Thailand's Investment Landscape: Record Surge in Applications and Foreign Direct Investments

The Thailand Board of Investment (BOI) revealed today that foreign and local investors submitted 397 applications for investment promotion during the first quarter of 2023, totaling 185.7 billion baht (USD 5.5 billion). This marks a remarkable 77% increase from the 104.8 billion baht recorded in the same period last year.

The surge in investment flow is largely attributed to rising foreign direct investments (FDI) and significant projects in sectors such as electric appliances and electronics (E&E), food processing, chemicals, and the automotive industry. This substantial growth underscores the support for BOI's new investment strategy, which became effective in January.

Mr. Narit Therdsteerasukdi, Secretary General of BOI, expressed his satisfaction with the notable rise in investment applications, emphasizing the investors' interest in the benefits offered by the new investment strategy aimed at transforming Thailand's economy.

The electric appliances and electronics (E&E) sector dominated the investment landscape, accounting for 94.7 billion baht in investment value, with food processing ranking second at 23.5 billion baht.

Meanwhile, foreign direct investment projects witnessed an impressive 115% surge in value, amounting to 155.3 billion baht, constituting 83% of the total applications. The number of FDI projects also saw a 10% increase, reaching 211.

The Republic of Korea emerged as the top contributor to FDI value, with investments worth 31.4 billion baht, primarily driven by a major project in the E&E sector. Singapore followed closely with 29.7 billion baht, mainly due to an 18.5 billion baht investment in a solar cell production business by a Canadian company's unit.

China ranked third in investment applications, showing an 87% increase in value, reaching 25 billion baht from 13.4 billion baht in the previous year. Japan secured the fourth position, with a combined investment value of 24.8 billion baht, more than doubling the 10 billion baht worth of pledges in the same period of the previous year.

The Eastern Economic Corridor (EEC), encompassing Chonburi, Chachoengsao, and Rayong provinces, topped the regional ranking by attracting 101.1 billion baht worth of investment pledges, nearly doubling the 54.8 billion baht recorded in the preceding year.

Recently, from 15-18 May, Mr. Narit led a BOI delegation on an investment roadshow to the Republic of Korea. The event included a business seminar focusing on "Thailand Investment Promotion Policy: New Economy, New Opportunities," attended by over 180 participants, including representatives of 40 leading South Korean companies. Additionally, a roundtable meeting with members of the Korea Electric Vehicle Industry Association discussed investment opportunities in Thailand's fast-growing EV supply chain.

SUBCON Thailand 2023, the country's largest international industrial subcontracting trade show, jointly organized by BOI, the Thai Subcontracting Promotion Association, and Informa Markets, achieved great success with local and foreign exhibitors and buyers. The event resulted in over 8,500 business matching sessions worth at least 20 billion baht in expected business value. Held from May 10 to 13 in Bangkok, the event, in conjunction with INTERMACH, ASEAN's leading international industrial machinery exhibition, aimed to foster connections between multinational corporations and Thai small and medium enterprises, advancing the manufacturing value chain.

Source Thailiand Board of Investment Jan - March investment