Thai warehouses at Guangxi Port urged

Zhang Shuxin, deputy general manager of Guangxi Beibu Gulf International Port Group, a state-owned enterprise, said yesterday that Thai traders should invest in warehouses and distribution centres in Guangxi Beibu Port. (Beibu Wan is the Chinese name for the Gulf of Tonkin.)

A similar invitation has been extended to Indonesia and Vietnam.

A centre in the duty-free zone would give Thailand greater convenience in storing goods and also zero duties. 

According to the Thai Trade Office in Nanning, the capital and largest city of Guangxi Zhuang Autonomous Region, only 0.5-0.6 per cent of exports worth US$21.47 billion (Bt660 billion) last year from Thailand to China went to the province. Most Thai exports were agricultural products, particularly rubber, rice, tapioca and tropical fruits.

In the first eight months of this year, two-way trade between Thailand and Guangxi reached $287.3 million, of which Thai exports were worth $189.94 million.

Zhang said Thai exports to the province would surge if the country had its own warehouse there. The port would allow the country to set up its own office for managing the flow of stocks.

Nanning has high demand for Thai fruits, as it is one of the rapidly growing cities in China and is 

the trading centre for Guangxi. The city has a population of 6.6 million and is considered a gateway from Asean to the mainland, as it has access to the border with Vietnam.

Thai tropical fruits such as durian, tamarind, longan, mango, mangosteen, rambutan and banana are in high demand.

Jasmine rice, processed and frozen seafood, sugar and electronic goods are also popular.

Thai service businesses such as tourism, logistics, retailing and banking have high potential to grow in the market.

Nanning hosts the China-Asean Expo (Caexpo) every year. The Chinese government promotes the city as a centre for connectivity between China and Asean.

The eighth Caexpo last month featured 4,700 booths from China and Asean countries, drawing 203,000 visitors including 55,000 trade exhibitors, which was an increase of 4.6 per cent from last year.

Trade originating from the event increased 5.6 per cent to $1.8 billion and 105 projects were signed, up 10.6 per cent.