loader image

Close to 900 projects valued at THB364.42 billion pursued BOI incentives in the first six months of 2023.

As foreign investors grow more enthusiastic about setting up their manufacturing hubs in Thailand, there’s been a substantial 70% increase in the value of projects seeking privileges from the Board of Investment (BOI) in the first half of the year, reaching THB364.42 billion.

According to Narit Therdsteerasukdi, the BOI Office’s chief executive, during the first six months of the year, a total of 891 proposals have been forwarded, all hoping for tax reliefs and other investment benefits that amount to THB364.42 billion.

This represents an 18% surge in project numbers and a notable 70% hike in project value compared to the previous year. Out of the 891 endeavors, 464 aimed at certain industries that make up THB286.93 billion, a whopping 79% of the overall project value, Narit mentioned.

The majority of these endeavors are centered around electric and electronic manufacturing, agricultural development, food processing, and the automotive industry.

Highlighting the shift in trends, Narit pointed out that there were 106 projects related to the electronic sector, with an investment of THB160 billion, marking a seven-fold rise compared to the previous year.

“Given the geopolitical tensions among major powers and the escalating costs in the West, there’s a noticeable influx of foreign manufacturers setting shop here,” observed Narit.

This confidence in Thailand’s potential means a surge in investments, particularly in sectors like printed circuitry, semiconductors, capacitors, solar technology, and advanced electronic gadgets.

Furthermore, the first half of the year saw 139 ventures in the agro-industrial and food production sectors, critical to Thailand’s economy, with investments amounting to THB51.27 billion. Prominent global brands, including Lotus Biscoff and Pringles, are among these investors.

Automobile manufacturing, too, hasn’t been left behind. With 80 projects totaling THB19.6 billion, there’s a focus on producing tires, hybrid vehicle parts, and EV charging infrastructure.

14 projects, with a combined worth of THB33.97 billion and a production capacity for 276,640 Battery Electric Vehicles annually, have already received the green light from BOI. Beneficiaries include BYD, Great Wall Motor, and Mercedes Benz, among others.

In the power generation domain, 195 projects have sought BOI endorsement, cumulating to THB26.207 billion. The Eastern Economic Corridor (EEC) remains a hotspot, with 306 projects worth THB171.47 billion vying for BOI’s nod, making up 47% of the total applications.

The first half also witnessed a 141% YoY rise in foreign direct investment, reaching THB304 billion across 507 projects. China leads the pack with investments in 132 projects, aggregating to THB61.5 billion.

Highlighting the nation’s progress, Narit shared that Thailand’s position in the IMD World Competitiveness Ranking leaped from 33 to 30 this year.

Additionally, the BOI has greenlit long-term residency for over 4,200 international professionals till June end, primarily from Europe, the U.S., and China.

For those interested in tapping into this wave of investment opportunities and registering their companies in Thailand under BOI privileges, ATA Services is equipped to assist in streamlining the process.

Based on a report from “The Nation”.