The Thailand Board of Investment (BOI) recently approved a series of investment projects worth a combined 41 billion baht (approximately USD 1.1 billion). According to news released by the BOI, these projects cover various sectors, including the manufacturing of electric vehicles (EVs), renewable energy generation from waste, data centers, and infrastructure for travel and tourism.
The Thailand Board of Investment (BOI) recently approved a series of investment projects worth a combined 41 billion baht (approximately USD 1.1 billion). According to
news released by the BOI, these projects cover various sectors, including the manufacturing of electric vehicles (EVs), renewable energy generation from waste, data centers, and infrastructure for travel and tourism.
Thailand strategic investments for 2024-2027
Under this updated strategy, five strategic industries and activities have been identified as focal points for investment promotion in Thailand over the next four years (2024–2027). These include the Bio-Circular-Green (BCG) sector, encompassing agriculture, food, medical, and clean energy; the automotive sector, particularly focusing on EV manufacturing and related supply chains; electronics, with an emphasis on upstream and smart electronics; digital and creative industries; and regional headquarters and international business centers. These sectors will receive special investment incentives to encourage growth and development.
In terms of recent investment trends, the BOI has witnessed a significant increase in investment applications. From January to August 2023 alone, the BOI received applications totaling 465 billion baht, representing a 47 percent increase compared to the same period in the previous year. The number of applications also rose by 33 percent to 1,375 projects. This surge in investment interest underscores the confidence of international investors in Thailand's economic potential and the effectiveness of the new investment promotion strategy.
Key projects approved during the recent BOI meeting include investments by prominent companies such as Changan Automobile, a leading Chinese car manufacturer. Changan Automobile secured approval for an 8.86 billion baht investment in a factory aimed at producing electric vehicles. The facility, located in Rayong Province, will have an initial annual production capacity of approximately 58,000 battery electric vehicles (BEVs) and 36,500 plug-in hybrid electric vehicles (PHEVs). This investment marks Changan Automobile's first production base for right-hand drive vehicles outside of China.
Additionally, investments were approved for projects in renewable energy generation from waste. Companies such as C&G Environmental Protection (Thailand) and New Sky Energy (Bangkok) received approval for power generation projects valued at 4.89 billion baht each. These projects aim to produce electricity from waste and will be located in Bangkok.
Furthermore, the BOI approved investments in data center infrastructure, with True Internet Data Center receiving approval for a 3.59 billion baht investment in a data center business to be situated in Nonthaburi Province.
The approval of investments in travel and tourism infrastructure and equipment was also notable. Thai Airways International PCL secured approval for a 9.31 billion baht investment to acquire five passenger aircraft, while Songcheng Holding (Thailand) received approval for a 9.54 billion baht investment in tourism infrastructure and attractions located in Chonburi Province.
In addition to project approvals, the BOI announced significant milestones in investment promotion for the year 2023. Investment applications reached a five-year high of 848.3 billion baht, reflecting a 43 percent increase from the previous year. This surge was driven by large foreign investments in sectors prioritized by the BOI's new Investment Promotion Strategy, accounting for more than half of the total investment pledges.
Thailand FDI projects soar
The influx of foreign direct investment (FDI) into Thailand also saw a remarkable increase, reaching 663.2 billion baht in 2023, representing a 72 percent rise compared to the previous year. This surge in FDI was attributed to the ongoing geopolitical uncertainties prompting companies to relocate, coupled with the Thai government's proactive investment promotion policies.
Foreign investors from various countries, including China, Singapore, the United States, Japan, and Taiwan, contributed significantly to the increase in FDI. China emerged as the leading source of FDI applications, followed by Singapore and the United States. The Eastern Economic Corridor (EEC), comprising provinces such as Chonburi, Rayong, and Chachoengsao, continued to attract the majority of investments, accounting for 54 percent of total pledges.
The recent BOI meeting and investment trends highlight Thailand's attractiveness as an investment destination, particularly in strategic sectors such as electric vehicles, renewable energy, data centers, and tourism infrastructure. The country's proactive investment promotion efforts and favorable business environment have positioned it as a good destination for both domestic and foreign investors seeking opportunities for growth and expansion.
To learn more about current Thailand market developments and ongoing projects, click here to visit the Secutech Thailand website. Secutech Thailand is set to return Oct. 30- Nov. 1, 2024. This year will feature special technology zones targeting smart fire solutions, platform and software, biometric solutions, safety and rescue solutions.