Chinese Investors Invade Thailand, Build "Zero-Baht Chinese Industrial Estates" — No Sign of Thai Laws in Control!
“Zero Dollar China Industrial Estate” Chinese capital that uses everything from China, even labor, almost no Thai people. This is a major problem for Thailand that needs to be solved urgently. However, the expansion of Chinese factories for almost 10 years has shown no sign of Thai laws to control it.
Chinese investors have started to relocate their production bases to Thailand more and more, affecting many Thai people in the area in terms of economy, society, and environment. The problem of Chinese capital investing in Thailand has been around for a long time. This problem still persists until now, and has begun to have a serious impact on local people and Thai entrepreneurs. However, there is still no sign of Thai laws to deal with this problem.
Why has Chinese capital invested so much in Thailand?
Due to the increasingly tense global trade situation between China and the United States, the United States has set up tariffs specifically to block Chinese products, causing China to look for other alternative markets to produce and export a large number of products. Thailand is an important target for China to invest in.
This is due to the “ASEAN – China Free Trade Agreement (ACFTA)” FTA, which was signed in 2005 to expand the country’s economy and make it easier for Chinese investors to invest in Thailand. In addition to the current tense global trade situation, another reason why Chinese capital wants to invest in Thailand is “China’s pollution reduction policy.” To put it simply, “Chinese factories choose to release new pollution.”
In addition, Thailand also provides full privileges to Chinese capital from the BOI or the Office of the Board of Investment of Thailand, allowing Chinese factories or Chinese capital to receive many privileges, such as tax exemptions, tax reductions, exemptions from import duties on machinery, or allowing foreigners to hold 100% of shares, allowing land ownership, and allowing skilled workers or experts to work in Thailand.
These privileges are very attractive to Chinese capital, so in the past 7 years, more than 400 Chinese factories have set up production bases in Thailand.
Impact of Chinese capital investing in Thailand
Over the past 7 years, China has increased its production bases in Thailand by 6 times. The BOI has stated that when China sets up production bases in Thailand, it may create jobs, careers, and increase economic circulation in Thailand. Even though these Chinese factories use Chinese labor, it must comply with the law, which requires that they be highly skilled laborers who are not in large numbers, and must also employ Thai laborers. But in reality, it is not like that.
Currently, Chinese factories that have set up production bases in Thailand use everything from China, including goods, food, and labor. Thailand is just a place for China to create benefits, but Thailand does not get anything. With so many Chinese factories setting up in Thailand, the creation of jobs, careers, and the economy in Thailand does not grow as BOI has said. Many provinces in Thailand are full of Chinese workers who have come to work illegally, and foreign workers who have come to work illegally as well.
Shops owned by Chinese people or some areas do not allow Thai people to use their services, leading to the question of why Thai people cannot use their services in Thailand? It is predicted that these areas may be gathering places for Chinese mafia who act as mafia in Thailand and do illegal business.
Why is Chinese capital expanding so quickly?
Currently, many foreign factories have set up factories in industrial estates, forcing them to find new locations, most of which are usually near communities, with assistance from local governments seeking personal gain. When Chinese capital with a lot of money and civil servants who think about personal gain work together, the rapid expansion of Chinese factories in Thailand is not difficult.
Coupled with Thai laws that are not strict and give too many benefits to foreigners who invest in Thailand. Chinese capital has expanded rapidly, causing a great deal of impact on the economy, communities, and the environment.
If the Thai government does not deal with the issue of “zero-dollar Chinese industrial estates” decisively, some areas may become 100% owned by China, with Thailand receiving nothing from this Chinese capital. In addition to not receiving anything, Thailand may lose many things. Many Thai entrepreneurs may close down, and exports to foreign countries will decrease because the world may view the quality of Chinese and Thai products as the same. This means that the country’s main source of income will disappear, and the Thai economy may eventually go bankrupt.
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