Connect with us
CGIF-10th-Year-Anniversary

China

Thailand welcomes relocation from China and Japan

A NESDC study found that the trade squabbles between the US and China since 2018 have led various factories to consider relocating their production bases to other countries.

Boris Sullivan

Published

on

The Thai government has ordered the Board of Investment (BoI) to actively attract foreign investors who plan to move out of China, especially Japanese ones hit by the US – China trade war.

The Bangkok Post on June 3 quoted Thai Deputy Prime Minister Somkid Jatuspripitak as saying that high-tech industries like IT and electronics are likely to move out of China amid the heightened trade row between China and the US.

Nearly 75% of the 250 companies that responded to the group’s survey said the recent tariff hikes by the US and China were having a negative effect on their business.

The survey was conducted after China and the US raised tariffs on each other’s imports earlier this month.

More than 40% were considering moving their manufacturing facilities out of China or had already done so, AmCham China said.

Their preferred destinations were Southeast Asia and Mexico. Less than 6% of respondents said they were considering moving to the US.

The BoI has also been instructed to improve investment policies to promote investment in business community, adding that existing perks are not attractive enough to lure large companies.

The investment policies should be attractive enough to entice them to choose Thailand as a base, not solely for factory relocation but also for production capacity expansion, he said.

Last month, Secretary General of the Thai National Economic and Social Development Council (NESDC) Thosaporn Sirisamphand urged the government to come up with special investment packages to encourage foreign firms affected by the trade war to relocate to Thailand. 

A NESDC study found that the trade squabbles between the US and China since 2018 have led various factories to consider relocating their production bases to other countries. 

According to him, the trade war is likely to change the production base of the world for electronics products from China to Southeast Asia. 

The relocation would become especially visible in the latter half of this year when the trade war is expected to become heightened. 

The latest report by the BoI showed that foreign direct investment (FDI) in Thailand amounted to 104.88 billion baht (3.3 billion USD) in the first four months of this year, up from 36.5 billion baht from the same period last year. Japan still ranked first in terms of FDI, with 30.7 billion baht for the period, up from 14.6 billion baht in the same period last year. 

Switzerland came second, with 11.1 billion baht, up from 5 billion, followed by China at 9.39 billion, up from 3.11 billion, Singapore at 6.2 billion, up from 5.6 billion, and Hong Kong at 3.69 billion.-VNA Thailand welcomes investment relocation from China, Japan | Vietnam+ (VietnamPlus)

Comments

China

Thailand ready to ink big Chinese-backed trade deal

The RCEP will cover all 10 Asean member states plus five partners: China, Australia, Japan, New Zealand, and South Korea and will take effect from the middle of 2021 if at least six Asean members and three partners agree to its terms.

Olivier Languepin

Published

on

Thailand is set to sign the world’s biggest free trade agreement with Japan, China, South Korea and 12 other Asia-Pacific countries at the 37th Asean Summit this week.

(more…)

Continue Reading

Business

Great Wall Motor (China) takes over GM factory in Thailand

The Thai production hub will become operational in the first quarter of 2021 with automobile production capacity of 80,000 units per annum.

Avatar

Published

on

Chinese carmaker Great Wall Motor (GWM) hosted a ceremony on November 2nd to celebrate the latest milestone in taking full ownership of Rayong Manufacturing Facility in Thailand.

(more…)

Continue Reading

China

Thailand inks 50.6 Bn baht High Speed Rail deal with China

Thai Prime Minster said the project will help strengthen ties between Thailand and China, reflecting a mutual commitment to infrastructure development to help promote economic prosperity, connectivity, and relations between the people of Thailand and China.

National News Bureau of Thailand

Published

on

white electric train
Photo by David Dibert on Pexels.com

BANGKOK (NNT) – Thailand and China signed a rail construction, train procurement, and personnel training contract for a Bangkok – Nakhon Ratchasima High Speed Rail service on the northeastern line.

(more…)

Continue Reading

Cart

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,191 other subscribers

Trending