Thai firms look towards Henan

Thai companies, including agro-product and tourism businesses, are being encouraged to explore opportunities in Henan, one of China's most important provinces in terms of economic activity.

Governor Guo Gengmao told a trade fair in Bangkok yesterday that Henan was an emerging industrial province providing many business opportunities for Thai operators, especially in the manufacturing, agricultural and service sectors.

A total of 170 Chinese businessmen were in Bangkok yesterday to participate in the "Thailand-Henan Investment and Trade Fair", hosted by the Thailand-China Business Council (TCBC).

Guo said Thailand played an important role in Chinese-Asean cooperation, serving as a bridge for enterprises in Henan to break into the regional grouping and beyond.

"Thai firms investing in Henan will be centrally located and can easily access China's entire market. The Chinese government's policy focuses on expanding domestic demand, with priority placed on developing Henan's markets, resources and labour," he said.

Guo said Henan achieved a manufacturing value of almost 955 billion yuan (Bt4.77 trillion) last year, ranking it fifth among Chinese provinces. Its combined production was worth 1.84 trillion yuan.

TCBC chairman Thanakorn Seriburi said while Henan's economy was the same size as Thailand's, it had grown more than 10 per cent in the past five years.

He said Thai products had a high potential to expand into Henan, particularly rubber, tapioca and tropical fruits.

Following yesterday's trade fair, nine cooperation agreements worth a combined Bt20 billion were signed, consisting of property development, an agricultural project, tapioca purchases and rubber-glove manufacturing.

"We hope Henan and Thailand will have tighter cooperation and mutually benefit from win-win cooperation," Thanakorn said.

Prime Minister's Office Minister Virachai Virameteekul said Henan had four features attractive to Thai firms.

"First, Henan is the hub of the mainland's logistics system and has more than 100 million people, which is a very large market. Second, it is renowned for its culture and history and so is good for tourism. Third, it is called the 'Chinese kitchen', because it produced 52.45 million tonnes of grain last year, accounting for 10 per cent of China's output. And last, it has plentiful natural resources, particularly coal," he said.