Thailand BOI reports steady growth of FDI, boosting auto industry

Thailand Board of Investment (BOI) shared the accomplishments for the first nine months of 2023 and introduce the new Automotive Industry Upgrade Measures.

Narit Therdsteerasukdi, Secretary General of the BOI.

Increased project applications and foreign investment

In the first nine months of 2023, the BOI received a total of 1,555 project applications, reflecting a substantial 31% increase in value to combined THB 516.8 billion, marking a 22% year-on-year increment.

Infographics on investment project applications.

This underscores the growing confidence of investors in Thailand’s investment ecosystem and the effectiveness of new investment promotion strategy aimed to transform the Thai economy towards the “New Economy”.

The upsurge of Foreign Direct Investment (FDI) applications also marks the successful accomplishment. The number of FDI projects increased by 49%, totaling 910 projects, with a remarkable 43% increase in investment value, reaching THB 398.5 billion compared to the previous year.

China emerged as the largest source of FDI applications, contributing to 24% of FDI value, with a total investment pledge of THB 97.4 billion for 264 projects. Ranked second, Singapore is with 133 projects representing combined investments of THB 80.2 billion.

Japan secured the third position with 176 projects worth THB 43.1 billion in investments, with Taiwan and Korea came fourth and fifth.

Ranking of countries on FDI applications.

“The positive response from foreign investors reflects their trust in Thailand's potential. The BOI's focus on strategic sectors and the nurturing of an innovative ecosystem has made the country increasingly appealing for investors,” explained Narit Therdsteerasukdi, Secretary General of the BOI.

Targeted industries remain on top

Targeted industries accounted for 787 applications, representing a substantial 51% of total investment applications with a combined value of THB 366.2 billion, making up 71% of the total investment application value.

Proportion of different industries according to their investment value.

E&E industry secured the top among sectors, with 171 projects, an 84% increase compared to last year, and an investment value of THB 208.2 billion.

Argo-industry and food processing sector came second with 213 projects, which is a 32% rise and a combined value of THB 55.7 billion. While the automotive and parts industry had 151 investment applications, with an 89% increase, reaching a total of THB 42.2 billion.

"The approved investment projects in 2023 are expected to contribute THB 2 trillion per year of export value and generate employment for over 100,000 positions,” stated Narit Therdsteerasukdi.

Future measures to attract investment

To further favor the investment climate, the BOI board stressed the importance of tackling challenges and collaborating with other government agencies to bring success to the “Ease of Investment” agenda in various areas.

This includes the relaxation of Foreign Business License (FBL) requirements and foreign workers’ visa and work permit regulations, provision of clean and renewable energy, and other investment-related regulatory hurdles.

In addition, BOI is committed to assisting the automotive industry, with approved enhanced incentives for automotive manufacturer, including import duty exemptions for machinery and a 3-year corporate income tax exemption package.