Thailand is poised to attract more investment in electric vehicles, smart electronics, home appliances and high-tech industries next year, with manufacturers relocating to avoid US tariffs, according to Amata Corporation.
Vikrom Kromadit, chairman and acting chief executive of the SET-listed industrial estate developer, said global investors have concerns about Donald Trump's anticipated trade war with China and other trading partners that have a trade surplus with the US.
"Thailand will benefit if the new US president imposes high import tariffs on imports from China. That would encourage Chinese or foreign investors in China, Taiwan and other countries to move to Thailand," he said.
Thailand offers attractive investment incentives while neighbouring countries, such as Vietnam and Malaysia, face energy supply shortages, denting their appeal to some foreign companies, said Mr Vikrom.
"Some investors plan to relocate their investment from Malaysia to Indonesia and others plan to move their investment from Vietnam to Thailand," he said.
Amata anticipates industrial land sales of 2,500 rai this year, up from 1,800 rai in 2023, as Chinese investors have surged and are expected to purchase land at its industrial estates in Rayong and Chon Buri.
Japanese companies are the top investors in Amata estates with some 730 companies, followed by the Chinese with around 400 companies. Other major investors are from Taiwan, Singapore, the US and Europe.
"We expect the number of Chinese investors to increase continuously because of geopolitical conflicts, the trade war and the expansion of Amata industrial estates in Thailand," said Mr Vikrom.
"Thailand is an ideal investment destination for high-tech industries, such as data centres and cloud computing, which are S-curve industries. Manufacturers invest here because Thailand has a great infrastructure and facilities that support their investment. We have an adequate supply of green energy to suit the needs of investors," he added.
The government has promoted renewable energy investment, including solar and wind energy.
Thailand also has power purchase agreements with Laos for hydropower generating capacity of more than 10,000 megawatts, he said.
According to the Board of Investment, investment applications for the first nine months of the year increased by 42% to US$21.7 billion (723 billion baht), a 10-year high.
The number of projects rose 46% year-on-year to 2,195, the highest level since 2015.
Amata operates industrial estates in Thailand, Vietnam and Laos. Amata City industrial estates in Rayong and Chon Buri cover 10,000 rai of land in the Eastern Economic Corridor.