Impacts of Lancang -Mekong Cooperation on Chinese Investment in Eastern Economic Corridor
Abstract
This article investigates the impacts of Chinese investment on Thailand’s Eastern Economic Corridor (EEC) under the Thailand 4.0 policy and the effects from the Lancang-Mekong Cooperation (LMC) under China’s Belt and Road Initiative (BRI) from 2012 to 2019. As a major aspect of Chinese foreign policy, LMC, along with the BRI, focuses on building cooperation and economic connectivity with Mekong countries. Thailand has become one of China’s prime targets for foreign direct investment (FDI). Meanwhile, Thailand benefits by linking the EEC with special economic zones in China, supporting the concentration of technology and innovation in correspondence with the “Thailand 4.0” policy in the current 20-year national development plan. Consequently, Thailand is promoting investments by Chinese investors in the EEC.
This research employed qualitative and quantitative methods to study a sample of 200 Chinese entrepreneurs in the EEC. The survey found that the number of Chinese investors has increased significantly in the EEC since 2014. In 2019, Chinese investors had the highest FDI in Thailand. However, the majority of these Chinese industries were (and still are) in relatively low-technology fields. Also, the availability of utility infrastructure for factories in the EEC is still comparatively low, and issues around government services and the availability of labor and resources must still be addressed.
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