Thailand’s WHA eyes record year as firms expand out of China

BANGKOK, June 21 (Reuters) – WHA Group (WHA.BK), Thailand’s largest industrial estate developer, expects a second straight year of record land sales from companies seeking to diversify away from China, its CEO said on Wednesday.

Mounting trade tensions between the United States and China, coupled with Beijing’s abrupt lifting of its strict zero-COVID policy in December last year, has led to a surge in mainly Chinese investment from companies seeking alternative locations.

“This has impacted them, and it seems like a catalyst for those invested in China to move out,” CEO Jareeporn Jarukornsakul told Reuters.

WHA, which operates over a dozen industrial estates across Thailand and Vietnam, has seen enquiries and purchases by Chinese companies rocket since the pandemic eased, helping to double its annual land sales from pre-pandemic levels, she said.

In 2023, WHA will likely sell more than 2,000 rai (320 hectares) of land in both countries – exceeding its annual target and its 2022 performance of 1,899 rai, said Jareeporn.

Since the pandemic, around half of WHA’s industrial land sales in Thailand have been cornered by Chinese investors, who have also taken some 80% of the group’s offerings in Vietnam, she said.

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

A wave of Chinese investment – including many smaller firms that supply bigger mainland manufacturers – has also entered Vietnam since December.

To meet rising demand – much of it coming from Chinese automakers and Taiwanese electronics companies – WHA is aiming to expand its industrial land portfolio by nearly 30% in the next few years to 100,000 rai, she said.

In eastern Thailand, for example, China’s electric vehicle maker BYD Co (002594.SZ) is building a new facility on a 600-rai plot in a WHA industrial estate.

WHA’s clients in Vietnam include suppliers to Apple (AAPL.O) such as China-based electronics firm Goertek Inc (002241.SZ) and Taiwan’s Foxconn (2317.TW), with which it is working on a new facility, according to the provincial government’s website.

($1 = 34.85 baht)

Reporting by Orathai Sriring and Devjyot Ghoshal in BANGKOK; Additional reporting by Francesco Guarascio in HANOI; Editing by Sharon Singleton

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