Thailand Investment Promotion Summary

21 February 2022, 12:00

In 2021, the total value of investment promotion applied in Thailand was significantly increased due to the growth in the value of applications for the target industries, according to the information announced by the Thailand Board of Investment (BOI).

According to the announcement of BOI, the amount of value of applications for investment promotion in 2021 is totaling approximate 642.7 billion baht (approximate 19.5 billion USD), which 59% increase compared to the same period of the previous year. This corresponds to the 163% increase in the foreign direct investment (FDI) amount compared to the same period of the previous year. The target industries including electric appliances, electronic and medical industries grown in high rate due to the investment policy for future industries which is in conformity with the global change of production chain. Moreover, the value of applications for investment promotion of Bio-Circular-Green (BCG) industries increased by more than 150 billion baht.

The mentioned above value of FDI in 2021 include 783 projects applying for investment promotion, with a total investment value of 455,331 million baht, the increase of 163% compared to the same period of the previous year. The top three countries applying for the promotion with the most investment value is Japan with an investment value of 80,733 million baht, followed by China with an investment value of 38,567 million baht and Singapore with an investment value of 29,669 million baht, respectively.

Regarding applications for investment promotion in the target industries, the total investment value is 340,490 million baht, representing 53% of the total investment promotion application value, with the top 5 being: 1) Electric appliances and electronic industries, with an investment value of 104,490 million baht, as a result of development of electronic devices to support 5G technology and the transition of technology for connecting various high-tech devices, such as technology used in electric vehicles, etc. 2) Medical industry, with an investment value of 62,170 million baht, as a result of the covid-19 situation which causes consumers paying more attention to health care and causes increase in demand of medical products, 3) Petrochemical and chemical industries, with an investment value of 48,410 million baht, 4) Agricultural and food processing industries, with an investment value of 47,660 million baht, and 5) Automotive and parts industries, with an investment value of 24,570 million baht.

In addition, BCG industries, which covers a wide range of industries such as agroindustry, food processing, and biotechnology, have been continuously growing according to the value of applications for investment promotion in the total amount of 152,434 million baht which is 123% increase compared to the same period of the previous year.

In conclusion, while the overview of investment promotion in Thailand in 2021 has been increased compared to the previous year, the relevant situations for investment in 2022 should be closely monitored and updated to further analyze and specify suitable investment policy for maintaining and enhancing opportunities in the future.

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