In 2019, Chinese investment applications in Thailand surpassed those made by Japanese companies for the first time, worth almost four times as much at 262 billion baht, says the Board of Investment (BoI).
Japanese investment applications tallied 73.1 billion baht, while Hong Kong investors were in third place with a value of 36.3 billion.
Duangjai Asawachintachit, the BoI's secretary-general, said Chinese investors applied for the government's investment incentives to avoid the continued US-China trade war.
Chinese companies have to seek countries to move their production facilities, with Southeast Asia and Thailand in particular favoured, she said.
Of the total investment applications from China, roughly 160 billion baht were for projects in 12 targeted industries and general sectors, while 101 billion was for the high-speed railway linking three airports.
"In 2019, the government worked to attract Chinese companies to invest in Thailand. Their investment here was not only to avoid the trade dispute, but also high wages in their country," said Mrs Duangjai.
"Chinese investment applications are expected to increase in the near future, mainly for the 12 targeted industries."
The government is promoting advanced technological development in 12 targeted industries: cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; medical services; defence; and education development.
The BoI reported total investment applications in 2019 stood at 756 billion baht from 1,624 projects.
This value is 16.2% lower than 2018 applications, which were worth 902 billion baht.
Deputy Prime Minister Somkid Jatusripitak said the BoI has been told to discuss stimulus measures with the Finance Ministry to speed up actual investment.
The measures have to be disclosed by mid-2020 to attract foreign direct investment amid the baht's appreciation, he said.
Mr Somkid said economic sentiment last year was difficult because of the impact from the trade war and state budget disbursement was not in line with the government's plan.
For investment applications in 2020, he said the BoI's board meeting will approve a target in early February.
The government plans to conduct investment roadshows overseas, starting with the US in March, followed by Japan and China, said Mr Somkid.
