Thailand has secured more than 70 billion baht in investment commitments from leading Chinese corporations following a high-level roadshow in Chengdu, Finance Minister Ekniti Nitithanprapas said on Sunday.
The Thai delegation to China engaged in direct, one-on-one negotiations with four of the country’s leading companies in the electric vehicle (EV) and advanced technology sectors, with the expected investment comprising 50 billion baht in expanded existing projects and more than 20 billion baht in new investments.
“The investment drive exceeded expectations,” Mr Ekniti, who doubles as deputy prime minister, said, attributing the strong response partly to shifting geopolitical conditions that are prompting Chinese manufacturers to diversify production beyond the mainland, with Thailand emerging as one of the preferred destinations in Southeast Asia.
Among the companies, EV manufacturer Changan Automobile reaffirmed its decision to use Thailand as its first right-hand-drive vehicle production base outside China. Its factory in Rayong province will serve as an export hub for countries covered by Thailand’s free trade agreements, while the company plans to double annual production capacity to 200,000 vehicles.
AI and optical communications equipment maker InnoLight Technology, the world’s largest producer of optical transceivers, also plans to expand its manufacturing base in Thailand. The investment is expected to create more than 20,000 jobs and include research partnerships with leading Thai universities involving about 1,500 Thai engineers.
Another major player in the industry, Eoptolink Technology, has already established its first factory in Rayong and is continuing construction of a second facility.
The government also held talks with Xiaomi Corporation, the Chinese technology giant, in an effort to encourage the company to establish Thailand as a manufacturing base for smart home and Internet of Things products by capitalising on the country’s established smart electronics supply chain.
The Board of Investment (BoI) on Sunday also organised a business matching event alongside the official opening of its Chengdu office, bringing together Thai and Chinese entrepreneurs to explore new partnerships that officials expect will generate further investment.
Mr Ekniti compared the latest wave of Chinese investment to the influx of Japanese manufacturers into Thailand’s Eastern Seaboard during the 1980s, which transformed the country into a regional manufacturing hub.
“This is a new investment wave comparable to the Japanese investment boom of the 1980s,” he said. “The difference is that this time the focus is on future industries, including artificial intelligence, electric vehicles and intelligent robotics.”
