Thailand’s investment applications surge to five-year high in 2023

Thailand’s investment promotion applications in 2023 skyrocketed to a five-year high of 848 billion baht, marking a 43% increase from the adjusted figure of the previous year. The surge was powered by significant foreign investments in the five priority sectors identified in the Board of Investment’s (BoI) fresh Investment Promotion Strategy.

Contributing to this colossal growth in Thailand’s foreign direct investment (FDI), which reached 663 billion baht, was the relocation trend in major industrial sectors triggered by current geopolitical issues and the Thai government’s assertive investment promotion policy. This FDI figure is a 72% rise in value compared to 2022.

Thailand’s potential and readiness, combined with the new five-year investment promotion strategy and measures, have attracted substantial investments from companies seeking to relocate to a secure and resilient long-term base for their investments.

Furthermore, Prime Minister Srettha Thavisin’s leadership in numerous investment promotion roadshows has significantly bolstered investor confidence and positioned Thailand on the radar of prime investment communities, commented Narit Therdsteerasukdi, Secretary-General of the BoI, on Tuesday after a board meeting at Government House.

“Looking forward to 2024, we predict the Thai economy will expand, backed by the growth of exports and tourism revenue. We also anticipate a rise in investments due to the sustained flow of FDI, particularly in our priority sectors.”

The board meeting, led by Parnpree Bahiddha-Nukara, deputy prime minister and chairman of the BoI, also approved four investment promotion applications totalling 29.7 billion baht for projects including two data centres, steel wire production for the tyre industry, and steam production for industrial use.

Foreign investors

The BoI revealed that the total number of investment promotion applications submitted in the previous year by investors, both domestic and foreign, climbed 16% to 2,307 projects, collectively worth 848 billion baht. This was a 43% increase from a revised 591 billion baht in 2022, with the rise in total value reflecting the escalating number of sizeable projects, primarily from overseas.

The BoI’s new strategy outlined five priority sectors last year: bio-circular-green, electric vehicles (EV), smart electronics, digital and creative. These sectors collectively drew 759 applications, collectively worth 492 billion baht, or 58% of the total value of investment pledges.

Foreign investors submitted a total of 1,394 applications for investment promotion last year, marking a 38% increase from the previous year and a 72% rise in combined investment value to 663 billion baht, due to a significant number of large projects.

Investment applications from China topped the FDI sources by investment value, with 430 projects collectively worth 159 billion baht, or 24% of the total value of FDI applications in the period. This was boosted by Chinese investments in the electronics industry and the automotive supply chain, including EVs.

Singapore was second with 194 projects collectively worth 123 billion baht, boosted by sizeable project applications from Singapore-based affiliates of international companies in sectors such as solar cells and electronics.

Investments from the US came third with 40 projects valued at an overall 83.9 billion baht, followed by Japan with 264 projects valued at a combined 79.1 billion baht. Taiwan was in the fifth spot with 54.6 billion baht from a total of 94 projects, reported Bangkok Post.