Bright Investment Outlook For Chiang Mai

[gotlost]

-- TNA 22/12/09

[newsfooter][/newsfooter]

Bright investment outlook for Chiang MaiThe global economic downturn coupled with several of political turbulence have marred the investment atmosphere in Chiang Mai, a political stronghold of Thailand’s former prime minister Thaksin Shinawatra, convicted of misusing the power of his office, but the northern city’s investment outlook seems brighter in the year to come thanks to the government and private investments.

In the public sector alone, at least five big projects are set to get off the ground next year, including an international exhibition and convention centre project on a piece of land covering over 300 rai (about 120 acres). There is also a development project for road expansion to facilitate agricultural transport, a logistics system and a project to improve a local bus terminal in the provincial seat to support millions of incoming tourists.

All these will have a budget of over Bt3 billion (some US$90 million) from the government’s Strong Thailand Project, of which Bt18 billion (US$545 million) is allocated for the province, while provincial authorities expect to generate more employment and income to stimulate the local economy.

According to the president of Chiang Mai Chamber of Commerce, the budget from the Strong Thailand Project is one factor that will help improve the economy of Chiang Mai.

“As the budget for this project has been allocated mainly at the local level here in Chiang Mai, there’ll be more investment and construction for the primary infrastructure. Now Bt4 billion ($121 million) has already been distributed to various projects here,” said Narong Kongprasert, president of the Chiang Mai Chamber of Commerce.

Meanwhile, the vice president of the Real Estate Entrepreneur Association of Chiang Mai and Lamphun viewed that the property business in the region is outstanding and continues growing in this year’s last quarter following signs of economic recovery.

“The tendency of the housing development market in Chiang Mai this year hasn’t actually gone down,” said Paisan Phucharoen, the association’s vice president.

“Although there were problems of Thailand’s internal politics of colour codes in the beginning of the year, the economy in Chiang Mai in 2010 could in fact be vigorous, for I heard that there are two big companies from Bangkok which came to buy and plan to develop land here in the province.”

To show signs of the positive investment tendency, an instance of the private sector’s big investments is due to the fact that around Bt1.2 billion (some $36 million) has recently been invested in a housing development project, set to be completed early next year on a piece of land connecting Chiang Mai’s provincial seat and Hang Dong district, an area considered a prime location for real estate developers, and where other several projects are also under construction.

Also, as a city of undoubted potential, Chiang Mai has recently attracted a group of Dutch investors to extend abut Bt3 billion ($90 million) for construction of a large department store to be targeting over 14 million northern Thais.

From all investments planned ahead, the city has guaranteed itself that for the year to come it is still a jewel for many who love to discover more of this land called the ‘Rose of the North’ filled with its Lanna culture. (TNA)

[Donnyboy]

talk it up as much as you want, wont believe it till i see it

whille we are on the subject of investments in cm, anyone know how the chiang mai wood movie hub is going?

'spose it went pear shaped like most investments coming from Dubai

[gotlost]

The Dutch investment group this was to start this quarter not next year. What about Central and their new mall I don't see any dirt flying.

[swain]

Interesting.. though its hard to believe it when all the houses around me in the hang dong area seem to be going down in their asking price.. Example... a house that was selling for 2.4 million baht two years ago.. is now listed for 1.7 and still no takers. I see this over and over again. One that was 6.5 being sold for 3.8 ...with as many people losing their homes I am guessing the real investment opportunity is buying from desperate sellers... Maybe this will change. I hope so... Maybe this news is a ray of light... in an otherwise bleak reality or maybe its the propaganda group that believes if you say it often enough it will come true.

[jonwilly]

Sounds a tooch like all the 5 Start Hotels that happened a couple or three years ago when 'Someone' promised Thailand's first and only Casino in his backyard.

john

Oh the Hotels happened but not the Casino.

[lannarebirth]

It is very often the case that public investment in infrastructure drives private investment. We saw some of that in the Thaksin era here in Chiang Mai. Private development seems to have overbuilt for the time being but if public projects catch up again than I see no reason that growth would not continue into the idefinite future. Hard to imagine the rate of growth not slowing soon, but I guess that remains to be seen.