11 July 2024

Japanese auto maker Isuzu has no plan to move its production plants from Thailand to Indonesia, as reported by Indonesian media, according to Narit Therdsteerasukdi, secretary-general of Thailand’s Board of Investment.

He said that he has checked the press report with Isuzu Motors (Thailand), which sought a clarification from its parent company in Japan, and was told that the car giant has no plan to relocate its assembly facilities from Thailand to Indonesia.

Tri Petch Isuzu Sales, the sole distributor of Isuzu vehicles in Thailand, also dismissed the press report.

The Indonesian industry minister claimed on Wednesday that Isuzu plans to relocate a factory in Thailand to Indonesia and could start production as early as next year.  

Isuzu already has a factory in Karawang, Indonesia. The company operates two factories in Thailand, employing about 6,000 workers.

Meanwhile, Chula Sukmanop, secretary-general of Eastern Economic Corridor (EEC) Office, said that there has not been any noticeable sign of foreign investors planning to relocate their production facilities away from Thailand adding, however, that more investors from China, Japan and India have shown interest in investing in the pharmaceutical and medical industries in the EEC zone.

He also said that officials from the EEC will visit France to seek investors in the space and aircraft industries, as well as the aircraft maintenance facility in the EEC area.

Chula admitted, however, that the change of government in Thailand may cause some foreign investors to hesitate and delay their investment plans in, for instance, digital development in the Si Racha district of Chon Buri, due to rising land prices.