BACK Expectations of Renewed Cooperation Between Thailand and China in Industrial Parks
Thailand has long enjoyed strong relations with China, with economic, trade, and investment cooperation between the two countries considered a strategic partnership. In recent years, Chinese businesses, particularly those excelling in innovation and technology, have invested in Thailand’s industrial estates. However, the COVID-19 pandemic, combined with China’s Zero-COVID policy, severely impacted the economies of both nations, as well as other countries with ties to China. Now, with China recently lifting its Zero-COVID restrictions, there is renewed hope that Chinese investment activities will return to Thailand. Industrial estate managers across the country are likely to welcome another wave of investors from Chinese businesses.
How Does China View Thailand’s Industrial Estates?
Chinese businesspeople and investors see Thailand as a country with great potential, offering an ideal base for manufacturing operations due to several factors:
- Proximity: Thailand is geographically close to China, making it an easy choice for relocating production bases. Additionally, Thailand’s central location in ASEAN offers access to a large consumer market in neighboring countries.
- Industrial Estate Land: Thailand has numerous industrial estates spread across various regions, all strategically located with well-developed infrastructure to support large-scale manufacturing industries.
- Efficient Transportation and Logistics: Thailand boasts an effective transportation, logistics, and supply chain system.
- Eastern Economic Corridor (EEC): Industrial estates within the EEC, such as the 304 Industrial Park, located in Prachinburi (11,700 rai) and Chachoengsao (950 rai), are part of this special development zone. In the future, these estates may be linked with the Lin-gang Special Area in Shanghai, China’s pilot free trade zone.
- Government Support: Thailand’s industrial estates enjoy substantial support from the government, which also collaborates with China to enhance the potential of industrial areas and promote bilateral investment.
An additional factor that could encourage further Chinese investment is the ongoing U.S.-China trade war, which shows no sign of abating. As a result, China may increasingly decide to relocate its manufacturing bases to Thailand. Thailand’s Industrial Estate Authority (IEAT) has expressed confidence that Chinese investment in Thailand will increase following the country’s reopening. The IEAT has also collaborated with Thailand’s Board of Investment (BOI) to organize an investment promotion roadshow in April 2023, which saw participation from hundreds of Chinese business people.
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Key Chinese Industries Likely to Establish Manufacturing Bases in Thailand
Over the past year, Chinese investors have submitted the most investment promotion applications in Thailand compared to other countries. These applications primarily involve the electronics, automotive, and chemical industries. Following the BOI’s roadshow, confidence grew that many other Chinese industries would choose Thailand’s industrial estate land as their manufacturing base. One standout industry is the electric vehicle (EVs) sector. During the roadshow, the Thai delegation had the opportunity to meet with several major Chinese automakers, such as Changan Automobile, Geely, and Jiangling Motors, who expressed interest in investing in Thailand. Furthermore, the electronics industry, particularly those producing components for vehicles and communication devices, also shows promise for expansion in Thailand. This aligns with the current clientele of industrial estates like the 304 Industrial Park, which already houses several electronics and automotive manufacturers, creating potential for related businesses to thrive.
The Future of Thailand’s Industrial Estates and Foreign Investment
Apart from China, other countries such as those in Europe, the United States, Japan, and neighboring Asian nations are showing increased interest in Thailand. This presents an opportunity to revitalize Thailand’s industrial estate land sales and development, alongside the growth of private sector investment. However, the future of industrial estates can attract even more foreign investors if the following areas are developed further:
- Establishing Smart Parks with advanced technology.
- Enhancing infrastructure and energy systems for greater efficiency.
- Enhancing transport and logistics systems to better connect with markets for efficient goods distribution.
- Strengthening ties with supply chains and fostering partnerships with related businesses.
- Promoting environmental sustainability to ensure that industrial estate land sales and businesses can grow without harming nature.
The Strategic Potential of the 304 Industrial Park
The 304 Industrial Park is a prime offers a prime investment location due to its strategic location and other favorable conditions. Spanning across two provinces—Prachinburi and Chachoengsao— with Chachoengsao being a province situated within the Eastern Economic Corridor (EEC). and is well-connected to major highways in the Indochina subregion. The area predominantly houses automotive and electronics manufacturers. The 304 Industrial Park is currently offering industrial land for sale to both Thai and foreign investors and provides comprehensive services. For those interested in visiting the business, more information can be found at https://www.304industrialpark.com/th/.
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