From car parts to condos, faltering Thailand lures Chinese money

[webfact]

From car parts to condos, faltering Thailand lures Chinese money
BY ORATHAI SRIRING AND SATAWASIN STAPORNCHARNCHAI

RAYONG: -- Everywhere you look on Thailand's Amata industrial estate in Rayong you see signs in Chinese. It's a similar story just along the coast in the tourist resort of Pattaya, where Mandarin is increasingly visible alongside English and Russian.

As China's economy slows, its investors are looking abroad for growth and Thailand, home to one of the world's largest ethnic Chinese minorities and a gateway to Southeast Asia's 600 million consumers, is a hot investment destination in everything from industry to condominiums.

"Thailand is usually the first stop for Chinese tourists and investors," said Xu Gen Luo, who runs the Thai-Chinese Rayong Industrial Zone, about 200 km (120 miles) south east of Bangkok. Dozens of new Chinese-owned solar, rubber and industrial manufacturing plants have opened in the zone since 2012.

Full story: http://www.reuters.com/article/us-thailand-china-investment-idUSKCN0Y72D5


-- Reuters 2016-05-17

[ezzra]

Right, after they have bought half of Australia and Canada and other western countries around the world,

they bring their cash to Thailand now......

[shirtless]

Be careful what you wish for Thailand China has not come to save you, quite the opposite.

[gandalf12]

Thailand will become a state of China unless they are careful

[trogers]

Thailand will become a state of China unless they are careful

This being the case, Japan would be her first state. Chinese are buying Japan's farmland...

[NongKhaiKid]

No need for China to ever consider a military takeover anywhere, it's done via economic control.

I doubt LoS will see it that way as long as their new best friends flash the cash.

[MockingJay]

There we have it again - Thailand "lures"... but that's nothing new...

New is however, that instead on focussing on new and perhaps more versatile and spending clients who love this place and who not have on their agenda to take over this country and turn it into a carbon copy of the messed-up communist country they originated from, Thailand seems to have decided on adding a RSD Button to their system - Rapid Self Destruction...

Edited May 17, 2016 by MockingJay

[chainarong]

China is a tricky number , Thailand needs to watch this situation as it can grow out of control , it isn't so much the Chinese per say , it is the easy money being bandied about , Australia as mentioned is a good example of run away Chinese buying, although the present administration placed a no go on a cattle station sale , which was 1/3 the size of Australia ,and new houses , the problem also arises if their is a big fall out with China, they want land, as they have not got enough of their own ,( probably all polluted ) for their own produce exports and it will be short supply to the local market with high buying costs for the Thai's and low costs for their own people.................................

[leeneeds]

Once made in China mai peng mai chop,

now made in Thailand, products are

sway,

crap is crap no matter what you dress it up as.

[AlQaholic]

Right, after they have bought half of Australia and Canada and other western countries around the world,

they bring their cash to Thailand now......

Yeah and its all paid by Australians, Canadians and Americans when they buy that imported cheap Chinese consumer crap with no trade barriers for child labor or forced slave labor etc.etc... and a Chinese currency that is set at will by the Chinese.....Ohhh!! good trade deals you guys came up with when it came down to negotiating with the Chinese....How much did it cost to make an Apple iWatch in China again? I forgot.....

Edited May 17, 2016 by AlQaholic

[cpofc]

China is a tricky number , Thailand needs to watch this situation as it can grow out of control , it isn't so much the Chinese per say , it is the easy money being bandied about , Australia as mentioned is a good example of run away Chinese buying, although the present administration placed a no go on a cattle station sale , which was 1/3 the size of Australia ,and new houses , the problem also arises if their is a big fall out with China, they want land, as they have not got enough of their own ,( probably all polluted ) for their own produce exports and it will be short supply to the local market with high buying costs for the Thai's and low costs for their own people.................................

Err just to get the facts right. the Kidman Cattle Station (consisting of 11 separate Stations) , the world's largest, is a little over 100,000 Sq Ks, Australia itself is 7.692 million km². Certainly not 33% but point well taken. The sale comes with all stock and equipment. Due to public outcry mostly the government stepped in and stopped the sale. This is just after the Chinese had purchased our biggest dairy farm in Tasmania.

It is not the actual 'Land' the Chinese want as much as what it produces. The Chinese have a huge liking and preference for quality Australian produce. Considering the QC problems they have in their own country. Remember the 'Melamine' contaminated Milk Formula scandal. The Chinese certainly do.

Australia is presently running around trying to change the laws for aliens buying residential property. More public outcry. The multitudes of cashed up Chinese buyers have contributed to a property bubble unprecedented in Australia, forcing many potential Australian buyers out of the market. You can thank Kevin Rudd for that, the bloke who gave them carte blanche to do so when he tried to shore up a flagging economy and thus keep his job by attracting easy foreign dollars. Our leaders just keep letting us down.

There is a strong buzz that the reason we opted to buy Submarines from the French, rather than the Japanese, was so as not to 'upset' the Chinese. Given Sino-Japanese relations. China is now Australia's biggest trading partner, after overtaking the Japs.

[Colabamumbai]

The Chinese have been the businessmen in Thailand for many centuries.

[Morakot]

The Chinese have been the businessmen in Thailand for many centuries.

Yes, but on a different scale.

[Srikcir]

Dozens of new Chinese-owned solar, rubber and industrial manufacturing plants have opened in the zone since 2012.

Becoming low-cost competitors against Thai originated companies.

If I were an investor I might consider India and/or Indonesia instead of Thailand - foreign policies aside. According to the Asian Development Bank, the economic growth projection for Thailand in 2016 was at 3% compared to Southeast Asia's economy set for stronger growth at 4.5% this year and 4.8% next year and India expanding by 7.4% in 2016 and 7.8% in 2017. With Thailand having the potential for strong political conflict and business interruption, economic risks may be considerable.

[elgordo38]

The Chinese have been the businessmen in Thailand for many centuries.

Yes selling gold jewelry, bars and coins.

[mike324]

Dozens of new Chinese-owned solar, rubber and industrial manufacturing plants have opened in the zone since 2012.

Becoming low-cost competitors against Thai originated companies.

If I were an investor I might consider India and/or Indonesia instead of Thailand - foreign policies aside. According to the Asian Development Bank, the economic growth projection for Thailand in 2016 was at 3% compared to Southeast Asia's economy set for stronger growth at 4.5% this year and 4.8% next year and India expanding by 7.4% in 2016 and 7.8% in 2017. With Thailand having the potential for strong political conflict and business interruption, economic risks may be considerable.

India has a lot of red tape, almost impossible for foreigner to set up a business, not to even mention how hard it already is for the locals. Depending on what your industry is, if its industrial/tech sector, you will have problems with parts and support. If its textile, it should be ok since there is already a big textile industry.

Indonesia makes it hard for foreign investors to move money out of the country. Other than that, it is quite similar to Thailand.

With that said, Thailand is still currently the best option in Southeast Asia.

[masuk]

Thailand will become a state of China unless they are careful

This being the case, Japan would be her first state. Chinese are buying Japan's farmland...

Same in Australia. The Chinese recently bought the country's largest dairy farm, in Tasmania. (VDL currently milks 17,890 cows over 7,062 hectares.) Their attempt to buy the enormous Kidman cattle station created such a protest, that the government backed down and cancelled the sale.

[oxo1947]

Same in Australia. The Chinese recently bought the country's largest dairy farm, in Tasmania. (VDL currently milks 17,890 cows over 7,062 hectares.) Their attempt to buy the enormous Kidman cattle station created such a protest, that the government backed down and cancelled the sale.

I suppose the biggest concern is that they might one day take away this huge farm put it in a suitcase never to be seen again.....

Have you heard of the (Lord) Vesty family----owners of Blue star shipping line. They have a farms in WA that are larger than Wales. Possible there wasn't a protest as they had round eyes. They also once owned all the slaughter houses in in Darwin--making any independent pay more----The Darwin uprising is a good bit of Oz history to read about.

So a private company wants to sell to a foreign company who wants to buy.

Foreign investment is part of the fabric, it's not new, it's not something to be afraid of and experience is that it adds to rural economies.

"Australia has been actively out there in foreign markets courting foreign investment, so from any perspective [the] announcement sends a confusing signal to that market.

I think your find this sale will go through-------AFTER THE ELECTION---when all the xenophobia has died down.

[masuk]

Same in Australia. The Chinese recently bought the country's largest dairy farm, in Tasmania. (VDL currently milks 17,890 cows over 7,062 hectares.) Their attempt to buy the enormous Kidman cattle station created such a protest, that the government backed down and cancelled the sale.

I suppose the biggest concern is that they might one day take away this huge farm put it in a suitcase never to be seen again.....

Have you heard of the (Lord) Vesty family----owners of Blue star shipping line. They have a farms in WA that are larger than Wales. Possible there wasn't a protest as they had round eyes. They also once owned all the slaughter houses in in Darwin--making any independent pay more----The Darwin uprising is a good bit of Oz history to read about.

So a private company wants to sell to a foreign company who wants to buy.

Foreign investment is part of the fabric, it's not new, it's not something to be afraid of and experience is that it adds to rural economies.

"Australia has been actively out there in foreign markets courting foreign investment, so from any perspective [the] announcement sends a confusing signal to that market.

I think your find this sale will go through-------AFTER THE ELECTION---when all the xenophobia has died down.

I don't know that it's xenophobia. In Australia folk are used to buying their entire wardrobe, shoes, tools, all made in China.

Here in Thailand I'm paying double the Aussie price for fresh milk, and if it's keeping a dairy farmer and family, well I don't mind.

[Naam]

Right, after they have bought half of Australia and Canada and other western countries around the world,

they bring their cash to Thailand now......

they do it because they have the cash

[Naam]

Be careful what you wish for Thailand China has not come to save you, quite the opposite.

it's also a well known fact that China caused repeatedly floods and droughts in Thailand and a decade ago the tsunami.

Chinese interference in Thai domestic matters is also responsible that foreigners are forced to do 90 day reports, pay bar fines and suffer because of a strong Baht.

[luk AJ]

The Amata industrial zone in Rayong is really amazing. It's like crossing the border with China. All signs, names, reataurants is 100% Chinese. It's a huge area and I do wonder where is their benefit compared with producing in China..

[Naam]

The Amata industrial zone in Rayong is really amazing. It's like crossing the border with China. All signs, names, reataurants is 100% Chinese. It's a huge area and I do wonder where is their benefit compared with producing in China..

tax and other incentives. as simple as that.