Foreign investment in Thailand totaled 663.2 billion baht in 2003, an increase of 72% year-on-year. Of this, investments from China amounted to 159.4 billion baht, or 25%.

 

 

 

China, Singapore and the United States are the top three investors in foreign investment in Thailand. In fact, there are also many Chinese companies investing in Thailand under the name of Singapore.

 

 

 

On June 24, Ms. Aramon, Director General of the Department of Business Development, Ministry of Commerce, revealed that in the first five months of 2024 Thailand's cumulative approval of foreign investment in Thailand reached 317 cases, with a total investment of 71.7 billion baht. Among them, there were 38 cases from mainland China and 28 cases from Hong Kong, China, with total investment amounting to 17.5 billion baht.

 

 

 

Chinese companies to invest in Thailand, or through the name of Singapore and Hong Kong, China to invest in Thailand, are to avoid the risk of trade tariffs brought about by the U.S.-China trade war, access to the U.S. big market ticket.

 

 

 

Investing in Thailand is just the starting point

 

 

The U.S. tariffs on Chinese manufacturing companies are essentially a war of attrition, which directly contributes to the variability of U.S. trade tariff measures.

 

 

 

In June of this year, the U.S. announced the launch of anti-dumping and countervailing investigations into solar cells imported from Cambodia, Malaysia, Thailand and Vietnam, which directly led to the shutdown or reduction of production of solar cell factories laid out by Chinese companies in Vietnam and Thailand.

 

 

 

Chaodian think tank in Thailand industrial park to see, some from China's solar cell factories have been shut down, some even bought the land, have not had time to build a factory, only to be temporarily deserted for further consideration.

 

 

 

The shadow of the U.S. big stick, looming all around. Saving for a rainy day, for Chinese companies, with two or three overseas factories, has become the standard for future survival and development.

 

 

 

Therefore, investment in Thailand or Vietnam, just the starting point, not the end.

 

 

 

Advantages of Thailand

 

 

Now so many Chinese companies to invest in Thailand, basically shows that the advantages of investment in Thailand is still quite obvious. Comprehensive for: in the center of Asia's southeast peninsula ASEAN, business environment is relaxed and free, Thailand's social and political stability, perfect public and industrial infrastructure, government support and encouragement of policies, good bilateral relations between China and Thailand, friendly people and cultural richness, long-established and emerging industries and so on 8 major aspects.

 

 

 

Attention is paid to Thailand's BOI incentives, up to 8 years + 5 years of income tax exemption, tax exemption for import of production equipment, tax exemption for import of raw materials for export purposes, chemical industry, new energy projects can be landed directly, the introduction of foreign technicians or experts and their spouses, expatriates can own the land ownership, and so on.

 

 

 

As well as foreign capital can be 100% wholly-owned, 100% of the land and permanent property rights, foreign exchange "management" rather than "control" and so on.

 

 

 

In addition, easily overlooked advantages of Thailand and the local economic development, in the forefront of Southeast Asian countries, as well as Thailand's 5G has just begun, 5G outbreak of market opportunities.

 

 

 

Thailand's Production Costs

 

 

For Chinese manufacturing companies to invest in Thailand may be the most concerned about the cost.

 

 

 

First of all, Thailand has a lot of industrial parks to choose from, you can buy land to build your own factory, you can also rent a factory as a preoperational transition.

 

 

 

Chaodian understands that the current market offer of Thailand's industrial parks is roughly 3-5 million baht / rai, which translates into a price of 250,000-420,000 yuan / mu. Due to the application process processing plant construction cycle, it generally takes at least one year to build a factory to put it into operation.
 

 

 

Lease plant generally more than 3 years before you can apply for BOI tax exemption policy, the vast majority of Thailand's industrial parks have plant can be leased, the face of the grid in the 2,000-5,000 square meters ranging from the average plant rent of 200 baht / square / month. In comparison, the rent of factory buildings in Chonburi and Rayong is a bit higher.

 

 

 

As Thailand's economy is at the forefront of Southeast Asia, young people from Cambodia and other nearby countries like to work in Thailand. The average salary of Thai workers is RMB 3,000-4,000 per month, which includes basic salary, welfare benefits, overtime pay, social security, etc. The basic salary for college students with academic qualifications is RMB 2,000-4,000 per month.
 

 

 

The basic salary for a college student with a degree is 11,000 baht per month, rising to 15,000-18,000 baht per month for an undergraduate.

 

 

If you want to open a company or representative office in Thailand to start your business first, there are a number of issues involved such as renting an apartment, registering a company, filing tax returns, work visas and so on. Among other things, Thai company registration costs 60,000 baht, the need for a third party to apply for a work visa costs 120,000 baht a piece, and the one-time cost of doing the taxes is around 40,000 baht.

 

Translated with DeepL.com (free version)