Thai retail property developers are targeting the country’s border provinces as they believe more shoppers from from nearby countries will make their way into Thailand after the Asean Economic Community takes effect. Several of Thailand’s key developers have already released plans for new shopping centers in these areas with more companies expected to follow suit.
“We plan to open a new shopping centre that has total retail space of more than 100,000 sqm. in the Northeast of Thailand within the next three to five years with an investment of THB3 billion,” said Pimpaka Wanglee, chief executive officer of Rangsit Plaza Co.
The Central Group is ahead of the trend having already opened six shopping centers and lifestyle malls in the border areas. The Buri Ram Lifestyle Centre targets shoppers from Cambodia as well as locals while Central Plaza Chiang Rai serves Laotian and Myanmar consumers along with the local population. In the south, Central Festival Hat Yai in Songkhla province is able to reach Malaysian shoppers.
According to The Nation, Central Group will continue to expand its investment in countries throughout Asia. The company has recently opened Central Shopping Centre in Jakarta and Robinson Shopping Centre in Hanoi and is searching out more opportunities. “We foresee business opportunities in ASEAN when the AEC is effective,” said Central Group CEO, Tos Chirathivat earlier in the year.
The are also plans from MBK to open a new lifestyle mall in the Tak province through a joint venture with a local property developer, The Nation added. “We see huge potential in Tak. Mae Sot enjoys THB10 billion in trade per year, while Myanmar customers come across the border to buy consumer goods in Thailand,” Sakchai Kengkijkosol, MBK managing director for retail operations, stated.
Border trade as well as consumer demand in those regions have been growing over the past three years and the AEC will only serve to help that trend continue. TMB Analytics estimated that Thailand’s border trade was worth THB229 billion in 2014, and has grown by an average of 9.5 percent each year since 2012.
Image: Central Festival Hat Yau via https://www.facebook.com/CentralFestivalHatyai/
