Knight Frank Thailand has released a report detailing Thailand’s place as an integral transportation hub for China in Southeast Asia.
Executive Director and Head of Occupier Services & Commercial Agency Department for Knight Frank Thailand, Mr. Marcus Burtenshaw said, “The fraternal bond of cultural and familial ties between Thailand and China has been established for over 200 years, but Chinese direct investment in the property sector has been limited by Thailand’s foreign land ownership restrictions.”
Sino-Thai joint ventures have always been an integral part of the manufacturing and trading sectors, however, it was the partnership between Thai public-listed Amata PCL, developer of industrial estates and the Holley Group from China that has been most notable. These two companies through their partnership have developed Thai-Chinese Rayong Industrial Park located in the Kingdoms Eastern Economic Corridor.
The development resulted in an investment of $2.5 billion from nearly 100 Chinese manufacturers taking advantage of China’s ‘Go Out’ policy. The park now employs over 3,000 Chinese workers and over 20,000 Thai nationals.
The planned $5.2 billion, the 256-kilometre railway from Bangkok to the Northeastern province of Nongkhai near the border of Laos received the Thai government’s approval and exemplifies Thailand’s role as one of the leading transportation and logistics hubs for China in South East Asia.
For the first phase of the new railway project, Chinese expertise in the relevant fields will be called upon to help develop the new network. When complete the new railway will link Singapore and Malaysia to China Via Thailand and Laos.
Mr. Burtenshaw of Knight Frank finally commented about future plans, “Aside from the growing presence of Chinese corporates in manufacturing and e-commerce sectors, we expect to see more JVs to be formed in the hospitality sector as a way to capitalize on the growing numbers of tourists flocking to get ‘Lost in Thailand’, and expect further Chinese participation in infrastructure developments in rail networks and possibly even the Kra Isthmus Canal project, which could shorten the Maritime Silk Road by 1,200 km, reducing the shipping time of Chinese commodities to Europe.”