Thailand Picks Hanwha Ocean for New Frigate, Turkey’s ASFAT Bid Loses Out

South Korea’s Hanwha Ocean has been selected as preferred bidder for the Royal Thai Navy’s next-generation frigate program. Turkey’s state shipbuilder ASFAT had competed with an offer built around full technology transfer, but the final contest came down to Hanwha Ocean and HD Hyundai; Prime Minister Anutin Charnvirakul endorsed the selection summary on September 4, and the defense ministry’s permanent secretary confirmed the outcome on September 7.

At a Glance

Winner: Hanwha Ocean (South Korea); first ship valued at $508 million.
Total program value could reach roughly $3 billion with follow-on orders.
Runner-up: HD Hyundai (South Korea). Turkey’s ASFAT also competed, offering full technology transfer.
The Royal Thai Navy aims to grow its frigate fleet from four to eight ships by 2037.
A detailed briefing is scheduled for September 18, after the statutory appeal period closes.

Background

Hanwha Ocean’s edge in the competition stemmed largely from its track record delivering HTMS Bhumibol Adulyadej to the Royal Thai Navy. The navy is planning to acquire roughly one 4,000-tonne frigate per fiscal year, backed by an annual budget near $540 million, suggesting the program will extend well beyond a single hull. Turkey’s ASFAT entered the competition emphasizing full technology transfer, a strategy that could still pay off in future Thai programs if Bangkok prioritizes building domestic shipyard capacity.

Regional Impact

The outcome underscores South Korean shipbuilders’ continued competitiveness in Southeast Asian naval procurement. For Hanwha Ocean, it extends a growing regional track record; for HD Hyundai, attention now shifts to other regional competitions such as Indonesia and the Philippines. ASFAT’s participation signals that Turkish shipyards are increasingly viewed as credible contenders in Southeast Asia, even as this particular bid came up short — a reminder that technology-transfer offers and localization pledges are becoming decisive factors in future competitions.

FAQ

Is the decision final? The selection has been approved, but a statutory appeal window remains open until the September 18 briefing.

What is the total contract value? The first ship is valued at $508 million, with follow-on orders potentially pushing the total to around $3 billion.

Why did ASFAT’s bid fall short? Public sources do not specify the exact reasoning; Hanwha Ocean’s prior delivery track record is seen as the decisive factor.