More major Chinese electric vehicle makers are eyeing Thailand as a manufacturing and distribution base to neighbouring economies, according to the Thai-Chinese Chamber of Commerce.
Prospects are backed by recent investment incentives in the kingdom for Chinese carmakers, and investments are pouring in, the chamber’s Chairman Narongsak Putthapornmongkol said on Sunday.
China’s Hozon New Energy Automobile Co. will start production in Thailand to sell to Southeast Asia in 2024, becoming the latest EV maker to begin building a supply chain in the region’s top car-manufacturing hub.
Chongqing Changan Automobile and GAC Aion have also announced plans to invest a total of 16.2 billion baht (US$470 million) in EV production facilities in the country. Great Wall Motor and BYD Co. have already established production plants in eastern Rayong province, SCMP reported today (June 26).
“EV is the most trailblazing industry right now as seen through investments from MG, Great Wall Motor and BYD,” Narongsak said.
The chamber hosted the 16th World Chinese Entrepreneurs Conference in Bangkok from Saturday to Monday, with about 4,000 entrepreneurs from 50 countries in attendance. Li Chuyuan, chairman of Guangzhou Pharmaceutical Holdings, and Hui Yuan, chairman of Xiao-I Corporation were among the prominent Chinese businessmen taking part.
Thailand saw foreign investment applications more than double to 155.3 billion baht (US$44 million) in the three months through March from a year ago, led by companies from South Korea, Singapore and China, according to the nation’s Board of Investment.
Chinese firms sought to invest 25 billion baht during the period, up 87 per cent from a year ago, in industries such as battery production, electronics, petrochemicals and solar cell, data showed.
WHA Corp., Thailand’s largest industrial-estate developer, expects a pickup in Chinese investors with demand coming from companies setting up units to manufacture EVs, vehicle parts and electronics, according to Chief Executive Officer Jareeporn Jarukornsakul.
Daily minimum wages should be raised because of higher costs of living, but the increase shouldn’t exceed comparable salaries in neighbouring countries considered as Thailand’s competitors, Narongsak said.
A coalition of Thai pro-democracy parties led by progressive Move Forward Party, which is seeking to form a new government after sweeping the May 14 elections, plans to raise minimum wages in line with inflation and economic growth.
