Foreign investors predicted to focus more on ASEAN

Bangkok – Foreign direct investment (FDI) in ASEAN, including Thailand, will increase thanks to the global trend of relocating 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 per cent due to the worldwide economic slowdown and increased geopolitical tensions. However, FDI channeled into ASEAN rose to 226 billion USD, up 1 per cent 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.

The Vietnam Industrial Property Forum (VIPF) 2024, organised by Vietnam Investment Review in coordination with the Vietnam Industrial Real Estate Association, is taking place in Ho Chi Minh City from July 30 with the theme “Going green for new investment waves”.

In the first seven months of 2024, Quang Ninh, a coastal province in Vietnam's northeast region, ranked second nationwide in attracting foreign direct investment (FDI), with over $1.56 billion in registered foreign direct investment, accounting for 8.7 per cent of the total registered investment capital.

Vietnam is facing the fourth wave of FDI into high-tech sectors, promoting the development of green industrial parks (IPs). Following that trend, Nam Dinh Vu IP has gathered all the advantages to welcome FDI investors.

The industrial property sector, particularly Soilbuild, is enhancing its factories and services to draw in foreign direct investment (FDI) in high technologies

Experts at last week’s Vietnam Industrial Property Forum 2024, co-organised by Vietnam Investment Review and the Vietnam Industrial Real Estate Association in Ho Chi Minh City, confirmed that stable foreign investment growth is providing a strong foundation for the industrial property sector.