to the Thai economy, accounting for US$ 42.18 million in 2021, with 60 per cent coming from the public sector and 40 per cent from the private sector, according to the National Economic and Social Development Council.

During the past two years, the construction industry in Thailand was severely interrupted by the Covid-19 pandemic, resulting in temporary shutdowns of several construction sites. The industry has continued to struggle in 2022 as a result of the impacts of the Russian Federation war against the Ukraine as well as steep global oil and commodity costs, which have significantly increased the prices of fuel and building materials.

However, the industry still has great potential for future growth. According to Krungsri Research’s forecast for 2023 and 2024, investment in the construction sector will increase by about 4.5%-5.5% per year. One of the primary drivers is the public sector, for which the Thai government will be providing funding for megaprojects, particularly those connected to the Eastern Economic Corridor (EEC), such as phase 2 of the transport infrastructure development plan for 2022-2026.

The outlook for private sector investments will also gradually improve with progress on infrastructure projects and broader economic recovery. Several industrial estates have announced new projects, such as “WHA Rayong 36” recently launched by WHA to meet rising demand from the S-curve industries. The Thailand Board of Investment (BOI) has reported that it approved a total of 750 new investment projects, with a total value of US$ 11 billion, in the first half of 2022. That figure was 42 per cent higher than during the same period in 2021.

Sustainability has been increasingly taken into consideration in the construction industry development with rising numbers of “green” buildings in Thailand. The trend of “green” buildings is being driven by the new Building Energy Code (BEC) enforced in 2021, and the higher return on investment when compared with traditional buildings.

Prolific in smart technology and innovations, German construction, engineering and consulting companies find a market in Thailand in demand. For example, EGS-plan provides engineering consultancy for energy-efficient and sustainable buildings and neighbourhoods. BEUMER offers ready solutions for cement plants that will support the Thai cement industry in terms of efficiency and sustainability. Thai BAUER, a subsidiary of the German BAUER Spezialtiefbau GmbH, carries out specialist foundation engineering work. ExYne Asia Technology provides smart technology inside buildings to help combat the pandemic. There are many state-of-the-art German products and services widely known in Thailand’s building and construction industry, to mention just a few.

I trust you will enjoy an interesting and informative read.

Dr. Roland Wein