Thailand forecasts 558 billion baht foreign investment in key sectors

[webfact]

 

Following a series of global roadshows led by Prime Minister Srettha Thavisin, the Board of Investment (BoI) anticipates a surge of at least 558 billion baht (US$15 billion) in foreign investment inflows into Thailand. The funds are expected to be channelled primarily into four critical sectors – digital, electric vehicles (EVs) and components, electronics and semiconductors, and logistics.

 

BoI’s Secretary-General, Narit Therdsteerasukdi, detailed the forecasted investments for each sector. The digital sector is projected to attract 250 billion baht (US$7 billion), Evs and components 210 billion baht (US$5.7 billion), electronics and semiconductors 95 billion baht (US$ 2.6 billion), and logistics 3 billion baht (US$52 million).

 

The secretary-general highlighted the government’s proactive measures to foster the EV industry. These included enticing new investors and supporting existing ones in transitioning to the rapidly evolving market conditions.

As a result, prominent Chinese companies, including BYD, Aion, Changan, GWM and MG, have selected Thailand as their manufacturing hub. Also, four dominant Japanese automobile manufacturers intend to increment their investments with a cumulative value exceeding 150 billion baht (US$4 billion) in the next five years.

Narit mentioned the ongoing negotiations with American and European EV manufacturers and discussions with leading battery cell manufacturers. He anticipates at least two major battery manufacturers will invest in Thailand within the year.

 

Regarding the electronics and semiconductor industry, the BoI chief stated that Thailand had enticed investments in midstream electronic products. The goal is to enhance the industry by luring upstream electronics and promoting electronic design.

 

Foreign investment

 

In the digital industry, especially data centres and cloud services, Narit expects at least two hyper-scale data centre investors to invest this year. He believes these investments would encourage additional ones over the next decade.

 

Narit said the government plans to roll out more incentives to lure top foreign companies to establish regional offices in Thailand. The move aims to position Thailand as the regional centre for international business, finance, and logistics. He expects at least five leading companies to establish regional offices in Thailand this year, reported Bangkok Post.

 

The secretary-general noted that applications for BoI investment promotions reached a nine-year peak of 850 billion baht (US$ 23 billion) in 2023, with foreign direct investment (FDI) increasing by 72%. In the last quarter of the previous year, FDI surged by 145% compared to the same period in 2023, said Narit concluded.

 

“BoI incentives are sufficient to attract foreign investors, whether they are tax incentives or other privileges. The signs are clear that we will attract more investment. It is a good thing the prime minister made overseas trips himself because he is at the policy-making level.”

 

by Alex Morgan

Picture courtesy of Bangkok Post

 

Full story: The Thaiger 2024-03-27

 

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[bamnutsak]

3 minutes ago, webfact said:

the Board of Investment (BoI) anticipates

 

So this is a "forecast".

 

4 minutes ago, webfact said:

BoI’s Secretary-General, Narit Therdsteerasukdi

 

Does this chap have a history of successfully forecasting foreign investments in Thailand?

[bob smith]

Thailand - Forever on the take.

 

bob.

[hotchilli]

4 hours ago, webfact said:

Following a series of global roadshows led by Prime Minister Srettha Thavisin, the Board of Investment (BoI) anticipates

I stopped at that word..

[Srikcir]

"Thailand forecasts 558 billion baht foreign investment in key sectors" - that's called inflow FDI (IFDI).

What is the outflow FDI (OFDI) - Thailand's investment in foreign markets?

Why is the latter just as important as the former? Because it helps foreign exporters create new or expanded export channels to Thailand.

From statistics reported by Bank of Thailand 

• Five highest recipients of Thailand's OFDI in 2023Q3 were (rounded) China at 83 billion baht, Singapore at 60 billion baht, US at 58 billion baht, Japan at 42 billion baht and EU (excluding UK) at 27 billion baht.
• Five lowest are Vietnam at 2 billion baht, Netherlands at 4 billion baht, Kuwait at 5 billion baht, and New Zealand at 9 billion baht
• Total OFDI of all recipients at 470 billion baht. 

To me the lower Thailand's OFDI, the higher opportunity for greater trade through higher OFDI. Surprise, Thailand's Inflow FDI exceeds its Outflow FDI. Thailand can afford increased OFDI to create more trade with more nations. Universally, international trade is a "two-way street." 

Well, except when Thailand is addicted to purchasing foreign weapons.

[Mike Lister]

20 minutes ago, Srikcir said:

"Thailand forecasts 558 billion baht foreign investment in key sectors" - that's called inflow FDI (IFDI).

What is the outflow FDI (OFDI) - Thailand's investment in foreign markets?

Why is the latter just as important as the former? Because it helps foreign exporters create new or expanded export channels to Thailand.

From statistics reported by Bank of Thailand 

• Five highest recipients of Thailand's OFDI in 2023Q3 were (rounded) China at 83 billion baht, Singapore at 60 billion baht, US at 58 billion baht, Japan at 42 billion baht and EU (excluding UK) at 27 billion baht.
• Five lowest are Vietnam at 2 billion baht, Netherlands at 4 billion baht, Kuwait at 5 billion baht, and New Zealand at 9 billion baht
• Total OFDI of all recipients at 470 billion baht. 

To me the lower Thailand's OFDI, the higher opportunity for greater trade through higher OFDI. Surprise, Thailand's Inflow FDI exceeds its Outflow FDI. Thailand can afford increased OFDI to create more trade with more nations. Universally, international trade is a "two-way street." 

Well, except when Thailand is addicted to purchasing foreign weapons.

For clarity:

 

FDI is net, inclusive of outflows.  

 

Outward FDI is investment abroad.