Thai-Chinese park planned

Thai-Chinese park planned

Zhanjiang industrial estate in pipeline

With an aim to increase trade and investment with Southeast Asian countries, China is planning to develop a China-Thai industrial estate in Zhanjiang by inviting Thai investors to jointly develop the project.

Xu: Thailand negotiator with Asean

Xu Ningning, executive secretary-general of China-Asean Business Council (CABC), said the local government of Zhanjiang in Guangdong province will establish the estate, which is at the planning stage.

The estate is aimed at attracting and serving investments of Thai companies. Agricultural giant Charoen Pokphand (CP) Group, for instance, has made huge investments in Zhanjiang.

Mr Xu said he recently met Zhanjiang's vice-mayor, who expressed interest in supporting the project. The Chinese side will come up with details about the estate as soon as possible.

"Thai investors, especially CP, will be invited to jointly invest in the project," Mr Xu told the Bangkok Post during a visit to Thailand.

The estate will target industries such as seafood processing and electrical appliances, he said.

Through discussions with businesses and government, Mr Xu said CABC will promote China-Thailand economic cooperation as part of building partnerships with Asean countries.

In 2012, China's trade with Asean totalled US$400.7 billion, with Thailand ranking among key trading partners.

"Chinese investments in Thailand have advantages, thanks to investment policies that are attractive to Chinese enterprises. Investment barriers are less than in Europe and the US," Mr Xu said.

Mr Xu met Finance Minister Kittiratt Na-Ranong and Commerce Minister Niwatthamrong Bunsongphaisan, with whom he raised the topic of the China-Thai industrial estate.

He also visited the Thai-Chinese Rayong Industrial Zone, where nearly 60 Chinese companies are operating in sectors such as automotive parts, chemical and optic fibres, engineering instruments and steel pipelines.

The 1,600-rai estate is a joint venture between China's Holley Group and Amata Corp, Thailand's leading industrial estate developer.

Regarding the Asean Economic Community (AEC), Mr Xu said regional integration will definitely strengthen the role of Asean in East Asia and international foreign affairs.

However, challenges remain for the AEC to be established on target by the end of 2015, with some saying a delay is likely.

Almost 80% of the AEC's structure has been completed, but the remainder faces difficulties in terms of limitations for foreign investment and infrastructure development.

"Asean countries have their own advantages. Indonesia has a domestic market of 250 million people, while Laos' entry to the World Trade Organisation brings more investment opportunities for investors," Mr Xu said.

Myanmar, meanwhile, has gone through reforms, while China's investments in Vietnam grew by 147% last year.

"Thailand is the negotiator between China and Asean," Mr Xu said, noting that more opening up of markets is required if Thailand wants to maintain its status as Asean's gateway.

Natural rubber, for instance, is still subject to 20% tax and discussions are under way to cut the tax to benefit rubber exports from Thailand, he added.

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