The Thai Board of Investment (BOI) Reports Vigorous Growth in Q3 Investment Projects
- November 15, 2012
Enterprises continue to regard Thailand as an excellent business location. Offering a skilled but affordable workforce, advanced industrial estates, lively economy and supportive government policies, the country is seeing investment projects grow vigorously.
The Board of Investment (BOI) reported that the number of investment project applications received from January to September 2012 exceeded the set target, indicating that investor confidence in Thailand as a leading production center in Asia remains very strong. In the January-September period, entrepreneurs submitted a total of 1,583 projects, valued at 804 billion baht, for BOI promotion. That represents a 21.6% jump in number of projects and a 97% leap in value compared with the corresponding nine months of 2011.
Of the new projects during the third quarter, foreign direct investment (FDI) accounted for 433 billion baht worth on 1,057 applications. This shows a robust FDI increase of 36% in volume and 70% in value over January-September a year ago. Investors from Japan contributed the lion’s share of FDI in the period, followed by the United States and Europe. Projects that are export-oriented, where between 80% and 100% of output would be for overseas markets, made up nearly 60% of the quarter’s applications.
At 237.4 billion baht on 51% y-o-y growth, services and infrastructure had the highest investment value in the first nine months of 2012. Automotives, metal processing and machinery was second with 186.5 billion baht, up 52%.
In the chemicals, plastics and paper sector, new projects were worth 174.0 billion baht, a 69% jump from a year earlier. Entrepreneurs in the electrical appliances and electronics sector submitted projects worth 104.8 billion baht for a 41% increase. Other major investments came in agriculture and agricultural products.
Of areas throughout the country, BOI Zone 2 representing mainly Rayong, Ayutthaya, Chonburi and Chachoengsao provinces attracted the most new investment at 512.2 billion baht. Value there rose by 55% from a year earlier.
For its many advantages as an investment location, the World Bank ranks Thailand very high at 17th out of 183 countries among the easiest places to conduct business. This fact is recognized by successful enterprises that run the gamut of industries here. Thailand is among the world’s top producers of everything from natural rubber, canned pineapple and frozen seafood to hard disk drives, integrated circuits and semiconductors. Moreover, the nation’s vibrant automotive industry is projected to break into the global top 10 by 2015.
With its strategic position at the heart of Asia, Thailand will become even more attractive as an investment location when the surrounding region forms the ASEAN Economic Community single market of 600 million consumers in 2015. Already a top logistics hub of Southeast Asia, Thailand is well positioned to give businesses smooth connectivity throughout the economic bloc. Boasting efficient international airports, deep-sea ports, and road and rail networks, the country’s logistical capability can help AEC- oriented manufacturers save costs for greater competitiveness.