Best Business in Thailand for Chinese Investors
Observing China’s contribution and investment in the Belt and Road Initiative (BRI), business prospects are further calling for Chinese Investors. Around 1.49 billion dollars worth of foreign direct investments were sent from China to Thailand in 2021. China is a constant contributor to the FDI and GDP of Thailand, creating new opportunities for other nations as well.
𝐖𝐡𝐲 𝐓𝐡𝐚𝐢𝐥𝐚𝐧𝐝 𝐢𝐬 𝐭𝐡𝐞 𝐇𝐮𝐛 𝐟𝐨𝐫 𝐂𝐡𝐢𝐧𝐞𝐬𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬?
For a long, China is consistently investing in Thailand. Due to this reason, Thailand has become a hub for many Chinese investors. However, a major reason is the strategic location of Thailand. The kingdom lies at the center of the ASEAN free trade area with access to both China and India.
In the push for digital economies, Thailand is growing as a significant hub for connectivity and new technology in Asia. Chinese investments are already in numerous Thai ventures. Investments in cryptocurrencies, fintech, blockchain, and AI are raising and making a lot of money. Additionally, ventures in healthcare, particularly medical tourism, assure great profit in Thailand.
The country is now playing a highly competitive global role in foreign investment into the South Asian region. All was possible due to the substantial infrastructure connectivity plans connecting Thailand to ASEAN. Additionally, Thailand connects well with other export markets and the construction of multiple free trade zones on outlying islands.
Thailand is a member of both ASEAN and RCEP. Therefore, this illustrates that its development with free trade as a manufacturing hub will allow it to become a China investment alternative. Additionally, this will be beneficial for foreign investors wishing to reduce their China reliance. China is investing in both light manufacturing zones and a nationwide digitization program. All this is in conjunction with the China-ASEAN Free Trade Agreement and the recent RCEP agreement.
𝐅𝐨𝐫𝐞𝐢𝐠𝐧 𝐃𝐢𝐫𝐞𝐜𝐭 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 (𝐅𝐃𝐈) 𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝 𝐟𝐫𝐨𝐦 𝐂𝐡𝐢𝐧𝐚
The COVID-19 pandemic, according to the Bank of Thailand, caused a sharp fall in foreign investment (FDI) in Thailand. FDI declined from US$13.2 to US$4.8 billion between 2018 and 2019. It decreased to -$4.8 billion in 2020. China’s investments in Thailand, Southeast Asia’s second-largest economy, continuously expanded throughout the epidemic period, while others were withdrawing.
Notably, China’s investment requests in 2019 far outpaced Japan’s for the first time, with an investment value of US$8.7 billion under 203 approved projects, far outpacing Japan’s $2.4 billion (277 projects) and third-ranked Hong Kong’s $1.2 billion (64 projects).
2023 is going to be the best time for Chinese Investors to start ventures in different industries. Specifically, when the country is spearheading the fields of Digitalization and Industry 4.0, technical advancements will be given priority. If you are from China and want to start your venture in Thailand, feel free to write to us.
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