Thailand still bullish on Chinese investments as new PM Srettha heads to Beijing for Belt and Road Initiative forum

Net foreign direct investment to Thailand from China in the first six months of 2023 was up 56 per cent year-on-year to US$690 million, central bank data showed

The investments into Thailand come at a time of growing concerns over an economic slowdown in China, and is a shot in the arm for Thai PM Srettha Thavisin

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Thailand’s Prime Minister Srettha Thavisin arrives at Beijing Capital International Airport to attend the Third Belt and Road Forum in China on Monday. Photo: Reuters/Pool

Published: 4:55pm, 17 Oct 2023

Chinese investment in Thailand has picked up pace this year despite an economic slowdown in the Asian giant, a welcome boost for the country’s new prime minister who flew into Beijing this week to bolster ties with its largest trading partner.

A stuttering recovery in the world’s second-biggest economy has spooked financial markets in 2023 as investors fretted about the impact on global growth, although Thailand has managed to retain its attraction as a vital investment hub including for China’s growth-hungry firms.

Between January and August, Thailand received foreign investment applications worth 365.2 billion baht (US$10.1 billion) – 73 per cent higher than the same period last year – led by Chinese firms that committed 90.3 billion baht, up nearly three times year-on-year, according to the Thailand Board of Investment (BOI).

Investment pledges from second-placed Singapore, totalling 76.4 billion baht, were also largely from companies originally from China, said BOI Secretary General Narit Therdsteerasukdi.

“And if you look at the month-by-month statistics, Chinese investments are still increasing,” he said. “So I see that in the next two or three years, Chinese investments will still increase drastically in Thailand.”

Net foreign direct investment to Thailand from China in the first six months of this year was up 56 per cent year-on-year to 25.1 billion baht, central bank data shows.

This wave of investments into Thailand comes at a time of growing concerns over an economic slowdown in China, and is a shot in the arm for Thai Prime Minister Srettha Thavisin, who pledged to turn around Southeast Asia’s second-largest economy when he took over the reins in August.

A tour guide sign written in Chinese characters outside the Emerald Buddha Temple inside of the Grand Palace in Bangkok, Thailand. Photo: EPA-EFE