Beijing: Chinese investment in Thailand is expected to surge over the next 1-3 years if the government's economic stimulus measures are implemented as planned and Thai politics stabilises.
Deputy Prime Minister Somkid Jatusripitak, who is on a five-day visit to China ending today to boost trade and investment, said yesterday all the Chinese companies he met in Beijing and Shanghai had shown interest in investing in Thailand. They see Thailand it as a gateway to Asean, especially Cambodia, Laos, Vietnam and Myanmar, where economic growth averages 7-8% a year.
He told 500 Chinese investors at a forum the Thai government had implemented myriad economic reforms and legal changes to enhance bureaucratic transparency.
The government is committed to eliminating corruption and developing key infrastructure to facilitate trade and investment as well as connectivity with neighbouring countries, said Mr Somkid.
Investment from both the public and private sector in Thailand's digital economy is estimated at US$12-15 billion over the next five years, which should help the country become a digital hub and a smart nation, he said.
He cited the Eastern Economic Corridor (EEC) development plan, in particular, as a new engine to drive economic growth. On Tuesday the cabinet approved the EEC scheme, which spans three provinces.
The corridor through Chon Buri, Rayong and Chachoengsao has been designated for development as a high-tech industry cluster, with an eye towards becoming Asean's leading economic zone for industrial, infrastructure and urban development.
Mr Somkid said the government was committed to investing $8 billion to develop infrastructure in the new corridor, enabling the EEC to become a significant transportation gateway in the region.
Tus Holding plans to invest in Thai tech startups, while China Fortune Land Development Co, a Chinese real estate developer, is also keen to invest in the EEC, he said.
Futong Group, a leader supplier of optical fibre cables in China, is interested in investing in the field in Thailand. The company plans to establish a research and development centre in Thailand to develop diversified cables for communication and diversified wires for electric power transmission.
Yangzhou Hengchun Electronics, a new enterprise focusing on research, development and production of intelligent electric actuators, plans to establish a factory in Thailand to manufacture for export to Asean.
The Chinese carmaker Shanghai Automotive Industry Corporation (SAIC Motor), through its local joint venture firm SAIC Motor-CP Co, is enthusiastic about expanding passenger and commercial vehicle production in Thailand.
SAIC Motor-CP Co announced in May the construction of a second assembly facility at Hemaraj Eastern Seaboard Industrial Estate 2 in Chon Buri province. Investment cost of the new plant is estimated at 30-40 billion baht.
Founded in 2012, SAIC Motor-CP is a joint venture with Thai agribusiness conglomerate Charoen Pokphand Group. The Chinese company owns 51%.
The carmaker's first factory worth 9 billion baht and total production capacity of 50,000 units was built in Rayong's Hemaraj Eastern Seaboard Industrial Estate and began operations in June 2014.
In 2015, Chinese investment receiving approval from Thailand's Board of Investment totalled 81 projects worth 28.1 billion baht.
In a related development, the Tourism Authority of Thailand (TAT) set a target to boost quality Chinese visitors to Thailand at 10-20% of the total next year from 7% now.
Last year Chinese arrivals to Thailand grew 26% to 7.9 million, generating 376 billion baht in revenue, up 88% from 2014. The TAT projects the number of Chinese arrivals will reach 10 million this year, generating revenue of at least 509 billion baht.
TAT governor Yuthasak Supasorn said it would not set a numerical goal for tourists from China next year as the authority is trying to entice more wealthy Chinese visitors: those living in major cities and earning more than $60,000 per year.
Yesterday the TAT also signed a memorandum of understanding with Yue Sai, president of the Miss Universe China organising entity, to bring 16 beauty pageant candidates from the final round as well as from Miss Universe China 2015 to conduct activities for one week in Bangkok, Chiang Mai and Pattaya. Activities would be broadcast to China via newspapers, magazines, TV and websites such as Weibo and WeChat.