Thailand's WHA eyes record year as firms expand out of China

Foxconn Technology

21/06/2023 11:14

By Orathai Sriring and Devjyot Ghoshal
       BANGKOK, June 21 (Reuters) - WHA Group  WHA.BK ,
Thailand's largest industrial estate developer, expects a second
straight year of record land sales from companies seeking to
diversify away from China, its CEO said on Wednesday.
    Mounting trade tensions between the United States and China,
coupled with Beijing's abrupt lifting of its strict zero-COVID
policy in December last year, has led to a surge in mainly
Chinese investment from companies seeking alternative locations.
    "This has impacted them, and it seems like a catalyst for
those invested in China to move out," CEO Jareeporn
Jarukornsakul told Reuters.
    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, she said.
    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, said Jareeporn.
    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,
she said.
    Chinese investment proposals in Thailand grew 87% to 25
billion baht ($717 million) in the first quarter of the year,
compared to the same period last year, according to Thailand's
Board of Investment.
    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 Chinese
automakers and Taiwanese electronics companies - WHA is aiming
to expand its industrial land portfolio by nearly 30% in the
next few years to 100,000 rai, she said.
    In eastern Thailand, for example, China's electric vehicle
maker BYD Co  002594.SZ  is building a new facility on a 600-rai
plot in a WHA industrial estate.
    WHA's clients in Vietnam include suppliers to Apple  AAPL.O 
such as China-based electronics firm Goertek Inc  002241.SZ  and
Taiwan's Foxconn  2317.TW , with which it is working on a new
facility, according to the provincial government's website.
    ($1 = 34.85 baht)

 (Reporting by Orathai Sriring and Devjyot Ghoshal in BANGKOK;
Additional reporting by Francesco Guarascio in HANOI; Editing by
Sharon Singleton)
 ((Devjyot.Ghoshal@thomsonreuters.com;))