Trade war spurs sales at WHA

The upheaval in global supply chains triggered by the trade dispute between the US and China is benefiting the largest developer of industrial estates in Thailand.

Land sales have begun to surge at WHA Corporation, partly because of demand from Chinese manufacturers seeking alternative production sites to skirt US tariffs, said David Nardone, the group executive for the company’s industrial development unit.

“We’re booming right now,” Mr Nardone said in a Nov 30 interview in Bangkok. “We’ve seen a high level of activity from China as well as other markets.”

He said climbing costs in China had already led manufacturers to consider locating some output in Thailand, and trade frictions have accelerated that process.

Vietnam and Malaysia are other options for manufacturers seeking to shelter themselves from repercussions of the USChina tensions.

WHA predicts its industrial land sales this quarter could be up to five times greater than in the first nine months of 2018, leading to an annual total of as much as 224 hectares. The firm expects 10-15% land sales growth in 2019.

An improvement in performance from October through December would help alleviate a difficult few months for WHA, whose profit fell from a year earlier in both the second and third quarters.

The proportion of Chinese customers may reach 30% next year, up from just onetenth by the end of September, Mr Nardone said. Demand from the world’s secondbiggest economy is coming from sectors including rubber products, automotive, and home appliances, he said.

At the same time, Thailand faces a number of challenges to fully exploit opportunities from any long-term reshaping of supply chains. These include a history of tangled politics, an ageing population and a shortage in workforce skills.