10-7-2023 (BANGKOK) Thailand experienced a significant surge in investment applications during the first half of 2023, marking a 70% increase from the previous year. The government revealed on Monday that this impressive growth was driven by foreign investors undertaking projects in the electronics, food, and automotive sectors.
According to a statement released by the Board of Investment (BOI), the total value of investment applications between January and June reached an impressive 364.4 billion baht ($10.37 billion). Additionally, foreign direct investment skyrocketed by 141%, amounting to 304 billion baht during the same period.
Leading the pack of investors was China, whose projects alone accounted for 61.5 billion baht. Singapore and Japan closely followed, with investments valued at 59 billion baht and 35.3 billion baht, respectively.
The BOI attributed the surge in investment pledges during the first half of the year to the robust performance of the automotive and related parts industry. Notably, this sector witnessed 80 investment projects worth a total of 19.6 billion baht.
As Thailand already holds a prominent position as a regional automobile manufacturing hub, the country has now turned its focus towards the promotion of electric vehicles (EVs). With aspirations to become the leading EV manufacturing hub in Southeast Asia, Thailand has already approved several investment projects in EV production. Among them are ventures by China’s BYD and Great Wall Motor.
Moreover, other major manufacturers, including China’s Changan Automobile and GAC AION New Energy Automobile, have announced their intention to submit investment applications in the latter half of this year, as stated by the BOI.
The remarkable increase in investment applications and foreign direct investment bodes well for Thailand’s economy. It not only reflects the country’s attractiveness to foreign investors but also reinforces its position as a regional investment hotspot. With the ongoing focus on developing the EV industry, Thailand is set to become a significant player in the global electric vehicle market, solidifying its status as a lucrative destination for foreign businesses looking to expand their operations.
