Thap Lamu Port caught in geopolitical tug-of-war between US and China

MONDAY, JULY 21, 2025

With its strategic location on the Andaman Sea, Thailand’s Thap Lamu Port has emerged as a point of interest in the growing rivalry between China and the United States, raising questions about national security, trade negotiations, and the future of Thai neutrality.

The Royal Thai Navy has plans to develop Thap Lamu Port, within the Phang Nga Naval Base in Thai Mueang district, Phang Nga province, on the Andaman Sea. The proposed upgrade aims to improve logistics support, enhance undersea capabilities, and strengthen Thailand’s maritime presence in line with long-term naval strategy.

Thap Lamu previously served only as the Phang Nga Naval Station—a small facility constrained by shallow waters, narrow terrain, and rapid sedimentation. Due to limited funding, the navy had made only minimal improvements necessary to support the 3rd Naval Area Command, including refuelling, maintenance, and basic logistics.

Under the development plan, the navy hopes to expand the port to accommodate up to four light frigates or patrol vessels. It also intends to establish a shipyard to support vessels operating in the Andaman Sea theatre.

The United States has reportedly taken note of the Thai navy’s intentions and has offered partial financial assistance, recognising the strategic importance of the Andaman-side base, particularly when compared to Myanmar’s Dawei deep-sea port, which would require much greater investment to rival.

Deputy Prime Minister and Interior Minister Phumtham Wechayachai, who recently moved from the defence portfolio, has firmly denied speculation that the US is seeking access to the base in exchange for trade tariff concessions.

“I’ve never discussed anything with the United States about using the Phang Nga Naval Base,” Phumtham said. “The navy did approach me to discuss its development plan for Thap Lamu Port on the Andaman side, as there are currently only naval facilities on the Gulf of Thailand.”

He added, “I told them the plan would require a detailed review due to its high budget. But I can confirm I had no conversations with the US. The navy likely had this proposal in place before consulting with me.”

Although discussions surrounding Thap Lamu Port and the Phang Nga Naval Base are not new, they resurfaced recently in the context of upcoming trade negotiations between Thailand and the United States. Before the first round of talks led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira and his “Team Thailand” delegation, the government instructed a thorough review of all national security-related issues that might arise, ensuring negotiators would be fully prepared with well-considered responses.

Thap Lamu was one of several security topics flagged for consideration, reflecting its strategic location on the Andaman coast. While it was unclear whether the US would raise the issue directly, the security agencies had already submitted their position to the trade team: regardless of any external offers or conditions, Thailand’s longstanding national policy prioritises maintaining a balanced approach in foreign and defence relations.

This guiding principle extends to military procurement. Despite the Royal Thai Air Force currently leaning toward Sweden’s Gripen fighter jets to replace ageing US-made F-16s being phased out, future procurement cycles may see American platforms selected once again. Defence planners insist such choices are always subject to strategic balance, not dependency.

“As a sovereign state, we must consider all proposals carefully,” a senior security source told reporters. “Regardless of what the United States may offer—whether it involves security cooperation or trade concessions—Thailand under all administrations has consistently followed a balanced foreign policy.”

Geostrategically, western Thai waters—the Andaman Sea and the Strait of Malacca—are surrounded by maritime territories of Malaysia and Indonesia, with the northern reaches bordering Indian waters. While the South China Sea is a zone of intense contestation, China is simultaneously extending its reach westward via Myanmar.

This westward push is part of the China–Myanmar Economic Corridor (CMEC), a key component of Beijing’s Belt and Road Initiative (BRI). The CMEC links China to the Indian Ocean through Myanmar’s coastline, with the proposed Dawei deep-sea port serving as a vital maritime trade and logistics node.

From the United States’ perspective, growing Chinese influence here represents a mounting strategic threat. In contrast, Thailand’s geographical position is viewed as a geopolitical asset, especially in the South. The southern seaboard provides a unique dual-access advantage: eastward to the Pacific Ocean and westward to the Indian Ocean, offering Thailand rare leverage in maritime navigation and logistics.

This dual-front potential is precisely why the United States has reportedly shown interest in Thailand’s Thap Lamu Port and the Phang Nga Naval Base. 

The Thai government has issued no directives to the Royal Thai Navy following Deputy Prime Minister Pichai Chunhavajira’s return from the recent trade mission to the US. Admiral Jirapol Wongwit, Commander-in-Chief of the Royal Thai Navy, has ordered an internal review of the source of media reports linking the US to the Thap Lamu development.

Within Thailand’s strategic community, there is clear recognition that leveraging military assets—such as base access or joint operations—in exchange for tariff relief from the US is a delicate and high-stakes calculation. Such a move could shift Thailand’s carefully maintained policy of balance, potentially drawing the kingdom into great-power competition and risking what critics describe as "inviting conflict to our doorstep."

Analysts suggest the government should explore broader trade diversification strategies instead of overly relying on the US market. This includes intensifying exports to Europe, Africa, or emerging markets, thereby reducing Thailand’s vulnerability to unilateral trade policies.

The US tariff issue is emerging as a major policy test for the Thai government and its economic leadership, which must adapt to the evolving global landscape, bringing both new opportunities and challenges.

Thailand, a relatively small nation with modest military and political clout, stands at the crossroads of multiple global powers, including the US, China, the EU, and newer actors in Asia and the Middle East.

The true test lies in how the government navigates this challenge to maximise national interest. In such a landscape, finding a genuinely selfless ally is unlikely.

Therefore, maintaining Thailand’s long-standing policy of strategic balance is not just prudent—it is essential.