Chinese Investment Backed by High Capital
The factory owner noted that Chinese investors are highly capitalised and able to undercut Thai producers by offering lower prices.
“They even rent coconut gardens and use their own trucks to transport coconuts to their factories,” he said, adding that this vertical integration allows them to dominate the supply chain.
Most of the coconut water produced by these Chinese-operated factories is exported directly to China, with the remainder shipped to other countries.
“It’s become a complete circle,” the source added, referring to how Chinese investors now control production, processing, and export.
Allegations of Tax Avoidance and High Mobility
The source also alleged that some Chinese-owned factories may be engaging in tax avoidance.
“These investors are very mobile. They can set up temporary offices using container boxes quickly and relocate with ease,” he said.
Thailand’s Coconut Product Exports in 2024
According to the Trade Policy and Strategy Office, Thailand exported 257,428 tonnes of coconut products in 2024, valued at 217.4 million US dollars. The top five export destinations were:
- China: 82.7%
- United States: 7.1%
- Hong Kong: 2.1%
- Singapore: 1.6%
- Netherlands: 1.5%
