Chinese and Taiwanese investments in Thai industrial estates soars 43%

Besides investing over THB109 billion, they also employed over 30,000 local workers

Thailand saw a 43.1% jump in investments year on year (YoY) to 109 billion baht from Chinese companies in industrial estates nationwide in 2024, the Industrial Estate Authority of Thailand (IEAT) reported on Wednesday.

As of December 31, 2024 there are 203 Chinese companies operating in industrial estates nationwide, increasing from 133 companies in 2023.

These companies invested 109.09 billion baht in the past year, compared to 76.21 billion baht in 2023, or a 43.1 jump YoY. They also hired a total of 30,260 local workers, increasing from 18,979 workers in the previous year.

IEAT acting governor Sumet Tangprasert said this number includes both mainland Chinese and Taiwanese companies, with the latter showing a trend of increasing investment in Thailand this year.He said waste management, recycling of industrial waste, semiconductor, and data centres were the industries that attracted most Chinese investors.

Sumet speculated that the increasing number of Chinese companies investing in Thailand is due to geopolitical problems within China, prompting these companies to find more stable manufacturing bases outside their hometowns.

“Thailand is among the best alternatives for industrial bases within the ASEAN region, along with Vietnam, Malaysia and Indonesia,” he said.Sumet added that to efficiently compete with neighbouring countries, Thailand must streamline the process of foreign company registration as well as investment promotion approval, which will help fast track the establishment of factories in industrial estates.

“The IEAT believes the trend of Chinese companies migrating to ASEAN countries will go on for another three years, which means we have to act fast in accommodating these companies, otherwise Thailand might miss the chance to secure these foreign investments altogether,” he said.

(2025/01/22-00:00)