Thailand’s WHA Group Foresees a Record Year as Firms Expand out of China

(CTN News) – WHA Group (WHA.BK), Thailand’s largest industrial estate developer, is poised to achieve another year of record land sales as companies look to diversify away from China, according to the company’s CEO.

The escalating trade tensions between the United States and China and Beijing‘s sudden shift in its zero-COVID policy last year have spurred investments from Chinese companies seeking alternative locations.

Jareeporn Jarukornsakul, the CEO of WHA, highlighted the impact of these developments, stating, “It seems like a catalyst for those invested in China to move out.”

The easing of the pandemic has led to a significant increase in Chinese companies’ inquiries and purchases, resulting in WHA doubling its annual land sales compared to pre-pandemic levels.

Chinese Investors Drive Surge in Enquiries and Purchases at WHA Industrial Estates

2023 WHA expects to sell over 2,000 rai (320 hectares) of land in Thailand and Vietnam, surpassing its annual target and outperforming its 2022 performance of 1,899 rai.

Chinese investors have accounted for approximately half of WHA’s industrial land sales in Thailand since the pandemic, and they have dominated around 80% of the group’s offerings in Vietnam.

According to Thailand’s Board of Investment, Chinese investment proposals in Thailand grew by 87% to 25 billion baht ($717 million) in the first quarter of this year compared to the same period last year.

Similarly, a wave of Chinese investment, including many smaller firms supplying larger mainland manufacturers, has entered Vietnam since December.

Notable Project: BYD Co’s New Facility in Eastern Thailand

WHA plans to expand its industrial land portfolio by nearly 30% in the coming years, aiming to reach 100,000 rai to meet the rising demand, particularly from Chinese automakers and Taiwanese electronics companies. Notable projects include China’s electric vehicle maker BYD Co (002594.SZ) constructing a new facility on a 600-rai plot within a WHA industrial estate in eastern Thailand.

Additionally, WHA serves clients in Vietnam, such as China-based electronics firm Goertek Inc (002241.SZ) and Taiwan’s Foxconn (2317.TW), with collaborative efforts underway to establish a new facility.

As WHA Group anticipates a prosperous future driven by the increasing demand for alternative locations among Chinese and Taiwanese companies, the company remains committed to expanding its industrial land offerings and facilitating the diversification efforts of businesses seeking new opportunities beyond China.