Sharp upturn in foreign firms investing in Thailand as confidence grows
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The number of foreign businesses investing in Thailand during the first half of the year has risen strongly over the same period last year, showing high confidence among overseas investors in the country's growth, the Business Development Department repor
A total of 178 foreign enterprises have established new services businesses in Thailand under the Foreign Business Act (FBA) so far this year, representing a year-on-year increase of 16 per cent.
Combined investment also rose significantly, by 139 per cent to Bt10.53 billion, creating at least 2,638 new jobs.
Ittipol Changlum, deputy director-general of the department, said that with the bright outlook on the Thai economy and stable politics, more foreign investors would undoubtedly invest in the Kingdom.
Moreover, upcoming Asean economic integration has attracted many businesses to invest here and elsewhere in the region. Thailand is considered by many foreign firms as the centre for their investment and expansion to other Asean countries, he said.
This month alone, 35 new foreign businesses have been approved to start up operations in the Kingdom. Their combined investment capital was Bt1.6 billion, with the new businesses expected to create at least 335 jobs for Thais.
The number of new foreign investors during the month has grown 133 per cent from May, and by 67 per cent compared with June last year.
Initial investment capital in June has risen 711 per cent month on month, and 326 per cent year on year.
The most popular type of business for foreigners under the FBA is services, accounting for 54 per cent of all newly registered firms. These companies are largely in the financial-service, leasing and rental fields.
Other service businesses popular with foreign investors are agencies, partnerships for state-owned enterprises or government agencies, and wholesale and retail.
The leading foreign investors so far this year are from Japan, Hong Kong, Indonesia, Singapore and Switzerland.
