heading

Statistics released early 2011 show an upward trend

of China’s investment in Thailand


THAILAND-CHINA TRADE (mil.USD)

Year
Total Trade
Total trade
Export
Export
Import
Import
Trade

Value
Growth
Value
Growth
Value
Growth
Balance
2006
34,039
21.59
18,894
22.23
15,144
19.6
3,750
2007
41,207
21.06
23,541
24.59
17,666
16.6
5,875
2008
48,350
17.33
26,236
11.45
22.114
25.1
4,121
2009
44,362
-8.25
25,603
-2.4
18,759
-15.1
6,844
2010
60,661
36.74
34,604
35.16
26,056
38.9
8,548
2011 (Jan-Apr)
23,923
(Jan-Apr)
33.16
(Jan-Apr)
14,019
(Jan-Apr)
37.29
(Jan-Apr)
9,903
(Jan-Apr)
27.7
(Jan-Apr)
4,115
(Jan-Apr)
Source: Kasikorn Thai Bank, Asean-China SME Conference, 2011
Table: www.Business-in-Asia.com

Statistics shows that in 2011, Chinese investors applied for Board of Investment (BOI) promotion on a total of 31 new projects worth about 10.67 billion baht (350.64 million U.S. dollars), according to BOI statistics. The project number grew a healthily 24% while the value increased  by 75.2% over a year earlier. Large projects were mainly in electricity, natural rubber products and auto parts industries.

CHINA TRADE WITH THAILAND
  • Total Trade growing at 22% (CAGR) since 2000
  • Thailand's exports to China heavily skewed towards electrical equipment and machinery (57% of total exports) after growing rapidly since 2000
  • No substantial change in China's exports pattern to Thailand save significant volatility in exports of natural resources and electrical equpment
Source: CIMB Group, Asean-China SME Conference, 2011

The BOI has approved over 357 investment projects from China with the total investment amounting to USD 1.087 billion from 2001 to 2008 (in 2007, investment from China approved by the Thailand BOI reached USD 442 million, which was the highest within 10 years). The value of Chinese investments in Thailand now ranks fifth behind Japan, the European Union, the Cayman Islands and ASEAN, respectively. Chinese investments are mainly earmarked for manufacturing and processing industries whereas the proportion being invested in high-technology remains insignificant. This indicates that Chinese investors are focusing primarily on stable supplies of natural resources, and are seeking raw materials and intermediate products to supply their manufacturing sector.

THAI TOP IMPORT PRODUCTS TO CHINA (mil.USD)


Year 2007
Year 2008

Year 2009 Year 2010 Year 2011
(Jan-Apr)
1. Fuel lubricants 168
244
96
210
891
(Jan-Apr)
2. Capital goods 7,002
8,368
7,557
10,758
3,968
(Jan-Apr)
3. Raw materials 7,092
9,083
6,583
9,540
3,614
(Jan-Apr)
4. Consumer goods 3,12
4,105
3,875
5,090
2,057
(Jan-Apr)
5. Vehicles & transportation 221
307
274
424
160
(Jan-Apr)
6. Arms, amunitions 18
5.7
53
32
13
(Jan-Apr)
Total
17,666
22,114
18,759
26,056
9,903
(Jan-Apr)

Source: Kasikorn Thai Bank, Asean-China SME Conference, 2011
Table: www.Business-in-Asia.com


THAI TOP EXPORT PRODUCTS TO CHINA (mil.USD)


Year 2008
Year 2009 Year 2010 Year 2011
(Jan-Apr)
1. Automatic data processing machine
6,702
5,788
7,154
2,366
(Jan-Apr)
2. Printed matters
1,096
1,326
1,886
1,724
(Jan-Apr)
3. Rubber
1,965
1,568
2,467
1,439
(Jan-Apr)
4. Electronic integrated circuits
2,118
1,984
2,927
971
(Jan-Apr)
5. Precious stones & Jewelry
1,539
1,923
2,608

346
(Jan-Apr)
6. Polymers of ethylene
1,726
1,553
2,165
884
(Jan-Apr)
7. Chemical products
889
1,399
1,827
746
(Jan-Apr)
8. Rubber products
657
950
1,555
686
(Jan-Apr)
9. Tapioca products
351
800
1,170
494
(Jan-Apr)
10. Electrical equipment
541
588
831
361
(Jan-Apr)
Total
17,588
17,884
25,594
10,623
(Jan-Apr)
Others
8,647
7,719
10,010
3,395
(Jan-Apr)
TOTAL
26,236
25,603
34,605
14,019
(Jan-Apr)

Source: Kasikorn Thai Bank, Asean-China SME Conference, 2011
Table: www.Business-in-Asia.com


Although Chinese investment projects and accumulative value in Thailand are less than those in its neighboring countries such as Cambodia and Myanmar, analysts said in Thailand, the Chinese community has been for generations seamlessly integrated into most of Thai society.

Bilateral trade volume between Thailand and China in January 2010 reached 3.36 billion U.S. dollars, up by 63.4 % year-on-year, 26% points higher than the growth rate of Thailand's trade with the world as a whole, according to statistics of the Thai Customs. Surely the reason for this unprecedented trade growth lays in the bilateral FTA both countries agreed to in June 2003 which has sharply decreased tariffs on trade, said the Bangkok Post.


China investment in Southeast Asia



Read Our Other Related Articles:
  • China Now in Top Five in Terms of Overseas Investment China moved up in 2010 into the number five position in terms of overseas investment, surpassing Japan who had previously held this position.  According to the United Nations Conference on Trade and Development (UNCTAD), the top five countries in terms of outbound investment are the US, Germany, France, Hong Kong and China.  Last year, the Chinese mainland's outbound direct investment (ODI) grew by 17 percent to a historic high of $68 billion.  China's accumulative ODI by 2010 grew tenfold from a decade ago to $300 billion, ranking 17th worldwide.  According to the UN report, China's outbound mergers and acquisitions topped $29 billion last year, accounting for 43 percent of the total overseas investment. 
  • CHINA'S INVESTMENT IN ASEAN COUNTRIES: For China, ASEAN has been viewed as both potential market and investment base, given proximity and land links. China's direct investment to the Association of Southeast Asian Nations (ASEAN) countries stood around 2.57 billion U.S. dollars since the China- ASEAN Free Trade Area came into force one year ago, according to an official from  China's Ministry of Commerce (MOC), reported Xinhua News Agency in China.  ASEAN market, with a total population of nearly 600 million, is attractive and given ASEAN FTA (AFTA) in place, many types of goods produced in and traded among country members are enjoying zero duty. These factors have so far contributed to China's increasing investment into ASEAN's industrial sector. More at our article "maximizing trade under the ASEAN-CHINA FTA"





Follow us on Twitter:

Back to Homepage


 



Google

www www.Business-in-asia.com
Runckel & Associates LogoContact us


 


Visit our other website: Asia-Art.net
and www.DelphiHealthServices.com

www.Business-in-Asia.com