NationThailand-Aug 4
Chinese investors are providing a welcome boost to the Thai economy by seeking opportunities to relocate their investments to Thailand. The Board of Investment (BOI) reports receiving a steady influx of investment applications, particularly in the fields of Electric Vehicles (EV), electronics, and digital industries. Over the past six years, China has submitted more than 900 investment projects with a value of more than 526 billion baht. Thailand is benefiting from the wave of Chinese investors, both from Chinese businesses and foreign investors based in China. With China’s economy, the world’s second-largest, experiencing a slowdown and a slower recovery than previously estimated, investors are exploring avenues to expand their investments in the ASEAN region, which offers robust economic growth and measures to attract foreign investments. Thailand, in particular, has caught the attention of Chinese investors. According to the BOI’s Secretary General, Narit Therdsteerasukdi, the trend of Chinese investors relocating their base from China to Thailand has become increasingly evident. The country aims to become a center for EV production in the region. Notably, several Chinese investors and businesses have already made substantial investments in the Thai EV industry, among them MG, Great Wall Motors, BYD, and Neta. Two other companies, Chang An Automotive and GAC Ion, have also announced plans to invest in the sector. Moreover, investing in Thailand goes beyond just car production, as it involves bringing related industries along, such as battery production and other crucial components for EVs. In the electronics industry, there has been a continuous flow of investments from China, driven by the trade war between China and the United States and other geopolitical tensions. Direct foreign investment statistics for 2022 show 1,070 investment projects with a total value of 433.97 billion baht, indicating a 42% increase in the number of projects and a 36% increase in the total investment value compared to the previous year. China accounted for the highest investment value at 77.38 billion baht, representing 18% of the total foreign investment value for 158 projects. Taiwan and Hong Kong were among the top six investors. Read more at: https://www.nationthailand.com/business/trading-investment/40029936
