Chinese Foreign Investment in Thailand Likely to Increase in 2017

Jan 17, 2017 | Emerging Trends

(BangkokPost): Chinese investment in Thailand is set to grow further next year as both large and small and medium-sized enterprises (SMEs) have expressed their interest in using Thailand as a production base in Asean, says the Industry Ministry.

Atchaka Sibunruang, who was industry minister on an investment promotion trip to Zhongguancun Industrial Estate in Beijing from Dec 8-11, said most Chinese investors expressed their interest in continuing their investment in Thailand next year.

Ms Atchaka became the science and technology minister in the cabinet reshuffle last week with Uttama Savanayana replacing her as industry minister.

“In the near future, the Chinese should become the second-largest foreign investors in Thailand, with their investment growing by 20-30% a year over the past few years,” said Ms Atchaka. China is the fourth-largest foreign investor in Thailand, while No.1 is Japan.

She said Chinese companies utilise many modern and advanced technologies that match the Thai government’s policy to promote industry to the era of Thailand 4.0, which emphasises innovation.

Thailand wants to attract more Chinese investors in the 10 targeted industries it aims to promote, expecting new technology transfers could help improve Thai industries.

Some of the Chinese industries interested in starting investment in Thailand are in biochemicals, robotics, the digital sector and high-tech machinery, said Ms Atchaka.

“The Thai government wants to encourage Thai SMEs to use advanced technology and robotics instead of a human workforce, and the Thai-German Institute has supported this focus. We hope the Chinese play a major role on this topic too,” she said.

The 10 targeted industries under Thailand 4.0 are: food and food processing; automotive and auto parts, including electric vehicles (EVs); smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

Ms Atchaka also observed operations at the Kingpeng International Hi-Tech Corporation, which manufactures greenhouse products and PC sheet multi-span greenhouses. She said Kingpeng could help Thailand develop its production of agricultural products in closed areas such as a greenhouse.

Thailand expects technology transfers to help improve facilities for EVs. Ms Atchaka met executives from BAIC Motor Corporation, China’s biggest EV producer, which produces 550,000 EVs per year.

“BAIC said it is interested in expanding its business here as it expects we will develop a new generation of batteries in the next few years, which it believes is the right time to start production,” she said.

SOURCE:

Investments Backed by one of South East Asia's BIGGEST Holiday Resorts

Don't Miss Out!, Entry Level Investments start from as little as $5000 and returning 15%+ R.O.I.

Discover Why a Change in Tourism is Great for Thailand’s Economy

Thailand is currently experiencing a change, meaning today we see a completely different view when it come to the Kingdom's tourist industry. Over the years, the visitors to the country came from the UK and other European nations but times have changed, mainly due to...

Thailands GDP Is ‘Rock Solid’ thanks to its Diverse Economy!

Thailand's GDP is rock solid, and has a diverse economy compared to many other countries around the world. If you take the Middle East or Russia, their economies are based on one item – oil. if the price of oil drops, it has a huge impact on their economy. Thailand’s...

A ‘New’ Pooled Investment Fund

The New Nordic Group is one of the leading property developers in Pattaya and indeed they have been so successful that they can now be found in other areas of Thailand and Asia. The company has an impressive track record for offering the 10% rental guarantee concept...

Share This

Share this post with your friends!