Thailand forecasts 558 billion baht foreign investment in key sectors
Following a series of global roadshows led by Prime Minister Srettha Thavisin, the Board of Investment (BoI) anticipates a surge of at least 558 billion baht (US$15 billion) in foreign investment inflows into Thailand. The funds are expected to be channelled primarily into four critical sectors – digital, electric vehicles (EVs) and components, electronics and semiconductors, and logistics.
BoI’s Secretary-General, Narit Therdsteerasukdi, detailed the forecasted investments for each sector. The digital sector is projected to attract 250 billion baht (US$7 billion), Evs and components 210 billion baht (US$5.7 billion), electronics and semiconductors 95 billion baht (US$ 2.6 billion), and logistics 3 billion baht (US$52 million).
The secretary-general highlighted the government’s proactive measures to foster the EV industry. These included enticing new investors and supporting existing ones in transitioning to the rapidly evolving market conditions.
As a result, prominent Chinese companies, including BYD, Aion, Changan, GWM and MG, have selected Thailand as their manufacturing hub. Also, four dominant Japanese automobile manufacturers intend to increment their investments with a cumulative value exceeding 150 billion baht (US$4 billion) in the next five years.
Narit mentioned the ongoing negotiations with American and European EV manufacturers and discussions with leading battery cell manufacturers. He anticipates at least two major battery manufacturers will invest in Thailand within the year.
Regarding the electronics and semiconductor industry, the BoI chief stated that Thailand had enticed investments in midstream electronic products. The goal is to enhance the industry by luring upstream electronics and promoting electronic design.
Foreign investment
In the digital industry, especially data centres and cloud services, Narit expects at least two hyper-scale data centre investors to invest this year. He believes these investments would encourage additional ones over the next decade.
Narit said the government plans to roll out more incentives to lure top foreign companies to establish regional offices in Thailand. The move aims to position Thailand as the regional centre for international business, finance, and logistics. He expects at least five leading companies to establish regional offices in Thailand this year, reported Bangkok Post.
The secretary-general noted that applications for BoI investment promotions reached a nine-year peak of 850 billion baht (US$ 23 billion) in 2023, with foreign direct investment (FDI) increasing by 72%. In the last quarter of the previous year, FDI surged by 145% compared to the same period in 2023, said Narit concluded.
“BoI incentives are sufficient to attract foreign investors, whether they are tax incentives or other privileges. The signs are clear that we will attract more investment. It is a good thing the prime minister made overseas trips himself because he is at the policy-making level.”
