Industrial developer Amata Corporation Plc is building its second Thai-Chinese industrial estate in Rayong, valued at 2 billion baht, to serve mainland investors and support electric vehicle (EV) and battery manufacturing projects.
"This industrial estate targets only Chinese investors. Many Chinese companies are relocating their production facilities and investing in Asean to avoid the impact of the US-China trade war," said Viwat Kromadit, Amata chief executive.
Their expansion into Thailand is in line with China's Belt and Road Initiative, also known as BRI, he said. BRI is meant to link China's economy with Southeast Asia, Africa and Eurasia by developing land and maritime infrastructure.
Thailand is also an attractive investment destination for Chinese EV producers, following the government's promotion of the industry. Last year, the cabinet approved a package of incentives including tax cuts and subsidies to promote EV consumption and production between 2022-23.
More Chinese businesses are becoming customers at Amata industrial estates. Japanese firms are major investors at Amata City Chon Buri and Amata City Rayong, according to the company.
Around 20-30 companies from China have bought land in the new Thai-Chinese industrial estate, with some already starting to build factories, said Mr Viwat.
This industrial complex is a joint investment between Amata and Zhejiang-based Holley Group. Some 51% of the investment comes from Amata, with 49% funded by Holley Group.
The two companies earlier developed the first Thai-Chinese industrial estate, located in Amata City Rayong. This facility, with an investment value of 4 billion baht, has served around 200 Chinese companies on 3,000 rai of land since 2007.
After last month's election, some foreign investors delayed their expansion plans as they wait for a government to be established, Mr Viwat said.
He said he believes investment projects in the EV and battery segments will continue to grow in the second half this year because of the government's EV policies and the trend of more ecologically friendly cars.
