Thailand plans to boost the defense industry in 2017

Thailand's military junta has proposed a plan to boost the country's domestic defense industry base in 2017 through partnerships with military suppliers and other actors
.

The new scheme is expected to have an impact
on export contractors supplying Thailand through the business-government or government-government route.

Deputy Defense Minister Udomdej Sitabutr said at a recent seminar in Bangkok that Thailand's Defense Ministry will seek to expand cooperation with foreign partners in 2017 to build the country's military industrial facilities
, according to comments released by the Thai Government's Public Relations Department.

He said the facilities will be used to produce military products, including spare parts and platforms, while supporting
existing systems by providing maintenance, repair and overhaul services.

He noted that possible sites for new defense industry facilities include Nakhon Sawan province in central Thailand and Chonburi province
in the east.

Udomdej also asserted that the Department of Defense will achieve its homegrown capability development goals
through a three-pronged policy.
This involves a number of programs, including:

- upgrading existing capabilities by integrating defense industry activities carried out by state-owned enterprises; Integrate procurement activities within the Department of Defense; Promote private sector participation
in defense production by establishing a list of products and services that the Ministry of Defense can procure from non-state-owned enterprises.

- Propose a list of equipment and services that can be procured from Thailand's own R&D and production facilities to enhance the capabilities of the Royal Thai Armed Forces
.

– Establishing an independent body responsible for standardizing Thailand's defense production and promoting industrial capacity building
.

Udomdej said the ultimate goal of the above actions is to reduce dependence on imports and develop indigenous capacity to support national development
.

In 2016, Thailand held discussions with suppliers such as Russia, Ukraine, and Belarus to establish industrial facilities in Thailand
.

Some suppliers have agreed to set up joint ventures to produce spare parts and support land warfare systems exported from the country to Thailand and adjacent regional markets, an investment closely linked to the Royal Thai Army's 2016 order to purchase the first 28 tanks produced by the country
.

Russia and Ukraine have also agreed to provide industrial support
to Thailand on the condition that they purchase helicopters and military vehicles produced by them.
Thailand also concluded a joint agreement with Belarus in 2016 to identify cooperation
in specific areas.

analyse

Traditionally, plans issued by the Thai government have been known
for their lack of emphasis on upgrading the capabilities of the country's defense industry.
However, around the past year, Thailand's military junta identified the country's defense industrial base as a strategic sector
that will support the country's development over the next decade.
Accordingly, the Thai government is putting more pressure on its major suppliers to transfer technology and skills to Thai industry in order to support industrial development
.
This activity is carried out primarily through intergovernmental linkages, but there are also strategies
implemented through business-intergovernmental agreements.
Traditionally, Thailand has placed some emphasis on protecting such "compensatory" agreements from suppliers, but this strategy is being implemented
in a more determined and aggressive manner.
Thailand's defense industrial base is dominated by military-owned complexes, including weapons production centers and military explosives factories, both operated
by the Royal Thai Army.
The private sector is relatively small and is primarily responsible for supporting state-owned facilities
.
That said, the capabilities of some private companies have expanded in recent years, most notably defense electronics company AviaSatcom, which is jointly owned
by Sweden's Cyber Defense Group, Marsun shipyard and military vehicle manufacturer Chaiseri.