Chinese Investment Reshaping Thailand's Industrial Landscape

BANGKOK – A major wave of Chinese investment is reshaping Thailand’s industrial landscape. Over the past six years, Chinese manufacturers have rapidly bought and leased land across the country to set up new production bases. This massive influx is changing the face of local economies and real estate markets. Data from the Industrial Estate Authority of Thailand (IEAT) highlights this rapid growth. In 2019, Chinese investors accounted for just 6% of the land in Thai industrial estates. By the first quarter of 2026, that share jumped to 17.06%, making China the second-largest foreign investor behind Japan, which holds 22.75%. This sharp increase in land demand matches global trends reported by news outlets like Nikkei Asia. Chinese companies have been actively acquiring land across Asia to expand their business reach and secure raw materials. In Thailand, this strategy is playing out heavily in the Eastern Economic Corridor (EEC). Industry sources report that large-scale Chinese groups are buying up massive plots of land outside official industrial estates. Acting as real estate agents and brokers, these firms pool thousands of rai of land together. They then develop the areas in phases, selling them almost exclusively to other Chinese investors. While some companies follow local rules, others use business models that heavily harm the Thai economy. The most alarming trend is the rise of “zero-dollar” industrial parks and factories. These setups rely entirely on Chinese capital, Chinese workers, and Chinese supply chains. These factories import everything from heavy machinery and construction materials to daily cleaning supplies from China. As a result, not a single baht circulates back into the local Thai economy. This practice completely cuts out Thai suppliers and deprives local workers of jobs. To bypass legal restrictions on land ownership, many foreign buyers use Thai accounting or law firms to set up local nominee companies. These front companies buy up land both inside and outside official zones. The buying spree has expanded beyond the EEC into Bangkok business districts like Yaowarat and Huai Khwang. This heavy speculation has caused land prices in key areas to skyrocket by 20% to 30%. In some popular commercial districts, building rents have jumped three to ten times higher. Local Thai business owners simply cannot compete with these prices and are being forced to close down. The impact is most visible in districts like Pluak Daeng in Rayong and Bo Win in Chonburi. In these manufacturing hubs, land costs have nearly tripled in certain areas. Local Thai businesses find it impossible to rent space or expand their existing factories. Many Thai landowners still choose to sell because brokers offer high prices that are hard to refuse. Some local communities also welcome the initial development, believing it will bring improvements to the area. However, the long-term economic drain on homegrown businesses remains a critical concern. The Federation of Thai Industries (FTI) warns that these foreign-owned, zero-dollar supply chains are crippling local manufacturing. Out of 46 industrial sectors in Thailand, nearly half are now facing a severe crisis. Local factories are struggling to survive against low-cost imports and self-contained foreign supply networks. The electrical appliances sector has taken the hardest hit, with 70.3% of the industry reporting negative impacts. The construction materials sector follows closely at 46.9%, while the local steel industry faces similar challenges. Without policy changes, more Thai manufacturers may soon disappear from the market.