Navy Frigate Project Faces Potential Delay Amid Domestic Industry Appeal

The Thai Navy's project to procure its eighth frigate from South Korea's Hanwha Ocean, previously Daewoo Shipbuilding & Marine Engineering Co., with an estimated cost of 16.73 billion baht, might be indefinitely suspended. This potential hold-up follows a formal appeal lodged by a Thai industry association regarding the utilization of domestic resources for the project. Navy spokesperson Rear-Adm. Parat Ratanachaipan confirmed the possible indefinite suspension, pending a technical investigation. The Industry for National Defence & Security Association, led by its chairman Manat Wongwat, filed the appeal to the State Audit Office and the South Korean embassy in Bangkok on September 14. Wongwat stated that no domestic industry has been selected for the planned construction of the South Korean frigate, despite the ready availability of domestic resources such as construction materials, components, Thai workers, and relevant services. Manat, who is also a former air force chief, remarked that the commanding admirals had apparently failed to consult his association for their latest plan to purchase the frigate prior to the creation of the Terms of Reference paper. Additionally, the association chair cast doubts about the feasibility of an offset policy for the navy’s frigate project, whose value has substantially increased from 2.25 billion baht to seven billion baht. However, the Navy spokesperson contended that the entire frigate procurement plan will be implemented in a transparent and cost-effective fashion. It remains to be seen, though, in what year the Hanwha Ocean shipbuilding will be completed and the vessel delivered to the Thai Navy. The situation underscores a potential friction point between the Navy's strategic procurement needs for advanced naval assets and the domestic defense industry's aspirations for greater participation and development within the sector.