China's Hydoo International Holding Ltd, an investment group listed on the Hong Kong Stock Exchange, will open its first exhibition and trade centre in Thailand at a cost of 100 billion baht in 2020.
A new company called Hydoo Best Group Co Ltd, a joint venture formed with Thailand's Best Group Ltd, will develop the Trust City World Exhibition on more than 500 rai of land on Bang Na-Trat Road.
Raymond Cheng, vice-president of Hydoo Best Group, said the new joint venture has 2.2 billion baht in registered capital and a 40% stake is held by Hydoo, with the rest by the Thai firm, which has a range of businesses including real estate, logistics, sports complexes, and private airport development.
Hydoo is a leading developer in China, having built more than 20 projects in 10 cities on the mainland.
"We have expanded for our first overseas integrated large-scale trade centre in Thailand, following the Chinese government's One Belt One Road policy," Mr Cheng said at a press conference yesterday in Bangkok.
For him, Thailand is attractive for investment because it is in the centre of Southeast Asia and is a destination for Chinese people to invest, work and visit for tourism.
"Our investment will open the opportunity for Chinese people to invest and sell more products here," he said. "Many Chinese don't know how to invest outside China."
Moreover, Thailand has strong economic fundamentals, excellent infrastructure, a business-friendly environment and attractive investment incentives, said Mr Cheng.
He said Hydoo Group signed a contract with Best Group Ltd for cooperation in 2015.
Sittichai Charoenkajornkul, president of Hydoo Best Group, said of the investment fund, about 80 billion baht is prepared for continued investment to adhere to its construction timeline.
The Trust City project will be divided into six business zones: exhibition space of 100,000 square metres, permanent exhibition space of 800,000 sq m, a hotel and residence zone with over 12,000 units, a global factory outlet, a financial technology hub and business hotel zone, and an auto town zone. All zones are slated to open in 2020.
"This project has been developed to be in line with our government's policy for the Eastern Economic Corridor," Mr Sittichai said. "It will be the trade centre to export Thai products to the world. Trust City will open Thai trade and commerce prospects to the world like never before."