The first quarter of 2023 saw a significant increase in investment pledges in Thailand, according to the Board of Investment (BoI).
The total value of the pledges rose by 77% year-on-year to 203.4 billion baht, driven by projects in the digital, electric vehicle and medical sectors. The BoI also reported that the number of bad loans in the banking system fell to 2.68% of total loans, the lowest level since 2019.
The BoI secretary-general Duangjai Asawachintachit said that the investment pledges reflected the confidence of both domestic and foreign investors in Thailand’s economic recovery and potential. She added that the BoI had been promoting investment in targeted industries that aligned with the government’s policy to transform Thailand into a high-tech and low-carbon economy.
Among the major projects that received BoI incentives in the first quarter were a 10.6 billion baht electric vehicle battery plant by a joint venture between Thai and Chinese firms, a 6.8 billion baht digital park by a leading property developer, and a 5.9 billion baht medical equipment factory by a Japanese company.
The BoI also announced that it had extended the deadline for applications for its special stimulus package until the end of June 2023. The package offers additional tax and non-tax benefits for projects that can start operations within 12 months after receiving BoI approval.
The BoI expects to attract 750 billion baht worth of investment pledges this year, up from 481.1 billion baht in 2022.