Investment from Hong Kong also doubled from USD 8 billion to USD 16 billion during the same time period, making the growth of investment from the region more impressive.
SOURCE: South China Morning Post
Amongst all the bad economic news, Thailand’s industrial property sector is profiting from the protracted US-China trade war, as mainland Chinese manufacturers shift production to ASEAN countries in an attempt to avoid escalating tariffs.
Chinese foreign direct investment into the south east Asia sector rose last year by 31.7% to USD 233 million, after declining by 15.7% in 2016-17, according to Bank of Thailand data. In the same period, total FDI into Thailand skyrocketed by 130.5% year on year. Chinese investment accounted for 4.3% of total FDI last year and 7.6% in 2016-17, according to CBRE.
FDI into Thailand’s manufacturing sector was increasing before the trade war too, and is now seeing increased participation from China.
Last year, sales of serviced industrial land plots – privately owned industrial estates – by major developers in Thailand increased by 50% year on year. One park, specifically developed for Chinese manufacturers by Thai industrial estates provider Amata, accounted for 15% of the total sales in 2018.
CBRE also says China could be in line to take over from Japan, which has been the largest source of investment into Thailand since the late 1980s. Total FDI into Thailand last year amounted to USD 235 billion, with Japan contributing USD 86.6 billion and China US D4.9 billion, so there’s still a long way to go before Chinese investment outstrips Japan.
Thai PM General Prayut Chan-o-cha and his entourage is leaving for New York to attend the 74th United Nations General Assembly tomorrow.
But the PM isn’t travelling alone. The six day trip to the US will also be made by Foreign Minister Don Pramudwinai and Natural Resources and Environment Minister Varawut Silpa-archa (and half a plane of ‘others’).
According to a schedule released to the media, Prayut will also attend two meetings in his capacity as this year’s chairman of ASEAN to represent ASEAN and Thailand’s roles in the international arena.
He will attend a high-level meeting on Universal Health Coverage to show Thailand’s strong leadership with its national health scheme. The PM will also emphasise Thailand’s push to put universal healthcare on the world agenda.
Prayut will also attend the UN Climate Action summit and the Sustainable Development Goal summit. He is expected to say that ASEAN will accelerate development of the region and emphasise the role of local people as the centre of development projects based on the “sufficiency economy” philosophy, and that ASEAN would cooperate with the US and other nations in implementing development projects.
The Thai PM will assure the Asia Society that Thailand would cooperate with various countries on security, economic, social and environment projects, while the Kingdom also prepared to transform itself into an aged society and to develop smart cities and get its human resources ready for digital disruption.
During the meeting with the USABC, the PM will emphasise the strong points of the Eastern Economic Corridor project.
During the trip, Prayut will also meet and hold bilateral discussions with several foreign leaders, including Australian PM Scott Morrison, UN Secretary General António Guterres, as well as Tijjane Muhammad Bande, the chair of the 74th UN General Assembly.
On Tuesday, Prayut will attend a 9am banquette host by the UN secretary general for national leaders and their spouses. In the afternoon, he will attend the SDG Summit, as well as an evening banquette held by the US president and first lady for foreign leaders and spouses.
On Wednesday, Prayut will deliver a speech to the Asia Society at noon and attend a dinner meeting with executives of the USABC at night. The PM and his entourage are scheduled to fly from New York at noon on Thursday, landing at Suvarnabhumi Airport at 9.55pm on Friday.
SOURCE: The NationKeep in contact with The Thaiger by following our Facebook page.
The next negotiating round for the formation of RCEP will be held in Da Nang, Viet Nam on September 19-28 . RCEP is the Regional Comprehensive Economic Partnership, and when negotiated and signed, will become the world’s largest and most powerful trading bloc.
RCEP includes all ASEAN economies, plus Australia, China, India, Japan, New Zealand and South Korea.
Economic ministers from countries involved last gathered in Bangkok on September 8 determined to conclude the world’s largest trading bloc by the end of the year.
After seven years, negotiations have reached a critical milestone as the ministers are resolved to address the outstanding issues and conclude the pact.
“Negotiators should exercise maximum flexibility to close the negotiations,” said Secretary-General of ASEAN Dato Lim Jock Hoi.
Given today’s developments, concluding RCEP negotiations this year would provide the much-needed stability and certainty to benefit regional supply chains as well as the global markets for trade and investment. Dato Lim said that failure to do so will undermine the region’s trade and investment potential, putting market integration at risk.
Once concluded, RCEP would create a market including 3.5 billion people accounting for about 30% of all global trade.
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Thai PM Prayut Chan-o-cha is inviting South Korean investors to increase their investment and trade with Thailand. The PM says Cabinet will consider offering incentives for South Korean businesses to invest in the country. South Korean President Moon Jae-in capped off an official two day visit to the Kingdom yesterday.
The Thailand-Korea Business Forum was held yesterday in Bangkok with President Moon in attendance along with economic teams from Thailand and South Korea and representatives of 500 private companies.
Speaking at the forum the Thai PM spoke about Thailand 4.0 – the transformation of the country’s economic structure from an agriculture-based economy into a value or digital-based economy. Also about the Eastern Economic Corridor (EEC) project that was attracting investment from around the world.
According to the Bangkok Post, 400 South Korean companies have invested in Thailand with the trade value between Thailand and South Korea of USD 14-15 billion (428-459 billion baht).
Prayut also spoke about how Thailand could continue to learn from South Korea as they had been able to turn their country from agricultural economy into a manufacturing superpower over a number of decades.
Speaking at the forum President Moon said Thailand is one of the most important trading partners for his government’s New Southern Policy which has been successful in broadening partnerships with south east Asian nations and India. President Moon mentioned specific industries where he saw greater economic partnerships and trade in the future – automation, smart automotive technologies, energy, digital technology – that would assist Thailand to achieve its 4.0 goals.
PM Prayut met with President Moon Jae-in at Government House yesterday morning with the two leaders pledging to strengthen the strategic partnership between the two Asian economies.Keep in contact with The Thaiger by following our Facebook page.
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