Thailand’s Board of Investment (BOI) has recently revealed that the total number investment applications received in 2021 rose by close to 60% boosted by foreign investment (FDI) pledges in tech sectors and projects in the bio, circular and green industries, as well as a continued push in the power generation sector. The total value of FDI reached a value of THB 643 billion (USD 19.4 billion) in 2021. For 2022, the BOI expects investment to equal or surpass the level of 2021.
The BOI revealed that Japan, China and Singapore were the top three source countries of FDI applications in 2021. The agency also reported that it is witnessing constant growth in foreign investments in target sectors such as smart electronics, specialty chemicals, bioplastics and the medical cluster.
Electrical appliances and electronics topped the list of target sectors attracting the most applications with THB 105 billion (USD 3 billion) in value. The medical sector was second with a value of THB 62 billion (USD 1.9 billion), followed by petrochemicals and chemicals, agriculture and food processing, and automotive. The fastest-growing sector was the digital sector, which saw the value of applications soar almost ninefold. The combined value in activities related to biotechnologies and environmentally friendly manufacturing more than doubled, confirming a growing commitment to sustainable activities, including bio-plastics and recycling farm waste. Also worth highlighting is that the power generation sector saw significant growth, as Thailand expands its infrastructure and transitions to renewable energy and clean natural gas.
In a related recent development, the BOI approved additional incentives to support the strategy to enhance Thailand’s position as a regional bio-hub through its bio-economy initiative. The measures include two new business types eligible for special incentives: digital trading platforms for agricultural products and agri-food industrial estates/parks.
(Sources: The Bangkok Post; Reuters)
