Asean’s zero-tariff implementation this year has created great investment opportunities between the country’s biggest agro-conglomerate, the Charoen Pokphand Group, and Chinese investors with billions of US dollars to be spent on a range of projects. CP plans to set up a one-stop industrial park in Rayong province that will draw mainly Chinese investors.
The investment could come in any form, such as a joint venture wholly owned by the group or Chinese investors. CP is negotiating with potential Chinese investors. Its retail arm will soon be granted a licence in China for 7-Eleven convenience stores.
The Asean-China Free-Trade Agreement will open up a free flow of trade in goods and investment between the two sides.
CORE BUSINESSES Revenue from CP’s four core businesses – Charoen Pokphand Foods, CP All (the operator of 7-Eleven), the CP International Trading Group and True Corp – reached Bt346 billion last year. Chairman and CEO Dhanin Chearavanont yesterday said the group had set a capital-expenditure budget of Bt40 billion for this year that would focus on Thailand. Local investment will take up Bt30 billion at most, with the rest used abroad. “Thailand still has plenty of room for expansion, thanks to record-high foreign reserves and a rebounding economy,” he said.
CP will focus its investment on Thailand for a few years before looking abroad. Its investment in China will be higher than in Thailand, because the economy there is growing and the purchasing power of its people rising. The focus in China will be on food and retail operations.
Thailand Saw $1.7 billion Applications in Bio-Circular-Green (BCG) Investments in 2020, BOI Says
The BCG model, as defined by the Thai Government, encompasses industries that allow inclusive, sustainable growth while reducing waste, pollution and dependence on finite resources.
In the first nine months of 2020, local and international companies applied to invest as much as $1.7 billion in Thailand in more than 300 projects in the sectors listed as “BCG”, or Bio-Circular-Green economic activities focused on environmental protection and sustainability, according to data collected by the Thailand Board of Investment (BOI).(more…)
Thailand BOI new measures to boost post-Covid-19 investment
Thailand’s Board of Investment (BOI) approved a series of measures to accelerate investments and to encourage businesses to adopt digital technologies.
Foreign Investors’ Confidence in Thailand Still High Despite Covid-19 Impact, BOI Survey Shows
Out of the 600 companies surveyed, 19.33% said they have plans to increase their investment in Thailand, while another 76.67% said they expect to maintain their current investment level.
Despite the COVID-19-induced economic hardship, as much as 96% of foreign direct investors operating in Thailand are confident in the country’s potential and have plans to expand or at least maintain their investment, citing attractive investment incentives, a strong supporting industry supply chain and the availability of raw materials and parts, according to the Thailand Board of Investment’s (BOI) annual Foreign Investor Confidence Survey.(more…)
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