BOI applications beat 2016 target, exceed Bt580 bn
THE VALUE of applications for Board of Investment privileges surged to Bt584.35 billion last year, beating the target of Bt550 billion and lending hope that this year will pass Bt600 billion.
Secretary-general Hirunya Suchinai said yesterday that the BOI expected increases in the number of projects and their investment value this year thanks to the government’s “digital economy” policy promoting high-tech investment.
High-tech industries are expected to draw more foreign talent and technology transfers under the “Thailand 4.0” policy.
Last year saw applications for 1,546 projects, of which 70 per cent were approved. Of those approved projects, 33 per cent have started investment procedures.
The number of projects in 2016 was up 56 per cent from 2015’s 988 projects, while their value soared by 196 per cent from Bt197.74 billion in 2015.
Many software businesses have asked to invest in Thailand. This will help drive the growth of the digital economy for the country in the long run.
To draw more foreign direct investment, the BOI is relying on a six-prong strategy for this year.
It will support infrastructure development, electric cars and parts, sophisticated technology industries such as aviation and parts, medical equipment and medicine, renewable energy and the East Economic Corridor.
The BOI will enforce new laws including the BOI Act and the draft competition act in support of new investment in research and development and innovation.
Industries that have attracted the most foreign investment are automobiles and parts (Bt88.51 billion), electronics and electrical appliances (Bt64.91 billion), petroleum and chemical products (Bt46.98 billion), agriculture (Bt45.89 billion) and tourism (Bt21.98 billion).
US President Donald Trump’s policy to encourage Americans to invest in their homeland should not yet make a difference to US investors in Thailand as most of them are suppliers for the Asean and Asian regions.
“In discussions with some American investors, they said they would keep on investing in Thailand and would expand more to supply the growth of the Asean region,” Hirunya said.
Last year, the BOI approved 1,688 investment projects worth Bt861.34 billion. Those approval projects will start investment in one to two years.
The approvals will create at least 139,000 jobs for Thais, encourage the use of domestic raw materials worth Bt697 billion per year and produce exports worth Bt877 billion per year.
