Thailand’s FDI rose threefold between 2020 and 2021 as manufacturers move away from China.
As Southeast Asia’s second-largest economy, Thailand has been moving up the value chain in manufacturing and is a production hub for car parts, vehicles and electronics, with multinationals such as Sony and Sharp setting up shop here.
Sony said in 2019 it was closing its Beijing smartphone plant in 2019 to cut costs and relocated some of the production to Thailand. Sharp said in the same year it was moving some of its printer production to Thailand due to the US-China trade war.
It’s not just international firms. Even China-based firms have relocated parts of their supply chain to Thailand. Companies producing solar panels such as Shanghai-based JinkoSolar are moving their production to Southeast Asian nation to take advantage of lower costs, and avoid gepolitical tensions, the South China Morning Post reported in July 2022.
“Setting up manufacturing plants abroad didn’t come from [the pursuit of] opportunities, it is more of a strategy to deal with challenges to gain market access,” Zhuang Yan, the president of Canadian Solar, said at an industry event in July, the SCMP reported.
Foreign direct investments rose threefold to 455.3 billion Thai baht, or $13.1 million, between 2020 to 2021, Thailand’s Board of Investment announced in February this year.
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