Thailand is willing to be a strategic investment destination for Chinese enterprises, not only to take advantage of a huge domestic market, but also with the Kingdom as a springboard for export to the ASEAN and other markets worldwide.
However, Thailand has to improve the efficiency of public services in the processing of work permits and visas for foreign companies looking to set up operations here, as well as help them reduce their production costs, a Chinese investor says.
Gen Xu Luo, president of Thailand and China Rayong Industrial Realty Development Co., said that with the rapid development of China's economy, the companies had been increasingly integrated with the global economy.
Despite their higher production costs compared to China, Thailand has other strengths make it an attractive country for investment.
The main factor is the desire to enrich their products Chinese manufacturers diversity of origin. They also want to expand their business in the Thai market and use this country as a springboard for export to global markets. Moreover, Chinese companies want to leverage the resources of the kingdom as rubber.
The Chinese government has encouraged companies to invest abroad, granting low-interest loans and tax incentives and direct support of capital.
"China is a young country whose modernization and progress of industrialization has taken place in just 30 years. It takes time for Chinese companies to improve and strengthen themselves first before expanding their business in global markets," said Xu . Thailand is located in the center of ASEAN and has a great atmosphere for investment and harmonious cultural environment. Security of investment in Thailand is quite secure. That's why more and more Chinese investors have come to Thailand, said.
He said more than 1,000 Chinese companies are operating here, including commercial and industrial companies.
Thailand and China Rayong Industrial Realty Development was established in 2005 as a joint venture between Holley Group of China and Thailand Industrial-estate developer Amata Corporation.
Its core businesses are an investment advisory service and rental and sale of land and factories. Its purpose is to build a platform for Chinese investors to develop and expand its business in Thailand.
Xu said the group decided to form a partnership with Amata for three reasons. First, Vikrom Kromadit, director and chief executive officer of Amata Corp, is a man-mind strategic business enjoys a high reputation in Thailand. Second, Amata Industrial-estate is a well developed and successful company with years of experience. Third, Amata City is in Rayong, enjoying the Board of Investment Zone 3 investment privileges.
"Factories in our industrial area have invested US $ 1.2 million so far in the first and second phases," he said.
"Currently, there are over 60 manufacturers in the industrial park, which covers the total area of 2,000 rai. Most of them are in industries such as electronics, motorcycles, vehicle parts, and renewable energy industries, as solar panels. Han Chinese employed about 1,000 workers and 10,000 Thai workers. "
Xu added that about 60 percent of farm products were exported to many markets around the world, particularly the US and Europe.
"We plan to add another 1,000 rai initially in our Phase 3, which starts this year and will add another 200 factories in our industrial park".
Specializing in energy and high technology industries renewable products will be new approaches, he said, noting that with its relatively high production costs, Thailand needed to focus on high value-added industries. He said this year marks the 40th anniversary of establishment of diplomatic relations between China and Thailand is commemorated. It is clear that cooperation between the two countries, such as economics, politics, culture and communications, has entered a new stage.
China is now the No 1 trade partner of Thailand and importer of its products. Chinese investment in Thailand last year totaled BT38 million. Xu said the government needed to improve the efficiency of your visa and work permit processing to attract more foreign investors.
Moreover, as the ASEAN Economic Community becomes fully effective this year, affecting the movement of the regional labor market, Thailand should be doing something to reduce their production costs.
"We are looking forward to the ACS," he said, adding that ASEAN could become a complementary and mutually beneficial ecosystem in terms of resources, capital, trade and labor.
He said government railway project would be mutually beneficial to China and Thailand. Its importance is not only economic but also in politics and culture.
TheChinaInvestors is the world's #1 funding and investments network for Chinese Investors and Global Investees.