NationThailand-Mar 7
The historic Thai trading districts of Sampheng and Pratunam are shaken as giant Chinese investments flood in. Small businesses are at a disadvantage, as Chinese capital, technology, and innovation take the lead, with Chinese firms expanding into all product categories. Explore Bangkok’s long-established commercial hubs, Sampheng and Pratunam, which have been prime locations for entrepreneurs for over a century. These historic trading districts are now facing a major upheaval as Chinese investors make aggressive market inroads.
Backed by substantial capital, expertise, technology, and strong business networks—along with investment incentives from the Thai government, including visa-free entry and foreign investment promotion policies—Chinese enterprises are rapidly setting up diverse businesses and retail operations with ease and flexibility. A field survey of the Sampheng and Pratunam trading districts reveals significant changes driven by new entrepreneurs, particularly Chinese investors. They have established a wide range of retail businesses, including accessories, personal items, restaurants, beverage shops,
supermarkets, ready-made products, and even Thai fabrics. This aggressive expansion by Chinese capital has had a severe impact on local merchants and small retailers. Setthapong Srisuphonvanij, President of the Thai Traders Association, stated that Chinese entrepreneurs are expanding their businesses in Thailand across various sectors, primarily focusing on ready-made products. The majority of ready-made clothing products from China are marketed and distributed outside the central trading areas. However, as businesses dealing in ready-made clothing experience declining sales and market share, the impact will eventually extend upstream, affecting raw material suppliers in Sampheng as well. The revenue generated by these businesses does not benefit Thailand, as it is primarily sent back to China. This concern is echoed by various sectors, and as Thailand moves into 2025, the full impact of Chinese investments on the country’s economy remains uncertain. While some businesses may be registered and pay taxes in Thailand, the overall financial benefits may not stay within the country, as much of the revenue is funneled back to China. The most concerning impact is on small Thai entrepreneurs, who will face increasing difficulty in competing in a fully liberalized market. Read more at:
