Chinese firms ramp up presence in Thailand

Investors view the Southeast Asian nation as a springboard into the rest of the region, as Wei Tian reports from Bangkok

for exporters could be cancelled for certain industries over the next five years, to avoid any possible overcapacity.

“Chinese companies should work closely with organizations such as the Chinese-Thai Enterprises Association to build relations and discuss their competitiveness and common practices to avoid issues such as over-capacity,” he adds.

According to the BOI, the majority of Chinese companies investing in Thailand are still centered on the manufacturing, whereas higher-value added industries such as alternative energy are target sectors that Thailand is hoping will attract more overseas investment. Increasing cooperation

During a meeting with his Thai counterpart Yingluck Shinawatra in Beijing in April, Premier Wen Jiabao proposed expanding bilateral trade between the two countries to $100 billion annually before 2015, enhancing cooperation particularly in telecommunications, technology, energy and agriculture.

Yingluck said her country would play a positive role in boosting ASEAN-China cooperation.

According to Wang Jian, an officer with the ASEAN-China Center, established last year to promote trade and investment exchanges within the area, the trade volume between China and ASEAN countries is expected to reach $500 billion in 2015 form the current level of $360 billion.

During a visit to China in August, Thai Industry Minister Chaiwuti Bannawat was quoted by Guangxi Daily as saying that investment from China, worth another 20 billion baht this year, is likely.

The Thai government is actively pushing construction of traffic networks, including a high-speed railway linking southwestern China’s Yunnan province to the northeast of Thailand.

“The northeast of Thailand will be a transport hub for the ASEAN region after the network is established,” said Wiboon Khusakul, Thailand’s ambassador to China.

“Chinese businessmen are more familiar with the coastal region in east Thailand, but know very little about the north where there are abundant opportunities.”

Although the project is still at the discussion stage, Wiboon said it would only be “cost-efficient” if the railway finally reaches Singapore, suggesting speeds could reach 250300 km per hour.

PROVIDED TO CHINA DAILY COFCO Biochemical (Thailand) Co Ltd’s factory in Rayong Industrial Zone in Thailand. The Thai subsidiary of China National Cereals, Oils and Foodstuffs Corp, China’s largest food processing, manufacturing, and trading company, spent 100 million yuan...