Bangkok (VNA) – Foreign direct investment (FDI) in ASEAN, including Thailand,🐓 will increase thanks to the global trend of rღelocating manufacturing bases amid heightened US-China trade tensions, according CIMB Thai (CIMBT).
Wut Thanittiraporn, head of corporate and transactional banking at the Thai bank, said that with the global shift in manufacturing, ASEAN countries have emerged as prime destinations for both direct and indirect foreign investment.
He noted CIMBT, as a regional financial institution network, is actively engaging with several large corporate companies interested in investing in Thailand.
Corporate customers, including local, regional, and international companies, typically collaborate with Malaysia-based CIMB Group for their regional business expansion, encompassing both direct and indirect investment.
Wut stressed that the trend of manufacturing relocation and the high growth potential of ASEAN economies are expected to create significant opportunities for both outbound and inbound investments across the region.
In Thailand, potential industries include tourism, health care, logistics, and data centres. Both foreign and large Thai corporations see opportunities for mergers and acquisitions in regional markets, with portfolio investment being a key strategy for local companies seeking investment returns in overseas markets.
Despite Thailand's GDP growth being lower than its regional peers, the country remains attractive for FDI as foreign investors use Thailand as a production base for re-exports, Wut said.
According to the CIMBT Research Centre, global FDI declined to 1.3 trillion USD in 2023, representing a year-on-year decrease of 2% due to the worldwide economic slowdown and increased geopolitical tensions. However, FDI channeled into ASEAN rose to 226 billion USD, up 1% year on year.
Singapore ranks first in ASEAN for attracting FDI since the start of the year, followed by Indonesia, Vietnam, Malaysia, the Philippines, and Thailand. This indicates a continued shift of production bases to regional countries./.
