According to the Thailand Board of Investment (BOI) the value of applications for investment promotion during the first nine months of 2024 has risen by 42% year-on-year, reaching a total of 722.5 billion baht (approximately US$ 21.7 billion), marking the highest level since 2015.
Key takeaways
- In the first nine months of 2024, Thailand’s BOI saw 2,195 projects valued at 722.53 billion baht, the highest in 10 years.
- The surge in investment reflects growing confidence from both local and international investors in the Thai government’s policies, including support for industry and improved business regulations.
- Electrical appliances, digital, and automotive are the top sectors attracting investment. High-value projects in data centers, advanced electronics, and renewable energy are vital for Thailand’s economic recovery.
Narit Therdsteerasukdi, the BOI’s Secretary-General, explained that the value of the projects seeking privileges between January and September this year was the highest in 10 years.
He added that compared to last year, the number of projects applying and their total value increased by 46% and 42%.
Singapore was the top source of FDI with applications worth 180.8 billion baht, more than twice the 79.7 billion seen in the year earlier period, mostly due to large investments in E&E and data centers by units of Chinese and American companies.
China ranked second with 114.1 billion baht, up 18% from 96.5 billion baht a year earlier, and was followed by applications from companies based in Hong Kong (68.2 billion baht), Taiwan (44.6 billion baht), and Japan (35.5 billion baht).
These increases reflect the confidence that both local and international investors have in the Thai government’s policies and industry support measures.
Some of the most recent measures launched by the government to support local projects include worker training programs and providing clean energy at reasonable prices for investors. It has also improved regulations to make it easier for investors to start businesses in the country.
Targeted industries
Therdsteerasukdi explained that the five target industries with the highest investment value in this year’s applications were:
– Electronics, Electrical and household appliances: 183.44 billion baht
– Digital: 94.2 billion
– Automotive and auto parts: 67.85 billion
– Agriculture and food processing: 52.99 billion
– Petrochemicals and chemicals: 34.341 billion
The official emphasized that, among the projects seeking privileges, those of high value and essential for Thailand’s economic recovery include:
– Data centers: 8 projects with a combined value of 92.76 billion baht from the U.S., Australia, China, Hong Kong, and India
– Advanced electronics (wafers, electronic design, semiconductors, integrated circuits): 15 projects with a combined value of 19.86 billion baht
– Printed circuit boards and related materials: 55 projects with a combined value of 61.3 billion baht
– Smart electronic devices and appliances: 13 projects with a combined value of 38.97 billion baht
– Design and manufacturing of high-precision machines and automated systems: 117 projects with a combined value of 30.52 billion baht
– Renewable energy production: 351 projects with a combined value of 85.67 billion baht
The official concluded by explaining that during the first nine months of this year, the BOI issued privilege cards for 2,072 projects, a 59% increase compared to last year. The total value of the projects is 672.17 billion baht, a 101% increase from last year.
