China gung-ho for hubs in Thailand

Raw materials and state support cited

Chinese investors are keen to use Thailand as their manufacturing base for three major industries because of the availability of raw materials and strong government support, says the head of the Asean International Traditional Investment Association (Aitia).

Chairman Wu Zhunyi said the three likely industries were food and agricultural processing, petrochemicals and rubber.

Thailand has great potential to be a manufacturing hub for Chinese business as it is a gateway to other Asean nations with plenty of raw materials for these targeted industries, he said.

Aitia joined with the China Council for the Promotion of International Trade Committee to host the “2015 Asean (Bangkok) China Import and Export Commodities Fair” yesterday to celebrate the two countries’ trade relationship.

“The exhibition groups businesses from 11 major Chinese cities to promote them in Thailand. We expect over 300 companies and 1,000 visitors to join the event, which helps in business matching to help stimulate investment and trade,” said Mr Wu.

Aitia expects the exhibition to bring in more than 10 billion baht in trade value.

Wang Xiao Chun, a deputy secretarygeneral of the China National Enterprise Association of Foreign Trade and Economic Cooperation, said Thailand and China had a healthy, long-term relationship, which should make investors confident in expanding their business here.

“Thailand is an important investment base in the region where China wants to expand trading and business to create further cooperation in the future,” she said.

Because Thailand has plenty of agricultural products it is the perfect place for a food processing manufacturing base.

Ms Wang said for similar reasons Thailand could be an export base for Chinese rubber and petrochemical industries.

Udom Wongviwatchai, deputy permanent secretary for the Industry Ministry, said China was the country’s largest export market. Last year exports to China totalled 806 billion baht, some 11% of export value, he said.

Major Thai exports to China last year were rice, rubber and tapioca products.

Mr Udom said the event was expected to help boost trade ties between small and medium-sized enterprises in the two countries. China’s “One Belt, One Road” scheme aims to expand trade across Asia.