27-10-2023 (BANGKOK) Thailand has attracted a significant amount of foreign investment during the first nine months of this year, with Japan leading the pack in developing businesses in the country. According to Napintorn Srisanpang, the deputy commerce minister, the Foreign Business Committee approved 493 investment applications under the Foreign Business Act, marking a 13% increase compared to the previous year.
Although the number of investment applications rose, the overall investment value saw a 15% decline. However, these investments resulted in the employment of 5,703 Thai workers, indicating a 41% increase during the period.
The top five countries with the most investment applications were Japan (111 applications), the US (80), Singapore (77), China (38), and Hong Kong (20). In terms of investment value, Japan led with 22.9 billion baht, followed by Singapore (20.5 billion), China (13.3 billion), Hong Kong (5.36 billion), and the US (3.98 billion).
Mr. Napintorn highlighted that the transfer of technology and specialized knowledge from foreign investors to Thais was also a significant outcome of these investments. This included knowledge related to various sectors such as petroleum oil drilling, cement injection techniques for drilling platforms, construction procedures for underground stations, electrical and electronic system design for rail projects, wind energy production, and aircraft tire troubleshooting.
Most of the businesses granted permission aligned with Thailand’s infrastructure development and investment promotion policies, aimed at improving the country’s competitiveness. These included petroleum drilling services, maintenance and repair services for offshore petroleum wells, electric railway projects, natural gas pipelines and facilities, medical equipment and healthcare facilities, enterprise software services, and international business centers.
Investment interest in the Eastern Economic Corridor (EEC) was also significant, with 99 foreign investors expressing interest during the first nine months of the year. This accounted for 20% of the total number of foreign investors, with an investment value of 16.1 billion baht, representing 19% of the total investment value. Japan, China, and Hong Kong were the major investors in the EEC.
In September, 59 foreign investors were granted permission to conduct business in Thailand, marking a 22% increase compared to the previous year. The total investment during that month amounted to 18.2 billion baht, with most investors coming from Japan, China, and Hong Kong. These enterprises employed 1,219 Thai workers, contributing to the country’s economic growth and development.
