Second wave of global Investment/BoI

Chatrudee Theparat

The second wave of foreign investment to Thailand would support investment applications for BoI promotion for over next five years, leading to surpass a target of three trillion baht in total value of promoted investment.

Applications for the Board of Investment (BoI) investment promotion would exceed its target of three trillion baht in value under its strategy plan between 2023 and 2027, thanks to the second wave of investment.

Narit Therdsteerasukdi, BoI's secretary-general, said three factors including trade war since 2019, changing geopolitics and Covid-19 have caused a big wave of global investment. Thailand needs to catch up such a trend.

“Three factors would enhance the applications for BoI investment promotion during 2023-2027 to surpass three trillion baht. This is the second wave of investment in Thailand after the first wave of investment to Thailand in the past 30 years.”

The roadshows and the government’s measure for new investment are launched, with a total budget of 558 billion baht, including 210 billion baht for auto parts, 250 billion for digital such as wafer testing, 95 billion baht for electronics and semiconductors and three billion baht for logistics.

Of the total 558 billion baht, the projects which are expected to be implemented within 1-2 year are electronic and electrical vehicles: three billion baht of data center; 150 billion baht next five years of four auto companies from Japan.

“The meetings between the prime minster and the Japanese car makers in Japan during the roadshow in December 2023 have led to an investment plan of leading Japanese car manufacturers to invest over 1.5 trillion baht within five years.”

This provides opportunities for the local supply chain to maintain their ICE business and adapt towards future EV production in the current competitive landscape. Simultaneously, the government also continues to engage in ongoing negotiations with major EV manufacturers from Europe and America and the roadshow to China in early this April to attract the battery cell manufacturers from China to use Thailand as production base.”

The applications for BoI’s privileges in 2023 worth over 850 billion baht, the highest in 9 years.

They are advancing investment in electric vehicles (EV), electronics, semiconductor, data centers, and cloud services, as well as regional offices.

Narit Therdsteerasukdi

Mr Narit said the government is committed to maintaining Thailand's leadership position in the automotive industry in the region. As a result, several top Chinese automotive companies such as BYD, Aion, Changan, GWM, and MG have chosen Thailand as their manufacturing base for exports.

In addition, the government has implemented measures to support the production of key components for electric vehicles. Currently, the government is in discussion with leading battery cell manufacturers worldwide. It is expected that within this year, at least two major battery manufacturers will invest in Thailand.

Regarding the semiconductor and electronics industry, Thailand has achieved success in attracting investments ranging from midstream to downstream electronics manufacturing. The expansion investment of Hana is expected to be implemented by this year

“Therefore, the government aims to develop an ecosystem by attracting entrepreneurs involved in advanced semiconductor production, such as wafer fabrication, electronics design, outsourced semiconductor assembly and test (OSAT), and wafer testing, to Thailand.”

In the digital industry, particularly in data centers and cloud services, which is the backbone of the future AI industry, it is anticipated that within this year, at least two hyperscale service providers will finalize the investment in Thailand. This is expected to drive continuous investment worth hundreds of billions of baht over the next decade. These investments will support Thailand in achieving its goal of becoming the digital economy hub of the region.

The government's focus is on attracting leading companies to establish regional headquarters in Thailand to drive the country's role as a financial hub and logistics hub.

ML Chayotid Kridakorn

ML Chayotid Kridakorn, advisor to the Prime Minister and president of the Thai Trade Representative, said that over the past 6 months, the prime minister and his delegation have embarked on visits to 14 countries, engaging in discussions with over 60 leading companies worldwide.

Each roadshow is indeed a comprehensive process, including crafting investment packages that resonate with and address investors' needs, following up with investors, and resolving issues, including various regulations by the Prime Minister’s team, alongside the BOI to ensure Thailand as chosen destinations of foreign investors.