Thailand is becoming a key place for investment as companies move their supply chains and production away from China. Michael Glancy, the Country Head of JLL Thailand, says that over the next decade, Thailand will attract a lot of investment in important industries. Manufacturing will spread across different locations in Thailand, Southeast Asia, and India.
Many companies are moving some of their manufacturing out of China, using a “China+1” strategy. This means they add extra production sites outside China to avoid depending too much on one country. Thailand is seeing significant benefits from this move, especially in the electronics and electric vehicle sectors. In 2023, Thailand had its highest industrial land sales in 17 years.
The Thai government’s policies and incentives are attracting foreign investors to key industries. Thailand’s favourable business environment, skilled workforce, and proactive measures are helping keep this trend strong into 2024.
Krit Pimhataivoot, Head of Capital Markets at JLL Thailand, highlights that Thailand’s good location, well-developed infrastructure, and skilled workers make it an attractive choice for global investors. JLL aims to help clients make the best decisions about where to set up and acquire land.
Michael Ignatiadis, Head of Manufacturing Strategy at JLL Asia Pacific, says that diversifying supply chains is a natural step for companies. Southeast Asia and India complement China’s manufacturing strength. Companies need to be flexible in choosing land and funding to adjust to these changes.
Rising costs in China, including higher wages and material prices, have pushed companies to look elsewhere. Land prices in China are now much higher than in some Southeast Asian countries and India. Although China still attracts the most manufacturing investment, this gap is closing. Other factors, like skilled workers, good infrastructure, and political stability, are also important for a factory’s long-term success.
JLL advises companies to carefully consider these factors to make smart choices and set themselves up for future growth.
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Source: JLL Thailand
