China to invest US$1bn in Thai food processing plant
Chinese investors hope to set up the investment fund early next year, according to the company’s chairman Shan Xiangshuang.
Xiangshuang told the Bangkok Post: "With fast economic expansion in China, Chinese investors want to expand through overseas investments. We are looking at Thailand because of our strong economic ties and because we see Thailand as a strategic location in terms of trade and logistics."
He said that instead of importing Thai raw materials into China to add value, promoting local production with Chinese capital would provide better returns by reducing logistical costs.
The announcement follows a business forum organized for Chinese investors and representatives of the Thai farm sector staged in Pattaya. The forum, hosted by the Thai-Chinese Culture and Economy Association in July, is expected to generate $60bn for country’s economy next year, predicted Pinit Jarusombat, the association's vice-president.
More bilateral agreements, encouraged by the ASEAN free trade area are expected to lead to further business growth, according to Xiangshuang.
Meanwhile, last week the secretary-general of ASEAN called for the global community to act immediately to remedy climate change.
Commenting on the Stern Review on the Economics of Climate Change report, Dr Surin Pitsuwan highlighted that the cost of action now would represent only one per cent of global income but could cost more than 20% in the future.
Pitsuwan said that ASEAN countries are particularly vulnerable to the impacts of climate change yet possesses unique natural ecosystems and resources which feeds the world and sustains the global environment.