WHA Group, Thailand’s largest industrial estate developer, expects a second straight year of record land sales from companies seeking to diversify, according to its CEO.
Mounting trade tensions between the United States and China, coupled with Beijing’s abrupt lifting of border restrictions policy in December of last year, has led to a surge in mainly Chinese investment from companies seeking alternative locations.
CEO Jareeporn Jarukornsakul said WHA, which operates over a dozen industrial estates across Thailand and Vietnam, has seen enquiries and purchases by Chinese companies rocket since the pandemic eased, helping to double its annual land sales from pre-pandemic levels.
Jareeporn added that in 2023, WHA will likely sell more than 2,000 rai (320 hectares) of land in both countries – exceeding its annual target and its 2022 performance of 1,899 rai.
She further noted that since the pandemic, around half of WHA’s industrial land sales in Thailand have been cornered by Chinese investors, who have also taken some 80% of the group’s offerings in Vietnam.
According to the Board of Investment (BOI), Chinese investment proposals in Thailand grew 87% to 25 billion baht (US$717 million) in the first quarter of the year, compared to the same period last year.
A wave of Chinese investment, including many smaller firms that supply bigger mainland manufacturers, has also entered Vietnam since December.
To meet rising demand, much of it coming from mainland Chinese automakers and Taiwanese electronics companies, Jareeporn said WHA is aiming to expand its industrial land portfolio by nearly 30% in the next few years to 100,000 rai.
In eastern Thailand, for example, China’s electric vehicle maker BYD Co is building a new facility on a 600-rai plot in a WHA industrial estate.
According to the provincial government’s website, WHA’s clients in Vietnam include suppliers to Apple such as mainland China-based electronics firm Goertek Inc and Taiwan’s Foxconn, with which it is working on a new facility. (NNT)
