Thailand hits investment boom as 2,195 projects seek BOI privileges
The Board of Investment chief believes this record surge in applications reflects investors’ confidence in government policies
The first nine months of this year saw 2,195 projects worth 722.53 billion baht applying for privileges with Thailand’s Board of Investment.
BOI secretary-general Narit Therdsteerasukdi said on Monday that the value of projects seeking privileges between January and September this year was the highest in 10 years.
The number of projects applying and their combined value is 46% and 42% higher, respectively, when compared to last year, he said.
This surge in project numbers and value proves that local and foreign investors have confidence in the Thai government’s policies and industry support measures. This also shows that BOI’s campaigns to draw big projects and new industries to Thailand are successful, Narit added.
Moreover, he said, the government has been developing an ecosystem to facilitate investments at a time when major investors in several countries are considering relocating their manufacturing bases.
The government, for instance, has launched projects to reskill workers and is providing clean energy at appropriate prices to investors. It has also improved regulations to make it more convenient for investors to start a business in the country.
Narit said the top five targeted industries with the highest investment value of applications this year were:
- Electric and electrical appliances: 183.44 billion baht
- Digital: 94.2 billion
- Automotive and parts: 67.85 billion
- Agriculture and food processing: 52.99 billion
- Petrochemicals and chemicals: 34.341 billion
Meanwhile, Narit said of the projects seeking privileges, the high-value ones essential to Thailand’s economic revival are:
- Data centres: 8 projects with a combined value of 92.76 billion baht from the US, Australia, China, Hong Kong and India
- Advanced electronics (wafer, electronic design, semiconductors, integrated circuit chips): 15 projects with a combined value of 19.86 billion baht
- Printed circuit boards and relevant 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
- Designing 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
Narit said 1,449 applications were submitted as foreign direct investment projects, marking a 66% increase compared to the previous year.
These FDI projects were worth 546.62 billion baht, up 38% compared to last year.
The top five countries with the highest FDI applications submitted to the BOI this year are:
- Singapore: 180.84 billion baht
- China: 114.07 billion baht
- Hong Kong: 68.20 billion baht
- Taiwan: 44.59 billion baht
- Japan: 35.47 billion baht
Narit explained that the applications from Singapore had come from subsidiaries of Chinese and US companies based in the island state. Most of them, he said, are seeking to invest in electronics and data centre businesses in Thailand.
Meanwhile, the value of the projects can be divided region-wise as follows:
- East: 408.37 billion baht
- Central: 220.71 billion baht
- North: 35.45 billion baht
- South: 25.04 billion baht
- Northeast: 23.78 billion baht
- West: 8.81 billion baht
He added that during the first nine months of this year, the BOI had issued BOI privilege cards for 2,072 projects, or 59% more compared to last year. The combined value of the projects is 672.17 billion baht, up 101% from last year.
Narit said issuing a BOI card is the final step before the investors start bringing in their investment funds. Normally this starts happening one to three years after BOI cards are issued.
