It is not just Chinese property investors that are flocking to Thailand. Some of China’s biggest corporations are creating hubs in the Thai capital. Bangkok is the 10th most popular destination for mainland firms expanding overseas, according to a new report from JLL.
The report took a look at 12 mainland cities, the China 12, that have become hubs of innovation and global interaction. It also analysed the impact Chinese companies were having beyond their domestic market. The report finds that Bangkok ranks 3rd in terms of the volume of Chinese corporate leasing activity over the last 3 years.
“The China 12 are home to a growing group of highly dynamic and ambitious new generation firms that will drive the next wave of globalisation. We’re already seeing a higher number of domestic brands, both established firms and startups, enter the international market, with key targets in South and South East Asia,” says Jeremy Kelly, Director of Global Research at JLL, in a press release.
China’s largest companies have headed overseas to explore new markets and opportunities. Baidu, Alibaba, and Tencent are comparable to Google, Amazon, and Facebook. Chinese tech companies are targeting Asian cities including Singapore, Tokyo, Jakarta, Bangkok, Seoul, and Delhi.
Bangkok has been a major beneficiary of Chinese companies expanding into South East Asia. The region has large, young, and rapidly growing consumer population that is an ideal market for their products and services.
“We’ve seen some of China’s most prominent firms show major interest in start ups in India, Indonesia, and Singapore as they seek to gain a foothold in these booming economies. E-commerce and consumer electronics firms, in particular, are starting to gain strong market shares in some of these markets,” says Kelly.
Thailand office space won’t be the only sector benefit from this. Infrastructure investment related to the “Belt and Road Initiative” will also support employment and boost economic growth in the country.