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Chinese investment into Thailand poised to rise over next few years

Chinese investment into Thailand poised to rise over next few years

THAILAND: China’s foreign direct investment (FDI) in Thailand is expected to increase significantly over the next few years as Chinese investors are planning to expand their local footprint, says a survey by Siam Commercial Bank (SCB).

ChineseCoronavirusCOVID-19economics
By Bangkok Post

Thursday 7 January 2021, 02:00PM


SCB has continued to increase its loan portfolio of Chinese businesses investing in Thailand. Photo: Bangkok Post.

SCB has continued to increase its loan portfolio of Chinese businesses investing in Thailand. Photo: Bangkok Post.

But Thailand needs to improve competitiveness and productivity to attract FDI, said the bank’s economic intelligence unit.

The survey is based on responses from 170 Chinese investors who are involved with FDI-related businesses.

Some 61% of respondents are Chinese investors investing and doing business in Thailand, said Manop Sangiambut, chief financial officer and first executive vice-president.

Meanwhile, 66% of 170 respondents said they plan to increase investment in Thailand over the next two years, while 22% expect to maintain the existing investment portion and 12% said they plan to reduce investment locally.

Local market expansion is the primary reason attracting Chinese FDI inflow into Thailand, representing 56% of motive variables, followed by Asean market expansion at 40% and the use of local raw materials at 37%.

Based on this survey, SCB expects Chinese FDI inflows to increase significantly in the post-COVID-19 period.

CMI - Thailand

Retained demand of Chinese investment during the pandemic will also lend support to Chinese FDI inflow moving into Southeast Asia’s second largest economy in the next few years.

Besides existing investment from Chinese manufacturing businesses in Thailand, new industries, such as technology, services and food and restaurant business have also expressed interest in expanding into Thailand, said Mr Manop.

Some Chinese investors are also looking for local business partners through joint venture or merger and acquisition deals in Thailand, he said.

SCB, the country’s fourth largest commercial lender by total assets, has continued to increase its loan portfolio of Chinese businesses investing in Thailand.

The bank currently focuses mainly on large listed companies on China’s bourses and state-owned enterprises.

Yunyong Thaicharoen, chief economist at SCB Economic Intelligence Center, said greater clarity of Chinese FDI inflows will transpire in the second half as investors are assessing the government’s management of the new COVID-19 outbreak.

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Kurt | 08 January 2021 - 15:57:12

@ Andy, You are right, the long time ago asian (you and I only know that from history books )countries colonization was not good seen through todays eyes. But fact is these countries became independent, raised to higher international sprit levels now than Thailand. More world community wise in thinking. More speaking same 'language'.

Kurt | 08 January 2021 - 13:14:50

@Sandbar, You're right, But like the Chinese, the Thai despise western values. 
They meet the Chinese in that. Thai xenophobia says it all. Is ok, their own good right to keep with that 
 mindsetting their life in the largest income difference in the world. Change? Needs education. But since 2014 general education levels are going down. Published  yearly by thai institutions in BP.

Andy | 08 January 2021 - 11:10:55

Thailand, almost uniquely, managed by great diplomatic skill not to be colonised by the Europeans and now it seems the current government learnt nothing from this history.

JohnC | 08 January 2021 - 09:22:43

Don't make the same mistake Australia has by selling your assets, businesses and land to Chinese companies. Once they get a foothold in you will never get rid of them as they slowly take over....

goldwing | 08 January 2021 - 05:41:56

they gave us the pandemic that has destroyed the economy, no they will move in and buy up businesses at fire sale prices, sound like perhaps this has been the plan?

polymath | 08 January 2021 - 04:43:01

Sleep with dogs, wake up with fleas.

Sandbar | 08 January 2021 - 02:49:15

Dont sell the heart and soul of Thailand to the chinese for the sake of making a quick "buck"! They are a communist country who despise Western values. Once they take a foot hold in Thailand thier communist ideals will spread as they slowley take control! Oh yes..please let the Russians investors know of your plans as well!

Capricornball | 08 January 2021 - 00:19:53

This is where a corrupt Thai government will really hurt Thailand...selling off prime assets, and stuffing greedy pockets.  There is probably country that knows how to take advantage of corrupt countries more than corrupt Chinese that place no intrinsic value on anything... just money money money.

Galong | 07 January 2021 - 17:38:57

How pathetic. I guess if Thailand is subservient enough maybe China will sell us back some river water.

Kurt | 07 January 2021 - 16:17:33

Chinese FDI has a lot of experience with great 'investments' in unstable corrupt African countries. As Thailand is not really stable, China sees a chance to get foot here and go to make a lot of money. Lot's of profits to make with help of Sino-Thai's. It will make Thailand 'stable'. Poor Thai.

 

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