InfoQuest (August 5, 2019) -- In the first half of 2019 (from January to June), BOI received 758 investment promotion project applications, up 7 percent from last year’s 707 in the same period, but the total investment of 232.610 billion Thai baht was 17 percent lower than last year, according to Duangjai Asawachintachit, secretary general of the Board of Investment of Thailand (BOI).
This is mainly because there was a large investment promotion project in the first half of 2018, namely, the refined oil production project led by Thai Oil Public Company Limited.
Of all investment promotion projects submitted this year, 57 percent belong to the target industries stipulated by the government, with a total investment of 131.850 billion Thai baht. This reflects the consistency between the current investment trend and the direction set by the Thailand 4.0 strategy. Among other industries, electronic and electrical equipment manufacturing is most popular, followed by automobile and parts, and agriculture and food processing. Specific businesses include data center, underwater cable, machinery and automatic equipment manufacturing, etc.
In addition, the number of investment promotion projects in biotechnology industry is also on the rise, such as the production of cell growth promoters used as cosmetic ingredients, and microbiological research and development projects related to low-sugar fruit juice production.
In the first half this year, there were 468 foreign direct investment projects (FDI), up 4 percent; the total investment surged 109 percent from last year's 70.530 billion Thai baht to this year's 147.169 billion Thai baht. Of Thailand's all foreign investors, Japan ranked first with a total investment of 42.454 billion Thai baht, accounting for 29 percent of Thailand's total FDI, followed by China (24.278 billion Thai baht), Switzerland (11.443 billion Thai baht), Singapore (7.615 billion Singapore dollar) and China's Hong Kong (7.534 billion Thai baht).
In particular, the Eastern Economic Corridor (EEC) has a total investment of 118.050 billion Thai baht, including 68.210 billion Thai baht in Chonburi Province, 40.310 billion Thai baht in Rayong Province and 9.530 billion Thai baht in Chachoengsa Province, and accounting for 51 percent of the combined investment of all investment promotion projects.
Ms. Duangjai said that BOI's investment promotion policy was part of Thailand's economic and development strategy. From January to June 2019, BOI approved 717 investment promotion project applications in total, attracting an aggregate investment of 191.790 billion Thai baht and creating 43,878 jobs for Thai people. By encouraging the use of domestic raw materials, about 236.216 billion Thai baht worth of raw materials is consumed per year, thus giving a great boost to Thailand's economic growth. Chemicals, plastic and paper industries posted extraordinarily excellent performance, generating 337.245 billion Thai baht of export revenue every year for Thailand.
On top of that, more jobs have been created in Thailand. For example, BOI recently approved an application for an investment promotion project in furniture manufacturing. Located in Nong Chik District, Pattani Province with a total investment of 1.5 billion Thai baht, this project will create more than 4,000 jobs in Thailand's southern border region.
Source: InfoQuest, by Nisarat Wichiensri / Rachada, translated by Xinhua Silk Road Notice: No person, organization and / or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
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