(Yicai) Oct. 9 -- Thai-Chinese entrepreneur Vikrom Kromadit, chairman of Amata Corporation, believes that Thailand could become a key bridgehead for Chinese companies expanding into the Association of Southeast Asian Nations, as more firms establish plants overseas to tap regional opportunities.

"If Chinese companies want to export their products, Thailand is the best production base," Kromadit, a fourth-generation Chinese in Thailand, told Yicai at the 16th FutureChina Global Forum held in Singapore. He explained that Thailand offers an ideal production base for Chinese exporters due to its developed infrastructure and strategic location. The country’s ports, airports, and logistics networks make it an attractive hub for firms seeking to integrate into the ASEAN supply chain.

Amata operates two industrial estates in Thailand, whose combined annual output value equals about 10 percent of the country’s gross domestic product. The estates host 1,600 factories from 31 countries and regions, including over 400 Chinese firms mainly engaged in manufacturing and research and development. Although Japanese companies still have the largest presence with 750 factories, Kromadit said Chinese investment surpassed Japan’s last year, making China the biggest source of new projects.

Thailand’s mature supply chains, built over six to seven decades, give it a comparative advantage, per Kromadit. Toyota Motor, for instance, has invested in Thailand for about 70 years, fostering high localization in the automotive parts industry. For Chinese companies, these conditions create a strong foundation for further development, he added.

Amata has also integrated various Thai government departments into on-site offices to streamline administrative processes such as approvals, utility connections, and license applications. According to Kromadit, over 98 percent of Chinese firms in Amata’s estates are profitable, and the rate is expected to reach 100 percent next year.

Chen Weiheng, a global market strategist at JP Morgan Private Bank, noted that ASEAN is becoming an increasingly significant manufacturing partner, investment destination, and consumer market for Chinese companies. This trend extends beyond manufacturing to the digital economy and entertainment sectors, including e-commerce and mobile gaming. He added that ASEAN stands to benefit from rising foreign direct investment and continued supply chain restructuring over the medium to long term.

Data from China’s commerce ministry show that trade between China and ASEAN reached USD597 billion in the first seven months of this year, up 8.2 percent from a year earlier, accounting for almost 17 percent of China’s total foreign trade during the period.

Editor: Emmi Laine