China's investment direction believed to create opportunities for Thailand

[webfact]

China's investment direction believed to create opportunities for Thailand
By Digital Content



BANGKOK, June 17 -- The Thai Ministry of Commerce says that China is directing more investments to member countries of the Association of Southeast Asian Nations (ASEAN) and its new investment direction can create opportunities for Thailand, making Thailand its door to the region, a senior Thai official said on Tuesday.

Ampawan Pichalai, director of the ministry's Trade Policy and Strategy Office, said China started to play more roles in ASEAN and has become a leading trading partner of all ASEAN members, especially Thailand.

Last year the value of trade between Thailand and China amounted to US$457,000, rising by 10.2 per cent from 2012.

Ms Ampawan said China still emphasized logistics and the networking of roads and high-speed railways. he said investors are looking at Sihanoukville, an important industrial location and port of Cambodia, but it may not be ready to support large-scale investment at present due to many local limitations.

It is a good opportunity for Thailand to develop a special economic zone with Cambodia near the Khlong Luek area in Trat province. At that location, she suggested, Thailand could import cheap labor from Cambodia and attract Chinese investors.

She proposed that Thailand build double track railways to connect to China's high-speed railways to facilitate export to China.

The opening of cargo high-speed trains between Chongqing and the Chinese-Lao border would considerably boost trade between ASEAN and China, she indicated.

The rapid growth of Chinese urbanization and Chinese households' purchasing power would benefit the export of Thai products including electronic and electrical products, automobiles, furniture, home decorations, ornaments and processed food as well as tourism.

Close connection with Chinese markets would create plenty of opportunities for Thailand, Ms Ampawan said. (MCOT online news)


-- TNA 2014-06-17

[chotthee]

Is this another of of her old old photo?

[terryp]

Thailand really needs to get on with this, there is so much oppertunity and quite possibly lift the poor out of the Thai slums

[Thai at Heart]

t is a good opportunity for Thailand to develop a special economic zone with Cambodia near the Khlong Luek area in Trat province. At that location, she suggested, Thailand could import cheap labor from Cambodia and attract Chinese investors.

My lord. Is this what its coming to. So what exactly does Thailand get out of this?

[thumper101]

OK... I suppose it is up to me to put the secret ingredient into this stupid report.... That ingedient is 'reality'.

Ampawan Pichalai, director of the ministry's Trade Policy and Strategy Office, said China started to play more roles in ASEAN and has become a leading trading partner of all ASEAN members, especially Thailand.

Last year the value of trade between Thailand and China amounted to US$457,000, rising by 10.2 per cent from 2012.

So that counts for the increase in prices over two years that will probably be more than 10% BTW.

Ms Ampawan said China still emphasized logistics and the networking of roads and high-speed railways. he said investors are looking at Sihanoukville, an important industrial location and port of Cambodia, but it may not be ready to support large-scale investment at present due to many local limitations.

Road and train... the two most expensive forms of commercial freight transport after air.

It is a good opportunity for Thailand to develop a special economic zone with Cambodia near the Khlong Luek area in Trat province. At that location, she suggested, Thailand could import cheap labor from Cambodia and attract Chinese investors.

Cheap labour?.... isn't this a bit of a touchy subject lately?... What about ASEAN 2015?... do you think cheap labour is still going to be straightforward?

She proposed that Thailand build double track railways to connect to China's high-speed railways to facilitate export to China.

The opening of cargo high-speed trains between Chongqing and the Chinese-Lao border would considerably boost trade between ASEAN and China, she indicated.

That would make Laos 'the doorway to the region then.

The rapid growth of Chinese urbanization and Chinese households' purchasing power would benefit the export of Thai products including electronic and electrical products, automobiles, furniture, home decorations, ornaments and processed food as well as tourism.

Too funny.... you think China is going to import from Thailand... ever been on alibaba.com? Here is a quick search:

Electrical appliances......Thailand 31 Suppliers / China 4,007 Suppliers..... I guess you get the idea.

Close connection with Chinese markets would create plenty of opportunities for Thailand, Ms Ampawan said. (MCOT online news)

Logistically, Thailand is probably the last 'doorway to the region' that China would pick... It is a back runner as far as geographical location goes and it doesn't even border China, also, rail and road are never going to be able to outstrip container ships for cost efficiency and logistical superiority, and that hands the 'doorway to the region' award to Singapore and Malaysia with Thailand being the furthest country touched by sea freight.

This is just another 'Thailand could be the HUB of [enter whatever]' load of crap.

Edited June 17, 2014 by thumper101

[BSJ]

Any development will be to fatten Chinese wallets. I deal with Chinese companies on a weekly basis and there is no way in he11 that Thailand could compete with the Chinese manufacturing juggernaut. What Thailand can deliver is some of the raw materials China needs.....and expedited shipping though the yet to be built port.

[rhodie]

Last year the value of trade between Thailand and China amounted to US$457,000, rising by 10.2 per cent from 2012.......

Are you sure? Something does not seem right.

[chainarong]

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t is a good opportunity for Thailand to develop a special economic zone with Cambodia near the Khlong Luek area in Trat province. At that location, she suggested, Thailand could import cheap labor from Cambodia and attract Chinese investors.



My lord. Is this what its coming to. So what exactly does Thailand get out of this?

I was wondering that myself, knowing China, Thailand will supply slave labour and China will reap the rewards

[thumper101]

Last year the value of trade between Thailand and China amounted to US$457,000, rising by 10.2 per cent from 2012.......

Are you sure? Something does not seem right.

Those are not my words..... those are the words from the report.

My words are in bold.

[BillyBobThai]

From that other newspaper we are to talk about BP, here's what they said,

The value of Sino-Thai trade rose to US$457 billion in 2013, up 10.2% on in 2012.

[Bluespunk]

"China's investment direction believed to create opportunities for Thailand"

Opportunities for China might be a more accurate headline.

Edited June 17, 2014 by Bluespunk

[Robby nz]

The US is going to be loving this... Chins snuggling up to ASEAN countries and at a time when the US is coming out and condemning Thailand.

[UbonRatch]

Chian has been sitting in the sidelines waiting to snap up all the ASEAN countries at the start of 2015. There is nothing unique in this for Thailand, not any other country.

China will control all the ASEAN business, from the sidelines, and reap as much profit as any member state.

For Thailand to believe in golden opportunitites ahead of ASEAN rivals, it needs to learn to suck eggs first - nothing special coming from China, but a lot going back North..

[bigbamboo]

You can just imagine the leaders at an ASEAN conference saying to each other...... "One day, all this will be ours."

[Hawk]

China only supports China as other ASEAN members will come to learn, but Vietnam who has seen Chinese greed, firsthand, over those little islands already knows not to trust China.

But the downfall of other ASEAN members will be greed yet again. But most Chinese items are cheap aren't they?

[shirtless]

Thailand needs to look closely at any deals its does with China , and ensure that there is a mutual benefit to both countries , china is not a charity,

[Tomtomtom69]

OK... I suppose it is up to me to put the secret ingredient into this stupid report.... That ingedient is 'reality'.

Ampawan Pichalai, director of the ministry's Trade Policy and Strategy Office, said China started to play more roles in ASEAN and has become a leading trading partner of all ASEAN members, especially Thailand.

Last year the value of trade between Thailand and China amounted to US$457,000, rising by 10.2 per cent from 2012.

So that counts for the increase in prices over two years that will probably be more than 10% BTW.

Ms Ampawan said China still emphasized logistics and the networking of roads and high-speed railways. he said investors are looking at Sihanoukville, an important industrial location and port of Cambodia, but it may not be ready to support large-scale investment at present due to many local limitations.

Road and train... the two most expensive forms of commercial freight transport after air.

It is a good opportunity for Thailand to develop a special economic zone with Cambodia near the Khlong Luek area in Trat province. At that location, she suggested, Thailand could import cheap labor from Cambodia and attract Chinese investors.

Cheap labour?.... isn't this a bit of a touchy subject lately?... What about ASEAN 2015?... do you think cheap labour is still going to be straightforward?

She proposed that Thailand build double track railways to connect to China's high-speed railways to facilitate export to China.

The opening of cargo high-speed trains between Chongqing and the Chinese-Lao border would considerably boost trade between ASEAN and China, she indicated.

That would make Laos 'the doorway to the region then.

The rapid growth of Chinese urbanization and Chinese households' purchasing power would benefit the export of Thai products including electronic and electrical products, automobiles, furniture, home decorations, ornaments and processed food as well as tourism.

Too funny.... you think China is going to import from Thailand... ever been on alibaba.com? Here is a quick search:

Electrical appliances......Thailand 31 Suppliers / China 4,007 Suppliers..... I guess you get the idea.

Close connection with Chinese markets would create plenty of opportunities for Thailand, Ms Ampawan said. (MCOT online news)

Logistically, Thailand is probably the last 'doorway to the region' that China would pick... It is a back runner as far as geographical location goes and it doesn't even border China, also, rail and road are never going to be able to outstrip container ships for cost efficiency and logistical superiority, and that hands the 'doorway to the region' award to Singapore and Malaysia with Thailand being the furthest country touched by sea freight.

This is just another 'Thailand could be the HUB of [enter whatever]' load of crap.

Also what would Chinese investors get of being based at Khlong Leuk in Trat? Why can't Thai investors invest there, they really don't need the Chinese to help them do anything there (what special skills would the Chinese have to invest anyway, unless they just poured money into a project that offers few benefits to China?!) So the port there is expanded, Cambodian immigrant labour would of course be used where necessary because the border is less than 5km away and Cambodians can be paid half or less than Thais, so what's new?

It seems the "Chinese option" is the one some Thais are even suggesting, simply because it seems so "easy" and they don't have to do any work. For example, I've been given a link to Alibaba.com by a Thai engineer who owns a small mechanical engineering design firm here for food processing equipment I'm looking at purchasing, but the quality is so suspect (plus with shipping costs it's not all that cheap anymore) I never even bothered to go beyond opening the link to Alibaba.com. So I had to start from scratch - needless to say I've stopped contacting that guy because all he ever does is "pass the buck" giving me either way overpriced Thai options or inferior Chinese ones or he doesn't help at all. In the end I found a combination of Vietnamese and Thai suppliers based outside of Bangkok. Both offer good quality products and pricing options.

[Tomtomtom69]

Any development will be to fatten Chinese wallets. I deal with Chinese companies on a weekly basis and there is no way in he11 that Thailand could compete with the Chinese manufacturing juggernaut. What Thailand can deliver is some of the raw materials China needs.....and expedited shipping though the yet to be built port.

Yes but manufacturing in China is slowing down gradually, isn't it? At least in certain sectors. Also, there are certain types of products, mostly labour intensive where China is no longer cost competitive right? For example, more and more clothing, footwear and related items are being manufactured in Vietnam, Bangladesh and India with Chinese factories closing. For the American market, many of these items are now manufactured in central American countries that saves on shipping costs...labour costs there are also cheaper than in China (for example, Guatemala, Nicaragua, Honduras etc.) I have seen this trend first hand. Go to Walmart or anywhere in the States where clothing is sold and it's increasingly likely that your clothing will be made somewhere other than China. 10 years ago perhaps 90% of clothing items sold in the States were made in China, these days it might be less than 10%. Rip Curl, Billabong etc. now manufacture a lot of their clothing and swimwear items in Vietnam rather than China.

Also, Thailand is doing very well when it comes to the manufacture of motor vehicles and parts, especially pickup trucks, as well as processed food products. The former doesn't see much competition with China unless the Chinese are in the market for a pickup truck. Unfortunately though, Chinese just haven't taken a liking to pickup trucks as one can see from their almost complete absence from the urban Chinese landscape. About the only pickups you'll see in urban China are a few odd "sport pickups", expensive imported American pickups used as toys by rich Chinese, but these are very rare you'll probably only see like 1 every 6 months, or by local councils, who usually use very old Chinese rust buckets. In rural China, pickups are a bit more common but still quite rare - in the southern Sipsongbanna region including Jinghong, most pickups are Lao registered and are thus only driving in that part of China temporarily. Similarly, Chinese passenger cars are almost never seen in Thailand partly because high tariffs keep them out but also because Thai consumers would never drive a Chinese car. Those Thais rich enough to afford an imported car are going to purchase a BMW, Mercedes Benz, Porsche, Land Rover, high-end Lexus, etc. certainly not a Chinese bomb (BYD anyone? They only sold 3, yes that's right 3 cars in Vietnam in 2012!) Then again the Chinese themselves are no different - anyone who can afford to buy a decent car buys a foreign make, whether locally produced or imported.

Thai food products, both raw and processed are regularly seen in Chinese markets and supermarkets. Obviously China can't grow mangosteens, coconuts, durians etc. except perhaps on a limited experimental scale down near the Lao border so they mostly import these things from Thailand or in the case of dragon fruit, from Vietnam. Coconut milk, koh-kae peanuts, ready mix curry pastes etc. are amongst the Thai made products I regularly see in supermarkets across China. There is also a Thai trade centre located in Kunming.

That is not to say that Thai made products make up any significant fraction of what is being sold in China - because they don't.

However, I do agree that Thai manufacturers haven't got economies of scale that could match China's. Thailand needs to better develop those industries where it has a competitive advantage over China, without trying to compete in overlapping areas. I think that's already the case - Thailand is supplying ASEAN with vehicles, especially pickup trucks, processed food products, some building materials and some low end manufactured products. It's supplying China with rice, processed food products, some raw materials etc. China is supplying ASEAN (including Thailand) with cheap manufactured products, some electronics, some limited processed food products (mainly in border regions of Laos and Vietnam) etc., building materials.

[tomross46]

The US is going to be loving this... Chins snuggling up to ASEAN countries and at a time when the US is coming out and condemning Thailand.

The US hurt Thailand, now Chins brings the medication.