The Thailand Board of Investment (BOI) reported a significant increase in investment applications in 2023, reaching a five-year high of 848.3 billion baht (approximately USD 24 billion), representing a 43% increase from the previous year.
- Thailand’s investment applications surged by 43% in 2023, reaching a five-year high of USD 24 billion, driven by large foreign investments in priority sectors and the relocation trend in key industrial sectors.
- Foreign Direct Investment (FDI) in Thailand soared by 72% in 2023, with significant contributions from countries like China, Singapore, the U.S., Japan, and Taiwan, particularly in the electronics and automotive supply chain sectors.
- The Thailand Board of Investment (BOI) approved four significant investment promotion applications, including data centers, steel wire production for the tyre industry, and steam production for industrial use, signaling a positive outlook for continued FDI growth in 2024.
Large foreign investments in priority sectors
The surge was primarily driven by large foreign investments in priority sectors such as BCG (Bio-Circular-Green), electric vehicles, smart electronics, digital, and creative industries. Foreign direct investment (FDI) also increased by 72%, with the People’s Republic of China leading in investment value, followed by Singapore, the U.S., Japan, and Taiwan.
The Eastern Economic Corridor (EEC) attracted the highest investment, and the BOI approved several large projects, including data centers and industrial production facilities. The growth in investment is expected to support the expansion of the Thai economy in 2024.
Project Approvals
The investment applications approved by the board include the following projects:
- NextDC, a leading Australian data center operator, received approval for a 13.76 billion baht investment in a new hyperscale data center which will be located in Bangkok.
- CtrlS Datacentres (Thailand) Co., Ltd., a unit of CtrlS Datacenters LTD, a global data center operator based in India, received approval for a 5.04 billion baht investment in a new hyperscale data center which will be located in the Digital Industry and Innovation Promotion Zone (EECd) in Chonburi province.
- Xingda Steel Cord (Thailand) Co., Ltd. received approval for a 6.66 billion baht investment in a new factory to produce steel cord, bead wire and steel wire mainly for use in the manufacturing of tyres, with an annual production capacity of 260,000 tons. The plant, which will be located in Chonburi province, is expected to export 50% of its output, and will further strengthen Thailand’s automotive sector supply chain.
- TPI Polene Power PCL received approval for a 4.24 billion baht investment in the production of steam for distribution to power and cement production plants. The facility, to be located in Saraburi province, will have a production capacity of 480 tons of steam per hour, and will run on power generated from waste (refuse-derived fuel, or RDF).
