New destination for Chinese manufacturing giants

Many major Chinese automakers choose Thailand to set up manufacturing plants. Photo: Bloomberg .

Thailand is becoming a strategic destination in the wave of global supply chain shifts, as a series of Chinese electronics and home appliance corporations accelerate investment in the country.

Thailand has many advantages to become a regional manufacturing hub. It has a strategic geographical location in the heart of Southeast Asia, a modern logistics system and the deep-water port of Laem Chabang, the second-largest export gateway in the region. Lower wages and production costs than China also create a significant competitive advantage.

New production center

In September, Chonburi province witnessed many important events in the manufacturing industry. Haier's Chonburi air conditioning industrial park officially came into operation, with a capacity of 6 million products/year. Also on September 23, Hisense broke ground on the HHA smart manufacturing industrial park in Amata Chonburi, expected to be completed in 2030 with a capacity of 2.6 million products/year.

On October 6, Aoma Refrigerators was approved by the Thai Board of Investment (BOI) to invest 3 billion baht to build a smart refrigerator and freezer factory, aiming to export to Europe.

Chinese brand household appliances in a shopping mall in Thailand. Photo: News QQ .

The simultaneous presence of Haier, Hisense and Aoma shows that Thailand is becoming a new focus point for the Asian home appliance industry. Previously, Japanese and Korean brands such as Panasonic, Toshiba, Hitachi, LG, Samsung had already built production lines here. Now, Chinese enterprises are following suit, marking a restructuring phase in the global production chain.

Analysts say that Chinese companies' entry into Southeast Asia is a strategy to reallocate production capacity to reduce costs, avoid trade risks and gain better access to regional markets.

Thailand is now the largest producer of household appliances in Southeast Asia, second only to China in the world , Haitong Securities said. Factories from Japan, South Korea and China are concentrated here, turning Thailand into the region's "new factory".

Massive development

Not only the home appliance industry, China's auto industry is also expanding strongly in Thailand. Brands BYD, Changan, Foton, SAIC MG, GAC Aion, Great Wall Motors have all set up production bases here. In 2024, China exported 178,000 new energy vehicles to Thailand, up 35% year-on-year, accounting for a quarter of the country's total auto imports.

According to the China Association of Automobile Manufacturers, seven automakers have formed a closed chain in Thailand, from design, production to distribution. This has helped the East Asian country quickly take the leading market share of electric vehicles, with BYD leading with 34.3% of pure electric vehicle market share in the first three quarters of 2025.

Thailand has a highly skilled workforce. Photo: Bloomberg .

According to CICC, the minimum wage in Thailand is only 77% of China's, while the workforce is highly skilled and has good English communication skills. By 2023, Thailand will account for 45% of ASEAN's auto production, ranking among the top 10 largest auto producing countries in the world.

Tariff advantages also help drive this trend. Thanks to the ASEAN-EU Free Trade Agreement, Thai exports to Europe are duty-free or reduced, while China is subject to high anti-dumping duties. For the US, manufacturing in Thailand also helps avoid trade barriers.

Experts say the model in Thailand could spread to Mexico, Poland and other new manufacturing hubs. From cars to home appliances to consumer electronics, China’s supply chain is shifting rapidly around the world.

Thailand, with its strategic location and open policies, is becoming an important link in the journey of restructuring the global supply chain. This is where Chinese corporations shape the new phase of global production and global sales strategy.

Source: https://znews.vn/diem-den-moi-cua-cac-ong-lon-san-xuat-trung-quoc-post1599180.html