The Thailand Board of Investment (BOI) announced that the combined value of foreign and local applications for investment promotion in 2021 totaled 642.7 billion baht (ca. US$19.5 billion), an increase of 59%, boosted mainly by foreign direct investments (FDI) in tech sectors and a continued increase in the value and number of projects in Bio-Circular-Green (BCG) industries, as well as the continued buildup of the power generation sector.

“Investment applications in BCG activities are continuously increasing as investors take advantage of the promotion measures that we have issued to help Thailand’s economy and companies operating here to prepare for the changing consumer demand and supply chains in the post-Covid-19 world,” BOI Secretary General Ms. Duangjai Asawachintachit told reporters.

As for FDI, we are seeing constant growth in foreign investments in target sectors such as smart electronics, specialty chemicals, bioplastics and the medical cluster.

BOI Secretary General Ms. Duangjai Asawachintachit

Electrics and electronics top the list

Electrics and electronics once again topped the list of target sectors which attracted the most applications with 104.5 billion baht in value, reflecting the soaring demand for electronics devices and parts, followed by the medical sector with 62.2 billion baht, petrochemicals and chemicals with 48.4 billion baht, agriculture and food processing with 47.7 billion baht, and automotive and parts with 24.6 billion baht.

Japan remains first country source

Japan once again topped the list of FDI source countries with a combined investment value of 80.7 billion baht for 178 projects, followed by China with 38.6 billion baht in investment pledges for 112 projects, and Singapore with 29.7 billion baht for 96 projects.

The top three sectors for FDI applications were electrics and electronics, petrochemicals and chemicals, and the medical cluster.

In terms of regions, the Eastern Economic Corridor (EEC), Thailand’s prime industrial area comprising Chonburi, Chachoengsao, and Rayong, attracted the most applications with 220.5 billion baht, an increase of 34% from 2020.

Additional Measures to Support Bio-Hub

Additional measures aimed at supporting the bioeconomy include two new businesses to be incorporated in the BOI list of activities eligible for incentives: namely “Digital Trading Platform for Agricultural Products” and “Agri-Food Industrial Estates/Parks”.

Both new activities will be eligible for tax benefits for 5 years.

The approved package also includes improved benefits and conditions for businesses involved in the production of extracts from natural raw materials and products using those extracts.

○ BOI : The Board of Investment of Thailand

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

How COVID-19 Pushed 4.7 million More People in Southeast Asia into Extreme Poverty

Two years after the pandemic began, the report says growth prospects are brighter for economies with widespread technology adoption, resilient merchandise exports, or rich natural resources

Thailand’s GDP rebounds in Q4 but recovery still lagging its peers

Oxford Economic expects economic momentum to improve further in 2022, with GDP rising by an above-consensus 5.1%. However, Oxford Economics expects the policy rate to remain at 0.5% until Q1 2023 as Thailand’s stunted recovery and a partial recovery in tourism still warrants an accommodative stance.

Beyond Tourism: How Thailand Economy Is Bouncing Back From COVID-19

Kirida Bhaopichitr is Economics Research Director at the Thailand Development Research Institute which advises the Thailand Government on development policies. She argues this is more than just a pandemic bounce for ASEAN’s second biggest economy.