New factory investments soar in first half of year
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The Industrial Works Department has announced that investments in new factories increased by 189 per cent in the first half of this year, thanks to the improving economy.
Most new plants were located in the Central region and continued growth is expected in the second half of the year, the department’s director-general Nattapon Nattasomboon said.
He added that in the first six months of this year, the department issued permits for 2,156 new factories, an increase of 15.6 per cent over the same period last year. This resulted in 49,198 people being employed, up 21.6 per cent, and a total investment value of Bt178.85 billion – an increase of 189.2 per cent.
A total of 44 electronic appliances and equipment plants accounted for the highest investment value, employing 4,799 people with a total investment of Bt14.67 billion. This was followed by 67 machinery and tools factories, employing 2,256 people with a total investment value of Bt13.83 billion; and 166 automobile and components factories, employing 4,651 people with an investment value of Bt9.96 billion.
There were also 237 vegetable product factories, employing 2,442 people with an investment value of Bt9.45 billion; and 196 metal product factories, employing 2,923 people with an investment value of Bt8.87 billion.
Most of the new factories – 697 – are concentrated in the Central region (excluding Bangkok), followed by the East with 296 factories and the North with 254.
The eastern region offers the best potential for the growth of new factories, as there is a lower risk of flooding than in the Central region. Toshiba set up a new semi-conductor plant in Prachin Buri in addition to its production base at the Bangadee industrial estate in Pathum Thani province, Nattapon said.
Three hundred factories sought factory expansion permits in the first half of the year, up 47 per cent on the same period last year. A total of 34,187 new jobs were created, an increase of 60.6 per cent, for a total investment of Bt79.38 billion, up 252.4 per cent.
The high number of new factories and factory expansions in the first half of the year follows improved economic sentiment. The department expects continuing growth in the second half of this year, amid encouraging business and economic prospects ahead of the launch of the Asean Economic Community by 2015. Export trends look good for some industries, while domestic demand remains strong, such as in the automobile industry, Nattapon said.
In the first half of the year there were 671 cases of business operations closing, down 9.9 per cent on the same period last year. This resulted in 23,286 jobs being lost, a decrease of 8.6 per cent. The total investment value of the closed factories was Bt16.44 billion, a 40 per cent decline, Nattapon said.
