Chinese businesses to scout for JV partners

The China Council for the Promotion of International Trade (CCPIT) will escort a group of Chinese businessmen to Thailand next month with the aim of finding joint venture partners with whom to invest here.

Li Gang, CCPIT's president in Sichuan province, said many Chinese are interested in investing in Thailand, due to the expected closer cooperation and privileges under the free-trade agreement between the two nations.

"Thailand is known as a familiar country in China. Despite the recent political disorder here, many Chinese businessmen want to invest in the Kingdom," Li said.

Chinese businesses are interested in many sectors here, such as retailing, wholesaling and logistics, he said.

Veerasak Jinarat, assistant to Deputy Commerce Minister Alongkorn Pollabutr, told the CCPIT president that Thailand's political situation is back on track and that the Kingdom should continue to serve as a destination for foreign investors.

"The government plans to conduct a roadshow to restore investors' confidence. High interest from Chinese investors should show that Thailand has strong potential to serve as a foreign direct investment destination," Veerasak said.

In addition, he said, Thai investors are interested in China due to the great number of Chinese consumers and the many other opportunities offered by the country.

Veerasak plans to lead a group of northeastern businessmen from Thailand to the city of Chengdu in Sichuan province for the Western China Fair with the aim of finding businesses to invest in.

According to the Thai Trade Office in Chengdu, businesses that pose good targets for Thai investors include processed-food manufacturing, restaurants, spa services, auto maintenance and education.

Only large Thai firms have invested in the city so far, including Charoen Pokphand Group, Saha Group, Thai Airways International and Fiesta Thai Restaurant.

Benjawan Ratanaprayul, commercial adviser and head of the Commerce Ministry's China Hub unit, said Chengdu is a potential destination for Thai investors due to its large population and bountiful resources.

Investment in the city will not only serve consumption in the province, but in other provinces of China, especially in the west and north, and even in third countries, she said.

Economic growth has increased the incomes and purchasing power of Chinese people, she said.

As of last year, Sichuan province had attracted more than US$6.28 billion (Bt219 billion) of investment capital. Of this, Bt3.39 billion was from Thailand.

The province's population stood at 88.4 million last year, with per capita GDP of 12,633 yuan (Bt65,690) for people in the city and 4,161 yuan for people in rural areas.