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US Tariffs Drive Companies to Relocate to Thailand

US Tariffs Drive Companies to Relocate to Thailand

Thailand is set to attract increased investment in electric vehicles, smart electronics, home appliances, and high-tech industries next year, with manufacturers relocating to the region to dodge US tariffs, according to Amata Corporation.

Vikrom Kromadit, chairman and acting CEO of the SET-listed industrial estate developer, indicated that global investors are wary of a potential trade war under Donald Trump involving China and other trading partners with trade surpluses with the US.

“Thailand stands to gain if the new US president imposes high import tariffs on Chinese goods, which could encourage Chinese or foreign investors from China, Taiwan, and other nations to shift their operations to Thailand,” he stated.

The country provides attractive investment incentives, while neighboring nations like Vietnam and Malaysia face energy supply issues that make them less appealing to certain foreign investors, Mr. Vikrom added.

“Some investors are looking to move their operations from Malaysia to Indonesia, while others plan to shift from Vietnam to Thailand,” he noted.

Amata expects industrial land sales to reach 2,500 rai this year, an increase from 1,800 rai in 2023, fueled by a surge in Chinese investors who are likely to acquire land at Amata’s industrial estates in Rayong and Chon Buri.

Japanese companies remain the largest group of investors in Amata estates, with approximately 730 companies, followed by around 400 Chinese firms. Significant investments also come from Taiwan, Singapore, the US, and Europe.

“We anticipate a continuous rise in the number of Chinese investors due to geopolitical tensions, trade wars, and the expansion of Amata industrial estates in Thailand,” Mr. Vikrom said.

“Thailand is an optimal investment hub for high-tech industries like data centers and cloud computing—key S-curve sectors. Manufacturers are drawn here because of our excellent infrastructure and facilities. Additionally, we have a sufficient supply of green energy to meet investors’ needs,” he added.

The government is actively promoting investments in renewable energy sources such as solar and wind energy.

Thailand has also established power purchase agreements with Laos for hydropower generation capacity exceeding 10,000 megawatts.

The Board of Investment reported a 42% increase in investment applications for the first nine months of the year, totaling US$21.7 billion (723 billion baht), marking a 10-year high.

The number of projects also rose by 46% compared to the previous year, reaching 2,195—the highest since 2015.

Amata operates industrial estates in Thailand, Vietnam, and Laos, with its Amata City estates in Rayong and Chon Buri covering 10,000 rai in the Eastern Economic Corridor.

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