BANGKOK, Oct 17 — Thailand’s foreign direct investment (FDI) applications decreased 25 per cent in the first nine months of 2022 from a year earlier to 275.6 billion baht (RM34.1 billion) with major investments in electric vehicles (EV) and parts.
The Board of Investment (BOI) in a statement said the main source of FDI applications during the period was China with 45 billion baht (RM5.5 billion) followed by Taiwan (39.3 billion baht or RM4.87 billion), Japan (37.6 billion baht or RM4.66 billion), the United States (34.3 billion baht or RM4.25 billion), and Hong Kong (26.3 billion baht or RM3.26 billion).
During the first nine months, it said FDI applications data for China, Hong Kong and Taiwan all included investments in the manufacturing of new EV and parts.
“Major EV investments announced in Thailand this year involve plants by BYD, whose investment is coming through its Hong Kong-based unit, and Foxconn,” it said.
Meanwhile, BOI secretary-general Narit Therdsteerasukdi said the value of investment applications in the period dropped 14 per cent to 439.1 billion baht (RM54.3 billion) from 511 billion baht (RM63.2 billion) in the same period last year.
However, he said foreign and local investors filed with the BOI totalled 1,247 applications for investment promotion worth a combined 439.1 billion baht compared with 1,149 projects with a combined value of 511 billion baht in the first nine months of 2021.
This reflected a smaller average project size, he added.
“Thailand’s Eastern Economic Corridor area saw 376 projects for promotion, representing a combined investment value of 246.7 billion baht (RM30.5 billion) or 56 per cent of the total value of applications in the first nine months. Most are investments in Rayong and Chonburi provinces,” he said.
Meanwhile, Narit said the BOI approved the framework of its five-year Investment Promotion Strategy which focuses on entering the new economy era by encouraging technological advancement, the transition to green and smart Industries, talent development, as well as creativity and innovation, to strengthen the country’s status as a regional hub for business, trade and logistics.
He said the new investment promotion strategy (2023-2027) sets out to promote investment to restructure the country’s economy around three core concepts, namely innovation, technology, and creativity; competitiveness and the ability to adapt quickly; and inclusiveness, taking into account environmental and social sustainability.
“In view of the challenging, volatile and highly competitive global environment, the BOI will stay ahead of changes and keep promoting investment in a way that achieves concrete results, helping to lead Thailand into the new economy.”
To reach that objective, Narit said the BOI would broaden its role from that of a ‘Promoter’ providing tax and non-tax benefits, to focus on becoming an ‘Integrator’ of investment support tools, a ‘Facilitator’ providing services, and a ‘Connector’ linking industries to create more business opportunities.
— Bernama
